C) Explain the reasons why the Irish Government encourages entrepreneurship in Ireland. - Leaving Cert Business - Question 2 - 2019

Encouraging entrepreneurship leads to an increase in jobs and corresponding business activity, which generates more tax revenue for the government. The increase in taxation allows the government to fund public infrastructure, thereby enhancing economic development.

By fostering entrepreneurship, the government aims to boost exports as new businesses develop products for sale in international markets. This can reduce dependence on imports and may help improve the balance of payments, benefiting the national economy.

The encouragement of entrepreneurship can cultivate an enterprise culture, motivating more individuals to start their own businesses. This creates a cycle where successful entrepreneurs inspire others in their communities to pursue similar paths, thus driving economic development.

By creating new business opportunities, entrepreneurship can lead to reduced reliance on social welfare programs. Increased employment prospects enable individuals to be financially independent, which in turn alleviates the burden on social welfare systems.

Promoting entrepreneurship is a strategy to stimulate overall economic growth. As new businesses are founded, the economy diversifies and expands, leading to increased wealth and improved living standards.

Entrepreneurship can foster community development as local businesses often engage in community initiatives. This strengthens local bonds and leads to a more integrated society.

The role of organizations such as Enterprise Ireland and Local Enterprise Offices (LEOs) is crucial in supporting new entrepreneurs. These bodies provide resources, mentoring, and financial support, which further encourages entrepreneurial activity across the country.

Encouraging domestic entrepreneurship can mitigate the country's overreliance on Foreign Direct Investment (FDI). By nurturing local enterprises, the Irish Government aims to create a more balanced and resilient economy.