Business is an organization which sells or buys goods and services to consumers. Most of businesses have private ownership and their aim is to earn profit and wealth. Non-profit and state-owned businesses are other types of businesses. Their aim is giving services to the consumers. In most capitalist economies, all businesses have a voice in the country until nowadays. Today, all around the world, governments are trying to show their power to businesses. For this reason, all types of businesses are suffering from governments. Hence, governments should decrease their political power over businesses.
First of all, because of governments, entrepreneurs create fewer new businesses. In most businesses, they have many start-up regulations to create their business. Their most common obstacle type is licenses. Anyone who wants to build an organization has to get some licenses. For example, according to Liebert (2008), in 2007, Texas decided that anyone who wants to be computer repairman, should get a private investigator license (par. 1).
For getting private investigator license, people must complete three year apprenticeship with a licensed private investigator. Also foreign competition is a problem for entrepreneurs. Governments do not provide protection in small businesses for foreign competition. There aren’t any quotas for many goods for foreign companies. For example, in China, they have low priced workers. This makes their products low priced. On the other hand, domestic companies do not have those low priced workers. For this reason, domestic companies’ prices are higher than foreign companies’. Moreover, start-up companies can’t stand against their low priced products and go bankruptcy. Another problem for entrepreneurs is new regulations. Many of entrepreneurs are trying to start their first business. For this reason, they have a challenge to predict those new regulations’ impacts. If they could not predict properly, they have to solve many organizational problems. If not, company goes bankruptcy. Also governments regulate new taxes for companies. For example, if new health care law comes, this gives to company more economical charge. Companies make their economic plans before the new fiscal year. If new taxes come, they have to remake their economic plans. Without adjustment, they can’t hold a position in market.
The Business plan on Management Ability Business Company Corporations
With the growing number of corporations taking over small businesses, and the belief that becoming a proprietor is associated with being wealthy, one must decide which type of business to become involved with. There are several differences between these two types of business. A corporation is a business organization having a continuous existence independent of its members (owners) and power and ...
Secondly, free market system is better than government monopolistic system. If we compare them with each other, government monopoly is non-responsive. In this system, governments do not care about their customers. If customers stop using their services, this does not make any sense to them. They can find another way to take customers’ money from them anyway. According to Blestman (2011), Using of strength is the most important difference between free market system regulations and government monopoly restriction (par. 7).
On the other hand, free market system has a voluntary system. For example, I have a company. People can come and look my products. If they like them, they can buy them. If not, customers can stop doing business with me and tell other customers not to do business with me, because of my product quality. This is completely voluntary system between customers and business owner. Also, license issue is another good aspect of free market system. If I have money, I can start my own business. I do not have to get any licenses from government or somewhere else. The only thing is creating the business and selling products without any permission.
The Term Paper on Government Intervention in the Free Market Through the Auto Industry Bailout and Healthcare Reform
There is not necessarily a line drawn immediately down the middle of the two sides of this discussion, though many may think or like others to think that. Positives and negatives, supplemental and detrimental aspects can be attributed to the topic of free market versus government intervention. And no better present day examples can be observed then today’s Auto Industry Bailout and Healthcare ...
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Some may argue that governments maintain law and order with some agencies, such as the Environmental Protection Agency and the Federal Trade Agency. The EPA exists to protect human,health and environment. According to Dowdey (n.d), the EPA has programs which can be branched to six categories: air, pollution, prevention, wastes and recycling, toxics and chemicals, water and pesticides, to make environment cleaner (par. 2).
Moreover, the Federal Trade Agency exists “to prevent business practices that are anticompetitive or deceptive or unfair to customers; to enhance informed consumer choice and public understanding of the competitive progress; and to accomplish this without unduly burdening legitimate business activity.” (Federal Trade Commission, n.d, par. 1).
They have a point that governments have some good decisions about regulating. However, governments are able to do anything they want to the business. Fly-by-night companies are most important issue in the business life. Most of them are created and secured by governments. Because of those companies, not only small but also big businesses can’t take bids. They can easily do tax evasion which is restricted by laws. Also they can corrupt money easily, which is another restriction, too. Anytime they have a problem, bureaucrats of government can secure them from laws.
All in all, governments always try to use their political powers to businesses. For this reason, not much entrepreneurs arestarting new companies. Bureaucratic issues are always problem for them. Governments always affect businesses in a bad ways which are new regulations, taxes, using of force etc. Although all around the world, governments are using government monopolistic system, free market system is better than government monopolistic system. Governments are not responsive. They create some good agencies or have some good decisions, but this does not make sense. Because of governments’ decisions, fly-by-night companies are secured from tax evasion and corruption. If they do not decrease their power over businesses, one day all business life is only serves to the bureaucratic decision makers’ benefits.
The Business plan on Decision Support Systems Vision Technology Data
Decision Support Systems (DSS) A Decision Support System (DSS) is an information system at the management level of an organization that combines data, analytical tools, and models to support semi structured and unstructured decision-making. A DSS can handle low volume or massive databases optimized for data analysis. DSS has more power than other systems. They are built explicitly with a variety ...
