Roles of Government in the growth of small and medium-sized firm

Research

Contents
Title..................................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Background of the research.........................................................................................................3
Research problem.........................................................................................................................5
Aim and objectives......................................................................................................................5
Research Questions......................................................................................................................6
Rationale......................................................................................................................................6
LITERATURE REVIEW................................................................................................................6
Roles that small and medium-sized companies of the UK are playing.......................................6
Problems SMEs are facing in operating business........................................................................7
Governmental roles for development and growth of small and medium-sized companies of the
UK................................................................................................................................................9
REFLECTION...............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Title
Roles of Government in the growth of small and medium-sized firm.
INTRODUCTION
In regard to small and medium-sized companies it is found that in the UK there are around
5.94 billion companies are of small sized that creates 99.3% of the total business. Small and
medium-sized companies also provide 3/5 of the employment (UK Small Business Statistic,
2019). So, from this ratio and data it can be said tat small and medium-sized companies are
playing a vital role in increasing economy. Government is also playing several roles for
developing all small and medium-sized companies. There are several policies that have been
developed by the government that affects small and medium-sized companies in both positive
and negative manner. Labour market policies, tax policies, social and gender policies have
critical impacts (Taiwo, Falohun and Agwu, 2016). It all depends on the ability of SMEs of
making use of policies, strategies and having positive outcomes. So, it can be said that from
information that government provides several facilities and support to small and medium-sized
companies in growth and development. It boosts confidence of SMEs of competing with others
and it works as motivation for them that leads success and effective growth.

There are several approaches that have been developed by the government such as: pick
the winner model, growth oriented approach and traditional versus growth oriented policy. All
these governmental policies and approaches are playing a vital role in growth and development
Illustration 1: Number of Private Sector Business in the UK
Sources: (Business Population Estimates for the UK and Regions, 2020)