Government Involvements and Small and Medium Enterprise Growth in Nigeria

Abstract

The study examined the impact of government involvement on the development of SMEs. Specifically, the study examined (Tax relief, Loan Facilities, and Government Micro-policies) on the impact of government involvement on the development of SMEs. The study adopted a survey research design through the use of a questionnaire approach, 200 questionnaires were distributed to small and medium enterprises in Yewa South Local Government which 175 were retrieved. The method of data analysis adopted is the frequency percentage analysis in which multiple linear regression analysis was used to test the hypothesis stated for the study. From the findings, the study concluded that there is no significant effect between government involvement and the development of small and medium enterprises. Explicitly, analyzed the independent variables and the researcher concluded from the result that tax relief does not have a significant effect on the development of small and medium enterprises in Nigeria. Loan Facilities do not have a significant impact on the development of small and medium enterprises in Nigeria. Government micro-policies do not have a relationship with the development of small and medium enterprises. In accordance with the findings the study recommended that to ensure the development of small and medium enterprises in Nigeria is optimally maximized through government involvement. Government should create and develop entrepreneurship centers that will be partially funded by the government which will serve the purpose of providing assistance to entrepreneurs and owners of small and medium-scale enterprises in Nigeria.