Business Regulation Analysis

This report analyzes the regulatory and legal requirements for small and micro businesses, and suggests feasible options for growth. It discusses the government's objectives for establishing SMBs, and the impacts of lenient regulatory policies on society. The preferred option for the government to implement is providing training grants to entrepreneurs and employees. The report also emphasizes that legislation should be viewed as a last resort if alternative options proved to be ineffective.

Business Regulation Analysis

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Why government is considering action.......................................................................................3
Description of outcomes government is aiming to achieve.........................................................3
Describing impacts of options and which is best and preferable option.....................................5
Description about characteristics of preferred option..................................................................5
How preferred plan will be implemented....................................................................................6
How government will evaluate the effectiveness of preferred option.........................................7
Impact of regulation on society...................................................................................................7
Legislation should be viewed as last resort if alternative options proved to be ineffective........7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Small and micro businesses are enterprises which consist with less than 50 workers, these
evidences for economic growth through diversification and invention in commodities and
processes. The following project report will throw a light on regulatory and legal requirements
that is required to be included while incorporating small micro businesses. Therefore, analysis of
given case study will include government actions & objectives along with identification of
various feasible options needed to consider for growth.
TASK 1
Why government is considering action.
Various factors that is obstructing Food Time to grow as follows:
 Capital inadequacy: As money is considered as a life blood of any business for keep
running its enterprises operations, it becomes the biggest challenge for small and micro
businesses. For starting SMB's, person is not having adequate capital which lack them
behind to incorporate it, rather they are having good creative ideas & potential to perform
and grow.
 Licensing: Small and micro businesses at the time of incorporating its start-up need to
acquire licence from respective authority for running its operations without any hindrance
(The 6 Biggest Problems for Small Business Owners, 2021). Further, along with this
person need to follow many regulations and compliances so that in future company didn't
face any struggle.
 Lack of Marketing platforms: Major difficulty faced by Food Time is lack of proper
marketing. Moreover, for promoting its enterprise, entrepreneur need various platforms
like online marketing, offline, etc. for socializing it to their prospective customers.
 Procurement of resources: Biggest Problem for any business that can hinder the firm's
performance and operations are raw materials, company need to obtain such resources on
day to day basis so that functioning of manufacturing units doesn't stop.
Description of outcomes government is aiming to achieve.
Government are focusing on various objectives that need to be achieved through
establishment of SMB's, by providing them various subsidies and ease.
 For increasing GDP & economic growth: Government is focusing on people's
requirement of incorporating firms by providing them concession and subsidies, so that

they can constitute and start their operations. Therefore, by establishing small and micro
businesses, economy will be benefited with increase of GDP & economic growth.
 Employment generation: With increase of incorporating small businesses, the impact of
it will be reflected in health economic growth because for establishing and running
enterprise's operation organization will require workforce (Adhikary, Kutsuna and
Stephannie, 2021). Therefore, to create employment generation, government is focus on
formation of small and micro businesses by providing them ease in regulatory and legal
framework at the time of establishment.
 Encourage regional & backward area's development: Through promoting backward
areas for incorporating more and more start-ups will lead in increase of domestic firms,
along with this such establishment they will also contribute in enhancing regional growth.
Hence, ultimately with development of regional and backward area's, poverty ratio can be
controlled & at cheaper rates labours can be employed within area which will reduces the
overhead cost too.
 For promoting economic stability and exports: By contributing the percent of earned
income towards GDP will lead towards the economic stability and along with this
contribution give rises to manufacturing & exports to various other countries. Hence,
through this business reach will be expanded in international borders too.
Different possible feasible options that can be undertaken.
1. Improving access to finance for small businesses: Under this SMB's provide various
financial support i.e., they help them in acquiring finance through other financial
institutions. Further, government also provides generous repayment terms and conditions
which includes low interest rates along with starting government funding to small and
micro businesses for promoting the growth potentiality.
2. Through providing tax relief schemes: Providing tax relief by UK government will be
a huge help for small firms to start their businesses. Therefore, some schemes aimed
towards alleviating difficulty of tax payment includes, corporation tax relief, employment
allowances, business entity rates relief, etc. Hence, through this medium eligible
enterprises can be established easily with the support of government assistance.
3. Helping with procuring resources and training grants: Most of the times small
business doesn't incorporate their business because they face difficulty in obtaining

resources as cost associated for acquiring raw materials are high (Etim, 2020). Therefore,
to meet with this problem, government is providing business a support by making
available innovation vouchers, advisory services, training programs, ease during getting
licence, feasible export policies, etc.
Describing impacts of options and which is best and preferable option.
 Providing finance for establishing businesses: By allowing small enterprises like Food
Time with funds at reasonable interest rate, for incorporating its operations will indirectly
help government only to enhance economic development. Whereas, on other hand,
government also need to incurred opportunity cost for providing high rated loans
reasonably.
 Relief in taxation policy: Providing tax relief will encourage small businesses to
incorporate in large number, through this they will aid businesses to gain revenue and
grow more along with development of regional areas. However, on other hand,
government will also incur cost of giving such grants by expecting economic growth &
development in return.
 Assistance of rendering resources and training grants: Government helps small
enterprise's, by providing business support in form of raw materials and imparting
training through creating awareness programs which can help firms to grow more
(Vedhathiri, 2020). Besides its benefit, government will also incur high cost for
organizing educational programs for such grant.
Hence, the option of providing training grants is seeming to be the best option for
government as by only incurring educational programs regarding carrying operations within
firm, will receive a benefit towards increasing GDP.
Description about characteristics of preferred option.
Entrepreneur and employee training will help to improve skills in various areas of company
for working effectively and efficiently with productivity. Thus, following traits regarding
preferred options are:
1. Planning: Training and development will help employees of Food Time to increase their
experience and knowledge along with this also help them in taking appropriate decisions.
Therefore, through training grants government will aid person to enhance its skills and
creative idea.

