How does the government help reduce the risk of starting a business?

The correct choice highlights the role of the government in fostering a favorable environment for entrepreneurship through the protection of private ownership and the enforcement of contracts. By allowing individuals to own and operate businesses, the government encourages investment and innovation. This assurance of private ownership promotes the idea that entrepreneurs can reap the benefits of their hard work and investment, motivating more people to start their own businesses.

Additionally, enabling contracts provides a legal framework for transactions, ensuring that agreements are honored and disputes can be resolved fairly. This stability reduces uncertainty and potential risks associated with starting a business, as entrepreneurs can conduct trade and make agreements with the confidence that the law will back them up.

Thus, these protections and systems create a supportive ecosystem where business activities can thrive, ultimately contributing to economic growth and job creation.