The responsibilities of government  in relation to business are very significant. Government plays an important roles to create new business and sustain running businesses. some business are plays key role in the economic sector and contribute in  the GDP. Thus government must provide them facilities to operate business smoothly and continuously. There are many responsibilities of government to business. such as- 


  1. planning : - The role of government as  a planner is very significant. Since resources are always limited thus they have to be allocated in such a way that optimum utilisation may provide optimum return. Hence it is main responsibility of government that it plane outer limit of non renewal resources. 
  2. Promotional role of government:- It is indirect role of government to the business firm. The government does not interfere in the functioning of business. Government aims at promoting the business by providing adequate infrastructure, and suitable environment and by offering various incentives so as to boost  the morale and operational activities of business. 
  3. Provide  loan at reasonable rate:- Government should provide loans on lower interest rate than the commercial rates to Entrepreneurs, to promote business and industries. 
  4. Subsidy:- Government should provide subsidy to the private sector in the form of grants or loan guarantees. so that  particular public policy  could achieved. 
  5. Formation of distributive policies:- It involves the allocation of resources and benefits to different individuals and groups within a society. this process typically involves the consideration of various factors, such as need, fairness, and feasibility and may involve input from a variety of stakeholders, including government officials, experts and members of the public. 
some more responsibilities of government to the business. 

  1.  Creating and enforcing laws and regulations to protect consumers and ensure fair competition among businesses.

  2.  Investing in infrastructure and other public goods to support the functioning of businesses and the economy.

  3. Addressing market failures, such as monopolies and externalities, through regulation or other means.

  4. Protecting property rights and enforcing contracts to support the functioning of markets.

  5. Providing education, training, and other resources to support the development of a skilled workforce.

  6. Promoting international trade and investment to expand opportunities for businesses and support economic growth.

  7. Providing support during economic downturns through measures such as stimulus spending, unemployment benefits, and other forms of assistance.

  8. To encourage innovation and entrepreneurship by supporting research and development.

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