The Government has a huge role to play in creating a conducive environment for the growth and development of enterprises. There are things that the entrepreneur will not be able to accomplish without the support of the government. On this note, it is imperative that supportive institutions and structures are set up for this. We shall look at the government’s role through the following salient headings.
Policy Formulation
The Government through an Act of Parliament stands in a very strategic position in directing the growth of small businesses. Policies that will enhance the creation and establishment of small businesses need to be set and discussed at length in parliament. This should be done while putting the interest of the small business owners first. Policy documents that address various areas and even geographical locations should be designed with the objective of ensuring equitable chances to all stake holders.
Supporting N.G.Os
In recent years, the country has witnessed the mushrooming of Non- Government Organizations that are doing a commendable job in promoting entrepreneurial initiatives. Most of the NGOs are mainly involved in credit delivery, business training, providing general consultancy, and providing short term loans. However, most of the institutions supporting small businesses are rather weak, fragmented, concentrated in urban areas and uncoordinated. This calls for the need to strengthen the institutions supporting small and medium enterprises. This is where the government comes in with its wealth of influence.
Establishing Linkages/ Networks
Networks are so important for the entrepreneur who is just starting out. He needs all the support he can get from other entrepreneurs and strategic investors looking for franchises. The business linkages are also critical because networking is crucial in the business world. This is clearly demonstrated by the chain of supply of goods and services between firms in an industry and even between industries. The government can establish organs that will specialize in bringing entrepreneurs with good proposals and strategic investors together in a common forum.
Entrepreneurs also benefit through access to information on financial assistance, materials and suppliers, pricing, training, workshops sub-contracting opportunities and potential joint venture.
Political Stability
Ideally a world where the politics of the government do not interfere with the economic climate would be the best for any kind of business to establish itself. Unfortunately this is not the case and any change doesn’t seem forthcoming. There is always bound to be political interference where the business environment is concerned raising questions as to the main issue that needs to be addressed. The government can ally fears of political interference in small enterprise development by setting aside an organ that will strictly concern itself with these matters, while ensuring little or no political interference in small enterprise development
Economic Stability
The government can regulate the economic down turns in the country through the fiscal policies that are enacted and revised from time to time. These can cushion the small businesses against the adverse effects of economic cycles
