Top 10 responsibilities of Government towards Business
The Government’s responsibilities towards business are as follows:
1. Enacting and Enforcing Laws: Enacting and enforcing laws is the prime responsibility of the Government of each country. This is because laws and regulations only enable the businesses to function smoothly. Further, Government provides a system of court for adjudicating differences between firms, individual or Government agencies.
2. Maintaining Law and Order: Maintaining law and order and protecting persons and property is another responsibility of the Government of the country. It would be impossible to carry on business in the absence of a peaceful atmosphere.
3. Providing Monetary System: The Government has to provide monetary system so that business transactions can be effected. Further, it is also the responsibility of the Government to regulate money and credit, and protect the money value of the currency in terms of other currencies.
4. Balanced Regional Development and Growth: It is the responsibility of the Government to make sure that there are balanced regional developments and growth.
5. Provision of Basic Infrastructure: Government should provide basic infrastructural facilities such as transportation, power, finance, trained personnel and civic amenities, which are indispensable for the effective functioning of business concerns.
6. Supply of Information: It is the responsibility of the Governments to provide information, which is useful to businessmen in carrying out their business activities. Government agencies publish and provide a large volume of information, which is used extensively by business firms. This information normally relates to economic and business activity, specific lines of business, scientific and technological developments, and many other things of interest to business houses or business leaders.
7. Assistance to Small-scale Industries: It the responsibility of the Government to provide the required facilities and encourage the development of small-scale industries to overcome the problem faced by them.
8. Transfer of Technology: It is the responsibility of the Government to transfer to private industries whatever discoveries are made by the Government – owned Research Institutions so that they can be used for commercial production.
9. Conducting Inspections: It is the responsibility of the Government to inspect the private business concerns in order to make sure that they produce quality products, and also to prevent the production and sale of sub-standard goods.
10. Incentives to Home Industries: It is the responsibility of the Government to encourage the development of home industries by providing them various incentives and subsidies.