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10 Business attraction

Luring away businesses

More businesses mean more tax money, and prosperity of the nation. So, territories (cities, states or countries) try to lure businesses from each other - they usually have special agencies called ’Economic development agencies’ which do this.

They sometimes offer tax-breaks in the initial years to attract businesses. They also try to achieve concentration of talent by offering pre-setup infrastructure and by setting up special economic zones where companies will get tax benefits.

Entrepreneurship

Effect of taxes

Entrepreneurship rates are high in the socialist countries of Scandinavia -despite high taxes. This could be due to the fact that the government, with its excellent services, removes the financial risk associated with failure.