2. SPECIFIC OBJECTIVES: students
should be able to:
1. Describe at least THREE forms of assistance provided by government
to businesses after class discussion
2. Discuss briefly, the social services provided by government after
class discussion
4. DISCUSSION
What do you think are some of the ways in which the
government can assist businesses?
5. ● One of the main aims of all governments is to make the
economy of the country more efficient. This involves
increasing the competitiveness of the country’s industries
in comparison with other countries.
This enables businesses to expand, produce more and
employ more people. For these reasons, it’s in the interest
of all governments to help businesses to achieve their full
potential, because in doing so, businesses can be
influenced to contribute to the ideal of full employment
and add to national prosperity. Most governments
support businesses in the following ways:
6. 1. Lending capital and
technical Assistance - They
lend some businesses
money/capital. Government
institutions for lending
include the Small Business
Association of Jamaica,
Micro Investment
Development Agency, etc.
These loans are usually at
low rates of interest and are,
therefore, cheaper than loans
2. Training and Human Resource
Development - The government
may also provide training (human
resource development and technical
assistance. Through the agricultural
extension officers, information,
advice and training are given to
small and medium sized farmers on
various aspects of plant animal
husbandry.
Technical schools have also been
established to train people in skills
construction, refrigeration, etc.
Agencies such as the Heart Trust
NTA also offer these opportunities.
7. 3. Research and Information Centres -
Government can also set up research
and information centres to assist
businesses in getting accurate and
timely information that may benefit
them. For instance, the Scientific
Research Council (SRC) assists
business in scientific research that has
positively affected agricultural
production globally.
The Bureau of Standards has also
helped with the identification and
maintenance of standards in
commercial activities.
4. Subsidies and Grants -
Government also give subsidies and
grants to businesses, both of which
help them to cut costs of production
and ultimately to produce more.
Subsidies also referred to as
subventions, can be in the form of
money or material, while a grant is a
money/gift that does not have to be
repaid. For businesses that have just
been set up, government may grant
tax concessions for a while until
they can “stand firmly on their own
two feet”.
9. The government will provide services which the private
sector would be either unable or unwilling to supply at
a price that all people could afford to pay. Typical
social services that the government provides include:
1. Healthcare
2. National Insurance
3. Education
4. Roads and Transportation
10. HEALTHCARE
If governments increase the number of hospitals and outfit them with
the necessary equipment, as well as, increase the amount of money
spent on training health professionals, this may result in a healthy
population. A healthy population means a strong and vibrant labour
force that will work efficiently, leading to economic growth and
development of the productive sectors.
Ministry of health has put in place a ‘Jamaica Moves’ campaign to
educate the population about making healthier lifestyle choices.
11. 2. NATIONAL INSURANCE
This is a scheme in which both employees and employers
contribute. It is usually deducted from salaries.
This scheme provides sick benefits, maternity benefits,
disability, unemployment and old age pensions for
contributors. All of these benefits help to maintain the
standard and prevent them from falling into a state of poverty.
12. 3. EDUCATION
This is one of the fundamental factors of economic development.
Education raises the productivity and creativity of the population,
provides entrepreneurship and contributes to technological
advances.
Government provides public schools and assists them through
ministry grants. The result is that a greater portion of the
population becomes informed and literate than if education were
entirely through private means. More persons will be able to get jobs
through being educated and this will reduce the unemployment rate.
13. ROADS AND TRANSPORTATION
Good roads and transportation can lead to greater efficiency in the productive
sectors and thus an increase in the overall production of the economy. This could
lead to further increase in wealth and an enjoyment of higher standards of living
and quality of life.
Without public transport those who do not own a car would not be able to get
about. Similarly, non-drivers and young people, such as students, need access to
public transport. For businesses thrive, it is very important to have a proper
infrastructure within the country. Smoothly paved roads will allow efficient
transportation to and from destinations along with timely delivery of goods and
services.
