GOVERNMENT POLICIES AND PERFORMANCE OF SMES IN NIGERIA. (A STUDY OF SELECTED SMES IN ASABA DELTA STATE, NIGERIA)

Authors

  • Ezeilo, Florence Ijeoma (PhD) Department of Accounting, Business Administration, and Economics, Faculty of Arts, Management, and Social Sciences, Admiralty University of Nigeria, Delta State, Nigeria.
  • Ike, Romanus Chukwuma Department of Accounting, Business Administration, and Economics, Faculty of Arts, Management, and Social Sciences, Admiralty University of Nigeria, Delta State, Nigeria.

Keywords:

Small and medium enterprises, Government policies, SME performance, entrepreneurship, Nigeria

Abstract

This study focused on government policies and their effects on the performance of Small and Medium Scale Enterprises (SMEs) in Nigeria, with a particular focus on SMEs operating in Asaba, Delta State. The volatility in some government policies, coupled with the high percentage of SMEs that close down yearly in Nigeria, necessitated the need to examine the extent to which these government policies influence the performance of SMEs in the country. The study was anchored on institutional theory, and a descriptive survey design was adopted. The population consisted of 1,200 SME operators in Asaba, Delta State, and a sample size of 300 SMEs was employed using Taro Yamane's formula. The questionnaire was the major instrument used for data collection in the study. Ordinal Logistic Regression was used to analyze the formulated hypotheses. The study found that government taxation policy and volatile foreign exchange rates have a significant and positive influence on the performance of SMEs, while government infrastructural provisions have no significant influence on SMEs' performance. The findings indicate that SMEs' performance will increasingly be affected with every unit increase in these variables, as it showed a predicted increase of 0.379, 0.475, and 0.341 for taxation, exchange rate, and infrastructural provisions, respectively. The study recommends, among other things, that the government should encourage businesses (both large and small) to engage more in exportation so that the country will have a good competitive advantage over other nations. This will boost the foreign exchange rate, favouring the Naira over other currencies in the parallel market.

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Published

2024-06-27

How to Cite

Ezeilo, . F. I., & Ike, . R. C. (2024). GOVERNMENT POLICIES AND PERFORMANCE OF SMES IN NIGERIA. (A STUDY OF SELECTED SMES IN ASABA DELTA STATE, NIGERIA) . Advance Journal of Management, Accounting and Finance, 9(6), 49–70. Retrieved from https://aspjournals.org/ajmaf/index.php/ajmaf/article/view/99

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