GOVERNMENT

ASSISTANCE TO
BUSINESSES
TEACHER: Ms D. Johnson
GRADE: 5 stago
 SPECIFIC
OBJECTIVES: students should be
able to:

1. Describe at least THREE forms of assistance provided by

government to businesses after class discussion

2. Discuss briefly, the social services provided by government after

class discussion
 BEHAVIOURAL
OBJECTIVES: students should:
1. Be punctual for class;

2. Respect teacher, peers and self;

3. Follow teacher’s instructions;

4. Participate in class activities and discussions.

 DISCUSSION
What do you think are some of the ways in
which the government can assist businesses?
One of the main aims of all governments is to make
the economy of the country more efficient. This
involves increasing the competitiveness of the
country’s industries in comparison with other
countries.

This enables businesses to expand, produce more and

employ more people. For these reasons, it’s in the
interest of all governments to help businesses to
achieve their full potential, because in doing so,
businesses can be influenced to contribute to the ideal
of full employment and add to national prosperity.
Most governments support businesses in the following
1. Lending capital and
Development - The government
technical Assistance -
may also provide training (human
They lend some businesses resource development and
money/capital. technical assistance. Through
Government institutions the agricultural extension
for lending include the officers, information, advice and
Small Business Association training are given to small and
medium sized farmers on various
of Jamaica, Micro aspects of plant animal
Investment Development husbandry.
Agency, etc.
Technical schools have also been
These loans are usually at established to train people in
skills construction,
low rates of interest and refrigeration, etc. Agencies such
are, therefore, cheaper as the Heart Trust NTA also
3. Research and Information
Centres - Government can also set
up research and information
centres to assist businesses in
getting accurate and timely
information that may benefit them.
For instance, the Scientific
Research Council (SRC) assists
business in scientific research that
has positively affected
agricultural production globally.
The Bureau of Standards has also
helped with the identification and
maintenance of standards in
commercial activities.
4. Subsidies and Grants -
Government also give subsidies
and grants to businesses, both of
which help them to cut costs of
production and ultimately to
produce more.
Subsidies also referred to as
subventions, can be in the form of
money or material, while a grant
is a money/gift that does not have
to be repaid. For businesses that
have just been set up, government
may grant tax concessions for a
while until they can “stand firmly
on their own two feet”.
SOCIAL SERVICES
PROVIDED BY
GOVERNMENT
The government will provide services which the
private sector would be either unable or unwilling to
supply at a price that all people could afford to pay.
Typical social services that the government provides
include:

1. Healthcare
2. National Insurance
3. Education
4. Roads and Transportation
HEALTHCARE
If governments increase the number of hospitals and outfit them
with the necessary equipment, as well as, increase the amount of
money spent on training health professionals, this may result in a
healthy population. A healthy population means a strong and
vibrant labour force that will work efficiently, leading to
economic growth and development of the productive sectors.

Ministry of health has put in place a ‘Jamaica Moves’ campaign to

educate the population about making healthier lifestyle choices.
2. NATIONAL INSURANCE

This is a scheme in which both employees and employers

contribute. It is usually deducted from salaries.

This scheme provides sick benefits, maternity benefits,

disability, unemployment and old age pensions for
contributors. All of these benefits help to maintain the
standard and prevent them from falling into a state of
poverty.
3. EDUCATION
This is one of the fundamental factors of economic
development. Education raises the productivity and creativity
of the population, provides entrepreneurship and contributes
to technological advances.

Government provides public schools and assists them through

ministry grants. The result is that a greater portion of the
population becomes informed and literate than if education
were entirely through private means. More persons will be able
to get jobs through being educated and this will reduce the
unemployment rate.
ROADS AND TRANSPORTATION
Good roads and transportation can lead to greater efficiency in the
productive sectors and thus an increase in the overall production of the
economy. This could lead to further increase in wealth and an enjoyment of
higher standards of living and quality of life.

Without public transport those who do not own a car would not be able to
get about. Similarly, non-drivers and young people, such as students, need
access to public transport. For businesses thrive, it is very important to
have a proper infrastructure within the country. Smoothly paved roads
will allow efficient transportation to and from destinations along with
timely delivery of goods and services.
 End of
presentation