A stable safety net would increase entrepreneurship and encourage small business growth.

There are several arguments why BIG could produce an explosion of entrepreneurial energy. Firstly, it would remove some of the anxiety about failing. People are more willing to risk beginning a business if they have a safety net. Secondly, it would increase the market, particularly for businesses offering products and services to poorer people. Most of those billions would be spent within weeks, and mostly on local businesses. Some calculate that this money would circulate so quickly through the economy (the multiplier effect) that the return to the fiscus (through VAT, for example) could pay for the whole grant. Thirdly it could provide seed capital for microenterprises to emerge. Apart from friends and family, the only current source of working capital for microenterprises is short term loans, usually at very high-interest rates. That is discouraging. But if I can buy my first raw materials from my own resources, I won’t need to see my small margins disappear to the lender. The true universal basic income (UBI) is a monthly cash amount given unconditionally to everyone regardless of whether or not they have a job. Unlike the Temporary Economic Relief Scheme (TERS) it would be a permanent feature that everyone could depend on into the future.