In order to help small businesses thrive government should play a minimal role in private business matters

Although market share of small companies and cottage industries do not amount to much, in terms of sheer number there are more small businesses than large corporations. Government policies in many countries even today, are made in lieu of big corporations. Very rarely are policies made that curb these companies operations somehow and when done it's politicized. The sheer number of small companies around the world is enough of a reason for government to keep them in consideration as well, whilst making policies. Too much interference or micro-managing while not desirable, too little attention will simply not make such enterprises lucrative and are most likely to get washed down. Giving small businesses opportunities to grow and diversify is one of the vital parts of maintaining a stable economy and also keeps the established corporations in check as they have to watch out for potential newly emergent rivals.

Small business whether a fresh, new one or an old established one, need autonomy more so than the big companies. Startups need them in much the same way the training wheels in a cycle needs to be removed for a kid to learn to ride it. A startup usually has a flat hierarchy, simple structure. It's vision includes some immediate milestones to launch it's company of the ground. Companies like that are still finding their groove in terms of work culture, market strategy, etc. In a high competitive market, they need to be innovative in how they envision, plan and execute their goals and stand alongside their stronger, more experience and established rivals. This cannot be facilitated if government chooses to micromanage them through invasive policies.

Small business like established cottage industries, have a standing in the market and enjoy a loyal customer base. They provide substantial employment opportunities. In companies like that the long term plan is to maintain It's brand reliability, keep on innovating with new products. The profit margin may increase a little but not my much. Government must therefore keep those companies in consideration while devising new policies - more than some of the biggest corporate companies, such companies have trust of their clients and have a reputation of reliability. This makes those companies more valuable as if such companies are washed down, not only will it mean their entire line of products is lost to the public but also unemployment as such companies often are labor intensive and have huge workforce.

That being said, there is a thin line between complete negligence and micromanagement. It's that line the government needs to thread. Small companies, especially startups enjoy much less security, medical benefits than their counterparts in bigger, established corporation. Total lack of government supervision could cause, rampant harassment of low level employees. It results in toxic work culture and decreased productivity and it won't be long before the company underperforms and fails to achieve it's annual goals. A watchful "eye" is vital, to ensure employee satisfaction and safety. Another aspect an average person would find an employment contract in large companies attractive is the amount of benefits they can enjoy. While it's not possible for the small company to have the same set of benefits, a decent medical insurance cover and accident insurance must be made a standard benefit given to all employees, regardless of the tier of company they work at. More rights as part of the labor code that provides basic financial security is as essential as providing running water and electricity and policies must be made to that effect.

Anything that comes under the purview of government in most cases usually comes with a certain amount of reliability and security that public has in them. So a certain level of involvement would help the general populace to trust in the business entity and work there and contribute to the growth of the organization. At the same time, for growth to be realised, government needs to allow the small businesses to operate in autonomy and establish it's own sets of principles and work force culture.