Question

Explain five reasons that may make it necessary for the government to promote entrepreneurship.

Answer 1

1. Job/Employment creation for self through trading/production activities/for others/ may boost economic activities in the country. Trading activities may boost employment opportunities in the country.
2. Opening up of remote parts of the country. 
   Trading activities may attract support industries/auxiliary services/such as banks/infrastructure development in some areas  (accept e.gs a support industry/auxiliary services & infrastructure as expansion.
3. To raise living standards.
   Trade usually brings goods that some areas may not be in a position to produce hence higher living standards by availing a variety of goods to them. 
4. To reduce rural urban migration.
   When (more) people engage in business activities in the rural set-up/ it may serve to lower the rate of rural urban-migration  (accept any advantages of reduction of rural-urban migration as expansion
5. To promote innovation/creativity.
   Entrepreneurship encourages use/development of new technology/ideas/products which in turn results into high quality/quantity production.
6. To make use of local resources.
   The Government may desire to put all the available resources into proper use, to increase production to avoid them being idle.
7. To save on imports/foreign exchange by producing commodities locally(rather than buying from outside the country)
8. To reduce foreign dominance for business in the country by encouraging Local people to invest in business
9. To generate (more) revenue to the government where the business pay taxes to the government.
10. To promote entrepreneural culture, where successful business often act as role models/mentors for future entrepreneurals.
11. To encourage production of a variety of goods/services so as to satisfy different consumer tastes/ widen their choice.
12. To encourage production of goods for export  which generate foreign exchange