By promoting entrepreneurship of a country, the country can gain many benefits.
Due to its importance most of the government as well as the private institutions try
to promote entrepreneurship. As a result of that different incentives are given to
entrepreneurs in order to start and run the businesses.
Reasons as to why the business starters require government incentives
are given below.
To encourage entrepreneurs to start new businesses.
To give the opportunity for entrepreneurs to convert their business ideas
in to real businesses.
To induce self-confidence and positive attitudes of starters of business.
To provide a successful entry to the entrepreneurs.
To carry on the social welfare activities expected by a government.
Types of Incentives
Different incentives given by the government can mainly be categorized as follows.
1. Financial Incentives
Aids given to a business which are of monetary nature are called financial incentives.
Examples :-
Giving loan facilities under concessionary interest rates.
Giving loans without securities.
Extending the repayment period of loans.
Financial gifts.
2. Non -Financial Incentives
Incentives given to a business which are of non- monetary nature are called nonfinancial incentives. That is to provide infrastructure facilities including technical
and marketing facilities.
Examples :-
Training entrepreneurs.
Training employees.
Training on marketing.
Consultation on business plan development.
Giving technical training.
Giving knowledge regarding packaging
Help finding the market.
