Impact of Government Policies on MSMEs Sustainable Wealth and Employment Generation in Nigeria

This study examines the impact of government policies on the job creation and wealth generation capacity of small-scale enterprises (SSEs) in Nigeria. Data from 1992 to 2022 was analyzed, revealing both short-term and long-term effects of government policies on SSE development. The study found that in the short run, the treasure bill rate, inflation, GDP growth per capita, and total savings negatively impact self-employment. However, in the long run, total government expenditure and credit to small-scale enterprises have a positive impact on self-employment. Government spending, particularly in infrastructure, public services, and development projects, stimulates economic growth, leading to increased demand for goods and services and increased self-employment opportunities. Credit to small businesses allows entrepreneurs to access funds, enabling them to invest in resources, resulting in business expansion and more opportunities for self-employment. The long-run impact highlights the sustainable and effective role of fiscal and credit policies in strengthening SSEs to create wealth and provide employment opportunities.

government policy, SMEs development, pro-poor, wealth creation and self-employment

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