Unit 11. New business

Low taxes →

imply a flexible labour market, where there are not only low taxes on companies but also low social cots (low payments from companies and employees for benefits such as health care and unemployment benefit ), where it is easy to fire people when activity decreases, and where people quickly find new jobs when activity increases again.

Skilled staff →

imply the requirement for a good national education system and good company training of employees.

Low interest

rates →

mean that it is cheap to borrow money to develop new business activities.

Cheap rents →

for office and factory space are of course more attractive than expensive ones, but having your office in the right place at a higher rent may be more attractive than having it in the wrong place at a lower one.

Stable economy →

is beneficial because businesspeople are able to plan better when there is less uncertainty about future inflation, taxes, etc.

Good transport

links →

are important for employees to get to work and for salespeople to get to customers, but also for distribution of goods if your business does this.

Training courses→

provided or funded by the government can be helpful in developing the skills of budding entrepreneurs.

High

unemployment →

may mean that the wages you can pay are lower, but you may not be able to find the people with the skills you want if you set up your business in an area with a high level of joblessness.

Strong currency →

in manufacturing means that imported raw materials are cheaper but that your exports will be more expensive than those from some competing countries. But if your products offer more benefits, they may justify a higher price.

Government

grants →

may be used to try to persuade companies to set up in areas with high unemployment but, if the area is unsuitable for other reasons (such as unskilled staff, distance from markets, etc), these grants will not be enough