Government Must Financially Support Business Startup
Authored by: Songkrea Oueng
Submitted to : Facilitator Hannah Trivitt
Liger Leadership Academy
Submission Date :
Although, money is very limited to all nations; financially supporting business startups must be one of the priorities to the government of each country because it benefits individual income and general growth of the economy for each country, provides more employment opportunities and reduces the uses of natural resources in communities. The Statista, reported that, “There are 20 countries in the world having the greatest decrease of gross domestic product” (in text citation). One of them is the Republic of Congo, they depended mostly on minerals including diamonds, gold, copper, cobalt, cassiterite and oil in the past. Meanwhile, DR Congo has become one of the poorest countries in the world due to the extinction of those precious resources. This happens because they depend on natural treasures more than businesses which turned their economy upside down, provided less employment opportunities and took a lot of goods from our planet. Therefore, more business will return good results such as financial income of each nation, job opportunities, and preservation of natural resources.
Business start up aiding will benefit individual income and the growth of a country’s economy. A well known economic website, Investopedia, explains specifically that economics of each country grows when the Gross Domestic Product of the nation increases. GDP only rises when the total value of products or service produced in a country boosts. That means it does not include investments from foreign countries. In order for productions to grow, different sectors from any parts of each country must do something. This simply means a lot of people in each nation must make money. Starting a business is not a piece of cake. Andreas Rivera, staff writer from Businessnewsdaily points out ten needs to start a business: “ideation, plan, finances, legal business structures, registration with government and IRS, purchase an insurance policy, team building, choosing a vendor, brand and importantly the growth of the business” (in text citation). One of the needs that people who start up a business struggle the most is financial problems. CNBC reported that, “90 percent of entrepreneurs fall during starting up new business and one of the main reason is financial assessment, business rarely makes money during their first three years and most of them run out of budget before the reaching the approach point”. This statistic shows clearly that it can cause a major problem to the backbone of a country. However, if governments put more effort into this problem the situation will change rapidly. United Kingdom is one of the high ranked countries because the economy started to take action in supporting business startup. The British Bank provides the fund loan up to 25,000 euro for adults that have a reasonable business idea (british-business-bank). A program supported by USAID called Youth Innovate Cambodia held in Cambodia provides up to 3,500 US dollars for a business plan and startup idea that fits with their agreement. (Geeksincambodia) Because all of these initiatives, the number of profitable business becomes 40% in 2016. (Smallbiztrends) The average GDP in 2014 is 10 880 USD and 17 300 USD in 2017 per capita. (The Statista) It is clearly shown that business start ups are truly beneficial to individual income and the growth of each country economy.
Not only money, but businesses also provide employment opportunities as well. The Guardian, a newspaper from United Kingdom, shows that 205 million people in 2010 living without a job which is a lot. Truly, a lot of businesses open up more employment opportunities. To prove this, Apple employed 14,800 employees in 2005 but they employ 132 000 employees in 2018. (The Statista) This amount of opportunity increase because the company going very well. As we know to have a successful business entrepreneur need a dozen helps. Financial is the main one that forces more than 50% of business startup to fail. (CNBC) The government of each nation must put a closer attention to provide employment opportunities.
Forty years ago, our economies depended mostly on natural resources which took a lot of the treasure from its mother. (United Nations) That is not very sustainable because it can run out of resources one day. However, business start-up seemed to pop up and solve the problem. A lot of entrepreneur coming up with a new idea to solve the problem. Colonel Sanders came up with a creative idea for the guests that wait to fill the petrol. He makes chicken fried that people can enjoy while they are waiting. That startup continues going until his logo spread around the world. (Snagajob)This shows that startups are very helpful that is very worth for the government to support business start-up financially to guide the way for all entrepreneurs.
Bringing together such a wide range of research is truly proof that startup business is very significant and consequential. The economy of a country grow when each people make more income so it means that more business will return more benefit to each person individually and the whole country as well. More business will open up more opportunity to all human begin to have a better life. It also helps to reduce the poverty rate in our healthy community as well. The last advantage of a startup is to stop the culture of using natural resources to make money and this help a lot to make a friendly ecosystem. This touchy essay hopes that all governments can consider supporting all entrepreneur to make they start up wealthy.
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