What firm need from the government
-high savings
- low-interest rates for investment
- sound property rights
- good governance
- rapidly expanding domestic market
- technologically motivated and committed workforce
1. WHAT FIRM NEED FROM GOVERNMENT TO GO HEAD TO HEAD WITH RIVALS
HOW COMPANIES HAVE FLOURISHED DUE TO ADVANTAGES PROVIDED BY GOVERNMENT..
2. FIRM
TYPES OF FIRMS:
1. Sole proprietorship
2. Partnership
3. Limited partnership
4. Corporation
5. Limited liability company
6. Non-profit firms
A firm is a commercial enterprise, a
company that buys and sells products
and/or services to consumers with the
aim of making a profit.
3. Firms employ
different factors
of production
Developing new
products
Investing in
capital and new
technology
Providing good
and services for
the customer
WHAT FIRMS ARE CONTRIBUTE TO NATION'S ECONOMY:
4. GOVERNMENT ROLE IN
FIRMS GROWTH:
Permission To Form And Operate
Revenue And Taxation
Tax Credit For Investing In Research
Tax Relief For Innovation.
Government Contract Award Procedure For New Products
Government Guarantee
Credit Schemes
Government Procurement
Creating And Enforcing Contracts
Ensure They Get Good Advice
Through Different Schemes
5. Most businesses need to register with a state government to
operate. Corporations need a charter, and other forms of
businesses, such as limited liability companies or partnerships,
need other forms of registration.
The function of this registration is usually to define the financial
liability the owners of the company have.
It limits their risk to the amount they have invested in that
particular organization. Registration also allows the government
to monitor companies to execute its other functions in the
business world.
Vedanta’s Sterlite Copper Plant At Thoothukudi Denied
Permission To Operate By Nation Green Tribunal.
PERMISSION TO
FORM AND
OPERATE
6. Governments at all levels tax businesses, and the resulting
revenue is an important part of government budgets. Some
revenue is taxed at the corporate level, then taxed as
personal income when distributed as dividends. This is in no
way inappropriate, since it balances the tax burden between
the company and individual and allows the government to
tax more equitably.
REVENUE AND
TAXATION
7. Research and development tax credits for companies (RDA
and WBSO) reduce the salary costs related to research and
development.
TAX CREDIT FOR
INVESTING IN
RESEARCH
8. Businesses can make profits from patents or activities that
fall under the Research and Development (Incentives) Act
(WBSO). For tax purposes, these profits can be itemized in
the innovation box – to which a lower rate of corporation
tax applies.
TAX RELIEF FOR
INNOVATION
9. The government of many countries asks companies with the
best bids to carry out a feasibility study. The companies with
the most feasible plans are awarded a contract to develop
their product further, so that the government may be able to
buy these new products in the future.
GOVERNMENT
CONTRACT AWARD
PROCEDURE FOR
NEW PRODUCTS
10. Government guarantee for part of loan
The loan guarantee scheme has been specially developed for that do
not have enough collateral – in the form of property or machines –
for banks to give them a loan. Under the scheme, central government
may act as guarantor for part of the loan.
Guarantee for businesses that want a loan
The Business Finance Guarantee Scheme is for medium-sized or
large businesses that want to take out a loan.
GOVERNMENT
GUARANTEE
11. Credit Guarantee Scheme for banks and investors
The Growth Facility is a credit guarantee scheme for bankers
and investors, enabling them to lend venture capital to
entrepreneurs.
Microcredit
Like Dutch Government Provides loans of up to €50,000 for
startups and other small businesses.
CREDIT SCHEMES
12. Small businesses should be given a real advantage in procurement.
Procurement policies and processes must be clear, protective and
accessible to the small guys, not a maze that ends up helping only
the big corporations.
For example The Australian Small Business and Family Enterprise
Ombudsman, Kate Carnell, has proposed that federal government
contracts worth up to A$10 million go through a small business
panel as part of the tender process. “Lowest cost is not always the
best value for money,” she said. We agree, with state and local
government procurement policies being equally important.
GOVERNMENT
PROCUREMENT
13. Businesses contract with other businesses. These contracts may
be complex, such as mergers, or they may be as simple as a
warranty on supplies purchased. The government enforces these
contracts. Companies bring one another to court just as
individuals do.
An oral agreement can constitute a contract, but usually only a
written agreement is provable. If one party fails or refuses to
meet its obligation under a contract, a company will turn to the
legal system for enforcement.
CREATING AND
ENFORCING
CONTRACTS
14. Rashtriya Krishi Vikas Yojana
ASPIRE
MUDRA Bank
Multiplier Grants Scheme
Support for International Patent Protection in Electronics
& Information Technology (SIP-EIT)
Credit Guarantee Scheme for Startups (CGSS)
Atamnirnhar Bharat Abhiyan
Ministry of Skill Development and Entrepreneurship
GOVERNMENT
SCHEMES WHICH
HELP BUSINESSES