The topic of government financial assistance for small businesses during economic crises is a recurring theme in IELTS Writing Task 2 exams. It touches on important economic and social issues, making it a relevant and thought-provoking subject for test-takers. Based on past exam trends and current global economic situations, this topic has a high probability of appearing in future IELTS tests. Let’s explore this topic through sample essays and in-depth analysis.
Government financial aid for small businesses
Analyzing the Question
Let’s focus on the following question for our sample essays:
Should Governments Provide Financial Assistance To Small Businesses During Economic Crises? Discuss both views and give your own opinion.
This question requires you to:
- Discuss arguments for government financial assistance to small businesses during economic crises
- Discuss arguments against such assistance
- Provide your own opinion on the matter
It’s crucial to address all parts of the question to achieve a high band score.
Sample Essay 1: Band 8-9 Level
Economic downturns can devastate small businesses, often leading to widespread closures and job losses. The question of whether governments should intervene with financial aid is a complex one, with valid arguments on both sides. This essay will explore the pros and cons of such assistance and present my personal viewpoint.
Proponents of government aid argue that small businesses are the backbone of many economies, providing employment and contributing significantly to GDP. During crises, these enterprises often lack the financial reserves to weather extended periods of reduced income. Government support can help them survive temporary setbacks, preserving jobs and maintaining economic stability. Moreover, assisting small businesses can be more cost-effective than dealing with the consequences of mass bankruptcies, such as increased unemployment benefits and reduced tax revenues.
On the other hand, critics contend that government intervention can lead to market distortions and create a culture of dependency. They argue that businesses should be self-reliant and that those unable to adapt to changing economic conditions should be allowed to fail, making way for more innovative and resilient enterprises. There are also concerns about the fairness of using taxpayer money to support private businesses, especially when resources are limited during crises.
In my opinion, while the arguments against government assistance have merit, the benefits of supporting small businesses during economic crises outweigh the drawbacks. The potential long-term economic and social costs of allowing a significant portion of small businesses to fail are too high to ignore. However, I believe that any financial aid should be carefully targeted and come with conditions to prevent abuse and encourage adaptation to new economic realities.
To strike a balance, governments could implement time-limited support programs that prioritize viable businesses with a track record of success. These programs could include low-interest loans, tax deferrals, or grants tied to specific criteria such as maintaining employment levels or investing in digital transformation. By doing so, governments can provide a lifeline to deserving small businesses while encouraging innovation and resilience in the face of economic challenges.
In conclusion, while there are valid concerns about government intervention in the market, the strategic provision of financial assistance to small businesses during economic crises can play a crucial role in maintaining economic stability and preserving livelihoods. The key lies in designing support programs that balance immediate needs with long-term economic health.
(Word count: 374)
Essay Analysis
This essay would likely score in the Band 8-9 range for the following reasons:
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Task Response: The essay fully addresses all parts of the task, discussing both views and clearly stating the writer’s opinion.
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Coherence and Cohesion: The essay is well-organized with clear paragraphing. Ideas are logically sequenced and cohesive devices are used effectively.
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Lexical Resource: A wide range of vocabulary is used accurately and appropriately. For example: “devastate”, “intervene”, “proponents”, “cost-effective”, “market distortions”.
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Grammatical Range and Accuracy: The essay demonstrates a wide range of grammatical structures used accurately. Complex sentences are used effectively without errors.
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Development of Ideas: Each main point is well-developed with relevant supporting ideas and examples.
Sample Essay 2: Band 6-7 Level
The question of whether governments should give money to help small businesses during economic crises is a difficult one. There are good reasons for and against this idea. In this essay, I will discuss both sides and give my opinion.
On one hand, supporting small businesses can be very helpful for the economy. Small businesses create many jobs and are important for local communities. When there is an economic crisis, these businesses often struggle to pay their bills and keep their employees. If the government helps them with money, it can stop many businesses from closing down. This can save jobs and help the economy recover faster.
However, there are also arguments against government help. Some people say that it’s not fair to use taxpayers’ money to help private businesses. They think that businesses should save money for hard times and not rely on the government. There is also a worry that giving money to businesses might make them less competitive in the long run. If businesses always expect help, they might not try hard enough to improve or adapt to changes.
In my opinion, I think governments should help small businesses during economic crises, but with some conditions. The help should be temporary and only for businesses that were doing well before the crisis. The government could give loans instead of free money, so businesses have to pay it back later. This way, the help is fair and encourages businesses to use the money wisely.
To conclude, while there are concerns about government help for small businesses, I believe the benefits are greater than the drawbacks. Helping small businesses can protect jobs and support local economies. However, it’s important that this help is given carefully and with clear rules to make sure it’s used well.
(Word count: 309)
Essay Analysis
This essay would likely score in the Band 6-7 range for the following reasons:
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Task Response: The essay addresses all parts of the task, discussing both views and stating the writer’s opinion. However, the ideas could be more fully developed.
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Coherence and Cohesion: The essay is organized with clear paragraphing. There is a logical progression of ideas, though the use of cohesive devices is less sophisticated than in the Band 8-9 essay.
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Lexical Resource: The vocabulary used is adequate for the task, but less varied and precise compared to the higher band essay. Some attempts at more advanced vocabulary are made, e.g., “adapt”, “competitive”.
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Grammatical Range and Accuracy: A mix of simple and complex sentence structures is used, generally accurately. There are fewer complex structures compared to the Band 8-9 essay.
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Development of Ideas: Main ideas are present and supported, but the level of detail and explanation is less than in the higher band essay.
Key Vocabulary to Remember
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Economic crisis (noun) – /ˌiːkəˈnɒmɪk ˈkraɪsɪs/ – A situation in which the economy of a country experiences a sudden downturn.
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Financial assistance (noun phrase) – /faɪˈnænʃəl əˈsɪstəns/ – Money provided to help someone or something.
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Market distortion (noun phrase) – /ˈmɑːkɪt dɪˈstɔːʃn/ – An economic situation where the allocation of goods and services is not efficient.
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Viable (adjective) – /ˈvaɪəbl/ – Capable of working successfully; feasible.
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Resilient (adjective) – /rɪˈzɪliənt/ – Able to withstand or recover quickly from difficult conditions.
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Intervention (noun) – /ˌɪntəˈvenʃn/ – The action or process of intervening.
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Taxpayer (noun) – /ˈtækspeɪə(r)/ – A person who pays taxes.
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GDP (Gross Domestic Product) (noun) – /ˌdʒiː diː ˈpiː/ – The total value of goods produced and services provided in a country during one year.
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Innovation (noun) – /ˌɪnəˈveɪʃn/ – The action or process of innovating; a new method, idea, product, etc.
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Adaptation (noun) – /ˌædæpˈteɪʃn/ – The process of changing to suit different conditions.
In conclusion, the topic of government financial assistance to small businesses during economic crises is a complex and relevant issue for IELTS Writing Task 2. By understanding different perspectives and using appropriate vocabulary and structures, you can craft a well-reasoned and articulate response to this type of question.
For further practice, consider writing your own essay on this topic or related ones such as:
- Should governments prioritize supporting large corporations or small businesses during economic downturns?
- To what extent should governments intervene in the free market during times of economic crisis?
- How can governments balance the need to support businesses with the need to manage public finances responsibly during economic difficulties?
Feel free to share your practice essays in the comments section for feedback and discussion. This active engagement can significantly improve your IELTS writing skills and prepare you for success in the exam.
