Government Policies on Business

3 Key excerpts on "Government Policies on Business"

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  Small and medium sized enterprises in tourism and hospitality

  • Jennifer Raga(Author)
  • 2020(Publication Date)
  • Society Publishing

    (Publisher)

  Policies concerning employment are crucial since they ensure that workers are competent. Therefore, workers are essential resources in an enterprise. Since tourism is a service-centered industry, having qualified workers will ensure efficient production. It is, therefore, crucial for enterprises to implement policies for employment. However, customers are pivotal factors in tourism enterprise. Without them, it means there is no funds, production as well as cash flow. Policies concerning customer hence become imperative. Business policies aim at increasing production and, thus, high returns, which lead to the growth of small and medium businesses in the tourism industry. 2.8 GOVERNMENT AND PUBLIC POLICY Government policy refers to guidelines established by the government, which controls the operation of enterprises. The government can impact the process of businesses through many rules and regulations (Draper, 2017). It can increase taxes, which results in high prices for products hence low consumption rate, which interferes with the sale of the business for small and medium enterprises in the tourism industry to grow; they need to consider and adhere to government policies. The government obtains funds from taxes. Moreover, the funds are used for the betterment of an environment. The government also can provide subsidies to the small industries, and this can increase production hence having a high income, which leads to the growth of small and medium enterprises in the tourism industry. One policy that the government uses to regulate activities is economic policy. Policies And Regulations For SME Growth 45 Furthermore, economic policy refers to an action that the government takes in the economy sector. It includes government intervention in many fields of economy. It consists of the system used to set interest rates as well as the budget of the government. It thus has an impact on operation business. The effects are seen in the policies of the economy.

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  Leadership and Management for HR Professionals

  • Keith Porter, Paul Smith, Roger Fagg(Authors)
  • 2007(Publication Date)
  • Routledge

    (Publisher)

  Government policy

  DOI: 10.4324/9780080492810-12

  Chapter objectives

  In this chapter you will:

  • Review major policy developments and debates in economic, industrial and education policy
  • Consider the implications of developments in these fields for markets for goods and services, and for employment and labour markets
  • Assess the major ways in which organizations seek to influence the development of government policy.

  Chapter introduction

  In this chapter, we examine those areas of government activity that impact directly on organizations and the activities of HR professionals in particular. We begin our review of economic policy by focusing on competition policy and then proceed to consider employment policy. The focus then shifts to industrial policy, followed by educational policy. We conclude with an examination of how the direction of government can be influenced by lobbying activities.

  12.1 Government policy to regulate the competitive environment

  Sometimes firms will collude by agreeing on prices, market share or advertising expenditure. This collusion reduces the uncertainty faced by these firms. Formal collusive agreements are known as cartels, which are prohibited in Britain under restrictive trade practices legislation, unless the firms involved can prove to the Restrictive Practices Court that their agreement is in the public interest.

  12.1.1 The ‘public interest' and competition policies

  The real world is characterized by imperfect markets, with firms having different degrees of market power. Governments consider the extent to which this market power will be in the public interest when they develop legislation to deal with monopolies and oligopolies. Market power, from the consumer's point of view, seems inevitably to be undesirable, because firms are able to exploit the powerless consumer. The greater the firm's power, the higher will be its prices relative to its costs of production. However, this is not necessarily the case as firms may still charge a relatively low price because of their economies of scale; furthermore, they may use their profits for investment and research and development, with the consumer benefiting from better products at lower prices.

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  The Economics of Entrepreneurship

  • Simon C. Parker(Author)
  • 2018(Publication Date)
  • Cambridge University Press

    (Publisher)

  Part IV Public Policy 18 Principles of Entrepreneurship Policy Government interventions in market economies can affect both the welfare of entrepreneurs and the size of the entrepreneurial sector. Government intervention is often predicated on a belief that entrepreneurs generate valuable positive social and eco- nomic externalities, emanating from new ideas, new products, new jobs, and enhanced competitiveness. If entrepreneurs are unable to appropriate all of these benefits them- selves (i.e. are unable to ‘internalise’ the benefits), there might be too little investment in entrepreneurship for the social good, justifying government intervention. Governments often also see entrepreneurship as a route out of poverty and depen- dence on state benefits, and as a means of achieving self-reliance. At the same time, though, many governments also evince concern about the living and work- ing conditions of the poorest and most vulnerable workers. These workers are often found in entrepreneurship, either as struggling small business owners or own-account self-employees. At the outset it is helpful to explain what is meant by the term ‘public pol- icy towards entrepreneurship’. Lundström and Stevenson (2005, 2007) distinguished between entrepreneurship policies, which focus on start-ups of new businesses, and SME policies, which focus on the stock of existing small businesses (see Section 1.3.2 for definitions of ‘small’ and ‘large’ business).

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