Government Policy and the Growth of Small and Medium Scale Enterprise in Lagos State

摘要

The study examined government policies and the growth of small and medium scale enterprises in Oshodi-Isolo Local Government Area of Lagos State. The objectives of the study were to investigate the relationships between monetary policy, fiscal policy, supply side, and taxation on the growth of SMEs. Descriptive survey design was employed and the population for the study comprised the 500 registered SMEs in Oshodi-Isolo LGA.A sample of 180 SMEs was selected using simple random sampling. The instruments used for data collection was detailed questionnaire and out of 180 questionnaires distributed, 100 were filled and returned. The data collected were analyzed using frequency tables, and Chi-Square method for hypothesis testing. The two null hypotheses were rejected because calculated Chi-value was greater than tabulated Chi-value (χ2 cal > χ2 tab).Findings revealed that there is significant relationship between monetary policy, fiscal policy and the growth of SMEs. It was also discovered that there is significant relationship between supply side, taxation and the growth of SMEs. The study therefore recommends that in recognition of the crucial roles played by SMEs with respect to economic growth and development, governments in Nigeria should implement various policies aimed at promoting the welfare of SMEs in the country. Also, Government should ensure that SMEs are not taxed heavily to enhance the growth of SMEs.