Small Businesses Are Not Always Small in "IMPACT"

[Olatundespo]

Small businesses like restaurants, local shops, and other small enterprises play a huge role in every economy.
Individually they may seem small, but together they create jobs and keep the economy running. That’s why they are often called the "backbone of the economy".
However, these businesses often face big challenges like
- Limited access to loans
- Higher taxes
- Tough competition from big companies

This raises an important question: Should governments do more to support small businesses?

If you can meet the conditions imposed by the state financial institutions for providing loans, there are loan facilities for you. Banks or financial institutions do not want to provide loans to relatively small businesses because they are often in a risky situation. If you can provide collateral, you may be able to get a loan easily.

Various countries have policies and tax breaks given by the governments of various countries to provide financial support to small business owners. Some countries' governments provide loans to small business owners on easy terms. If you want, you can contact the designated government office in your country and apply for the facility.

Owners of large companies are in a good financial position, so they easily get loan facilities, but financially weak business owners cannot avail most of the facilities given by the government due to their poor management.

[Emitdama]

Small businesses like restaurants, local shops, and other small enterprises play a huge role in every economy.
Individually they may seem small, but together they create jobs and keep the economy running. That’s why they are often called the "backbone of the economy".
However, these businesses often face big challenges like
- Limited access to loans
- Higher taxes
- Tough competition from big companies

This raises an important question: Should governments do more to support small businesses?

I don't know what you mean by "higher taxes", because as far as my knowledge goes, companies that have higher yearly turnovers tend to pay more in taxes, and small businesses and enterprises that earn less compared to bigger companies are charged lower taxes based on their turnovers or profits on a yearly basis. I don't think governments are ever going to reduce taxes for any business regardless of its scale, because taxes are very important for governments, and besides, it's not that the taxes are being paid regardless of any profit; it's a percentage of the profit made that the businesses have to give away, so it's basically just a part of the system.

Also, small businesses don't always stay small. Any business that have the capacity can grow over time, the only condition is that the business is managed very well, and the demand for it keeps increasing over time, which can allow the owner of the business to scale their business, and possibly have multiple branches spread across the city first, then country, and possibly even go international if a possibility for that comes as well. However, as I said above, taxes will always be a part of it, and I don't think there is anything in specific that the government can do for small businesses, because as I said, it all depends on the ones running the business, not the government.

[Kelward]

Small businesses are the closest to the grassroots of their societies and how lucrative they will become doesn't depend only on their personal efforts according to their capacities, if their is enabling environment through government policies for them to function optimally it would in turn affect the economy positively. In a country where there is no portable water and poor electricity including lack of adequate security businesses cannot prosper especially the small scale startups. So government have a big role to play for small businesses to prosper, aside from what I mentioned above if government can give grants and soft loans to small businesses it would drastically reduce unemployment in their countries.

[Synchronice]

Small businesses like restaurants, local shops, and other small enterprises play a huge role in every economy.
Individually they may seem small, but together they create jobs and keep the economy running. That’s why they are often called the "backbone of the economy".
However, these businesses often face big challenges like
- Limited access to loans
- Higher taxes
- Tough competition from big companies

This raises an important question: Should governments do more to support small businesses?

Small businesses are important but they do not play a huge role in every economy. Small businesses like cafes and restaurants don't create good jobs, innovations and productivity growth. They aren't really responsible for making an economy rich and productive. Businesses, that really change things are pharmaceutical companies, semiconductors, biotech, electricity, software and other companies that are into these niches.

Also, just because the business is small, doesn't mean that the government should support them, especially if we mean subsidizing. The way the government can help them is better access to finances, fair taxations and regulations, training and most importantly, a fair competition, creating an environment where competition is fair and there is not a monopoly or cartel arrangements.

[HelliumZ]

the best way for the government to support small scale business is to give the business owner access to government loans and government grants as well, so that the small scale business owners can run affairs of their business. The government can also enroll them into payroll, because i don't think small scale business can move forward without government intervention. Every big business today started from small scale business and grew bigger today. Small scale businesses do make very impact on the societies because they create job opportunities and reduce unemployment in the societies.

The government cannot employ government employees in the private sector because in this case, there are never government employees in the management of private small industries and small marketing centers. However, the government can establish some government small businesses and cottage industries where the government can employ employees and make them part of its payroll. The government will not have to do so much if the government provides bank loans and government assistance to these small enterprises. If bank loans are provided at low interest rates, medium and small industrial enterprises will certainly be able to expand widely and a part of the country's population will have the opportunity to work in those small enterprises, which will eliminate the problem of unemployment.

