FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA
The macroeconomic policies, which fiscal policy is inclusive of, are very germane in determining the performance level in the country, most especially in determining the developmental quota that the small and medium scale enterprises would contribute to the economy, so poor usage of the fiscal poli...
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Universitas Nusa Cendana
2025-03-01
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| Series: | Journal of Management Small and Medium Enterprises (SME's) |
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| Online Access: | https://ejurnal.undana.ac.id/index.php/JEM/article/view/19804 |
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| author | Ariyibi Mayowa Ebenezer Efemena Emily O Olowofela Enitan O |
| author_facet | Ariyibi Mayowa Ebenezer Efemena Emily O Olowofela Enitan O |
| author_sort | Ariyibi Mayowa Ebenezer |
| collection | DOAJ |
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The macroeconomic policies, which fiscal policy is inclusive of, are very germane in determining the performance level in the country, most especially in determining the developmental quota that the small and medium scale enterprises would contribute to the economy, so poor usage of the fiscal policy can stifle the effectiveness of the SMEs’ performance, and their contributive role has a source of growth in an economy. Based on their relevance, this study examines the impact of fiscal policy on small and medium-scale enterprises' performance in Nigeria. The secondary time series data was sourced from the Central Bank Statistical Bulletin and the National Bureau of Statistics from the period 1991 to 2022. The ARDL (Auto-Regressive Distributed Lag) was employed to draw inferences after being informed by the unit-root test. The findings revealed that the expansionary measure of fiscal policy shows that government re-recurrent expenditure has a negative insignificant effect on small and medium-scale enterprises' total credit from commercial banks. Government capital expenditure has a negative significant effect on small and medium-scale enterprises' total credit from commercial banks. The contractionary measure of fiscal policy shows that value-added tax has a positive significant effect on small and medium-scale enterprises' total credit from commercial banks. Company income tax has a negative significant effect on small and medium-scale enterprises' total credit from commercial banks, while electricity consumption has a negative insignificant effect on small and medium-scale enterprises' total credit from commercial l banks. It is therefore recommended that policymakers should enhance the efficiency of capital expenditure to support SME-enabling projects and infrastructure.
Keywords: Fiscal Policy; SME’s; Government Expenditure; Taxation and ARDL
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| format | Article |
| id | doaj-art-1d384b6f40b34e0094da0462d90f82f3 |
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| issn | 2502-2385 2723-469X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Universitas Nusa Cendana |
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| series | Journal of Management Small and Medium Enterprises (SME's) |
| spelling | doaj-art-1d384b6f40b34e0094da0462d90f82f32025-08-20T01:47:28ZengUniversitas Nusa CendanaJournal of Management Small and Medium Enterprises (SME's)2502-23852723-469X2025-03-0118110.35508/jom.v18i1.19804FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIAAriyibi Mayowa Ebenezer0Efemena Emily O1Olowofela Enitan O2Department of Banking and Finance, Olabisi Onabanjo UniversityFinance Department, Aradel Energy LimitedDepartment of Banking and Finance, Olabisi Onabanjo University The macroeconomic policies, which fiscal policy is inclusive of, are very germane in determining the performance level in the country, most especially in determining the developmental quota that the small and medium scale enterprises would contribute to the economy, so poor usage of the fiscal policy can stifle the effectiveness of the SMEs’ performance, and their contributive role has a source of growth in an economy. Based on their relevance, this study examines the impact of fiscal policy on small and medium-scale enterprises' performance in Nigeria. The secondary time series data was sourced from the Central Bank Statistical Bulletin and the National Bureau of Statistics from the period 1991 to 2022. The ARDL (Auto-Regressive Distributed Lag) was employed to draw inferences after being informed by the unit-root test. The findings revealed that the expansionary measure of fiscal policy shows that government re-recurrent expenditure has a negative insignificant effect on small and medium-scale enterprises' total credit from commercial banks. Government capital expenditure has a negative significant effect on small and medium-scale enterprises' total credit from commercial banks. The contractionary measure of fiscal policy shows that value-added tax has a positive significant effect on small and medium-scale enterprises' total credit from commercial banks. Company income tax has a negative significant effect on small and medium-scale enterprises' total credit from commercial banks, while electricity consumption has a negative insignificant effect on small and medium-scale enterprises' total credit from commercial l banks. It is therefore recommended that policymakers should enhance the efficiency of capital expenditure to support SME-enabling projects and infrastructure. Keywords: Fiscal Policy; SME’s; Government Expenditure; Taxation and ARDL https://ejurnal.undana.ac.id/index.php/JEM/article/view/19804Fiscal PolicySME’sGovernment ExpenditureTaxation and ARDL |
| spellingShingle | Ariyibi Mayowa Ebenezer Efemena Emily O Olowofela Enitan O FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA Journal of Management Small and Medium Enterprises (SME's) Fiscal Policy SME’s Government Expenditure Taxation and ARDL |
| title | FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA |
| title_full | FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA |
| title_fullStr | FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA |
| title_full_unstemmed | FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA |
| title_short | FISCAL POLICY AND SMALL AND MEDIUM SCALE ENTERPRISES PERFORMANCE IN NIGERIA |
| title_sort | fiscal policy and small and medium scale enterprises performance in nigeria |
| topic | Fiscal Policy SME’s Government Expenditure Taxation and ARDL |
| url | https://ejurnal.undana.ac.id/index.php/JEM/article/view/19804 |
| work_keys_str_mv | AT ariyibimayowaebenezer fiscalpolicyandsmallandmediumscaleenterprisesperformanceinnigeria AT efemenaemilyo fiscalpolicyandsmallandmediumscaleenterprisesperformanceinnigeria AT olowofelaenitano fiscalpolicyandsmallandmediumscaleenterprisesperformanceinnigeria |