1. The Role of Government in Small Business M4 L2

2. Role of Government  Provider of public goods Public good: A good from which everyone receives benefits such as: vaccinations against communicable diseases armed forces schools highways

3. Role of Government  Provider of social programs By providing social programs, people who require help receive it. The cost of providing these programs is spread among millions of taxpayers which significantly reduces the cost to any one person. Examples include:  social security  welfare  medical research  aid for dependent children

4. Role of Government  Regulator In order to protect consumers, the government must regulate private companies. Samples of government types of regulations  Inspection  Licenses  Permits

5. Role of Government U.S. Department of Agriculture - The USDA inspects meat and poultry handling facilities to ensure that appropriate hygienic measures are being observed. U.S. Occupational Health and Safety Administration- OSHA inspects factories to ensure safe working conditions for employees.  Inspector

6. Role of Government  Licensor  The government requires some businesses to obtain licenses.  Entrepreneurs wishing to enter fields requiring licenses must pass examinations and pay licensing fees before they can start a business.  Examples include: oCosmetologists oBarbers oDay care providers

7. Role of government  Redistributor of income The government helps to affect the economy by redistributing income.  People with higher incomes pay more taxes than people with lower incomes. Lower income people benefit from social programs.  This allows income to be more evenly distributed among members of a society. Entrepreneurs are affected by this redistribution of income because the percentage of income that must be paid in taxes increases as earnings increase.

8. Local Government Regulations Affecting Small Business The following is a list of regulations that are important to a new small business owner. –Zoning regulations Identifies the types of establishments that can be built in certain areas. –Tax regulations Do you have to pay quarterly taxes. –Building regulations Guidelines to the size and type of structure that can be built. Sets code as to materials etc. that can be used. –Licensing Must have a license in place before you open for business.