The Imapct Of Government Policy On The Growth Of Small And Medium Scale Business In Nigeria

The Imapct Of Government Policy On The Growth Of Small And Medium Scale Business In Nigeria

Chapter One

Preface

Background To The Study

Policy is defined in the Merriam- Webster Online Dictionary as a definite course or system of action named from among druthers to guide and determine present and unborn opinions. Policy can also be defined as making opinions that reflect values and allocating coffers grounded on those values. therefore, policy represents a particular political, ethical, or programmatic standpoint. Governmental policy reflects theoretical or existential hypotheticals about what’s needed to resolve a particular issue or problem( Obi, 2001). At the civil and state situations, governmental policy is reflected in multiple venues

The civil and state constitutionsset the general frame, as interpreted in specific cases through court opinions.

The principal superintendent’s agendais presented through speeches, press releases, “ State of the State ” and budget dispatches to the council, superintendent 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 isn’t generally honored that budgets, expressed in appropriation acts and levies, are critical statements of social policy. Budgets distribute coffers and determine what government can and can not do. They may or may not give stable coffers for governmental services( Bacdon, 2004).

Policy can also be set up in the determinations and opinions of state department heads and middle operation. Their opinions or conduct determine how legislative policy and broad governmental authorizations are actually restated into services. Policy is reflected in strategic plans and policy memoranda( EKSG, 2014).

It’s restated and carried out through rules and regulations, primers, requests for proffers, contractual agreements, enforcement conduct, and so forth. still, numerous experimenters has proved in the history that government programs do influences small and medium scale enterprises. Small and medium enterprises are believed to be the machine room for the development of any frugality, because they form the bulk of business conditioning in a growing frugality like that of Nigeria( Basil, 2005). This is manifested in the following ways, Employment generation, pastoral development, profitable growth and Industrialization, Better Application of Indigenous coffers.

Governments produce the rules and fabrics in which Small and medium scale enterprises are suitable to contend against each other. From time to time the government will change these rules and fabrics forcing small and medium scale enterprises to change the way they operate( Essien & Udofia, 2006). Small and medium scale enterprises are therefore keenly affected by government policy. crucial area of government policy that affects business is taxation policy. Taxation policy affects business costs. For illustration, a rise in pot duty( on business gains) has the same effect as an increase in costs. Small and medium scale enterprises can pass some of this duty on to consumers in advanced prices, but it’ll also affect the nethermost line. Other business levies are environmental levies(e.g. tip duty), and Handbasket( value added duty). Handbasket is actually passed down the line to the final consumer but the administration of the Handbasket system is a cost for business( Ikherehon, 2002). also, the government of the day regularly changes laws in line with its political programs. As a result small and medium scale enterprises continually have to respond to changes in the legal frame( Izedomi, 2011). still, the experimenter will in this chapter give an preface on the impact of colorful government programs on Small and medium scale enterprises

Statement Of The Problem

The term government policy can be used to describe any course of action which intends to change a certain situation. suppose of programs as a starting point for government to take a course of action that makes a real life change( Ekezie, 1995). Government uses policy to attack a wide range of issues. In fact, it can make programs that could change how important duty you pay, parking forfeitures, import and import duties, immigration laws and pensions( Ireghan, 2009). still in Nigeria, government has come up with colorful programs aimed at investing in and boosting the Small and medium scale enterprises to induce employment and reduction of poverty but there has been issues of poor perpetration. programs can also be changed by government when isn’t effective, also when they produce a policy it can be made to affect specific groups of people or everyone in society. Other government programs concerning issues similar as subventions, interest rates, exchange rates and public-private hookups also impact the growth of small and medium scale enterprises( Iromaka, 2006). still, the experimenter is seeking to examine the impact of government programs on the growth of small and medium scale enterprises in Nigeria.

Objects Of The Study

The general ideal 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 objects

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 impact the growth of small and medium scale enterprise.

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

Exploration Questions

What’s the impact of government policy on the growth of small and medium scale enterprise?

What kind of government policy can impact the growth of small and medium scale enterprise?

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

Thesis

HO Government policy doesn’t affect the growth of small and medium scale enterprise

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

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 appreciatively or negatively affect the growth of small and medium, scale enterprises. It’ll as well be a useful companion for the government in formulating programs that will contribute to the nation’s GDP through the growth of small and medium scale enterprises. This exploration will also serve as a resource base to other scholars and experimenters interested in carrying out further exploration in this field latterly, if applied will go to an extent to give new explanation to the content.

Compass/ Limitations Of The Study

This exploration will cover the overview of the different government programs and how they can impact the growth of small and medium scale enterprises. It’ll also covers examinations into different kinds of government programs 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 exploration.

Description Of Terms

Government policy A plan or course of action, as of a government, political party, or business, intended to impact and determine opinions, conduct, and other matters

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

duty a mandatory donation to state profit, levied by the government on workers’ income and business gains, or added to the cost of some goods, services, and deals

subventions a sum of plutocrat granted by the state or a public body to help an assiduity or business keep the price of a commodity or service low.

Frugality the state of a country or region in terms of the product and consumption of goods and services and the force of plutocrat.

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 diligence 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 gambles in Nigeria, in Gladwin,A.( 2000)( ed.) Entrepreneurship a abstract approach. Lagos Concept Publishers Limited,p. 69

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

Government of Ekiti State( 2014). Internal Economic Policy A dependable tool for Rapid Development. recaptured from http// ekitistate.gov.ng

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

Ireghan,C.( 2009). Small Scale Business Development inNigeria., 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 enterprises. Ikeja G- Mag. Investments Ltd,( Educational Publishers),pp. 49- 56.

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

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