The government plays a big role in accelerating or inhibiting development of businesses. The policies put in place could steer or harbor development.
For a business to be successful, the entrepreneur should first identify the challenges and pitfalls around them and find remedies to them. By so doing they will be able to align the vision of the products that best suits the target audience. An entrepreneur should also be ready to embrace change.
Government policies which have effects on business include trade regulations, licenses or permits, political stability, interest rates among others.
If for instance entrepreneurs are charged low interest rates, this will attract more investments thus increase production. The government plays a role here when they print more money which in the long run results in inflation. It is obvious then that businesses will not thrive where inflation level is high.
In other case where the government imposes high tax on imports, this will encourage production of local goods as well as growth of local industries and the vice versa applies.
Trade regulations on the other hand have an effect on the competitiveness and profitability of businesses. Some businesses spend a lot of money to comply with some regulations which don’t seem to be effective.
Our government today spends a lot of money and it is we the common “mwananchi” who suffer in the end. We end up being taxed highly whereas some of us just earn peanuts. In my opinion I would first advocate for some positions in the county government to be done away with. This is because we spend a lot of money on salaries to people who do not even know their roles in office. If only that money set aside for salaries could be given to youth groups for investments, the business sector by now could be miles and miles ahead.
A stable political system puts interests of the “mwananchi” first. For our country we may not complain but with the current issue on the anti IEBC protests which have resulted in loses we may raise an alarm on the same.
Fair and effective policies promote growth of businesses so we should not only see the bad, when you are levied for tax, do not spend your entire life complaining. Let us not feign ignorance in the name of our government. Let us not always mitigate for things to be done our way. It is almost obvious that we cannot also fight the government.
By Maureen Nyambura