An evaluation of government policy on the promotion of small scale enterprise research proposal paper
An evaluation of government policy
On the promotion of small scale enterprise
As compared with other industries, small scale enterprises are facing different challenges and problems which should be given attention by the management. Accordingly, small scale enterprise is seen considerable attention because of the balanced growth and sustainability that it can provide to the economy of specific countries. In this regard, different government’s organisations are focusing on promoting this small scale enterprise as way of their encouragement for wider participation of these firms. It can be said that the promotion of these firms, specifically those in the information sectors is perceived as a viable strategy for attaining sustainable development because the suitability of its resources in various countries.
Primarily, the main goal of this proposed research is to evaluate the government policies made to promote small scale enterprises.
As mentioned, the main objective of this paper is to evaluate the government policies made to promote small scale enterprise. Specifically this study aims on achieving the following objectives:
- Analysis of Small scale enterprises and the factors that challenge their performance.
- Discussion about the government policies made to promote small scale enterprise.
- Determine how government policies help promote small scale enterprise.
- What are the factors that that challenge small scale enterprise performance?
- What is the government policies generated to promote small scale enterprises?
- How government policies help promote small scale enterprise?
Various factors have become the reasons on why development and government agencies are giving attention to Small scale enterprises. For example, on the economic crisis, small scale industries tremendously grew and exhibited distinctive strengths against the larger industries in despite of the recession (Grey-Johnson 1992). The sector has continued to develop, in spite of the hostile economic situation, regularities and political aspects. Those managing these SSE have been able to become innovative and highly opportunistic. In addition, they are able to demonstrate great strategic approach establishing business with minimal resources.
It is said that small scale enterprises have features which justify the promotion of the development approach. This enterprise has the ability to generate employment at low levels of investment per job, which leads to an increased participation of indigenous people in the economy, utilizes mainly local resources, promote the establishment and use of local technologies, and offer skills training at a low cost to the public (ILO 1989).
SSEs are said to play vital roles in providing job opportunities, income distribution through business prospects, increase investments, rural development, and development of private enterprise (Kotey and Meredith, 1997). In addition, small firms with restricted has been expected to believe its business environment as not the same from that of a large industries with more resources and it is also likely to face various environment pressures and challenges with regard to market competencies. According to some authors, the performance of Small scale industries is contributed by many factors which are internal and external to these firms (Kotey and Meredith, 1997; Pearce and Robinson, 2002).
Throughout the years, it seems that studies on small scale focus on government role as well as policy in developing small scales. Accordingly, some are using strategic model approach to explain the factors which contributes to the performance of small scale industries.
Overview of Methodology
From the above discussion, this research follows the following research model.
The model above presents that the performance of a small scale enterprise is a function of internal as well as external factors. Success in enhancing performance depends on some factors such as the, the strategy, entrepreneurship orientation and structure and the market environment . In addition, government policies are also an important factor, specifically in promoting SSE.
For primary data collection from the SSE, two common methods are incorporated – a structured quantitative self-administered questionnaire is framed, qualitative interviews will be accomplished, and last but not least documents search to supplement the data gathered.
Five-response scale will be used in gathering the perception of the participants.
4.50-5.00 - Slightly Agree
3.50-4.49 - Uncertain
2.50-3.49 - Slightly Disagree
1.50-2.49 - Disagree
0.00-1.49 - Strongly Disagree
For this research, sample population includes managers of SSE and also government agencies which develops programs and policies to promote SSE.
Grey-Johnson, C. 1992. The African informal sector at the crossroads: Emerging policy options. African Development, 18(1), 65–91.
ILO (International Labour Organization). 1989. A strategy for small enterprise development towards the year 2000. Nairobi, Kenya.
Kotey, B and Meredith, G.G, (1997). “Relationship Among Owner/Manager Personal Values, Business Strategies, and Enterprise Performance”, Journal of Small Business Management, Vol 37, pp 37-62.
Pearce II, J.A and Robinson Jr, R.B, (2000). “Strategic Management: Formulation, Implementation and Control”, Richard D Irwin Inc., USA.
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