Micro-policies and SMEs Flashcards Preview

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Flashcards in Micro-policies and SMEs Deck (15)
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1
Q

Definition of micro-policies?

A

policies which explicitly focus on SMEs and entrepreneurs

2
Q

What are the 5 main policies? (FEARD)

A

Finance (access and provision), Enterprise culture, Advice, technology and innovation (R&D), particular groups (Demographics)

3
Q

What did the European Commission (2003) find?

A

Only 40% of European desired self-employment, in comparison to 60% of Americans

4
Q

What are the three ways you can develop an ‘entrepreneurial mindset’?

A

Change the education system, Graduate self-employment schemes, Work experience provision for young people

5
Q

What are the three main education sectors that can be targeted when changing the education sector?

A

primary, secondary, tertiary (evening/ extra curricular learning classes)

6
Q

Why target graduates over non-graduates with schemes?

A

graduate start ups are more likely to grow than non graduate start ups

7
Q

What are the three main ways provision and access to finance can be improved for SMEs?

A

Bank loan guarantee schemes, small business grants, informal VC equity financing

8
Q

What does the loan guarantee scheme involve?

A

The government providing the bank with between 50-80% of financial assurance, so that if the small business fails and they cant provide collaterals, the government will bail them out.

9
Q

What does the loan guarantee therefore help achieve?

A

Small businesses without collaterals not being denied credit

10
Q

How can a small business grant improve performance?

A

Reduces a business’ costs and to invest in new factors of production = this increases productivity and growth

11
Q

How can the government encourage informal VCs to invest?

A

Match them with prospective businesses that wouldn’t normally have met in everyday conditions, provide financial incentives to business angels who invest in small businesses (such as tax breaks)

12
Q

What are the two main ways free or subsidised advice can be implemented?

A

Advice to new or current businesses, subsidised international and national trade fairs

13
Q

What are the issues with advice?

A

how they are administered (public or private?) and rationed (sector, owner, age, price, quantity)

14
Q

What are the two variants in the technology and innovation policy?

A

Business incubators, R&D funding

15
Q

What are the four main demographics targeted in ‘particular groups’

A

women, unemployed, ethnic minorities, young people