THE IMPACT OF GOVERNMENT POLICY ON THE GROWTH OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA


THE IMPACT OF GOVERNMENT POLICY ON THE GROWTH OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA   

 ABSTRACT:   

The paper critically analyses the impact of government policy on the growth of small and medium scale business in Nigeria. Governments create the rules and frameworks in which Small and medium scale enterprises are able to compete against each other. From time to time the government will change these rules and frameworks forcing small and medium scale enterprises to change the way they operate (Essien&Udofia, 2006). Small and medium scale enterprises are thus keenly affected by government policy. The major objectives of the paper are: to examine the impact of government policy on the growth of small and medium scale enterprise, To ascertain the impact of government policy on the growth of small and medium scale enterprise, To determine the nature of government policy that can influence the growth of small and medium scale enterprise and to identify factors limiting the growth of small and medium scale enterprise.

Concerning methodology, both secondary and primary sources of data was used for the study. A survey research design was used with a sample size of 52 staff obtained from the five SMEs in Uyo. Data was analyzed using statistical tool such as chi-square. Key findings from the study showed that government policy decreases the growth of small and medium scale enterprises in Nigeria. Recommendations for the study include; that the government should reduce the burden on SMEs so as to ensure the speedy growth of Small businesses in Nigeria.

TABLE OF CONTENTS

Title Page - - - - - - - - - i

Approval Page - - - - - - - - ii

Declaration - - - - - - - - iii

Dedication - - - - - - - - - iv

Acknowledgement - - - - - - - v

Abstract - - - - - - - - - vi

Table of Contents - - - - - - - vii

CHAPTER ONE – INTRODUCTION

1.1Background of the Study-----

1.2Statement of General Problem----

1.3Objective of the Study------

1.4Research Questions------

1.5    Hypothesis   -      -      -      -      -      -      -        -        -        

1.6Significance of the Study-----

1.7Scope of the Study------

1.8Definition of Terms------

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1Introduction--------

2.2 THE CONCEPT OF SMALL AND MEDIUM SCALE ENTERPRISES- -

2.3 WHY SMALL AND MEDIUM SCALE ENTERPRISES - - - -

2.4 THE CONSTRAINTS OF SAMLL AND MEDIUM SCALE ENTERPRISES-----------

2.5 GOVERNMENT POLICIES AND THE GROWTH OF SMES---

2.6 THEORETICAL FRAMEWORK-------

2.7 EMPIRICAL REVIEW---------

CHAPTER THREE – RESEARCH METHODOLOGY

3.1 Introduction - - - - - - - - -

3.2 Research Design - - - - - - - -

3.3 Area of the Study - - - - - - - -

3.4 Population of Study - - - - - - - -

3.5 Sample size and Sampling Techniques - - - - -

3.6 Instrument for Data Collection - - - - - -

3.7 Validity of the Instrument - - - - - - -

3.8 Reliability of the Instrument - - - - - -

3.9 Method of Data Collection - - - - - - -

3.10 Method of Data Analysis - - - - - - -

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.0 Introduction - - - - - - - - -

4.1 Data Presentation and Analysis - - - - - -

4.2 Characteristics of the Respondents - - - - -

4.3 Data Analysis - - - - - - - - -

4.4 Testing Hypothesis - - - - - - - -

4.5 Summary of Findings - - - - - - - -

4.6 Discussion of Findings - - - - - - -

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction - - - - - - - - -

5.1 Summary - - - - - - - - - -

5.2 Conclusion - - - - - - - - - -

5.3 Recommendations - - - - - - - -

References - - - - - - - - - -

Appendix - - - - - - - - - -

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Policy is defined in the Merriam-Webster Online Dictionary as a definite course or method of action selected from among alternatives to guide and determine present and future decisions. Policy can also be defined as making decisions that reflect values and allocating resources based on those values. Thus, policy represents a particular political, ethical, or programmatic viewpoint. Governmental policy reflects theoretical or experiential assumptions about what is required to resolve a particular issue or problem (Obi, 2001). At the federal and state levels, governmental policy is reflected in multiple venues:

⦁ The federal and state constitutionsset the general framework, as interpreted in specific instances through court decisions.

⦁ The chief executive’s agendais presented through speeches, press releases, “State of the State” and budget messages to the legislature, executive orders, and instructions to department heads.

⦁ Legislative policyis expressed in speeches and press releases by the leadership and formulated in policy and appropriation bills.

It is not generally recognized that budgets, expressed in appropriation acts and taxes, are critical statements of social policy. Budgets distribute resources and determine what government can and cannot do. They may or may not provide stable resources for governmental services (Bacdon, 2004).

Policy can also be found in the determinations and decisions of state department heads and middle management. Their decisions or actions determine how legislative policy and broad governmental mandates are actually translated into services. Policy is reflected in strategic plans and policy memoranda (EKSG, 2014).

It is translated and carried out through rules and regulations, manuals, requests for proposals, contractual agreements, enforcement actions, and so forth. However, many researchers has proved in the past that government policies do influences small and medium scale enterprises. Small and medium enterprises are believed to be the engine room for the development of anyeconomy, because they form the bulk of business activities in a growing economy like that ofNigeria (Basil, 2005). This is manifested in the following ways, Employment generation, rural development,Economic growth and Industrialization, Better Utilization of Indigenous Resources.

