CQ 2: Are small businesses or large businesses most important in economics?
8 important questions on CQ 2: Are small businesses or large businesses most important in economics?
What is efficient acces to credit? (2)
- Low costs to register a property
- Higher credit information availability
What is rigid labor regulations? (3)
- Difficulty of hiring
- The rigidity of working time
- The difficulty of firing
What is an informal entrepreneur?
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What can governments do about SME's in the informal economy?
- Do nothing
- De-regulate formal entrepreneurship
- Eradicate informal entrepreneurship
- Formalize informal entrepreneurship
What happens when the government does nothing?
Leaves intact the negative impacts on formal businesses
- Unfair competition
Employees and customer
- No guarantee that health and safety standards are maintained
Governments/population
- Taxes owed are not collected
What happens when the government de-regulates formal entrepreneurship?
What happens when the government eradicates informal entrepreneurship?
What happens when the government formalises informal entrepreneurship?
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