Answer:
The local governments or state governments can use their power to regulate business by ensuring that they make rules which encourages lots of business owners to have a thriving business in their area of jurisdiction.
They can also do so by abolishing unreasonable laws and ensuring business friendly taxes are set. It’s also the duty of the state and local government in protecting the properties of business and those of its workers too which will enable other businesses want to do business in the area due to the peaceful nature of the environment.