Chapter 8.1, Problem 4R

To determine

To evaluate the reasons for the government willing to provide start-up funds to entrepreneurs.

Explanation of Solution

The government sets the priorities and determines for society on a combination of policies. The Policy tries to align the individual's desires with the community’s interests. The State is rooted in the people's power. The government has developed programs to assist entrepreneurs in technological, political, business, and entrepreneurial growth to help promote and accept changes in industrial development. The State supports enterprises in two primary ways: financial support and administrative assistance. Much of the financial aid is carried out by the federal government through the Small Business Administration. The SBA encourages commercial banks to lend by promising recovery of a portion of default loans.

Economics Concept Introduction

Introduction: Startups build new markets or kill old markets entirely by creating goods that change the world. Emerging developments also create new possibilities for startups to make the best of. Startups then generate huge leverage over traditional firms, encouraging competition and disrupting the emerging economy.