Many small businesses are being forced to close because they cannot compete with multinational corporations; what problem does this cause, and how can those problems be solved.

The number of small businesses shutting down in the past 5 years has been massive. More than half of these businesses have shut down within the

first

2 years of entering a market. It is believed that multinational corporations (MNCs) were likely the cause of the

problem

and that smaller enterprises were unable to compete with them due to limited financial resources. But whether or not

this

is the case, will be the topic

this

essay will delve into.

Firstly

,

this

problem

creates an unemployment

problem

. A survey conducted by the Times of India in 2019 stated that when an enterprise goes out of work, nearly 70% of its workers will be unemployed while the rest manage to find jobs within three months.

In addition

, these companies don't have the resources to provide severance pay until their employee finds another job. In short, employees of start-up companies will suffer the most because they will be unemployed and will not be provided sufficient severance pay.

Nonetheless

,

this

problem

can be mitigated if the

government

places heavy

restrictions

on foreign companies entering into a local market.

For instance

, in 2011 South Korea placed many tax

restrictions

on multinational corporations

such

as Microsoft and Apple and

this

prevented local brands like Samsung from shutting down.

This

is particularly effective as the

government

can earn greater revenue from MNCs and can ease its

restrictions

on local brands. In summary, placing heavy

restrictions

will benefit small businesses and the

government

too. In a nutshell, even though these startups lose business thanks to MNCs they can still be saved from ruin if the

government

provides financial support.

As a result

,

this

will improve the country's economy as well.