How The Government Can Help SMEs
The situation is most dire for micro enterprises such as sole proprietorships or partnerships that make up 99.5% of all small businesses.
Large-scale unemployment will likely thrust us down the recessionary spiral of demand reduction, as unskilled labour will be unable to subsist on reduced salaries. The social impact of such unemployment is even harder to fathom, let alone afford.
Is there a government contract model that can help small enterprises survive?
Easier access to public procurement can help small businesses unlock their potential, while having a positive impact on the economy. A government contract may encourage small firms to invest more, expand employment and increase productivity thus helping to attain industrial development objectives.