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How the EU helps to support businesses.

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How the EU helps to support businesses Introduction The European Union helps support businesses in four main areas, which are financial support, employment initiatives, improvements to infrastructure and provision of information. They do this help economy's to prosper. Within the EU there are some countries that are richer then other countries. A country GDP can measure this. The EU will help the poorer countries to prosper by giving regional development grants to help open new businesses to help the economy prosper. The EU budget is financed from resources provided by the member states. This budget is equivalent to 1.27% of total European gross national product (48% of total income) (GNP); customs duties levied at external borders (12% of total income); agricultural levied on products imported outside the European union (2% of total income); 1% of VAT receipts from member states (36% of total income); and resources based on relative prosperity (GNP). ...read more.


These are: * The European Regional Development Fund (ERDF), which aims to reduce the gaps in development between the Union's regions * The European Social Fund (ESF), which has the task of improving employment prospects in the Union; * The European Agricultural Guidance and Guarantee Fund (EAGGF), which assists in part-financing national agricultural aid schemes and in developing and diversifying the Community's rural areas; * The Financial Instrument for Fisheries Guidance (FIFG), which assists in the restructuring of the fisheries sector. (Source from www.cordis.lu) Employment initiatives This is a programme that is set up for unemployed people to get jobs. Problems of unemployment occur when big factories in a certain area close down and a huge amount of people with few qualifications are made redundant. ...read more.


This is called the ripplr effect. Improvements to infrastructure This is a network of necessary services to help and support the community. Examples of basic service infrastructure could be electricity, gas, and water. Example of communication services could be roads, railways, telephone networks, postal services etc. Infrastructure can be very important to a business as it can affect them in a number of ways. If communication services are good and there are good roads, for businesses this would mean that they could deliver goods quickly to customers, communicate well with customers and they can receive their stock to make products easily. Businesses can benefit by being close to air transport or rail links if they use it. If there is a break down in a service then it could cost businesses a lot of money. It can also cause problems for consumers for example factories could loose production if stock is delivered late. JESAL JADEJA ...read more.

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