Impediments of Government Regulations on Small and Medium Scale Enterprises
This special workshop explored the various impediments of government regulations on small and medium scale enterprises. The impediments as listed in this paper include; fiscal and monetary policies, government taxes, political instability and excise duties.
There impediment are effectively discussed in this paper and become pertinent for the growth and profitability of small and medium sale enterprise even in an unstable economic environment.
Based on the finding, it is concluded that fiscal and monetary policies, government taxes, political instability and excise duties are the challenges affecting the growth and profitability of SMEs and adequate attention are not paid to these challenges.
It is recommended among others that the government should enact favourable policies and regulations to bring about favourable business environment that engender the thriving spirit of business enterprises and attract more foreign investment.
TABLE OF CONTENTS
Cover Page – – – – – – – – – – i
Certification – – – – – – – – – – ii
Table of Contents – – – – – – – – – iii
Abstract – – – – – – – – – – iv
Introduction – – – – – – – – – – 1
Concept of Small and Medium Scale Enterprises – – – – – 2
The Role of Small and Medium Scale Enterprises
In Nigeria Economic Development – – – – – – – – 4
Concept of Government Regulations – – – – – – – 5
Impediment of Fiscal and Monetary Policies on Small and Medium Scale Enterprises – – 7
Impediment of Political Instability on Small and Medium Scale Enterprise – – – – – 8
Impediment of Government Taxes on Small and Medium Scale Enterprises – – – – 9
Impediment of Government excise Duties on Small and Medium Scale Enterprises – – 10
Conclusion – – – – – – – – – – – 12
Summary – – – – – – – – – – – 12
Recommendation – – – – – – – – – – 13
References – – – – – – – – – – – 14
Small and medium scale enterprises choose different models, styles and types of growth,
but they are still structured and directed by government regulations. Government regulations are regulations imposed by the government to guide business operations . From time to time, change regulations forcing small and medium scale enterprises to change the way they operate, for example a rise in corporate tax on business profits.
Entrepreneurship activity in developing countries like Nigeria is primarily based on necessity. Sathe (2006) argued that government regulations and their bureaucratic procedures can hinder small and medium scale enterprises activity such as new business development.
Government can likewise seem to hinder SME firm performance when it introduces regulation which can restrict the autonomy, as well as the entrepreneurial freedom of some variety.
The present government often amend laws in line with its political policies, therefore, SMEs regularly has to be compelled to alterations in the legal framework. These regulations will cause
a substantial impact on the competitiveness, ambitiousness and expediency of SMEs.
Onwukwe and Ifeanacho (2011) stated that red-tape or costs for complying with government regulations are extremely high in Nigeria. Oji (2006) observed that Nigeria has no explicit regulation for the SMEs sector, the closest being the small and medium enterprises development agency which was established in 2003 to facilitate the growth of small and medium enterprises in the country.
Also, it was argued that the poor implementation of government regulations concerning SMEs had resulted in confusion and quandary in business as well as enervates the credence in the government’s capacity to execute conscientiously its programmes (Omoruyi and Okonfua, 2005).
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