Impact of government industrial policy on the development of small scale business enterprises

Aside from startup capital, one big thing that small business enterprises have to deal with is the industrial policy prevalent in their business location. The impact of government industrial policy on the development of small business enterprises should not be over emphasized; it could be positive or negative. This business education project topic digs into the impact of government industrial policy on the development of small .... This is an empirical research that requires rigorous procedure to arrive at a conclusion.

However, some of the impacts of government policies on businesses are too obvious to be ignored. We will be discussing what really defines small scale businesses and few of the regular impact of government regulation on small businesses. You can follow up the project topic above for full project research finding.

What defines small scale businesses?

What defines small scale businesses varies with location. What it means and how it applies in one part of the world can vary widely from another. But going in more general term, small scale business enterprises are businesses that are:-

  • Owned and managed by one person like the case of a sole proprietorship
  • Has small number of employees
  • Has low capital investment
  • Usually privately owned
  • Has low net profit, low annual sales and whose asset value is relatively low

On a highlight note, here are the following ways government industrial policies can affect small scale business enterprises;

  • Government policies can influence the tax rates. High or low, it will certainly influence the business development positively or negatively

  • Minimum wage is like a benchmark the government as set for payment of employees, however not all small business enterprises can meet with that expectation.

  • Some government policies on businesses can either attract or repel local or foreign investors

  • Unstable administrative systems like when a new government does not tag along with the policies a former administration limits continuity and causes instability for businesses especially if they are such that would affect businesses.

More of the impact of government industrial policy on small business development in Nigeria is contained in the research project.

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