Should Governments Provide Assistance to Start-Up Businesses? Is It Effective? Is It Necessary? Is It Desirable?

Prativa Khanal

Should governments provide assistance to start-up businesses? Is it effective? Is it

necessary? Is it desirable?

Helsinki Metropolia University of Applied Sciences

Metropolia Business School

International Business and logistics

16-11-2015

1637 words

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Abstract

This essay analyses the beneficial aspects of providing start-up assistance to businesses and

argues that it is indeed beneficial in the long run to provide such assistance for country’s

economic progress and competitiveness. The essay uses a few different examples from a few

countries and also a few other studies to make its conclusion. It has been argued that providing

start-up assistance, financial or non-financial, may provide entrepreneurs more confidence, a set

of new skill sets, additional investment money and an increased ability to take risks. This in turn

leads to faster business successes and creation of more jobs, increase in revenue and an

improvement in country’s competitiveness and expertise through invention and innovation.

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Contents

pages

1. Introduction

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2. What is Government Start-up Assistance for Businesses?

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3. Is Start-up Assistance Worth-Providing?

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7 Is start-up assistance necessary and desirable?

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5. Conclusion

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6. References

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Introduction

These days many governments in the world provide financial and other different forms

of assistance to start-ups and small business initiatives. In a sense, governments work as

venture capitalists or angel investors so that businesses get support for growth and

expansion, and hopefully repay governments with creating jobs and paying taxes.

However there is a dilemma and argument on whether taxpayer’s money should be

spent on businesses, instead of using it for public good.

This essay uses different studies and examples and argues that since start-up assistance

seems to help businesses to succeed and create jobs,...