Ways in Which the Government Regulates and Participates In Commercial Activities

  1. Through regulation – this is mainly through licensing of businesses.the government licenses businesses for reasons such as;
    • Ensuring traders engage in business activities for which they have licenses.
    • Controlling of illegal business in the country.
    • Ensuring those who engage in professional activities meet the requirements of their professions.
    • Controlling the types of goods that should enter or leave the country.
  2. Through training – theĀ  government takes keen interest in training people.this is mainly done at Kenya business trainingĀ  the government trains people for various reasons.
    • To expose them to modern developments in management
    • Educate them on efficient methods of operating business ie effective methods of advertising and keeping of books of accounts.
    • Identifying and discussing current problems facing businesses and look for possible solutions e.g. raising capital and identifying investment opportunities.
    • To impart proper business ethics ie proper customer relations and honesty.
    • Educate them on how to use available resources to minimize cost and maximize profit.
    • Inform them on various available profitable business opportunities in their environment.
    • Expose them to government policies regarding business activities in the country.
  3. Through external trade promotion – this is government initiated and support policy to encourage local business men to enter into export market.

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