This study was carried out on the government policies as a tool for creating a business environment with special reference to business owners in Ikeja local government area, Lagos State. Specifically, the study aims to find out whether policy exist in small and medium enterprises, examine and assess various policy traceable in the organization, identify whether a specific method of policy actually exist in small and medium enterprises, identify problems if any encountered in regulating the organization and find out the consequences of policies in small and medium enterprises (activities). The study employed the survey descriptive research design. A total of 77 responses were validated from the survey. From the responses obtained and analyzed, the findings revealed that policy exist in small and medium enterprises. The study also revealed the various policy traceable in the organization are equal opportunity policy, workplace health and safety, employee code of conduct policy and employee complaint policies. The study further revealed that there is a specific method of policy actually exist in small and medium enterprises. More so, the study revealed the problems encountered in regulating the organization are stifle innovation, undermine sustainable development, agility and change management and compliance risk. Finally, the study revealed the consequences of policy in small and medium enterprises is altering the customers proposed expenditure, increased taxes lower consumers’ disposable income available for spending, facilitates changes in the market environment and stifles growth of SMEs. The study thereby recommend that Nigerian government should enact and implement laws, regulations and policies that will link institutional development to entrepreneurial growth and survival. Furthermore, the Nigerian government should create a business environment that is highly conducive to owners of SMEs. Such approach will help to boost their rate of survival.
1.1 BACKGROUND OF THE STUDY
In a country with mixed economy like Nigeria, the government and the individual are managing the economy together. This means that people, groups and the three levels of government are free to start businesses. The three lowest levels of government include the local government, the state and the federal government, respectively. In the modern world, mixed economy appears as the most widespread economic system, but what makes the difference is the degree of mixing. As a result, the government has important roles to play in this type of economy. Given the importance of government commercial regulation in the country, its regulatory power over commercial activities was defined in Article 16 (1) and (s) of the Federal Constitution of 1979. 1984 also, the first was modified by the government Federal military of the time. This amendment was also included in sections 16 (1) and (3) of the 1999 Constitution of the Federal Republic of Nigeria. And both constitutions have specified the following with respect to our national economic activities. Section 16 (1) states that the state must, within the framework of the ideal and the objectives of this Constitution, control the national economy to ensure maximum welfare, freedom and freedom. Energy citizen on the basis of social justice and fairness of status and opportunity. Without prejudice to their right to operate or participate in areas of the economy that are not the main sectors of the economy.
Subsection 4 of Section 16 defines the main section as activities directly related to the production, distribution and exchange of wealth or goods and services. These main sectors of the economy will be declared periodically by a resolution of each Chamber of the National Assembly administered and administered exclusively by the Government of the Federation. Without prejudices to its right to operate or participate in areas of the economy, to manage and operate the major section of the economy. Moreover, according to section 16 (3); a body shall be set up by an act of the National Assembly which shall have power to review from time to time the ownership and control of business enterprise operating in Nigeria and make recommendation it some and to administer any law for the regulation of the ownership and control of such enterprise.
Therefore, it is clear that the role of government is to protect and represent the interest of the society and the citizenry in which business operates. It can be further said that government through policies protects consumers from abuse, they ensure efficiency in the use of resources and promote equitable distribution of income.
Government policies are the most dynamic of all government influence on business in Nigeria. This is due to instability in Government of Nigeria and has contributed to massive change in policies affecting the operation of business.
These policies may include monetary or fiscal policies. Fiscal policies which is a macro-economic tool that involves the use of government spending and taxes (T) in guiding the nation’s economy to achieve pre-determined economic good. Monetary policy on the other hand is the regulation of money and the terms and availability of credit. Government can regulation of business activities. Conclusively, government can use other means such as import duties and tariffs to regulates business in Nigeria, in order to protect domestic industries and producers against foreign competition. This study is therefore carried out to examine government policies as a tool for creating a business environment.
1.2 STATEMENT OF PROBLEMS
The influence of government on business can take so many forms. The study aims to look at the regulation or government regulation towards Small and medium businesses and also suggest how to increase the organization’s efficiency through the regulation. Government has realized that political independence without economic independence is meaningless.
The research on government regulation with particular reference to Small and medium businesses has raised some questions among experts and professionals, which this study has attempted to address. These include;
- Can government regulation in organization be minimized and for untimely eliminated?
- Can organization exist without regulation?
- Is regulation beneficial or detrimental to organizational goal?
- How can organization efficiency be increased by regulation?
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to asses government policies as a tool for creating business environment. The following are the specific objectives of the study:
- To find out whether policy exist in small and medium enterprises
- To examine and assess various policy traceable in the organization.
- To identify whether a specific method of policy actually exist in small and medium enterprises.
- To identify problems if any encountered in regulating the organization.
- To find out the consequences of policies in small and medium enterprises (activities).
1.4 RESEARCH QUESTION
- Does policy exist in small and medium enterprises?
- What are the various policy traceable in the organization?
- Does a specific method of policy actually exist in small and medium enterprises?
- What are the problems encountered in regulating the organization.
- What are the consequences of policy in small and medium enterprises (activities).
1.5 SIGNIFICANCE OF THE STUDY
Business had been criticized seriously due to discriminatory rates and policies. The economic power had been in the hands of all kind of processing and manufacturing industries through trusts and corporate merger. Meanwhile, due to this government in order to rescue the economy has come up with so many regulatory measures which are beneficial to the following people;
- Consumers etc.
In fact it is because of these, it becomes necessary to study the effect of government policy on management of different businesses in Nigeria.
1.6 SCOPE OF THE STUDY
The study of this topic government policies as a tool for creating a business environment is supposed to include many kinds of business sector both private and public sector. In order to manage the topic and carryout the study effectively and effectively the researcher deemed it fit to restrict the topic to the effects of government policy on business and it affects organizations.
Although, reference will be made on a general basis because of the diverse native of business.
1.7 DEFINITION OF TERMS
The following terms or words used in this study will be defined:
Business: This simply means an economic activity undertaken to produce goods and or services.
Mixed Economy: It is a system of economy in which both private individuals and government jointly run the economic activities of the country.
Fiscal Policy: It is a tool or measure which the government used in regulating the economy through taxes and government spending.
Monetary Politic:This is another measure used by the government in order to control the supply of money and the terms and availability of credit in the nation.
Government: It is an agency designed to administer the affairs of a state or nation.
Policy: This is the system which government in controlling the economic activities of the nation.
All project works, files and documents posted on this website, projects.ng are the property/copyright of their respective owners. They are for research reference/guidance purposes only and the works are crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a guidance purpose only and not copy the work word for word (verbatim). Projects.ng is a repository of research works just like academia.edu, researchgate.net, scribd.com, docsity.com, coursehero and many other platforms where users upload works. The paid subscription on projects.ng is a means by which the website is maintained to support Open Education. If you see your work posted here, and you want it to be removed/credited, please call us on +2348159154070 or send us a mail together with the web address link to the work, to email@example.com. We will reply to and honor every request. Please notice it may take up to 24 - 48 hours to process your request.