Should government invest in small businesses - Essay Example

Small businesses are very important for economic growth of a country. According to FSB, small and medium sized businesses contribute over 98 per cent of all businesses within an area (Ibbotson and Moran, 2005, pp. 556-563). In London, small businesses contribute significantly by providing job opportunities to unemployed people. The GDP of the entire United Kingdom is highly contributed by small and medium-sized entrepreneurs. In the year 2012, the Federation of Small Businesses surveyed 200 small businesses in London.

Small businesses reported that they had better opportunities in entire London during Olympics and games. People from different countries visited London during games and sports. It helped most of the SMEs to earn huge profits. Small businesses are important because they lead to new innovations in marketing strategies. Most of the SMEs’ entrepreneurs belong from a lower age-group in London as per the report of FSB. Young people have the potential to convert their initiatives to application, which has sustained the market till now.

Government investment in small businesses can provide better chances for small business to grow and develop, which in-turn can help in the economic development of London. The Prime Minister of United Kingdom has brought forward some evidential facts during the CBI speech on 25th of October. The Prime Minister mentioned that the existing small businesses since 2002 have proved to be very beneficial for the economic growth of United Kingdom especially London.