THE IMPACT OF GOVERNMENT INVOLVEMENT ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA. A CASE STUDY OF SOME SELECTED COMPANIES IN UGHELLI NORTH L.G.A

CHAPTER ONE

1.1 INTRODUCTION

The government of any independent country has the constitutional power to formulate policies and make laws for the good of the nation. All over world, various governments have different role they play in business.
Business organisations are affected and influenced by government activities, rules, regulations, laws and specialised agencies. It is a well known fact that no business organisation can survive without interaction with its political and legal environment which often times are within the direct manipulation of the government.
Government policies have become the necessary ingredient that can either encourage or discourage the participation of the private sector in the stimulation of the economy.
In recent years, however, both the federal and state government have introduced various policies and programmes to redress the short comings of Small and Medium Scale Business Enterprises (SMEs).
The way the government formulate its policies is greatly influenced by both political and socio-cultural factors.
According to Reimann (1980:29) a sound government policy performs the following functions.
Prevents deviation from planned course of action.
Ensures consistency of action
promotes intelligent co-operation
Fosters an intelligent exercise of initiative
Government policies can be considered favourable or unfavourable to the growth and development of small and medium scale enterprises.
The major role of the government in business is to provide a conducive atmosphere for businesses to thrive this would include the provision of facilities and dependable public utilities that would attract investors and encourage the emergence of entrepreneur.

1.2 STATEMENT OF THE PROBLEM
Government is an essential part of the society that affects all aspect of life. The impact of government can not be over emphasized. This research work is to enlighten some of the government policies affecting the growth of a business as it was earlier mentioned. Government policies can either be favourable or unfavourable. This project is to highlighten some of the short comings of government in providing social amenities and a conducive environment for business to thrive.

1.3 PURPOSE OF THE STUDY
The primary purpose of this study is to point out some of the short comings of government in providing a conducive environment for the development of businesses. It will also highlights the importance of government and how government can improve in their policies/programme affecting business in other to encourage more entrepreneurship involvement in business.

1.4 RESEARCH QUESTION
This particular section is usually a conjectural of questions that will help the researchers to understand the various ways to follow. Some of the questions employed are;
Does the government policy affect business activities?
Does the government implement their policies effectively?
Does the government need to improve on the level of their policies making?
Is the government socially responsible to the business organisation?

1.5 SCOPE OF THE STUDY
This study is delimited in scope to some selected companies in Ughelli North Local Government Area of Delta State where sample information and accurate data were easily available and also for the accessibility of the study.

1.6 SIGNIFICANCE OF THE STUDY
It is hoped that the topic “The Impact of Government Involvement in Small and Medium Scale Enterprises” has great significance to the following set of people and economic activities.
It will serve as a guide to businessmen and women on how government policies affect business activities.
The research work will highlights some of the short comings of government in providing conducive atmosphere for business which will in turn encourage the government in the provision of such atmosphere for the development of small and medium scale enterprises.