As the business has to fulfill some responsibilities toward the government, similarly the government has to fulfill several responsibilities towards the business. In particular, the responsibilities of the government towards business can be described as follows:
1. Enacting and Enforcing Laws
It is a prime responsibility of every Government for enacting and enforcing laws. All the laws and regulations help the business to function smoothly. The Government offers a system of court for adjudicating differences between Government agencies, firms, or individuals.
2. Provision of Basic Infrastructure
All the main productive activities need infrastructure facilities such as finance, transport, supply of energy and credit, and also providing appropriate information about the openings for different businesses. The government successfully built the infrastructure in an efficient way then businesses can expand at a fast rate.
3. Maintaining Law and Order
It is the responsibility of the government to maintain law and order in the community. The Government of the country should also protect people and property. No business can work or grow in an unhealthy environment.
4. Providing a Monetary System
The monetary system is a set of laws or procedures that direct how money is regulated, created, distributed, or used in an economy. So the Government has to provide a monetary system that business transactions can be affected. The Government’s responsibility is to regulate money, protect, and credit the money value of the currency in terms of other currencies.
5. Transfer of Technology
Whatever discoveries are made by the Government should be transferred to private industries so that they can be used for commercial production. More importantly, it is Government’s responsibility to transfer the search technology.
6. Balanced Regional Development and Growth
It is the responsibility of the Government to check and maintain the balance of regional developments and growth. The following government can pass appropriate laws. In order to take timely action for preventing growth and development.
7. Supply of Information
The government gathers information on several issues such as the changes in demographic features, the growth of the population, and trends in migration. All this information is useful to businesses in formulating their policies. While it is the responsibility of the Government to provide information. As this information is useful to businessmen in carrying out their business activities. This information is associated with business and economic activity, specific lines of technological, business, and scientific developments.
8. Assistance to Small-scale Industries
Small-scale Industries face many problems as compared to big industries. It is the responsibility of the Government to offer the required facilities. They should also encourage the development of small-scale industries so that they can overcome the problem.
9. Conducting Inspections
Every business should be inspected to maintain its product and services. As it is the responsibility of the Government to inspect the private business. So that they produce quality products. While inspecting they will also make sure to check whether they are preventing the production and sale of sub-standard goods.
10. Incentives to Home Industries
To encourage home industries they should be provided with some facilities. As it is the responsibility of the Government to make sure of the development of home industries. This can be done by providing them with various incentives and subsidies.