GOVERNMENT INDUSTRIAL POLICY AND THE GROWTH OF SMALL AND MEDIA SCALE ENTERPRISES (A STUDY OF SMALL AND MEDIUM ENTERPRISE IN OLORUNDA LOCAL GOVERNMENT)

ABSTRACT ​This study generally sought to examine the effectiveness of government industrial policy on the growth of small business development in Nigeria (a case study of small and medium enterprise in Olorunda Local Government). The specific objectives include to: assess the influence of government industrial policies on the growth and development of small and medium-sized businesses (SMEs); identify the barriers impeding the execution of government industrial policies to encourage small business growth and reveal the sustainable techniques and recommendations that can be made to improve the effectiveness of government industrial policy in fostering small and medium-sized enterprise growth. Random sample of 300 respondents was drawn from the population using stratified and simple random sampling techniques. Questionnaire was administered to collect data for the study using the five Likert scale questions and was analyzed by the researcher using simple percentage. ​The hypothesized statements were tested using Analysis of Variance. The statistical significance of this relationship (R = .915^{a}; R^{2} = .837; F = 452.67; p < .05) shows the substantial influence of government policies on SME growth. This implies that government industrial policies have significant impact on the growth and development of small and medium-sized businesses (SMEs). The second analysis uncovered a significant correlation between barriers impeding the execution of government industrial policies and small business growth. The strong relationship indicated by the regression model (R = .90a; R^{2} = .811; F = 389.88; p < .05) highlights the detrimental impact of these barriers on the growth prospects of small businesses. These barriers include inadequate funding mechanisms, regulatory complexities, and insufficient policy implementation frameworks. ​The study found the critical role of government industrial policies in shaping the growth and development trajectory of SMEs. Effective policies serve as catalysts for SME development, contributing to economic growth and job creation. It was also discovered that small firms face substantial obstacles in meeting government regulations and compliance obligations due to the complexity of the processes. The terms and conditions of government financial support programs are unfavorable to small firms, and small enterprises also have limited access to government programs' funding and financial support. The government's measures to improve capacity and skills in small enterprises are also inadequate. ​It was recommended that there should be established systems for regularly evaluating government industrial policies to assess their influence on SME growth and development. This will make it easier to change and improve policies based on evidence. Invest in programs and efforts to help SMEs improve their capacity and capabilities, such as easy access to finance, skill development, technology adoption, and market access support. It was also recommended that all government policies and activities should be consistent and linked in order to foster SME growth. To remove bureaucratic hurdles, avoid duplicate efforts and streamline regulatory processes.