When large companies, such as multinationals and huge conglomerates, set up in a country, in provides a wealth of opportunities and contributes greatly to the economy of that country, as well as to the consumers. Large companies have the resources to produce and provide goods and services of a superior quality, thus enhancing the standard of living. In addition to that, these companies often hire a large amount of workers, thus creating job opportunities and decreasing the employment rate of the country. This, in addition to the contribution to the GDP of the country, helps the country develop and helps make the country’s financial status more favorable. However, large organizations do not only provide benefits to a country or to the consumers that reside there. These companies may demand tax holidays from the government, thus reducing the government’s income and hindering development of the country. They may also contribute greatly to pollution, especially if factories are set up. Some large organizations may grow into monopolies, which lead to exploitation of both workers and consumers.

The importance of small scale organizations is often overshadowed by such prominence given to these large organizations. However, these businesses contribute to an economy as they often have the potential to grow into much larger businesses. These businesses may make use of venture capital to set up, and with IT support in Melbourne from the government, these businesses can flourish. The government can encourage these businesses by charging a lower rate of tax from them. In addition to that, loans can be granted to these businesses in order to encourage their growth and expansion of their operations. These loans could be given at low rates of interest. The government could also encourage banks to provide microfinance services, where small loans are given to people who wish to start up and own their own establishment to provide a source of income.

Governments can also encourage the small business IT support by offering specialist advice on how to make the business a success. This is because small scale businesses can sometimes also start up in rural areas. The benefit here is that this develops the commercial activities in the rural area and in addition to that, encourages other businesses to also start up. This enables equal development across the country and with more people engaged in commercial activities, it also enables equal distribution of income to take place.

Therefore, governments should take steps to encourage these businesses as they not only have the potential to grow into larger organizations, they also provide specialized services and personal attention to consumers, and are vital part of an economy.