Please ensure

you have your

devices for all
lessons along
with the rest of
your equipment.
(failure to bring
device results in
C1)

Chapter 12 – Help and

support for enterprise
Learning criteria

 To be justify the best source of help

and support for an enterprise

 To be able to explain informal

sources of help and support

 To be able to explain the formal

sources of help and support
Help and support for enterprise
L.O. To be able to explain the different formal sources of help and support for
enterprise

STARTER
Explain why an enterprise may need help and support, especially when starting up
………………………………………………………………………………………………
……………………………………………
………………………………………………………………………………………………
……………………………………………
Discuss how a government body could provide effective help and support to an enterprise
……………………………………………………………………………………………… Please ensure
…………………………………………… you have your
devices for all
……………………………………………………………………………………………… lessons along
…………………………………………… with the rest of
your equipment.
(failure to bring
device results in
C1)
Key terms
Business license: A permit
that allows a business to
operate in a certain area and Import duties: A tax to be
sell a specific product or paid by a business to the
service it is issued by the government for importing
government goods from another country

Trade barriers: Steps taken Tariff: A tax/charge to be paid

by the government to control by a business to the
international trade. An government for importing for
example would be changing a importing (buying goods from
tax on imports other countries) and exporting
(selling goods to other
countries
Micro loans: Small amounts of
money that can be borrowed
more easily that by traditional
bank loans
There are various sources of help and support for small and upcoming
organisations. The entrepreneur will be provided with different sources
of help and support in different contexts. They will be able to find out
what is available to them within their country and choose the most
suitable support

What sources of support can you think

of?
Different countries provide enterprises
with different forms of help and support
Government grants and loans
A grant is a sum of money provided by the government to a business that
does not have to be repaid. A grant can be given to an enterprise for
many reasons such as starting up or encourage research and
development
Subsidies
A sum of money given by the government to businesses operating in
certain industries to keep the prices of those goods/service low.
Setting up dedicated agencies
Some governments set up agencies to support small enterprises. These
agencies promote micro and small enterprises in the region.
• Training. Assistance to develop the skills and capability of staff is provided through
apprenticeships. They are designed to provide work-based learning opportunities for
young people. This enables companies to recruit labour more easily and at a lower cost.

• Tax incentives. Reduced tax rates or complete tax exemptions for some time are given
to enterprises working in certain industries or located in certain areas. For example, in
India, there are tax exemptions available for start-ups until 31 March 2019.

• Relaxed government policies. Policies like rapid and easy business licensing, encourage
potential entrepreneurs to take the initiative to start their enterprise.

• Special economic zones (SEZ). This is an area in which business and trade laws are
different from the rest of the country. The main aims of a SEZ are to increase trade and
investment and create jobs by providing special economic policies, minimal tariffs and
flexible governmental measures. For example, in the UAE, the government has created
special 'free' zones with no foreign exchange controls or trade barriers and which have
competitive import duties, financing costs, energy costs and real estate costs.
Training
Assistance to develop skills and capability of staff is provided through apprenticeships. This provides
work-based learning for young people allowing companies to recruit labour easily at a lower cost

Tax incentives
Reduced tax rates or complete tax exemptions for a period of time are given to some enterprises
working in certain industries or locations. For example, no tax for start-ups until X date.
Relaxed policies

Policies such as rapid and easy business licensing, encourage potential entrepreneurs to take initiative
to start their enterprise.

Special economic zones (SEZ)

This is an area in which business and trade laws are different from the rest of the country. The main
aims of a SEZ are to increase trade and investment and create jobs by providing special economic
policies, minimal tariffs and flexible governmental measures. For example, in the UAE, the government
has created special 'free' zones with no foreign exchange controls or trade barriers, and which have
competitive import duties, financing costs, energy costs and real estate costs.
These are experts that specialise in all aspects of setting up and
running an enterprise and charge a fee for providing their services.
They have a good knowledge about the industry and legislation
relevant to the enterprise and they can be hired for solving specific
problems. For example, Tandem was founded in 2009 in Dubai, United
Arab Emirates, and is dedicated to supporting start-ups and small
businesses through every challenge they face by providing:

• business planning
• market research and analysis
• financial advice
• guidance, mentorship and advice.
The amount of support provided can vary from country to country,
but, generally, banks and institutions that provide micro finance
can give ongoing advice and access to financial services to
businesses and individual households.

Financial institutions can provide support to small businesses by

providing start-up loans, micro loans (small amounts of money can
be borrowed more easily than by a traditional bank loan) and asset
loans (borrowing money against an asset that you own).

Financial institutions not only provide start-up loans but also loans
for continuous operation.
These are organisations that raise funds by donations and direct
them towards a social cause. They raise these funds by their
own entrepreneurial activities, mobilizing funds from
corporations and foundations and gathering gifts and
contributions.

For example, Trickle Up is a not-for-profit international

development organisation that provides the very poorest people
with seed capital grants, skills training and coaching, and the
support they need to create small businesses.
Entrepreneurship education is on the rise, both at school and
university level. The role of teachers is vital in providing
theoretical and practical learning opportunities to enable
students to turn ideas into action. Teachers are there to guide
and support you throughout the enterprise project from
planning through to implementation.
Business networking events organised locally or on a larger
scale bring together people from different experience levels
and backgrounds.

Business networking helps bring together people looking for

sharing and developing their ideas, inspiration, advice,
opportunities and mentors. These events are not only
inspiring, they are also great opportunities for meeting
potential investors and business partners.
Other entrepreneurs

Meeting with other entrepreneurs, either through business networks or

individually, provides an exceptional opportunity to share ideas, learn from each
other and possibly form business partnerships. An experienced entrepreneur may
even be able to act as a mentor and provide dedicated advice and support.
Key terms

Seed capital: The money

needed to start a business.
This money often comes from
the owner’s personal assets
and their friends and family
Business network : A group of
likeminded people/entrepreneurs
who meet on a regular basis to
share ideas and explore future
business partnership

Mentor: A tax/charge to be
paid by a business to the
government for importing for
importing (buying goods from
other countries) and exporting
(selling goods to other
countries
Informal sources of assistance

Friends and family

Friends and family members can inspire and encourage a young entrepreneur to
keep going when things are not going as expected and can provide support in
times of challenges. Family and friends are often the first people that
entrepreneurs turn to when they need to raise seed/initial capital for their new
enterprise.
There are, however, possible drawbacks to taking help from friends and family.
There may be undue influence by some individuals, which may lead to decisions
based on emotion rather than reason. Arrangements for sharing responsibility
may be informal or unclear, and may cause disagreements or inefficient working.
There may also be personal consequences of getting into debt with friends and
family.