Describe several ways that governments can foster entrepreneurship and encourage the creation of wealth.
There are multiple ways that the government can foster entrepreneurship and encourage the creation of wealth. The biggest concern is the level of harsh rules that are put into effect that discourage business starts ups. The government could start off by lowering tax rates as well as strict business regulations. Entrepreneurs are likely to shift doing business in favoring certain states where there’s less restriction for them to operate in. The government can also take an initiative to push for more privately owned businesses. This benefits the owners as well as members of society as profits and new jobs are generated in the economy. The government also needs to reduce restriction on foreign investments and trade regulations with other nations.
One thing a government can do is to increase entrepreneurship and wealth is by lowering taxes, or preventing taxes from rising. When start ups are taxed a bunch of money from the start it can put them in a hole that is hard to get out of. Another way the government can help entrepreneurship is to allow private ownership of businesses is by passing laws that enable businesses to write contracts, which can legally bind people to obligations. If the government can continue to make laws that help take care of small businesses rather than hurt them, the encouragement of wealth will continue from the government.