Boosting Entrepreneurship Through Firm Mobility

Steps:

• Identify enterprise as the factor of production involving risk-taking and innovation by entrepreneurs.
• Evaluate each option's impact on encouraging new business formation and investment.
• Consider how mobility of firms introduces external entrepreneurial activity into the economy.
• Select the option that directly expands the pool of active enterprises.

Why B is correct:

• Firm migration increases the number of businesses operating in the economy, directly enhancing enterprise as the willingness and capacity to innovate and take risks, per economic definitions of entrepreneurship.

Why the others are wrong:

• A: Reduces skilled workforce development, hindering entrepreneurial innovation.
• C: Eases business operations but doesn't add new firms, so enterprise growth is indirect.
• D: Raises costs for businesses, discouraging risk-taking and new ventures.

Final answer: B