In order to help small businesses thrive, government should play a minimal role in private business matters. Write a response in which you discuss the extent to which you agree or disagree with the claim. In developing and supporting your position, be sure to address the most compelling reasons and/or examples that could be used to challenge your position.
A hot topic in the current business world is the question of how much government intervention in private business is appropriate to allow small businesses to stay open. My opinion is that in general, the government should minimize its intervention in small business and avoid placing unfair restrictions on businesses.
In modern times, the demise of many small businesses has occurred primarily because of government intervention. For example, in the medical field, many private practitioners can no longer run their own clinics because of the extremely expensive malpractice insurance that is required by the government. Additionally, many small businesses are no longer open because of high taxes levied on businesses. For a large company, these taxes are insignificant, but for a startup company, bankruptcy is too often the result. Small businesses simply cannot compete given the equal governmental requirements placed on businesses. In some cases, it can be argued that the larger corporation is actually beneficial for the customer since it provides a much broader range of products and services in one store—take Walmart, for example. However, the loss of specialized services in small businesses and the personalized customer service has resulted in customer dissatisfaction and a disappearance of specialized products.
In arguing that the government should stay out of private business matters, it must be recognized that large monopolies can naturally form in business. When this has occurred, small businesses struggle and become insolvent. Without government intervention, these monopolies can control prices and product quality to their advantage and to the detriment of the general populace. In these cases, some government regulations are necessary. In the early 1900s, for example, Theodore Roosevelt broke up major railroad monopolies, reducing prices and curtailing corruption. This governmental action restored the free market and benefited smaller businesses.
In conclusion, to allow small businesses to thrive, the government should avoid unfairly placing onerous restrictions and requirements on business that will single out small companies. However, governmental restrictions should be in place to prevent ultra-large companies from monopolizing the market. To summarize, the question of government intervention in business is less about the extent to which the government intervenes and more about the role that it plays when it intervenes
