Running head: HOW CAN PRIVATE BUSINESS HELP IN THE ECONOMY OF YOUR

COUNTRY? 1

How can private business help in the economy of your country?

Ayush Acharya

Kings College

Sixth Induction Session

Sushant Rijal

February 18, 2019

HOW CAN PRIVATE BUSINESS HELP IN THE ECONOMY OF YOUR COUNTRY? 2

Abstract

Private investment or business play a vital role in the economy of the country. The growth of

such investments highly depends on the government’s policy to sustain such business. These

investments are independent of policies unless it contradicts with the laws. Infrastructure

investments help the private sector by lowering their startup cost. The private business brings job

opportunities, production of various products, increase consumption and eventually the demand

grows.

Keywords: Private, Business, Investments, Government, Policy, Startup.

HOW CAN PRIVATE BUSINESS HELP IN THE ECONOMY OF YOUR COUNTRY? 3

How can private business help in the economy of your country?

The economic structure of any country is planned with taking into considerations the

investments from the private sector and the projected revenue it can generate. It plays a vital role

in the running fiscal year’s demands and projected plans of any country in the coming years. The

growth of private investments in any country single handedly depends on the government’s

policy to facilitate and encourage such investments.

Private sectors have their own policies. They do not need to follow the government’s

regulations in case of their promotions and marketing. They have the liberty to implement their

vision without any authority demanding for any clarifications unless the vision contradicts the

laws of the nation. With such freedom to invest, any private sector can bloom and produce a

profitable outcome nationwide. Interfering with such investments can risk the growth of private

business in a country.

According to Anwer & Sampath (1999), for any developing country, investments in the

form of infrastructure development is vital as it opens up the developers to the latest technologies

that van enhance their vision and produce a competitive output. Such development works mostly

come from public investments which in a way assist the private sector to grow (Makuyana &

Odhiambo, 2016).This is a big advantage on the private investment’s side as it reduces the initial

investment for any business. For example, a good road from Kerung, Rasuwa will lower the

transport cost for any China products’ distributor in Kathmandu. The private investor in this case

will not have to put in more of his investment for a better transport as it has been facilitated by

the public investments.

HOW CAN PRIVATE BUSINESS HELP IN THE ECONOMY OF YOUR COUNTRY? 4

A growing private business brings a lot of economy boosting opportunities for a country.

It brings employment, production, increases consumption and eventually generates revenue for

the country. In our country we can see various companies like Worldlink, Broadlink investing in

the communication sector and have come along way today. Consumption of facilities like

internet have grown significantly in the past few years. Without such investments in the

communication sector, it would have been next to impossible to develop such demands today.

This eventually adds up to the economy of a country.

HOW CAN PRIVATE BUSINESS HELP IN THE ECONOMY OF YOUR COUNTRY? 5

References

Anwer, M. S., & Sampath, R. K. (1999). Investment and Economic Growth. Colorado State

University, Department of Agricultural and Resource Economics. Fargo: Colorado State

University.

Makuyana, G., & Odhiambo, N. M. (2016). Public and private investment and economic growth:

A review. Journal of Accounting and Management, 6(2), 25-42.