Development processes in the economy is directly related to the investment. Production resources are transformed into an economic product and combined entrepreneurial initiative. Required control involved in the production has a direct impact on the resources. Because of various factors in the production, process creates a certain economic product - goods, services, and a variety of work.

Budget and public investments are part of the national income in the form of cash of various budgets. Depending on the depositor's investment are:

  • foreign
  • private
  • state

Funds invested in economic development in order to ensure the production and economic growth. Investments are also important for the development of a variety of public projects and programs. Governments need to invest:

  • cultural sphere
  • social spheres
  • science
  • various infrastructures
  • environmental protection
  • various types of construction
  • defense
  • internal security

Investors interested in projects worked with a high financial return. Public investments are made at the expense of budget and borrowed funds, as well as at the expense of budget funds. Financed public investment with the profit tax and state-owned enterprises.

Businesspersons as something incredible generally perceive public investments. And all thanks to the fact that investing money somewhere State will never ask them to return (otherwise it is a loan), or part of a business (otherwise it nationalization). The only problem is that too few private enterprises are now able to receive investments from the state. Moreover, they deserve - a difficult and rather long.

Public investment can be divided into two types - direct investment and tax incentives.

Direct investment - a cash infusion into your business. Tax benefits - is a certain relief when paying taxes, which are generally of a temporary nature.

Tax relief is not difficult to obtain. In some regions, they provide budding entrepreneurs, often tax benefits recovered entrepreneurs who in parallel with the main activity involved also charity. Again, for charity money usually spent a lot more than you will save through taxes.

That is why direct cash infusions from the government is much more significant. But to get them, especially in our country, it is very difficult. However, probably.

The only way to get government investment to prove it to the local authorities that your business benefits not only for you, but also all over the city, but means that you do not need for its development.

Under such businesses fall within the main scope of business services - cleaning, low-cost supply chain points, public toilets, etc. As well, as shops for the poor.

Nevertheless, do not expect to part with their money, the state once and for all forget about the money. No investor will not require from you such a strict financial statements as an ordinary civil servant. And getting such investments you should be prepared for a huge volume of paperwork.

Sometimes public investments also include preferential loans. But, they cannot be called high-grade type of investment. After all, the money will still have to recover, albeit at smaller percentages. On the other hand, soft loans can help you out in times of crisis. However, again, provide this type of lending is usually a socially significant line of business.

About Author: Anna Lynch is a freelance writer at online-check-in.org, who has her own online blog, where she supports many young people in their business. She has a long practice and great experience and gives excellent advices.

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