The impact of international trade on local economies has highlighted the critical importance of government support for small and medium enterprises (SMEs). This topic frequently appears in IELTS Writing Task 2, particularly in questions about economic development and business policies.
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Analysis of Common IELTS Question Types
Based on past IELTS examinations, questions about government support for SMEs typically focus on:
- Financial assistance and subsidies
- Tax policies and regulations
- Training and development programs
- Market access support
The following question has appeared multiple times in recent IELTS tests:
Some people believe that governments should provide financial support to small businesses to help them compete with large companies. Others think this is not necessary. Discuss both views and give your opinion.
Sample Essay 1 (Band 8-9)
The debate over government financial assistance to small businesses has garnered significant attention, particularly as large corporations continue to dominate various markets. While some argue for governmental support, others believe in letting market forces determine business success. In my opinion, measured government assistance is crucial for maintaining a healthy economic ecosystem.
Proponents of government support argue that small businesses face numerous disadvantages when competing with large corporations. Firstly, established companies benefit from economies of scale, allowing them to offer lower prices. Secondly, they possess substantial marketing budgets and established brand recognition. How to promote entrepreneurship in developing nations shows that without government intervention, many promising small enterprises fail despite having innovative products or services.
However, opponents contend that government assistance can distort market dynamics. They argue that businesses should succeed based on their merit and efficiency rather than artificial support. Furthermore, taxpayers’ money might be better spent on essential public services like healthcare and education.
I believe that strategic government support for small businesses is essential for several reasons. Primarily, SMEs contribute significantly to job creation and economic diversity. Moreover, they often drive innovation and provide specialized services that larger companies might overlook. The impact of global trade on local industries demonstrates how government support can help local businesses adapt and thrive in competitive markets.
Sample Essay 2 (Band 6-7)
These days, many people discuss whether governments should give money to help small businesses compete with big companies. This is an important issue that needs careful consideration.
On one side, people think government support is necessary. Small businesses often struggle to compete with large companies because they don’t have enough money. Big companies can buy things cheaper and spend more on advertising. Also, small businesses create many jobs and help the local economy grow.
However, other people say governments shouldn’t help small businesses. They think companies should succeed by themselves without help from taxpayers’ money. Some people also worry that giving money to businesses isn’t fair to other sectors that need funding.
In my opinion, I think governments should help small businesses but in a careful way. They can provide training, reduce taxes, or give loans with low interest. This helps create fair competition and keeps the economy healthy.
Key Vocabulary
- economies of scale (n) /ɪˈkɒn.ə.miz əv skeɪl/ – cost advantages from large-scale operations
- market dynamics (n) /ˈmɑːkɪt daɪˈnæmɪks/ – forces affecting market behavior
- artificial support (n) /ˌɑːtɪˈfɪʃəl səˈpɔːt/ – non-market-based assistance
- strategic (adj) /strəˈtiːdʒɪk/ – carefully planned to achieve a specific goal
- innovation (n) /ˌɪnəˈveɪʃən/ – introduction of new ideas or methods
High-scoring Sentence Structures
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Complex sentence with concession:
“While established companies benefit from economies of scale, small businesses often struggle to maintain competitive pricing.” -
Conditional structure:
“If governments were to withdraw all support from SMEs, many potentially successful enterprises might fail prematurely.” -
Cause-effect relationship:
“Due to their limited resources and market presence, small businesses require initial support to establish themselves in competitive markets.”
Consider practicing with this topic and sharing your essays in the comments section for feedback and improvement suggestions.