Question

Explain the impacts of small businesses to the growth of the social economy (small business enterprises’ contribution).

Answer 1

All major firms of today are started as small business firms. Small businesses are simply defined as limited liability firms with less than 500 employees. These are self reliant, independent and dynamic in nature. Being small in business operations, it makes them to work towards innovation and be flexible than large firms. The small firms provide employment opportunities for new entrepreneurs, people who are not able to find jobs with large corporations acting as major provider of employment.

These firms would invest in new areas which would increase the investment thereby providing employment opportunities which would increase the GDP of the nation and the purchasing power of people.

So, governments should provide special packages for small firms in order to compete with large firms so that the economic growth can be increased.