At first, my interpretation of government business regulation was flawed. I assumed, for example, that government revenue obtained from the company would penalize the business further. I have learned however that government revenue from companies is one of the ways that the government receives its money in the form of taxes, levys, commercial licenses and penalties. This is critical because it is often these funds that are used by the government to provide its people with social facilities. For instance the construction of roads, provision of education to its citizens and provision of healthcare to name just but a few are one of the ways through which government provides services to its citizens. In this regard, therefore, it is evident that the government collection of revenues from business is on the faith of collective interests (Coffee, John, Hillary, and M. Todd). Individual business as single entities cannot be able to fund for some of these services. Thus, the government has to come in collect funds from different companies and channels the funds to a shared pool. Through this then, the government can provide the social amenities to its citizens and businesses alike.
Lastly, the issue of government regulation of businesses through issuing of trade licenses is one that had intrigued me for a long time. However, I came to understand the fact that the government issuing of trade licenses and in general control of businesses is in the best interests of all stakeholders. For example as earlier mentioned the issuing of trade licenses at a fee is meant to generate revenue, which will then be used for the provision of services. Again, the government control of the business; for instance, provision of incentives is one of the activities that are meant to spur the growth of individual enterprises. In addition, where government steps in and sets areas where businesses are to be set up, is an act of the state being aware of the environment and managing competition between individual companies (Coffee, John, Hillary, and M. Todd). Thus, its right to conclude that government control of business is usually in the best interests of the enterprises.
Coffee Jr, John C., Hillary Sale, and M. Todd Henderson. “Securities regulation: Cases and materials.” (2015).