[r_victory]

Undoubtedly, small businesses play a fundamental role in the economy, as they represent the majority and drive the economy, especially the local economy, generating jobs for residents of the neighbourhood where they are located. However, they don't receive much support from my country's government; the tax burden is extremely heavy, and many close their doors in the first year. In my neighbourhood, there are many of them: restaurants, stationery stores, and markets.

It is very important that governments begin to pay more attention to these businesses, instead of focusing only on large corporations and benefiting them, thinking that only they will bring returns.

[Renampun]

This raises an important question: Should governments do more to support small businesses?

I’ve always heard that small businesses are the backbone of a country’s economy, but I disagree with that statement because, although small businesses can contribute to the national economy, they are merely a supporting part of it, rather than its backbone.. Let’s take my country as an example: here, the government always claims that small businesses account for half of the national economy, and it constantly boasts of its achievements in supporting the development of small businesses, but what is the real impact of this? It is not particularly significant, as most of these small businesses remain small in scale and have limited productivity.. They also generate relatively low revenue and do not employ a large number of workers.. even when compared to a single special economic zone, the economic contribution of thousands of small businesses can still be relatively limited.

So I believe that whilst small businesses are good and need to be supported by the government, the government’s focus should be more on opening up larger opportunities for foreign investment, developing major industries, and creating more labour-intensive and higher-value jobs.. This will have a far greater impact on national economic growth in the long term, compared to simply focusing on small businesses, which are often limited in scale and productivity.

[Fawshahad82]

Hello everyone, Small businesses may look small but their impact can be enormous.
They create jobs support families and strengthen local communities.
Many successful companies started with nothing more than a simple idea.
With consistency trust and innovation small businesses can grow into big opportunities.
Their real value is not measured only by revenue but by the people they empower.
Never underestimate a small business it may be creating a big future🌟.

[Bitcoin.com97]

The truth is that many big companies we see today started somewhere, possible small ,so I don't see reason why people should look down on those small Business,as the matter of fact , government should even look into them , because they have a way of creating impact in the society,and also job opportunities,they play a very big role,but they are been neglected,that is why their business doesn't last especially those pressure and burden from taxes and other stuff ,like limited access to loan and geting help from government,buy I think they should be put into consideration because they have great impact.

[savetheFORUM]

Small businesses are important but they do not play a huge role in every economy. Small businesses like cafes and restaurants don't create good jobs, innovations and productivity growth. They aren't really responsible for making an economy rich and productive. Businesses, that really change things are pharmaceutical companies, semiconductors, biotech, electricity, software and other companies that are into these niches.

Also, just because the business is small, doesn't mean that the government should support them, especially if we mean subsidizing. The way the government can help them is better access to finances, fair taxations and regulations, training and most importantly, a fair competition, creating an environment where competition is fair and there is not a monopoly or cartel arrangements.

Yes, but they are still needed. Just like you need every other business, you also need a cafe as well. Imagine a nation with zero cafes anywhere; does that make sense to you? Do you know any nation that doesn't have them? Do we "need" them?

We do not. If a nation had zero cafes, then it would still be a nation, and nothing would go wrong. People would meet up at different places instead of cafes; they would meet at butcher shops if they want to, all I care. I do not give a damn, but if you get rid of every single cafe, a nation would still run. But we do not have that, do we? We have cafes all around; that means citizens demand cafes; they want cafes; that is why they exist in the first place.

If we never wanted one, we would not go to them, and people would not open them up, and eventually it would all go. Back in the day, there were "cassette" shops, because we listened to music on cassettes, and that meant that we had those shops because we wanted to. Now we listen on Spotify, so we have none of those shops. If cafes were not wanted, they would go away like those cassette shops; we would not have any. People want them, so they exist. Doesn't matter if it gives you any innovation, or good jobs, or progress, you HAVE TO have them because people want them.

[Agathamay]

This raises an important question: Should governments do more to support small businesses?

swear you don't know the answeer to this very question 🙋

i wouldn't be able to speak for other countries but for my country, i would always say that, the government is not doing enough for these group of people you mentioned and the worst is that, they are not even ashamed about that which is very wrong and i think it will be better if the government also tries to touch these area of the economy and possibly make grants easier for them as well as reducing their tax rate as this will help to improve the cost of living of the countrymen and women because a reduced tax rate and availability of grant for these people would drastically reduce the cost of prices of those commodities

[boyptc]

This raises an important question: Should governments do more to support small businesses?

swear you don't know the answeer to this very question 🙋

i wouldn't be able to speak for other countries but for my country, i would always say that, the government is not doing enough for these group of people you mentioned and the worst is that, they are not even ashamed about that which is very wrong and i think it will be better if the government also tries to touch these area of the economy and possibly make grants easier for them as well as reducing their tax rate as this will help to improve the cost of living of the countrymen and women because a reduced tax rate and availability of grant for these people would drastically reduce the cost of prices of those commodities

Based on what everyone has said, it seems that the majority of the countries that every member here is in doesn't give that help that small businesses deserve.

