Nexus between government policies and performance of small scale bread bakeries in Nigeria

Abstract

Government policy could compress the small scale business sector in any economy if not giving careful attention, hence, this study assessed the nexus between government policies and performance of small scale bread bakeries in Nigeria. Multi-stage sampling technique was used to sample 107 bread bakeries using structured questionnaire. Descriptive, profitability ratios and linear regression were employed. Profit margin was higher for those that were trained by government, received credit and pay tax when compared to their counterparts who did not benefit from these policies. The regression results showed that none of the policy variables was significant with profit but amount paid for registration, year of business registration and licensing procedure significantly affected assets accumulation. Therefore, this study concludes that for any bakery to commence operation, it must be registered and have a specific standard of assets. Hence, governments should streamline the licensing procedure and also reduce registration amount.

Keywords: Government Policies, Small scale, bread bakery, performance, Nigeria