The MED week takes place every year and is organised by governments to help minority entrepreneurs. This event shows precisely that the intervention of policy makers and practitioners is essential for new firms to emerge and help development.
Policy makers set plans used by governments or businesses and practitioners enforce these policies. They operate either by financial, moral, or political support.
The why question, has a series of answers.
First of all, firms are a huge motor for our economy and development; this is the main reason why policy makers intervene. They are huge job creators (represent 56% of employment in the UK), stimulate competition and innovation as well as the local economy. Nevertheless, injustice exists within firm creation. Indeed minority entrepreneurs may lack financial support or be socially discriminated (women, ethnic minorities…). It is in this context that policy makers and practitioners aim to improve and support firm formation to amplify the positive factors and reduce the negative factors drained by firm creation.
From an economic standpoint, firm formation creates economic wealth. Even though firms generally have a short life cycle, they have a huge impact for our countries; they are the main source of employment and if more and more firms are born, more and more jobs are created, “… new businesses, especially smaller businesses, are the greatest source of new jobs, providing jobs at all points of the economic cycle” (lec2). Policy makers have a high interest to support this as more jobs implies more income for individuals and an increase in economic wealth due to more demand, which consequently leads to more productivity. Competition is stimulated as more firms means a multinational opening activated by innovation and new technology leading to reductions in price and increased in attraction. Firms allow the local economy to be more significant as they employ local individuals and could potentially introduce new...