They don't look at the sector of small businesses to give them help when they need it the most.

These small businesses are the median that helps drive the economy. Corrupt government won't recognize that.

[Solodoski]

Small business a very important to the growth of every economy as you have mentioned, because it's a source of employment for a lot of people. I think the government really need to do more to support these small businesses,  especially with loans to help them grow. Most of this small businesses can really turn out great, but they don't have access to loans and when they do, the interest rate is very high, so that makes it very hard for these businesses to grow, but if the government can give out grants and loans to them, I believe it will really help a lot and also improve the livelihood of those people engaged in small businesses.

[Miles2006]

- Higher taxes

This is no longer a new thing, everyone knows how small businesses get taxed every time. An example of small businesses in this kind involve restaurant, I came across a lady complaining bitterly on her she get taxed every time from people who claim to be government workers so the best decision she made was shutting down her space to focus on home delivery alone.
How do the government expect small businesses to grow when tax fee keeps increasing always, definitely the government should do more to support small businesses grow although the loan aspect seems difficult especially if they’re not ready to take the risk instead an empowerment program when at the end business owners get a share percent to build their business and the benefit of this empowerment is not only for business owners rather people who aspire to own a business too.
Competition is normal, obviously not everyone can afford a big company standard so reason why small businesses still dominate.

[Halifat]

The truth is that many big companies we see today started somewhere, possible small ,so I don't see reason why people should look down on those small Business,as the matter of fact , government should even look into them , because they have a way of creating impact in the society,and also job opportunities,they play a very big role,but they are been neglected,that is why their business doesn't last especially those pressure and burden from taxes and other stuff ,like limited access to loan and geting help from government,buy I think they should be put into consideration because they have great impact.

The reason why a lot of people are looking down on their businesses is just because they are lacking contentment, if they can remember that they are better than some people then that alone will make them grow, there is not big deal in looking at the people above you but we should just learn from them not trying to force yourself to be there. A lot of people are wasting their time simply because the kind of money they are aiming to get is far beyond my expectation, they just want to be like Elon Musk, unlike other rich people in the world but they don't want to start small.

[hafiztalha]

Economy is the total setup of all economic activities in a state or country, so what we consider as small business play a very key role in the economic strength of each country. These so called big business are built upon the successes of small business. In terms of direct employment of labour small and medium scale businesses help reduce unemployment as they directly support the labour market, because they are the first employer of labour in every economy around the world.

In developed economies around the world, government takes small and medium scale enterpriceses very seriously because of the role that they play in the economy. In terms of encouraging small scale business, acriss the world goverement has to creates the right avenue so that these bussineses will mot suffer.

Taxation is a big problem especially in developing countries to the growth of small scale businesses because, in a situation where there are no proper taxing system, thereby leading to multiple taxing on these small businesses then you are sure that such business's will definitely struggle going forward. Government should be intentional about developing small scale businesses because that is the life wire of every economy.

Small businesses have a huge impact on the overall economy of the country as compared to their size. They provide more services and goods and also give employment opportunities economy becomes independent. But in different cases, a successful small business grows into a larger company if we help them become bigger business of tomorrow. I also think that excessive regulations and taxation become very serious barrier specially in developing countries. Small businesses have to deal with multiple taxes. They have to go through difficult and complicated procedures and high operating cost then their limited capital is consumed before the businesses even have a chance to grow. I think it is the responsibility of the government to focus on creating a simple and more predictable tax system and easier access to finance and a better business environment

[abhiseshakana]

Economy is the total setup of all economic activities in a state or country, so what we consider as small business play a very key role in the economic strength of each country. These so called big business are built upon the successes of small business. In terms of direct employment of labour small and medium scale businesses help reduce unemployment as they directly support the labour market, because they are the first employer of labour in every economy around the world.

In developed economies around the world, government takes small and medium scale enterpriceses very seriously because of the role that they play in the economy. In terms of encouraging small scale business, acriss the world goverement has to creates the right avenue so that these bussineses will mot suffer.

