IMPACT OF PUBLIC POLICIES ON THE PERFORMANCE OF SMEs IN NIGERIA
Bauda, Gideon Sambo and Gadi, Dung Paul, PhD
Volume 5 Issue 2
Abstract
Small and Medium Enterprises (SMEs) play a critical role in Nigeria’s economic development through job creation, innovation, and poverty reduction. However, their performance is significantly influenced by public policy frameworks, including tax regulations, credit policies, and licensing procedures. This study investigates the impact of public policies on the performance of SMEs in the Northern Zone of Plateau State, Nigeria. A survey research design was adopted, and data were collected from 140 SMEs across various sectors using structured questionnaires. The study employed descriptive statistics and multiple regression analysis to examine the influence of three key government policies taxation, credit, and licensing on SME performance indicators such as sales growth, market share, and firm size. Results revealed that while government tax and licensing policies had statistically insignificant effects, credit policy showed a significant negative impact on SME performance, suggesting that unfavorable credit conditions constrain SME growth. The findings imply that restrictive interest rates and limited access to finance are major challenges facing SMEs. Recommendations include revising credit policies, improving financial inclusion programs, and exploring alternative financing mechanisms to foster SME development and economic growth. Future research should investigate additional factors influencing SME performance and assess the long-term impact of government interventions. Keywords: SME Performance, Government Policies, Credit Accessibility, Taxation, Business Growth.
Download Paper