Small business


Limiting the amount and period of public subvention



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Effective policies for small business 0 (1)

Limiting the amount and period of public subvention. Governments tend to be reluctant or unable to
commit themselves to supporting small business services over long periods of time. International donor
agencies also have a long history of funding local centres in developing and transition economies which,
after the termination of donor funding, are not sustainable. The ‘new paradigm’ for building business
development services is essentially that financial sustainability must be ensured through a more
aggressive approach to market development and private sector led ‘for profit’ activity. Alternative
strategies are possible, for example, by treating stakeholders as customers as shown below;


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