Taxation is a big problem especially in developing countries to the growth of small scale businesses because, in a situation where there are no proper taxing system, thereby leading to multiple taxing on these small businesses then you are sure that such business's will definitely struggle going forward. Government should be intentional about developing small scale businesses because that is the life wire of every economy.

Small businesses have a huge impact on the overall economy of the country as compared to their size. They provide more services and goods and also give employment opportunities economy becomes independent. But in different cases, a successful small business grows into a larger company if we help them become bigger business of tomorrow. I also think that excessive regulations and taxation become very serious barrier specially in developing countries. Small businesses have to deal with multiple taxes. They have to go through difficult and complicated procedures and high operating cost then their limited capital is consumed before the businesses even have a chance to grow. I think it is the responsibility of the government to focus on creating a simple and more predictable tax system and easier access to finance and a better business environment

I agree that government must give support to small business to become bigger, but i think complexity of regulation is extremely needed if the purpose for people safety. Only the wearer knows where the shoe pinches, I once found myself in a life or death situation after consuming an uncertified product from an MSME. For me relaxation of rules can have bad impact for consumer and environment, thats why i emphasize that strict regulation is unegotiable for quality and safety.

Beside that usualy SMES (in my country) are home industry, can you imagine if there are many home industry with its production waste, even not all dangerous but production continuity and poor waste management often causing environtment pollution and a disturbance to local residents. So please do not always generalize that many regulation deliberately intended to hinder the growth of small businesses.

[lombok]

Small businesses have a huge impact on the overall economy of the country as compared to their size. They provide more services and goods and also give employment opportunities economy becomes independent. But in different cases, a successful small business grows into a larger company if we help them become bigger business of tomorrow. I also think that excessive regulations and taxation become very serious barrier specially in developing countries. Small businesses have to deal with multiple taxes. They have to go through difficult and complicated procedures and high operating cost then their limited capital is consumed before the businesses even have a chance to grow. I think it is the responsibility of the government to focus on creating a simple and more predictable tax system and easier access to finance and a better business environment

Small businesses are crucial economic player and labor absorbers, which contribute to the independence of the countries. Nonetheless, complex administrative red tapes, as well as cumbersome tax regimes tend to shred up capital before companies have the opportunity to grow.

To guarantee the future expansion of the small business sector in developing countries, governments have heavy role to play in reforming bureaucracies, streamlining tax rates, and putting capital within reach to develop the small business sector.

[Agathamay]

This raises an important question: Should governments do more to support small businesses?

swear you don't know the answeer to this very question 🙋

i wouldn't be able to speak for other countries but for my country, i would always say that, the government is not doing enough for these group of people you mentioned and the worst is that, they are not even ashamed about that which is very wrong and i think it will be better if the government also tries to touch these area of the economy and possibly make grants easier for them as well as reducing their tax rate as this will help to improve the cost of living of the countrymen and women because a reduced tax rate and availability of grant for these people would drastically reduce the cost of prices of those commodities

Based on what everyone has said, it seems that the majority of the countries that every member here is in doesn't give that help that small businesses deserve.

They don't look at the sector of small businesses to give them help when they need it the most.

These small businesses are the median that helps drive the economy. Corrupt government won't recognize that.

The government have always been very selfish elsewhere they ought to have considered this set of people because they contribute to the economy as well.

I know it seems these things are almost in every country but I believe there are countries where the government is doing better

There are countries where loan are made easily accessible for businesses and given longer time for repayment, so of the government of a country like mine can adopt these principles, then the country would be much more easier.

[fruktik]

Small businesses play a huge role in the economic development of a country, especially if small businesses are formed on an area-by-area basis, then many people are provided with employment in that area. Just as small businesses play an important role in the economy, they also play an important role in solving the unemployment problem in the country. If a food hotel is established in an area, many people from that area can work in that food hotel. If a small brick sand cement business is done in an area, then many unemployed boys in that area can work there, and even small freight cars in that area get work based on that brick sand cement. In this way, even if the business is small, it can play an important role in the economy.

The question is different. Will there be demand for these products? It's one thing to start a business, but quite another to find distribution points. The latter isn't as simple as it seems. Competition is the main obstacle. I would start considering my approach to building a business with this in mind. Why should I open a cement factory if there are already several in my city or region? Moreover, these companies already have established contacts with distribution points, which will also be a stumbling block.

There are a huge number of nuances that can be calculated from the start, even before you lift a finger, to assess the situation and the environment.