Business Studies – 1.3.1 Enterprise and entrepreneurship | e-Consult
1.3.1 Enterprise and entrepreneurship (1 questions)
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Here are three potential support schemes a local government could introduce, along with their advantages and disadvantages:
| Scheme | Advantages | Disadvantages |
| Seed Grant Scheme | Provides crucial initial funding; encourages innovation; can attract high-potential start-ups. | Limited funds; difficult application process; may not be suitable for all businesses. |
| Business Advice & Mentoring Program | Cost-effective; helps with business planning and problem-solving; improves business acumen. | Relies on the quality of advisors; may not provide direct financial assistance; time commitment required from entrepreneurs. |
| Low-Interest Loan Guarantee Scheme | Encourages investment from banks; reduces risk for lenders; provides access to capital. | Requires a strong credit history; may not be available to all businesses; can create debt burden. |
The best scheme will depend on the local government's priorities and the needs of the local start-up community. A combination of schemes is often the most effective approach.