The development of many new businesses helps limit

The development of many new businesses helps limit

A.)unemployment.

B.)taxation.

C.)revenue.

D.)risk.

Answer: A.)unemployment.

A large number of new ventures are thus important in arresting unemployment in as much as they provide job openings in different sectors of the economy. Usually, when a business person begins a new business, he or she has to source employees to assist in the running and expansion of the business. This means that this process of job creation is useful in the achievement of eradicating hiked-up unemployment instances in a community or economy. For instance, a new technology startup firm may be established in a city and establish a team of developers, marketers, and administrative personnel at creation. Using the example of the company, one must consider the fact that as the enterprise develops, it may hire many employees at once, which requires the involvement of tens or even hundreds of people in the process in the future. By the same token, the establishment of a restaurant chain could generate employment for chefs, servers, managers and other employees in different stations. In direct effects of new businesses on employment, are not only confined to actuating hiring. There are also backward linkages that new enterprises create by developing other industries that are connected to them. For instance, a new manufacturing company may lead to employment opportunities that are not only limited to an establishment but also within other establishments like suppliers, transport companies, and shops where the employees of the manufacturing plant may buy their products. Also, new ventures generate competition for traditional businesses and bring change through new forms of work organizations thus job novelties which were not in the market before could be developed. This is well illustrated in the new age careers such as social media managers or application developers which are prevalent today. Therefore, the health of any community and its government depends on the acceptance of new business formation to reduce unemployment and improve the economy.