Explain the reasons why the Irish Government encourages entrepreneurship in Ireland. - Leaving Cert Business - Question 2C - 2019
Question 2C
Explain the reasons why the Irish Government encourages entrepreneurship in Ireland.
Worked Solution & Example Answer:Explain the reasons why the Irish Government encourages entrepreneurship in Ireland. - Leaving Cert Business - Question 2C - 2019
Step 1
Employment
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The Irish Government encourages entrepreneurship as it leads to the creation of more jobs provided by Irish-owned companies. These jobs are often more stable than those in foreign-owned firms, contributing to a more resilient economy.
Step 2
Taxation
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
By fostering entrepreneurship, the government expects an increase in business activity, which in turn will yield higher tax revenue. This additional revenue can then be allocated towards investing in public infrastructure and essential services.
Step 3
Exports
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Encouraging entrepreneurship can lead to an increase in exports. As home-produced products are sold abroad, new markets are created. This can also help reduce reliance on imports, positively impacting the balance of payments.
Step 4
Spin-off effects
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
A vibrant entrepreneurial environment will likely inspire local communities. As new enterprises are established, an enterprise culture develops, encouraging more individuals to become entrepreneurs.
Step 5
Reduce Social Welfare
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
By promoting entrepreneurship, the government aims to increase employment opportunities, thereby reducing the dependency on social welfare programs. This shift fosters economic growth and encourages community development.
Step 6
Economic Growth
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The overall effect of encouraging entrepreneurship is an increase in economic growth, which benefits the country as a whole.
Step 7
New businesses are created
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Supporting entrepreneurship leads to the establishment of new businesses, contributing to job creation and innovation.
Step 8
Community development
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Entrepreneurship supports community development by creating new opportunities and enhancing local economies.
Step 9
Enterprise Ireland/LEO's
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Institutions like Enterprise Ireland and Local Enterprise Offices (LEOs) play a crucial role in supporting new ventures through guidance and funding, further incentivizing entrepreneurship.
Step 10
Overreliance on FDI
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Encouraging homegrown entrepreneurship helps reduce overreliance on foreign direct investment (FDI), creating a more balanced and sustainable economic environment.
Join the Leaving Cert students using SimpleStudy...
