Analyzing the Design and Impacts of Public Policies on Small and Medium-Sized Enterprises Development: A Case Study of SMEDAN

Authors: Obedat Abdulazeez, Yongsheng Guo, Xiaoxian Zhu

Abstract:

This paper analyses the design and impact of public policies on the development of Small and Medium-sized Enterprises (SMEs) in Nigeria, focusing on the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). SMEs play a significant role in Nigeria’s economic growth, job creation, and income generation but face significant challenges including power supply, financing, insecurity, and taxation. This paper analyses how SMEDAN’s policies and initiatives address these challenges and promote SME growth. Using mixed methods, interviews and questionnaires were conducted with SME owners/managers and SMEDAN officials to evaluate the effectiveness of SMEDAN’s interventions. In this study, 336 responses were received from SMEs in Kaduna state, Nigeria, and descriptive analysis was utilized to analyze the data. Findings reveal that business-clinics, financial-linkage, and training, have positively impacted SME development. However, less than half of the respondents agree that there is a need for increased outreach and better implementation of policies to enhance SME growth. Recommendations are provided for policymakers to improve the design of support strategies by ensuring a more encouraging environment for SME development and by targeting the areas that have not been captured.

Keywords: Nigeria, public policy, Small and Medium-sized Enterprises, SME, SMEDAN, Small and Medium Enterprises Development Agency of Nigeria.

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