Inflation has become a pressing issue in recent years, affecting economies worldwide. As a result, the topic of supporting small businesses during inflationary periods has gained significant attention. This subject has appeared in several IELTS Writing Task 2 questions and is likely to remain relevant in future exams. Let’s examine a sample question and provide two model essays to help you prepare for this challenging topic.
Small businesses struggling with inflation
Analyzing the Question
Let’s consider the following IELTS Writing Task 2 question:
In many countries, small businesses are struggling to survive due to high inflation rates. Some people believe that governments should provide financial support to these businesses, while others argue that this is not the government’s responsibility.
Discuss both views and give your own opinion.
This question requires you to:
- Discuss the view that governments should provide financial support to small businesses during inflation
- Discuss the opposing view that this is not the government’s responsibility
- Present your own opinion on the matter
Remember to address all parts of the question and provide a well-balanced argument.
Sample Essay 1 (Band 8-9)
In recent years, small businesses have faced unprecedented challenges due to rising inflation rates. While some advocate for government intervention to support these enterprises, others argue that such assistance falls outside the scope of governmental responsibilities. This essay will examine both perspectives before presenting my own viewpoint.
Proponents of government support argue that small businesses are the backbone of many economies, providing employment and fostering innovation. During periods of high inflation, these businesses often struggle with increased costs and reduced consumer spending, threatening their survival. Government intervention, through financial aid or tax relief, could help these businesses weather the storm and maintain economic stability. Furthermore, supporting small businesses can prevent market monopolization by larger corporations, ensuring a diverse and competitive economic landscape.
On the other hand, those against government intervention contend that it is not the state’s role to prop up private enterprises. They argue that market forces should naturally determine which businesses survive, promoting efficiency and innovation. Government support may lead to dependency and moral hazard, where businesses take unnecessary risks knowing they have a safety net. Additionally, using public funds to support private businesses may be seen as unfair to taxpayers who do not directly benefit from these enterprises.
In my opinion, a balanced approach is necessary. While I believe that the free market should generally dictate business success, exceptional circumstances like severe inflation warrant some government intervention. This support should be temporary and targeted, focusing on sectors most affected by inflation and businesses demonstrating viability and potential for growth. Measures such as low-interest loans, temporary tax deferrals, or grants for innovation could provide crucial assistance without creating long-term dependence.
In conclusion, the issue of government support for small businesses during inflationary periods is complex. While there are valid arguments on both sides, I believe that measured and strategic government intervention can play a crucial role in maintaining a healthy, diverse economy during challenging times.
(Word count: 309)
Sample Essay 2 (Band 6-7)
In many countries, small businesses are having a hard time because of high inflation. Some people think the government should help these businesses with money, but others say it’s not the government’s job. This essay will look at both sides and give my opinion.
People who want the government to help small businesses say it’s important because these businesses give jobs to many people. When prices go up because of inflation, small businesses often can’t pay for things they need and might have to close. If the government gives them money or lowers their taxes, it can help them stay open. This is good for the whole country because it keeps people working and helps the economy.
However, some people think the government shouldn’t help. They say that businesses should be able to take care of themselves. If a business can’t make enough money to stay open, maybe it’s not a good business and should close. These people also think it’s not fair to use taxpayers’ money to help some businesses but not others. They believe the market should decide which businesses succeed.
I think both sides have good points, but I believe the government should help a little bit. Small businesses are very important for the economy and for communities. The government could give some help, like small loans or temporary tax breaks, but only to businesses that show they can do well in the future. This way, the government isn’t wasting money, but it’s still helping good businesses that are just having trouble because of inflation.
In conclusion, while there are different opinions about whether the government should help small businesses during inflation, I think some help is a good idea. It’s important to find a balance between letting businesses stand on their own and giving them support when times are really tough.
(Word count: 298)
Key Considerations When Writing
Structure: Both essays follow a clear structure with an introduction, body paragraphs discussing each viewpoint, the writer’s opinion, and a conclusion. The Band 8-9 essay demonstrates more sophisticated paragraph transitions and a more nuanced argument.
Vocabulary: The Band 8-9 essay uses more advanced vocabulary and phrases, such as “unprecedented challenges,” “fostering innovation,” and “moral hazard.” The Band 6-7 essay uses simpler language but still effectively communicates the main ideas.
Grammar: The higher band essay showcases a wider range of complex sentence structures, while the Band 6-7 essay relies more on simpler constructions. Both essays maintain grammatical accuracy appropriate to their respective levels.
Task Response: Both essays address all parts of the question, but the Band 8-9 essay provides more detailed and nuanced arguments.
Coherence and Cohesion: The Band 8-9 essay demonstrates stronger paragraph links and a more logical flow of ideas, while the Band 6-7 essay is still clear but with less sophisticated connections.
Important Vocabulary to Remember
- Inflation (noun) /ɪnˈfleɪʃən/ – a general increase in prices and fall in the purchasing value of money
- Intervention (noun) /ˌɪntərˈvenʃən/ – the action or process of intervening
- Viability (noun) /ˌvaɪəˈbɪləti/ – ability to work successfully
- Moral hazard (noun) /ˈmɒrəl ˈhæzərd/ – lack of incentive to guard against risk where one is protected from its consequences
- Tax deferral (noun) /tæks dɪˈfɜːrəl/ – postponement of tax payments
- Market forces (noun) /ˈmɑːkɪt ˈfɔːsɪz/ – economic factors affecting the price, demand, and availability of a commodity
- Economic stability (noun) /ˌiːkəˈnɒmɪk stəˈbɪləti/ – the state of an economic system in which there are only minor fluctuations
- Innovation (noun) /ˌɪnəˈveɪʃən/ – the introduction of new things, ideas or ways of doing something
- Monopolization (noun) /məˌnɒpəlaɪˈzeɪʃən/ – the process of gaining complete control of the supply of or trade in a commodity or service
- Competitive landscape (noun) /kəmˈpetətɪv ˈlændskeɪp/ – the overall business environment in which companies compete with each other
Conclusion
The topic of supporting small businesses during inflation is likely to remain relevant in IELTS Writing Task 2 exams. To prepare effectively, practice writing essays on related themes such as:
- The role of government in regulating business during economic crises
- The impact of inflation on different sectors of the economy
- Strategies for small businesses to survive economic downturns
Remember to analyze the question carefully, plan your essay structure, and use a range of vocabulary and grammatical structures appropriate to your target band score. Practice writing your own essay on this topic and consider sharing it in the comments section for feedback and discussion. This active approach to learning will help you develop the skills needed to excel in the IELTS Writing Task 2.