How can government help small-scale industries.

[TOZZIBLINKZ]

Governments have the tendency of impacting and decompressing the existence of small scale industries and producing firms . In the area of impacting the existence of industries government can provide some certain factors which could enable small scale industries to maximize their level of output or production . Below are some of the ways government can impact small scale businesses :

1. Social amenities : most small-scale industries today are suffering from the inability to transfer raw materials from where they have been bought to where they will be manufactured into finished goods . Government can help solve the problem by providing social amenities like good roads , equipped sea port , and railway lines etc to easily transport the bulky nature of most raw materials .

2. Subsidy : Most small scale industries cannot afford some raw materials as a result of it costly and expensive prices , the government can help in this case by subsidizing the price of this raw materials , in this way small scale industries will be able to afford this raw materials with an affordable amount of money . In another case the government can provide small scale industries with funds to be able to buy raw materials for production .

 

[Jasz]

Government can protect infant industries by implementing tariffs and subsidies, which are two types of trade barriers.
Tariffs are taxes on imported goods. Tariffs raise the prices of imported goods, making domestic goods relatively less expensive, which enables domestic industries to survive against foreign competition.

Government subsidy is an important aspect of any business. It helps businesses in many ways. Subsidy provides protection for businesses from uncertain events. When the market demand is not much, the businesses are protected from losses due to low sales

A government subsidy is a form of financial aid provided by the government to businesses. Sometimes, it's also called a subsidy or an aid. A subsidy can be given to both private and public companies, but it is usually given to businesses that are deemed to be important for the country's economy. Subsidies can be either direct or indirect. Direct subsidies are grants that the government gives directly to a business, while indirect subsidies are tax breaks, which reduce the taxes of a business. The government implements subsidies for various reasons, including, To encourage specific industries in order to boost the the economy.