The development of business in Hong Kong and Singapore Essay

The development of business in Hong Kong and Singapore depends on the economic policies conducted by the authorities. At the same time, economic policies are not always effective, especially of national economies face the problem of the economic recession and decline. In such a situation, firms need the assistance from the part of the state and stimulating fiscal policies. In such a situation, government should develop stimulating economic policies to encourage economic growth for firms.
On analyzing the current situation in Singapore and Hong Kong, it is important to dwell upon methods used to encourage economic growth for firms in Hong Kong and Singapore. In this regard, it is worth mentioning the fact that, today, the government of Hong Kong stimulates the development of business through the introduction of stimulating fiscal policies. In Singapore, the government develops tax credits for firms to stimulate their business development. These stimulating methods are effective because they ease the fiscal pressure and stimulate the development of businesses.
On the other hand, it is worth mentioning the fact that stimulating fiscal policies are not always effective and fails to stimulate economic growth of companies because they need to attract customers but, if the buying power of customers is low, stimulating fiscal policies will not work (Davila, Epstein, Shelton, 2006). In this regard, the government of Hong Kong and Singapore should focus on the solution of such problems as unemployment that will help customers to increase their revenues and buying power. In such a way, government can decrease the unemployment share and, thus, stimulate economic growth of firms.
In addition, it is possible to suggest some more recommendations on methods to encourage economic growth for firms in Hong Kong and Singapore. In this regard, governments of Hong Kong and Singapore should stimulate the introduction of innovations. The introduction of innovations can accelerate the business development because they increase the effectiveness of business development and marketing position of firms. For instance, governments can provide grants for the development of energy-efficient technologies. The introduction of innovations can stimulate not only the business development of companies but also national economies at large.
At the same time, governments of Hong Kong and Singapore should focus on the stimulation of the development of small businesses. The development of small business can stimulate the development of small and medium enterprises. In this regard, governments should develop stimulating programs to support small business. What is meant here is the fact that the governments of Hong Kong and Singapore should develop training programs for individuals willing to start their business and to facilitate starting up small businesses.
Basically, the introduction of innovations and the development of small businesses can facilitate the development of businesses because innovations decrease costs of production and attract customers (Grinols, 2003). The development of small business decreases unemployment and increases the buying power. As a result, firms will improve their marketing performance and start growing.
Thus, it proves beyond a doubt that the role of the government in the economic growth of firms is very significant. In this regard, fiscal policies, stimulation of innovations and development of small businesses are particularly effective.