The document summarizes various ways in which governments assist businesses to grow and compete, including through economic development programs, research and development grants, infrastructure funding, education/training programs, and financial/non-financial incentives. It provides examples of how low interest rates and access to capital can help businesses expand. Government schemes in India that support small and medium enterprises are also outlined. Maintaining a skilled domestic workforce and domestic market are described as additional advantages that can help businesses flourish.
HomeRoots Pitch Deck | Investor Insights | April 2024
Government Assistance to Firms to go Head to Head with Rivals
1. A Presentation by -
Priyanshi Singh (02)
Ashish Kumar (04)
Government Assistance to
Firms to go Head to Head
with Rivals
How Companies have flourished
due to advantages provided by
government...
2. A firm is a commercial enterprise, a company that
buys and sells products and/or services to
consumers with the aim of making a profit.
4. Firms employ
different
factors of
production
employing
labour, firms
pay wages
creating a flow
of income to
households,
Developing new
products
In the pursuit of profit,
firmsl try to respond to
consumer preferences
and develop new goods
and services
Providing good and
services for the
customer
Firms which produce a
range of goods and
services enable greater
specialisation in the
economy. washing
machines, vacuum
cleaners, childcare etc.
How firms are contributing towards boosting a nation's economy
Investing in capital
and new technology
Firms seek to make the
most profitable use of
capital and labourby
developing new technology
and working practices to
improve productivity in the
economy.
5. Role of government
in promoting
businesses
Economic Development Programmes
• Some government programs help businesses start, grow and relocate,
offering start-up incentives and taking steps to create a “business-
friendly” environment.
• These steps include tax credits, worker training, free land, zoning
changes, low-interest loans, infrastructure improvements and help with
fast-tracking licensing and permitting.
Research and Development
• The government provides grants to private companies making a new
product or service that will improve a vital area of an economy, such as
transportation, energy, agriculture or communications.
6. Infrastructure Improvement Funding
• Governments help improve the infrastructure needed for
businesses to succeed.
• This includes building and maintaining roads, bridges, rail
lines, airports, seaports, energy transmission lines and
telecommunications systems.
Education and Training programmes
• To ensure businesses have access to trained workers,
governments provide free schooling for primary and
secondary students, grants and loans for higher education
and worker training programs.
7. Government supports sustainable competitive position
• Government financial and non-financial incentives are deemed as significant
drivers to boost a company's position in the industrial sector and also helps
SMS's to sustain in competitive position.
• Government does not only help to access scarce resources but also facilitates
small firms in startup, growth and creating a sustainable position in a turbulent
market .
• The government support (credit, training, services, loan, tax payment etc.) does
not significantly contribute to a firm profitability but in fact, it is a significant
driver for firm survival and success
8. Low interest rates help businesses to flourish in the market
High interest rates makes it difficult for businesses to obtain loans
• Every business has outstanding loans, and when interest rates rise, those loans become more
expensive Increase in the interest rate on such loans means the debt is carried longer and a
business pay more money.
Low interest rate can spur business expansion and growth
• When interest rates are low businesses invest in the expansion.
They also have more access to financing because loans are less
expensive. As a result, they have better resources to fund new
business ventures, equipment, or improvements.
9. 5 Billion
The intangible assets account for around 80 percent of a company’s value, and often
even more than that. If one can use them right, they can provide increased profitability
to a company.
Sound Property Rights- Trademark ,Service mark, Copyright, Patent, Goodwill
and Brand recognition. Intangible Assets can also be the Technology, Customer
relationships, Competent Workforce , Advertising and Marketing campaigns,
Location of the business etc.
10. Government Schemes which help businesses
• Rashtriya Krishi Vikas Yojana
• ASPIRE
• MUDRA Bank
• Multiplier Grants Scheme
• Support for International Patent Protection in Electronics & Information
Technology (SIP-EIT)
• Credit Guarantee Scheme for Startups (CGSS)
• Atamnirnhar Bharat Abhiyan
• Ministry of Skill Development and Entrepreneurship
11. • India has more than 40 million registered and unregistered SMEs engages in
various sectors including IT, Manufacturing, Packaging and Food Processing
contributing to country’s GDP.
• Recognizing their importance the government has started ‘Make In India’ to
encourage more SMEs.
• Currently, entrepreneurship and establishment of their own businesses are
gaining momentum. Through the establishment of innovative business or
startups, the economy of the country will flourish.
12.
13. • Domestic Market is a market which is within the geographical borders of the
country or region
• Companies in Domestic Markets are generally provided with tax credits for
employment generation and government of the country tries its level best to make
trade agreements with foreign companies by removing barriers (regulations)
14. Advantages of Domestic Market which help a
business flourish in the market
Firm can easily predict consumer preferences and can
understand its own market niche
2. Easy communication between workers due to same culture
and language
3. Low taxes to be paid compared to foreign investing
companies
15. Tech Savvy and committed workforce
• According to Microsoft, 67% of workers use their mobile devices in the
workplace.
• Empowered with technology, employees reduce the time gap in solving critical
business issues.
• They take collaboration and communication within and outside the
organization to a next level and drives the work environment towards
innovation and agility.
• They have workplace satisfaction and they increases productivity and
engagement.