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.

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