Goverment and Legali...

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Governments consist of administrators, arbitrators and legislators in the administrative organization that are responsible for state control at a given time and also the system in which they are organized. It can be defined as the means of enforcing state policies and mechanism in which state policies are determined. Each successive government has a body of people controlling and exercising control on political decision making. They have a responsibility of enforcing and making laws and also arbitrate conflicts.

legalisation on the other hand refers to law which has already been promulgated/ enacted by a government body or a legislature. Prior to the legislation being enacted into law it is normally referred to as a bill, however, it may be generally referred to as ‘legislation’ even as it is still under consideration in distinguishing it from other businesses. Legislation has many functions: to authorize, to regulate, to proscribe, to sanction, to provide, to grant, to restrict or to declare. Legislations are habitually proposed by members of legislature like a Member of Parliament or Congress. It can also be proposed by the executive and debated by legislative members who often amend it before passing it into law.Government Legislation

Government and legalisation are responsible for creating frameworks and rules for businesses to compete against each other on a fair ground. Now and then government changes frameworks and rules and this usually forces the businesses to change their operation ways. As a result, government and legalisation affects business policies. The main areas of government and legalisation affecting businesses are economic policies and legal changes.

A key area of government and legalisation policy is the role of the state in the economy given by the government. Taxation policies always affect the costs of the business. For example, rise on business profits has the same consequence as increase on the cost of production. Businesses always pass the higher taxation to the consumers and this usually affects the bottom line.

Government Legislati...

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If you are a small business owner or entrepreneur you might be asking yourself what the government is doing to help you obtain financing and to make the best use of it. The answer turns out to be quite a lot.

When seeking information on properly financing your business, the government is the last place you’d think to look. The UK, however, has set up a website at http://www.improve.businesslink.gov.uk/finance to provide exactly that information. It is a surprisingly savvy and well designed website, and has a great deal of useful information.

Another way they are helping small businesses is by passing legislation that intervenes in the financial markets to make it easier for British businesses to obtain financing. Current programs include Enterprise Finance Guarantee, Enterprise Capital Funds, and the National Loan Guarantee Scheme. All of these programs are designed to improve small business access to financing.Government Legislation

Enterprise Finance Guarantee (EFG)

The EFG is a program available to SMEs with an annual turnover under £41 million seeking loans between £1000 and £1 million to be repaid between three months and 10 years. Loans will be delivered by accredited lenders (there are currently more than 45 accredited lenders) and guaranteed to 75%.

Enterprise Capital Funds (ECFs)

Because of the high cost of performing due diligence in young, smaller companies, many beginning businesses struggle to obtain equity finance. ECFs are a means to closing the equity gap by combining private sector investment with government funds to provide equity financing to smaller companies.

National Loan Guarantee Scheme (NLGS)

The NLGS is a scheme that allows participating banks to raise up to £21 billion in government guaranteed funding. These banks will be required to lend at significantly lower rates to qualifying business customers.

These are just three of the many pieces of legislation the government has passed in recent years to ensure that small businesses have the access to financing they need to be successful and compete on a global stage.

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