Businesses need the right environment to prosper, time for governments to help nurturing startups. When a government supports businesses, it leads to job creation and a more robust economy.
If small businesses and startups are nurtured and backed by the government, it leads to them being more profitable and successful. If new startups and companies begin to take root, it creates new jobs and a better economy.
Here are a few ways of how world governments can help nurture and support startups and businesses:
1. Developing and maintaining infrastructure.
Without infrastructure, you can’t expect business to boom.
Startups and businesses need necessary infrastructure such as an efficient transport network (roads and highways in particular) that saves them time during their commute, centers for enterprises and startups to house their operations in, along with stable power and internet.
When governments use the resources available to them and build needed infrastructure, more investments come in and aid the government.
Not having adequate infrastructure, frustrates entrepreneurs. If they can’t find the infrastructure and support they need, most entrepreneurs will consider moving to another country with a better support system. Governments can’t afford to lose talented individuals as they are the workforce that power countries and economies.
2. Low-interest loans for businesses.
Starting a business needs capital. Most entrepreneurs (around 80%) fund their activities from their own pockets.
If governments provide low-interest loans for businesses and startups, entrepreneurs will have much more financial flexibility and leverage to start a business.
Another thing that governments can do to make sure that the loans businesses receive are spent purposefully is to arrange counseling sessions and seminars for entrepreneurs who benefit from government-provided loans.
If proper guidance and planning sessions are made available, entrepreneurs and startups will be able to avoid traps and pitfalls that often end up running the business into the ground.
3. Easy registration for new businesses.
The longer it takes for a business to get registered, the longer it would take for the company to be profitable.
Having the first mover’s advantage is vital in the business world. If an entrepreneur comes up with a brand-new idea that could revolutionize an industry, you’ll get him to register his business as soon as possible.
Sadly, the time it takes for a business to register varies quite often.
In Venezuela, it takes 114 days and 17 procedures to start a business. In New Zealand, it can only take half a day.
More information on various countries you can find in the Worldbank report, it could help you to decide where to expand and which government are ready to help nurturing startups and deliver smart government services.
If the government can reduce the time it takes for a business to get registered, it would make the process less of a hassle and allow entrepreneurs to focus on their business instead of filling forms and worrying about the registration forms.
4. Simpler laws and regulations.
Most legal systems are complex and act as a barrier of entry for new startups and businesses.
If governments and legislators focus on reforming the legal system, more businesses would be able to start.
Simpler laws and regulations would allow businesses to start their operations without involving lawyers who charge more than a pretty penny.
Taxes also scare away people from starting a business. If more governments launch initiatives that simplify taxation enough for the common man to understand, it would be an excellent incentive for businesses.
5. Promote specific training.
If the workforce of a country is not skilled, it’s the government’s job to sponsor institutions that train individuals. For Instance, giving people typing training for making them successful live chat app agents.
The cost of hiring a professional with a particular skillset from outside of a country is high. Most businesses can’t afford this expense and are often left behind due to a lack of talented individuals.
When governments provide adequate funding to trade schools and launch initiatives to promote blue-collar skills, the result is a workforce that is capable and readily available.
Having a skilled workforce gives businesses more opportunities to select human resources best suited to their business needs.
6. Focus on educating the workforce.
An uneducated workforce is not going to be able to keep up with the advances in technology.
If governments provide funding to educational institutions and support students in need, businesses will be able to recruit an educated worker who can be of great value to the startup and the economy at large.
Having an educated populous saves businesses time and resources when recruiting.
Recruitment is a hit or a miss sometimes. But having educated professionals available allows businesses to make better decisions.
7. Support veteran business owners that have suffered losses.
Veteran entrepreneurs who have started a business but failed are experienced in the craft of forming a corporation.
These individuals have had the experience needed to set up a business. No one knows how to ride a bike the first time they get on one. But with struggles and patience, they succeed.
The same goes for businesses. For entrepreneurs who’ve suffered a loss in their previous ventures, there is good news. Entrepreneurs that are starting a new business have a higher chance of success.
Governments should support veteran entrepreneurs and business owners. Governments can show their support by offering funding and more opportunities for these individuals.
One of the main factors for a business’s success is the security of the region.
Without security, it would be hard for any start-up to raise any capital or get funding from investors. Investors want to invest in businesses that will be successful. Having low stability in a region is an indicator that the particular area is not ideal for conducting business.
Governments can help startups and businesses by ensuring that there are peace and stability. By enabling police and law enforcement, crime can adequately be tackled. Less crime means more security, which translates to a better environment for businesses in general.
Conclusion Help in Nurturing Startups
Startups and small businesses always need a little help in their inception. If they get the proper guidance and funding that they need at the start, they’ll be in a much better position when they’d become larger.
Governments have the resources to bring massive change to the lives of a nation. A government can’t be expected to be the only one creating jobs and looking after the economy. A public-private partnership, where businesses are provided more opportunities and support, allows for the businesses to be a profitable venture, which everyone wants. Help in nurturing startups and businesses will stay a focus area for any Government of the future.