Governments create the rules and frameworks in which Small and medium scale enterprises are able to compete against each other. From time to time the government will change these rules and frameworks forcing small and medium scale enterprises to change the way they operate (Essien&Udofia, 2006). Small and medium scale enterprises are thus keenly affected by government policy. Key area of government policy that affects business is taxation policy. Taxation policy affects business costs. For example, a rise in corporation tax (on business profits) has the same effect as an increase in costs. Small and medium scale enterprises can pass some of this tax on to consumers in higher prices, but it will also affect the bottom line. Other business taxes are environmental taxes (e.g. landfill tax), and VAT (value added tax). VAT is actually passed down the line to the final consumer but the administration of the VAT system is a cost for business (Ikherehon, 2002). Moreover, the government of the day regularly changes laws in line with its political policies. As a result small and medium scale enterprisescontinually have to respond to changes in the legal framework (Izedomi, 2011). However, the researcher will in this chapter provide an introduction on the impact of various government policies on Small and medium scale enterprises

1.2 STATEMENT OF THE PROBLEM

Governments create the rules and frameworks in which Small and medium scale enterprises are able to compete against each other. From time to time the government will change these rules and frameworks forcing small and medium scale enterprises to change the way they operate (Essien&Udofia, 2006). Small and medium scale enterprises are thus keenly affected by government policy. Key area of government policy that affects business is taxation policy. Taxation policy affects business costs. For example, a rise in corporation tax (on business profits) has the same effect as an increase in costs. Small and medium scale enterprises can pass some of this tax on to consumers in higher prices, but it will also affect the bottom line.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is to examine the impact of government policy on the growth of small and medium scale enterprise while the following are the specific objectives

1. To ascertain the impact of government policy on the growth of small and medium scale enterprise.

2. To determine the nature of government policy that can influence the growth of small and medium scale enterprise.

3. To identify factors limiting the growth of small and medium scale enterprise.

1.4 RESEARCH QUESTIONS

1. What is the impact of government policy on the growth of small and medium scale enterprise?

2. What kind of government policy can influence the growth of small and medium scale enterprise?

3. What are the factors limiting the growth of small and medium scale enterprise?

1.5 HYPOTHESIS

HO: Government policy does not affect the growth of small and medium scale enterprise

HA: Government policy does affect the growth of small and medium scale enterprise

1.6 SIGNIFICANCE OF THE STUDY

This study on the impact of government policy on the growth of small and medium scale enterprises will enlighten the entrepreneurs and the general public on how government policy can positively or negatively affect the growth of small and medium, scale enterprises. It will as well be a useful guide for the government in formulating policies that will contribute to the nation’s GDP through the growth of small and medium scale enterprises. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7 SCOPE/LIMITATIONS OF THE STUDY

This research will cover the overview of the different government policies and how they can influence the growth of small and medium scale enterprises. It will also covers investigations into different kinds of government policies and how they affect the growth of small and medium scale business. Factors that generally affect the growth of small and medium scale enterprises will also be considered in this research.

1.8 DEFINITION OF TERMS

Government policy: A plan or course of action, as of a government, political party, or business, intended to influence and determine decisions, actions, and other matters

SMEs: an enterprise that has asset base (excluding land) of between N5million –N500 million and labour force of between 11 and 300.

Tax: a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions

Subsidies: a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

Economy: the state of a country or region in terms of the production and consumption of goods and services and the supply of money.

REFERENCES

Anyanwu, A. (2001). Small and Medium Enterprises (SMES) In Nigeria: Problems and Prospects, Ph.D. Thesis, St. Clements University, pp. 79-82.

Bacdon, C.T. (2004). Small Scale Industries and Economic Development in Ghana: Business and Strategies in informal sector Economics, VerlagBreitenbech, Saarbruckh, Germany, pp. 19-23.

Basil, A.N.O. (2005) Small and Medium Enterprises (SMES) In Nigeria: Problems and Prospects, Ph.D. Thesis, St. Clements University, pp. 46-59.

Ekezie, C. (1995). Breakdown of Business Ventures in Nigeria, in Gladwin, A. (2000) (ed.) Entrepreneurship: a conceptual approach. Lagos: Concept Publishers Limited, p. 69

Essien, P. and Udofia, A. (2006). Evolving a National Framework for the Emergence of a Strong and Virile Small and Medium Scale Industry Sub-Sector in Nigeria. A Seminar Paper Presented at MAN House, November 5th, p3.

Government of Ekiti State (2014). Internal Economic Policy: A reliable tool for Rapid Development. Retrieved from http:// ekiti state.gov.ng

Ikherehon, I.G.(2002).The Practice business guide for the entrepreneur in Africa. Lagos: Pathead Enterprises, p. 88.

Ireghan, C. (2009). Small Scale Business Development in Nigeria., in Ireghan, C. (ed.) The Place of Small and Medium Scale Business in the development of a nation State. Nigeria: Lagos, Kaycee Publishers, pp. 79.

Iromaka, C. (2006). Entrepreneurship in small business firms.Ikeja: G-Mag. Investments Ltd, (Educational Publishers), pp. 49-56.

Izedomi, A. (2011). Principles of Management, Nigeria: Benin, Alfred-Joe Publishers, pp. 73-78

Obi, P. (2001).Ensuring the Socio-Economic Growth of a Nation. A Paper Presented at a Conference in Johannesburg, between 12th and 15th December, p. 8.

.

THE IMPACT OF GOVERNMENT POLICY ON THE GROWTH OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.