Articles
| Open Access |
https://doi.org/10.37547/ijmef/Volume03Issue01-02
THE NEED FOR GOVERNMENT REGULATION OF SMALL BUSINESS
Abstract
Currently, there are different opinions about the reasons for state regulation of the small business sector. According to the traditional theory, the government should intervene in the economy when the market fails to allocate resources efficiently, resulting in market "failure". In the framework of welfare theory, it is emphasized that the reason for market "failures" is not only monopoly, but also the existence of externalities (externalities). This article discusses the factors and functions affecting the regulation of small business by the state, and provides analytical information on its share in the main types of economy.
Keywords
Small business, gross domestic product, innovation
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