2. Efficiency: With increased productivity and efficiency, employees of Food Time will
consistently contribute towards accomplishing organizational goals, as well as enhancing
economic development (Journeault, Perron and Vallières, 2021).
3. Motivation: Training & development provides motivation and boost entrepreneur's
morale to work effectively with enhanced skills so that they can perform efficiently and
add value towards the economy with lenient regulatory and legal structure.
How preferred plan will be implemented.
Training grants provided by government will implemented by following few steps that
are mentioned below:
1. Assessing training needs: Government in this process will try to identify affected areas
where need of training will be required for enhancing the skills and individual
development plans.
2. Setting training objectives: In this second process of training grants, government will
set objectives according to the areas of improvement identified, for achieving a need of
establishing business.
3. Training action plan: Next step will consist with creating comprehensive action plan
that will include theories, materials, and training elements, etc (Nalane and Sekantsi,
2020). Therefore, during formulating such plan, learning style of small and micro
businesses must also be considered.
4. Implement the training session: After fulfilling above mentioned steps, resources
person who is conducting training must start implementing the session through imparting
knowledge regarding, how to establish business, etc. Along with this they also assist them
with necessary required resources & how they can improvise their creative skills.
5. Feedback: After the end of training session, feedback will be collected from all trainees
who have been selected amongst various small and micro businesses. Moreover, with this
step the instructor will get to know about how effectively they have guided them.
How government will evaluate the effectiveness of preferred option.
Government will measure the performance of small and micro enterprises through
following a strategy of outcome evaluation, here, the final result will be reflected after firm's
establishment (Resmi, Pahlevi and Sayekti, 2021). Therefore, if firm is generating good amount

of revenue and carrying its operations properly along with consistent contribution in economy,
then it is said that training is implemented effectively.
Impact of regulation on society.
Small and micro businesses with lenient regulatory policy will have a positive impact on
society through, less licensing obligation and fewer procedural barriers along with adequate
financing options (Chao and Yinzhen, 2021). Therefore, if government provides fund to Food
Time at low interest rates & without hectic procedure of acquiring licence than company can
contribute more towards economic growth & GDP, which in turn increases societies standard of
living.
Legislation should be viewed as last resort if alternative options proved to be ineffective.
Sustainability development along with health & safety act will act as a last resort if all the
alternative option of training act failed. Therefore, through the legislation economic development
will be enhanced and poverty can be reduced which will be reflected in societies as well as
economic growth (Hamidi, 2021).
CONCLUSION
From the stated report it has been articulated that to enhance economic growth and
development government should take various measures like, providing funds at reasonable rates,
easy licensing procedure, etc. to SMB's so that they can establish their enterprises easily. Besides
this they should also impart them with training sessions, tax concession, etc. to encourage them,
by this it will lead to economic growth.

REFERENCES
Books and journals
Adhikary, B. K., Kutsuna, K. and Stephannie, S., 2021. Does the government credit guarantee
promote micro, small, and medium enterprises? Evidence from Indonesia. Journal of
Small Business & Entrepreneurship. 33(3). pp.323-348.
Chao, G. and Yinzhen, J., 2021. On the direction of talent training of design education from the
perspective of the characteristics of design disciplines. The International Journal of
Electrical Engineering & Education. p.00207209211003243.
Etim, E. S., 2020. The Utilization of Social Media Platforms for viability of Femaleowned Small
and Medium-scale Enterprises in South Eastern Nigeria. Acta Universitatis Danubius.
Œconomica. 16(1). pp.96-111.
Hamidi, H., 2021. Decision-Making Processes Used by Malaysian Managers of Small and
Medium-Sized Enterprises When Deciding Their Participation in Government-Sponsored
Training Programs. Global Business & Management Research. 13(2).
Journeault, M., Perron, A. and Vallières, L., 2021. The collaborative roles of stakeholders in
supporting the adoption of sustainability in SMEs. Journal of Environmental
Management. 287. p.112349.
Nalane, L. J. and Sekantsi, L. P., 2020. Assessment of micro, small and medium enterprises
(MSME) financial inclusion initiatives by the commercial banks in Lesotho. Journal of
Digital Banking. 5(2). pp.163-184.
Resmi, S., Pahlevi, R. W. and Sayekti, F., 2021. Implementation of financial report and taxation
training: performance of MSMEs in Special Regions Yogyakarta. Jurnal Siasat Bisnis.
25(1). pp.57-68.
Vedhathiri, T., 2020. Collaborative Dissertation Based on the Human Resources Needs of
MSMES to Improve their Competitiveness and to Overcome the Disruption. Procedia
Computer Science. 172. pp.551-558.
Online
The 6 Biggest Problems for Small Business Owners. 2021. Online. Available through:
<https://statusbrew.com/insights/small-business-problems/>.