The Role Of Banks In Supporting Small Businesses is a crucial topic that frequently appears in IELTS Writing Task 2 exams. Based on past exam trends and the current economic climate, it’s highly likely that this theme will continue to be prevalent in future tests. Let’s explore a relevant essay question and analyze sample responses for different band scores.
Some people believe that banks should primarily focus on supporting small businesses rather than large corporations. To what extent do you agree or disagree with this statement?
Analyzing the Question
This question asks for your opinion on whether banks should prioritize supporting small businesses over large corporations. It’s essential to:
- Clearly state your position
- Provide reasons and examples to support your view
- Consider potential counterarguments
- Conclude with a balanced summary of your stance
Now, let’s examine sample essays for different band scores.
Sample Essay 1 (Band 8-9)
In today’s economic landscape, the debate over banks’ role in supporting businesses of various sizes has gained significant traction. While some argue that financial institutions should prioritize small businesses, I believe that banks should maintain a balanced approach in their support for both small enterprises and large corporations.
Undoubtedly, small businesses play a crucial role in economic growth and job creation. By focusing on supporting these enterprises, banks can contribute to local economic development and foster innovation. Small businesses often struggle to secure funding through traditional means, and increased bank support could provide them with the necessary capital to expand operations, hire more employees, and contribute to overall economic stability. Moreover, a diverse ecosystem of small businesses can lead to a more resilient economy, less vulnerable to the fluctuations of a few large corporations.
However, it would be short-sighted to neglect the importance of large corporations in the broader economic picture. These entities often serve as the backbone of national economies, driving technological advancements, supporting extensive supply chains, and contributing significantly to tax revenues. Banks’ support for large corporations can facilitate major infrastructure projects, research and development initiatives, and international expansions that have far-reaching positive impacts on society. Additionally, many small businesses rely on contracts and partnerships with larger firms, creating an interdependent economic ecosystem.
Role of financial institutions in crisis recovery is another critical aspect to consider. During economic downturns, both small businesses and large corporations face challenges, and banks play a vital role in stabilizing the economy by providing support to entities of all sizes.
In conclusion, while the importance of supporting small businesses cannot be overstated, I believe that banks should strive for a balanced approach. By providing tailored support to both small enterprises and large corporations, financial institutions can contribute to a diverse, robust, and resilient economic environment that benefits society as a whole.
(Word count: 309)
Bank supporting small business and large corporation
Essay Analysis (Band 8-9)
This essay demonstrates excellence in several key areas:
Task Response: The writer clearly addresses all parts of the task, presenting a balanced view and fully developing their position.
Coherence and Cohesion: The essay is well-organized with clear progression throughout. Each paragraph focuses on a specific aspect, and ideas are logically linked.
Lexical Resource: A wide range of vocabulary is used accurately and appropriately. Complex phrases like “economic landscape,” “foster innovation,” and “interdependent economic ecosystem” showcase sophisticated language use.
Grammatical Range and Accuracy: The essay displays a variety of complex structures used accurately. Conditional sentences, relative clauses, and passive voice are employed effectively.
Critical Thinking: The writer demonstrates a nuanced understanding of the topic, considering multiple perspectives and potential impacts on the broader economy.
Sample Essay 2 (Band 6-7)
In recent years, there has been a growing debate about whether banks should focus more on supporting small businesses instead of large corporations. While both types of businesses are important for the economy, I partially agree that banks should give more attention to small businesses, but not at the complete expense of large corporations.
Small businesses are often called the backbone of the economy because they create many jobs and bring new ideas to the market. However, these businesses often struggle to get loans from banks, which can make it hard for them to grow or even survive. If banks provided more support to small businesses, it could help them expand, hire more people, and contribute more to the local economy. This could be especially helpful in smaller towns or rural areas where large corporations might not be present.
On the other hand, large corporations also play an important role in the economy. They often provide stable jobs for many people and can invest in big projects that small businesses can’t. Banks supporting large corporations can help create more jobs and boost the overall economy. Also, many small businesses depend on large corporations as customers or suppliers, so helping big companies can indirectly benefit smaller ones too.
Role of banks in economic development is crucial for both small and large businesses. Banks need to find a balance in supporting both types of businesses to ensure overall economic growth.
In conclusion, while I believe banks should increase their focus on small businesses, they shouldn’t completely ignore large corporations. A balanced approach that supports both types of businesses would be the best way to promote economic growth and stability.
(Word count: 276)
Essay Analysis (Band 6-7)
This essay demonstrates good writing skills but falls short of the highest band scores:
Task Response: The writer addresses the main parts of the task and presents a clear position. However, the ideas could be more fully developed.
Coherence and Cohesion: The essay is generally well-organized, but the use of cohesive devices is sometimes repetitive (e.g., overuse of “also”).
Lexical Resource: There is a good range of vocabulary, but it lacks the sophistication seen in the Band 8-9 essay. Some attempts at more complex expressions are made, but they are not always successful.
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences, but there is less variety compared to the higher band essay. There are occasional errors, but they do not impede communication.
Critical Thinking: The writer shows some analysis of the issue, but the arguments could be more in-depth and supported by specific examples.
Small business owner meeting with banker
Key Vocabulary
Economic landscape (noun phrase) – /ˌiːkəˈnɒmɪk ˈlændskeɪp/ – The general economic environment or situation.
Foster innovation (verb phrase) – /ˈfɒstər ˌɪnəˈveɪʃən/ – To encourage or promote new ideas and methods.
Resilient economy (noun phrase) – /rɪˈzɪliənt ɪˈkɒnəmi/ – An economy able to withstand or recover quickly from difficult conditions.
Interdependent (adjective) – /ˌɪntədɪˈpendənt/ – Mutually reliant on each other.
Tailored support (noun phrase) – /ˈteɪləd səˈpɔːt/ – Assistance or help that is specially adapted for a particular purpose or recipient.
Economic stability (noun phrase) – /ˌiːkəˈnɒmɪk stəˈbɪləti/ – A state of the economy in which there are minimal fluctuations in macroeconomic indicators.
Fluctuations (noun) – /ˌflʌktʃuˈeɪʃənz/ – Irregular changes or variations in amount or quality.
Infrastructure projects (noun phrase) – /ˈɪnfrəstrʌktʃə ˈprɒdʒekts/ – Large-scale public systems, services, and facilities necessary for economic activity.
Supply chains (noun phrase) – /səˈplaɪ tʃeɪnz/ – The network of organizations involved in the production and distribution of a product.
Economic ecosystem (noun phrase) – /ˌiːkəˈnɒmɪk ˈiːkəʊsɪstəm/ – The complex network of interdependent economic entities within a particular area or sector.
Conclusion
The role of banks in supporting small businesses is a multifaceted topic that requires careful consideration of various economic factors. As you prepare for your IELTS Writing Task 2, practice writing essays on this theme, considering different perspectives and potential impacts on local and national economies.
Should governments provide financial support for small businesses is another related topic you might encounter in your IELTS preparation. Consider how government support compares to bank support for small businesses.
To further improve your skills, try writing your own essay on this topic or a related one, such as:
- Do you think governments should provide more financial incentives for small businesses compared to large corporations?
- How can banks better balance their support between small businesses and large corporations in developing economies?
Share your practice essays in the comments section below for feedback and discussion with fellow IELTS candidates. This active engagement will help you refine your writing skills and gain valuable insights into different perspectives on this important economic issue.
