Effects of Fiscal Policy on the Growth of Business Enterprises

There is a direct correlation between business growth and development and government's fiscal policies. Certain factors like cost of labor, taxation, infrastructure, government expenditure,support among others cannot be separated from business growth and establishment. Punitive and unfriendly tax regime, for example, can tremendously stunt the growth of the enterprise. Lack of adequate infrastructure, lack of government support and high cost of labor can also impede the business growth. In order for business to realize growth, certain fiscal policies must be put in place.