Question

What is one reason why the government would provide financial assistance to an entrepreneur?

Answer 1

The correct answer is because it helps to boost the economy.

In general, in many countries, the figure of the entrepeneur tries to be fostered by the authorities. This is why many countries tend to reduce the initial costs required to set a sole propietorship firm, and why these enterprises do not have to pay certain taxes that societies do pay.

Entrepeneurs enhance investment levels within an economy, and therefore each new company created increases the size of the economic activity in a country. A new firm, means new products are offered in the market, new sectors of demand are being served and therefore more consumption is taking place and, on the other hand, it creates new job positions that help to decrease unemployment levels. In turn, these new employees would earn a salary and demand more products themselves.

Answer 2

Because they have the desire to stimulate the growth of the economy and job percentage in the country