Research Method - Mihaela Arsene

The Impact of
Government Policies on the Growth and

Sustainability of Startups and Small Businesses
Research Methods
Mihaela Arsene
20002153
• Through generating jobs, fostering innovation,
and promoting economic expansion, startups
and small enterprises have a big impact on the
economy. Unfortunately, they encounter a
number of difficulties, including access to
money, a lack of resources, and regulatory
restrictions.
• Government policies can play a crucial role in
addressing these challenges and supporting the
growth and sustainability of startups and small
businesses.
According to the research by Baumol, Litan, and

INTRODUCTION
Schramm (2007), government policies can have a
significant impact on promoting entrepreneurship
and supporting the growth and sustainability of
startups and small businesses.
BACKGROUND
 In many nations, small firms and startups are significant forces behind economic expansion and job
creation. How government policies may assist the expansion and sustainability of start-ups and small
enterprises has drawn increasing attention in recent years. In order to better support these significant
economic contributors, this presentation will examine the effects of governmental policies on the
development and sustainability of startups and small companies.
 Small businesses and startups are the backbone of the economy. According to the World Bank, small
and medium enterprises (SMEs) account for more than 90% of all businesses worldwide and contribute
to 50% of global GDP (World Bank, 2019). In the United States, small businesses account for 99.9% of all
businesses and employ 47.1% of the private sector workforce (SBA, 2021). Similarly, in the United
Kingdom, small businesses account for 99.3% of all businesses and employ 60% of the private sector
workforce (Federation of Small Businesses, 2021).
 Despite their significant contribution to the economy, small businesses and startups face various
challenges. The challenges include access to finance, access to markets, regulatory burden, lack of
skilled workforce, and high competition (OECD, 2021).
Research Rationale
The objective of this research is to evaluate how government regulations affect the
development and long-term viability of new and small firms. The study is significant for a
number of reasons.
 First off, small firms and startups are crucial to the economy, thus it's important to
understand how well government policies support their expansion and viability.
 Secondly, there is no universal agreement on how government policies affect startups
and small enterprises. While some studies contend that government policies harm small
firms and startups, others contend just the opposite.
 In order for governments to promote small businesses and startups, it is necessary to
determine the appropriate policies and practises.
Literature Search
 The literature search for this project was conducted using databases such as Google Scholar, JSTOR, and
Emerald Insight.
 The search was conducted using keywords such as "government policies," "startups," "small businesses,"
"economic growth," and "job creation."
 The inclusion criteria for the search were academic articles published in English, with a focus on the impact of
government policies on startups and small businesses.
 The exclusion criteria were articles published before 2015 and those that did not focus on the impact of
government policies on startups and small businesses.
Preliminary Literature Review
• The preliminary literature review revealed that government policies can have a
significant impact on the growth and sustainability of startups and small businesses.
• One example of such policies is tax incentives for small businesses, which have been
shown to positively influence their growth and sustainability (Mackenzie & Ruddock,
2016)
• Moreover, studies have shown that policies that support innovation, entrepreneurship
education, and access to international markets can also have positive effects on the
growth and sustainability of startups and small businesses
• For economic expansion and job development,
small enterprises and startups must be successful.
With the execution of policies that open up access
to capital, lower bureaucratic barriers, and promote
innovation, governments play a crucial role in
assisting their growth and sustainability. The
success of these measures, however, is influenced
by a number of factors, and their efficacy is
frequently contested.
• Evans (2019) argues that public and private
entrepreneurship can be fostered through
appropriate government policies. He suggests that
policies that provide access to funding, reduce
titlu
regulatory burdens, and promote innovation can
help create a favorable environment for startups
and small businesses. He also notes that policies
should focus on improving the entrepreneurial
ecosystem, including the availability of talent, CONCLUSION
resources, and networks.
REFERENCES
• Evans, D. S. (2019). Public and private entrepreneurship: A fruitful partnership. Small Business
Economics, 53(2), 145-155
• Mackenzie, A., & Ruddock, L. (2016). A survey of the effectiveness of government policies in supporting
small businesses. Journal of Small Business Management, 54(4), 1124-1144.
https://doi.org/10.1111/jsbm.12216
• Organisation for Economic Co-operation and Development. (2021). SME Policy Index: Western Balkans
and Turkey 2020: Assessing the Implementation of the Small Business Act for Europe. OECD Publishing.
https://doi.org/10.1787/22194658
• World Bank. (2019). Small and Medium Enterprises (SMEs).
https://www.worldbank.org/en/topic/smefinance
• Small Business Administration. (2021). Frequently Asked Questions.
https://www.sba.gov/article/2020/mar/02/100-frequently-asked-questions-about-small-businesses-and-g
overnment-contracting
• Federation of Small Businesses. (2021). Small Business Statistics.
https://www.fsb.org.uk/uk-small-business-statistics.html
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THANK YOU!
Mihaela Arsene
07940319513
Miha.nistor0298@gmail.com
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The Impact of

Government Policies on the Growth and

According to the research by Baumol, Litan, and

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