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Discuss how the Irish Government could create a positive climate for businesses like Braw Chocolate - Leaving Cert Business - Question 2(B) - 2022
Question 2(B)
Discuss how the Irish Government could create a positive climate for businesses like Braw Chocolate. Use examples to illustrate your answer.
Worked Solution & Example Answer:Discuss how the Irish Government could create a positive climate for businesses like Braw Chocolate - Leaving Cert Business - Question 2(B) - 2022
Step 1
Government Grants/Support for the Labour Force during Covid 19
Answer
The Irish Government can create a positive climate for businesses like Braw Chocolates through various support systems. For example:
- Government support such as payments for employees: This can help businesses maintain staffing levels and reduce costs during difficult times.
- Financial support for businesses: The government could provide grants supporting loans from €25,000 up to €1.5 million with a nominal interest rate of 4%, aiding those affected by Covid 19.
These actions foster a supportive environment for companies like Braw, allowing them to focus on recovery and growth.
Step 2
Increase Capital Expenditure
Answer
The Irish Government could increase capital expenditure specifically in sectors that benefit businesses like Braw Chocolates. For instance:
- Investment in infrastructure and schools: This leads to better community services, creates jobs, and enhances the overall economic environment.
- Support for local farmers: Facilitating relationships between farmers and businesses can lead to increased sales for Braw Chocolates, boosting local produce and economies.
Step 3
Government State Agencies
Answer
By utilizing state agencies to support businesses, the government can provide targeted resources for Braw Chocolates. For example:
- Enterprise Ireland: Offers grants and advice to help develop and promote their products.
- Fáilte Ireland: Provides support aimed at enhancing tourism and food destinations, which can drive foot traffic to businesses like Braw.
Step 4
Increased Expenditure on Public Sector Wages/Social Welfare
Answer
The government can increase expenditures directed towards public sector wages and welfare as this directly affects local spending:
- Wage increases for public sector workers: This would allow workers to have more disposable income, which can increase spending in the community, benefiting businesses like Braw Chocolates.
Moreover, this indirectly creates a healthier market for Braw’s products.
Step 5
Government Investment in Education and Training
Answer
Investing in education and training is crucial:
- Investment in third level education: Ensuring students are prepared for the workforce can create a steady stream of skilled employees for businesses.
- Training programs: Provided by organizations like SOLAS can equip potential employees with the skills to work in businesses like Braw Chocolates, mitigating labor shortages.
Step 6
Taxation
Answer
By creating a favorable tax environment, the government can encourage entrepreneurship:
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Lower taxation rates: For small businesses can help support new ventures like Braw Chocolates, allowing them to reinvest profits back into the business.
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Tax incentives: For employing young people can stimulate job growth while directly benefiting businesses.