BUSINESS START-UP: EFFECT OF FISCAL POLICY ON SUSTAINABILITY OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)

Ifeanyi Titus Tochukwu, Faith Chidi Onwuchekwa, 3Ngwu Cyril Ndubuisi

Abstract


The study examined the effect of Government Policy on sustainability of Micro, Small and Medium Enterprises (MSMEs). The objectives of the study include effect of interest rate on MSEMs sustainability and effect of tax on MSMEs sustainability. Research questions and hypotheses were in line with research objectives. As a survey research design, questionnaire with primary data was used. Questionnaires were distributed to three hundred and fifty one MSMEs operators in the area of service, construction, Trading, Agro and Allied and manufacturing in Anambra State. The questionnaire was validated by three experts, distributed and returned. The data collected were analyzed using weighted mean and the hypotheses were analyzed using regression. The study revealed that MSMEs do not get free interest loan from the bank, interest rate reduces cash flow and working capital, tax raises cost of production, and tax reduced purchasing power of MSMEs. The study concluded that government policy in terms of interest rate and taxes were never favourable to MSMEs performance at start-up. The study recommended among others that MSMEs operators have to be given tax holidays and grant free interest loan after start-up.

Full Text:

PDF

References


Anwheh , A, (2013). Public policy formulation and implementation in

Nigeria. Public Policy and Administration Research.(2)5 Retrieved from www.iiste.org on January 11, 2020

Casson, M,C,(2013). EntrepreneurialandBusinessCulture”. Manchester.

Manchester Press.

Drucker, P.F.(1985).InnovationandEntrepreneurship:PracticeandPrinciples, London:Pan BooksW.D.,London.

Dye, I, (2012). Qualitative data analysis: A user friendly guide for social

scientist. London: Routledge Publishers

Egonmwan,J.A, (2014). Public policy analysis: concepts and applications,

Benin City: S.M.O. Aka and Brothers Press

Froman, R, (2013). The Cambridge Economic History of ModernBritain Goshit, G.G.andLandi,J.H.(2012):MonetaryPolicyandUnemployment

Makinde, T (2015) Problem of policy implementation in developing

nations: The Nigerian experience. Journal of Social Science11(1) pp 63 – 69. Retrieved from www.krepublishers.com/02-journals/.., On February 20, 2013

Mason, C, (2016). InformalSourcesof venture Finance”. TheInternational handbookof Entrepreneurship.2

Musa, S, (2010). SMEDAN plan better welfare package for female banker.

National Mirror, 8(2), 1-10.

Nwosu, D.C & Okafor, H.O, (2014). Government revenue and expenditure

in Nigeria: A disaggregated analysis. Asian Economic and Financial Review 4(7): 877-892

Nwoye, M, (2014). SmallBusinessEnterprises.Benin:SocialScienceSeriesfor AfricanUniversityofBenin.

Obasanjo, O, (2013). Poverty as a Barrier to Democracy. In (Thompson,

L.A. ed.)Democracy and Democratization in Africa. Afrike-Link Books

Okojie, A, (2013). Finding and Accessing Raw Materials; paper presented

at the 1st annual conference of NASSI summit on Sustainable Development. International conference centre Abuja October 20th - 24th

Okoli, F & Onah, O, (2012). UrbanUnemploymentSituationinNigeria.InE.O. Ezeani andN.N. Elikwa (Eds).Issuesof UrbanizationandUrbanAdministrationin Nigeria,Enugu:JamoEnterprises,P.154.

Olagunju, A, (2010). Policy Support and Performance of Small and

Medium Scale Enterprises in South-West Nigeria, European Journal of Business and Management, 4(9), 10-18

Otaha, A. S, (2010). Social capital: A tool or Thai Entrepreneurs to Start

Business Venture in Sweden. Master Thesis. Umea School of Business

WorldBank, (2015). Policy and action for cancer prevention. Food,

nutrition and physical activity: a global perspective. Washington DC: AICR

Adejumo, O. O. and Akinyemi, F.O. (2018). Government policies and entrepreneurship phases in emerging economies: Nigeria and South Africa. Journal of Global Entrepreneurship Research. https://doi,org/

Omouka, E. M., Ugwu, K. E. and Ukpai, E. (2015). Effect of policy measures on Entrepreneurship development. European Journal of Business and Management, 7(19) 43-49.

Sidik, I. and Anik, K. (2019). Government policies and firm size as a moderating effect of innovation on business performance. Advances in Economics, Business and Management Research, 136, 123-128.

Turkson, T., Addai, N. B. and Chowdhury (2021). Government policies and firm performance in the COVID-19 pandemic era: a Sectorial Analysis. SN Econ, https://doi.org/10.

Udefuna, P.N. and Uzodinma, E.E. (2017). Entrepreneurship development in Nigeria: Issues for policy and legislative attention. Specialty Journal of politics and Law, 2(4): 33-44.


Refbacks

  • There are currently no refbacks.