GOVERNMENT SUPPORT POLICIES AND THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN BENUE STATE.

Abstract

This study examined the influence of government support policies on the growth of small and medium enterprises in Benue State-Nigeria. Specifically, the study determined the influence of government tax relief and ascertains the influence of government training; on the growth of small and medium enterprises in Benue State Nigeria. The study adopted survey research design and questionnaire was utilized for data collection. From the population of 1593 registered small and medium enterprises, a sample of 400 were obtained on application of Taro Yamane formula, which formed respondents for the study. The data were analyzed using descriptive and inferential statistics, while regression analysis was employed as tool to test the hypotheses using t-statistics and p-values from the regression. Findings showed that government tax relief had significant and positive effect (t= 5.77, = b = 0.812, P=0.011 < 0.05) and government training had significant and positive effect on growth of small and medium enterprises in Benue State Nigeria. The study then concluded that, the government support policies dimensions have significant and positive influence on growth of small and medium enterprises in Benue State. The results show that government support policies (government tax relief and government training) are viewed as government response and contribution towards facilitating small and medium enterprises to boost economic activities; by giving them some discount or sometimes rebate in tax, assistance in technological backup and infrastructure, as well as initial financial assistance and alongside training, so as to enhance growth (competitiveness, market share, sales growth and profitability). The study then recommends, amongst others, that management of small and medium enterprises should develop themselves and their employees through trainings provided by government as it will assist them to be able to facilitate innovativeness and swift response to customer needs, this will help to increase their market share and competitiveness.