GASPRO International Journal of Eminent Scholars

The study investigated the effect of government economic policy on the development of small and medium scale enterprises in Nigeria. The population of this study comprised all small and medium scale enterprises in Nigeria. The study adopted Expost-Facto research design, while stratified random sampling technique was used to draw the 250 respondents for the study. The instrument for data collection which was tagged “government economic policy and small and medium scale enterprises development questionnaire, (GEPSMSEQ)” was administered to the 250 respondents and used for the study. The instrument was vetted by 1 expert in statistics and 1 expert in test and measurement before the reliability test was conducted with 30 respondents and the result which was 0.77 proved the instrument reliable for the study. Data collected were analysed using independent t-test analysis. The results of the data analyses were all significant and from the results of the analysis, it was observed that there is significant influence of government policies with respect to tax on the development of small medium scale enterprises in Nigeria. It was also observed that there is significant influence of government policies with respect to levies on the development of small medium scale enterprises in Nigeria. It was concluded that government economic policy has remarkable effect on the development of small and medium scale enterprises in Nigeria. The recommendation was that instead of imposing high tax and level on business owners, government should support small and medium scale business in the country with good financial assistance which must be supervised with banks to make sure that the funds are diligently utilized for business only in order to promote economic growth. It was also recommended that there should be constant power supply (electricity) in order to help owners of small and medium business manage the business with good profit and savings.