Some small business owners see that government is immense pain and hassle. There are lots of permits you need to obtain, paying taxes, employee certifications, business certifications, complying with the local, state, and federal laws, and so much more tasks on the list.
However, despite all the obstacles the federal government brings, there are many ways they are helping small businesses to prosper. You will understand how the state, local, and federal governments set aside government assistance for small businesses by reading this article. So scroll through to learn more!
How government is helping the business to grow?
There are many different ways the government gives assistance to businesses working under their jurisdiction. Some of them are the following:
1. Target services tailored for your small business
Every local or state government has its own business office that can help with getting contact with local business incubators, financing programs, and even networking events. These offices can offer free management counseling, business consulting services and also help with understanding complex government regulations.
2. Provide free advice
Federal departments and government officials can give free advice to small business owners regarding federal contracting opportunities, how to improve their image towards the federal government, what federal agency works with more strict government regulation, and so much more.
One federal agency that can give you a hand if you want to learn about protecting intellectual property you may visit the U.S. Patent and Trademark Office. This department can also help you in knowing tax incentive programs.
3. Facilitate customer and market research
U.S. Census Bureau can give you government assistance in market research. This federal agency provides free searchable economic data about the United States economy. So, their website will come in handy if you are looking for a market to offer your products or services to any government organizations and departments.
4. Seek a new market for your product or service
From pieces of machinery, construction materials to office supplies and consulting services, the federal government obtains products and services worth billions of dollars. If you successfully enter the federal procurement system, your small business may be their most awaited government-need providers.
However, before sending out any proposal for the available government contracts, it is best to learn all the federal regulations, interests, and necessary knowledge required. Each local, state, municipal or federal government has its website where all primary sources of information about their procurement needs.
The Small Business Administration is a go-to place for large and small businesses seeking government contracts. Take note that you may also be part of their government assistance programs specially made for small businesses.
Lastly, you may also learn more about the federal government because they can provide additional resources to help you in the government contracting market.
5. Strengthen your public profile
Strengthening the public profile of your business is a must that you shall not forget. The public is the best and worst judge of your products and services, so getting their attention and positive reviews brings great success.
Attending networking events can also help you enhance your public presence. Nowadays, networking events are conducted online or virtually; therefore, whether you are running an errand, stuck in the traffic, or enjoying a vacation somewhere; you can still join the event.
When you join networking events, you will potentially meet different government officials. However, when dealing with government officials, you must be realistic and straightforward and be reminded that they will not give you any contracting opportunities.
But, as you build your connection with them, they may endorse your business to any government department needed. Once you successfully get to work with any federal agency, you may potentially receive grants from another government department.
Nonetheless, small business owners working with the federal government create a public recognition for their small businesses.
How does the government have an impact on businesses?
Government decision affects small businesses and corporations in many different ways. One example of their decision is having the lockdown in 2019. The worldwide pandemic had a major impact on small businesses and specific industries. Based on the research made by Forbes in 2020, 75 percent of small businesses were said to go bankrupt. The Small Business Administration and treasury department struggled to keep up with the economic disaster loans. But now that almost everything is returning to normal, every business is expected to get back up.
However, there are more things made by the government that affects the overall aspect; they are:
1. Government assistance for Small Businesses
The Small Business Administration (SBA) focuses on assisting small businesses. The official government office provides assistance such as consulting, business and disaster loans, and government contracting. SBA offices scatter throughout the country and are always available to inform and guide small business owners. So, if you have any business concerns, they may give you some good help.
2. Government policy
The government can impose any policy which can change the behavior of the business economy. One of the best-known policies is the taxes and charges. Imposing more taxes or charges on a given sector than necessary will cause investors to lose interest in that area.
Similarly, tax and tariff exemptions for a particular industry encourage investment and growth. A high tax rate on imported items, for example, can promote local manufacture of the same commodities. On the other side, a high tax rate on raw materials stifles home production.
3. Regulations and Permits
Government regulations and the requirements for licenses, certifications, or permits significantly affect businesses. With all the needed documents before setting up any business, business owners spend a lot of money and time to meet specified standards, which results ineffective and unnecessary. However, on the other hand, fair and effective regulations promote business growth.
4. Government Taxation and Spending
It is all known to us that the government money comes from taxes. That is why any increase in tax results in discouragement of investment, especially for entrepreneurs risking managing and starting their businesses.
At the same time, when government spending rises, it takes up a lot of savings, leaving less money to set aside for private investments.
Private investment reduction causes shrinkage in the production of products and services, which turns everything into eliminating jobs.
5. Political Stability and Political Culture
It was mentioned previously that government policy impacts all sizes of businesses. But, a procedure depends on the present culture of the government.
As a result, a stable political culture can make more business-friendly decisions that would enhance and promote local businesses and potentially attracts foreign investors.