GOVERNMENT POLICY FRAMEWORK AND THE SURVIVAL OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA

Abstract

Small and Medium Scale Enterprises (SMEs) are widely recognized as key drivers of economic growth, 
employment generation, and poverty reduction, particularly in developing economies such as Nigeria. This study 
examines the relationship between government policy frameworks and the survival of SMEs in Nigeria. The study 
adopts a qualitative research design based on a conceptual review of existing literature, using document analysis and 
thematic analysis to identify key issues affecting SME performance and sustainability. Findings from the study 
reveal that government policies particularly in the areas of financial support, infrastructure provision, 
entrepreneurship education, and institutional development have contributed to the growth and survival of SMEs to 
some extent. Financial initiatives such as microfinance schemes, credit facilities, and intervention funds have 
improved access to capital, although their impact is limited by strict conditions and administrative bottlenecks. 
Similarly, entrepreneurship education and capacity-building programmes have enhanced business awareness and 
managerial skills but suffer from limited reach and inadequate practical application. The study further finds that 
infrastructural deficiencies, including unstable electricity supply, poor road networks, and inadequate water and 
communication facilities, significantly hinder SME operations and increase production costs. In addition, challenges 
such as policy inconsistency, weak implementation, corruption, and limited monitoring reduce the effectiveness of 
government interventions. SMEs also face broader constraints, including inadequate funding, poor management 
practices, and competition from larger firms and imported goods