Let’s turn our face towards the other big force of free markets that is supply side. Entrepreneurs invest/produce to get the return on investment/to make profits. They make the system productive, efficient, organized, and invest in new technologies/ideas to increase their profit margins. Only things they need: Regular demand for their products, cheap availability of capital and free market environment and fewer government controls. Following are the most important benefits to the entrepreneur world from New Financial Model implementation:

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Infinite cycle of consumption: With the new financial model, new financial tool will be available not only to the authorities but also to the entrepreneurs.

   => It will create an infinite cycle of consumption. Where consumers can be incentivized both by entrepreneurs and authorities for consumption.

   => New Financial tool can be used in low/high growth periods along with other financial tools to increase the aggregate demand. The use of FM rate by entrepreneurs is voluntary and they can use it in difficult times to increase the consumption of their products.

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End of Duplicity: Another problem for entrepreneurs is the duplicity of their products in the market. Bad elements in society duplicate the products to seek profit. It is harmful to the entrepreneur, the consumer as well as the government. Entrepreneur will lose the profit; the consumer will get the low quality product which can even play with his life and the government will lose the tax.

With the implementation of New financial Model: there will be data of every single sale/purchase of small to big final goods/services through Unique customer numbers. Billing of every sale/purchase will become a necessity and the consumer will himself be interested in getting the bill for every purchase because he will get the incentive. With every transaction coming in the record and this data will be available to all the stakeholders: Entrepreneurs will know who bought their product and whether the sale and purchase of their products are equal according to data, Government will know whether the person who bought had paid tax or not and consumers will know how much incentive has come in their FM account. From this angle, it's a win-win model for all: Entrepreneurs, consumers, and the government.

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Free Market environment/less government intervention: New financial model will strengthen the free markets system, as it emphasized: the government’s role only in encouraging the demand and supply forces of free markets by incentivizing consumption and making the money available for investment, Smaller and efficient government playing the role of regulator.

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Long term capital: Incentives are given by the entrepreneurs (& government) in the form of Future money, which will be saved in the FM accounts for longer periods, so it will ultimately be lent and available to entrepreneurs for investment purposes.

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No burden of contribution for Pensions and Old age security of Employees: In “New Financial Model”, companies don’t have to contribute/pay for Pensions and Old age security as this model will introduce New Universal Pension System. See it in detail in next Chapter 13th.

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Others:  Above are the main benefits. There will be a number of other benefits as well.

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Important Question: Why will the entrepreneurs pay the incentive and won’t it decrease their profit margins?

 Answer to the above question can be very short: New financial model or depositing Future money (paying incentive) won’t decrease the margins of entrepreneurs.

1. Entrepreneurs don’t have to deposit the entire amount of Future Money but the present value of FM. See chapter 6th for more detail on future money concept.

2. 2. As the New financial model will decrease the role of government there will be less need for resources to the government which means tax cuts. If entrepreneurs will have to deposit Future money (pay incentive) their tax liability will also decrease equally. Also, they don’t have to contribute to the pension and old age security of employees. So it will be direct buying and selling between the consumer and seller and the government’s role will be only as a regulator.

In short, the “New Financial Model” or depositing Future money (paying incentive) won’t decrease the margins of entrepreneurs.

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