Small Businesses and The
Economy
LO2
Importance and Contribution of Small
Businesses
1. Employing local workers (Around 90% Employment in all countries)
2. Bring prosperity to the local community
3. Quickly adapt to changing economic climates
4. Contributing to local government with taxes
5. Growing into large businesses
6. Web of financial interdependence
7. Evolution through competition between lots of small firms
8. Fast charity works
9. Understanding of local scenarios and workers
10. Imperative contribution to GDP (30% Pak, 40% India)
Large Businesses Contribution
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Bring FDI
Joint Ventures, Mergers and Acquisition
Infrastructural development
Large amount of employment by one large company
Legal Structures lead to more sustainability, ultimately contributing to the
economy for a long period
More chances of succeeding and staying
Large contributions in taxes through different mediums
Large amounts in R&D which means more innovation
Employment/Job quality is much better (monetary and non monetary)