Virtue or vice? Public policies and Nigerian entrepreneurial venture performance

Abstract

PurposeThe purpose of this paper is to explore how inter-agency engagement across levels of government and the agencies' policies impact the development of Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria, with focus on taxation, business registration and access to finance.Design/methodology/approachThe empirical study involved data sourced through questionnaire administered to 192 MSMEs owners, semi-structured interviews with key officials, and Focus Group Discussion (FGD) with leading members of the Osun State Chamber of Commerce, Mines, Industry and Agriculture (OSUCCIMA).FindingsAmidst increasing levels of engagement amongst public agencies, most MSMEs had not benefited from MSMEs' support programmes. Also, although agencies increasingly utilised the mediating roles of OSUCCIMA in policies for MSMEs, gaps remain because of not factoring in OSUCCIMA's inputs into final policy/programme drafts. Again, policies and programmes were tangential to the desired development outcomes amongst MSMEs, irrespective of size.Research limitations/implicationsConsidering differences in socio-economic and psycho-social orientations of residents/business owners across the various states, further studies focussing on other parts of Nigeria will help to strengthen the argument on how Nigeria aligns with the developing countries literature on the subject.Originality/valueExisting literature demonstrates government's recognition of the significance of MSMEs and policy actions taken in setting the right atmosphere for them to thrive, focussing on the national or local governments. This study draws on these but also explores actions at the subnational level and the role of mediating institutions, thereby showing how a multi-level governance approach could influence outcomes.