Encouragement of Enterprise
Business: Cambridge International GCSE (2027 Exams), topic 1.3.11
Encouragement of Enterprise
The government can encourage enterprise. This is because it will help lead to economic growth.
Grants and loans
- In the UK, the government can offer grants to start-ups through the 'New Enterprise Allowance.'
- A grant is money provided by the government that does not have to be paid back.
- The New Enterprise Allowance is a weekly allowance over a 26-week period.
- This makes it easier for entrepreneurs to launch their business.
- This helps enterprise as it reduces initial costs.
- Loans can be up to £25,000. Start-ups have to pay this back.
Training
- The government can provide training to promote enterprise.
- In doing so, entrepreneurs are equipped with skills to launch their businesses.
- This improves the chance of success and as a result, leads to competition in the market.
- The government also provides mentoring for SMEs.
- SMEs are small-medium enterprises.
- SMEs are businesses with fewer employees and lower turnover than large companies.
Test yourself on Encouragement of Enterprise
How long does new enterprise allowance last for?