Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence
Over the last two decades, governments around the globe have been providing financial and non-financial resources to support small micro and medium-sized enterprises (SMMEs) through grants and subsidies. But, do these public investments aid SMMEs in improving their performance and growth in terms o...
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| Format: | Article |
| Language: | English |
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Danubius University
2023-10-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | https://www.dj.univ-danubius.ro/index.php/AUDOE/article/view/2159 |
| _version_ | 1797637683534626816 |
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| author | Timothy Aluko Innocent Bayai Prince Enwereji |
| author_facet | Timothy Aluko Innocent Bayai Prince Enwereji |
| author_sort | Timothy Aluko |
| collection | DOAJ |
| description |
Over the last two decades, governments around the globe have been providing financial and non-financial resources to support small micro and medium-sized enterprises (SMMEs) through grants and subsidies. But, do these public investments aid SMMEs in improving their performance and growth in terms of job creation, productivity, sales, and their ability to survive? The analysis, which focused on government subsidies and grant programmes provides an answer to this question through a review of evidence on the effects of public intervention over the period of 2010 to 2022. Results indicate that government intervention programmes have had a favourable overall impact on business employment creation, sales/turnover, and productivity, with conflicting results for business labour productivity and business survival. Despite the divergent empirical results across programmes, it is imperative for government intervention programmes to address inclusiveness in the designing and implementation phase of grants and subsidies programme, so as to link programme objectives with the intended outcome.
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| first_indexed | 2024-03-11T12:52:52Z |
| format | Article |
| id | doaj.art-af1c1547ca6a48d6a8428908f9148820 |
| institution | Directory Open Access Journal |
| issn | 2065-0175 2067-340X |
| language | English |
| last_indexed | 2024-03-11T12:52:52Z |
| publishDate | 2023-10-01 |
| publisher | Danubius University |
| record_format | Article |
| series | Acta Universitatis Danubius: Oeconomica |
| spelling | doaj.art-af1c1547ca6a48d6a8428908f91488202023-11-04T04:15:01ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2023-10-01195Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence Timothy Aluko0Innocent BayaiPrince EnwerejiUniversity of South Africa Over the last two decades, governments around the globe have been providing financial and non-financial resources to support small micro and medium-sized enterprises (SMMEs) through grants and subsidies. But, do these public investments aid SMMEs in improving their performance and growth in terms of job creation, productivity, sales, and their ability to survive? The analysis, which focused on government subsidies and grant programmes provides an answer to this question through a review of evidence on the effects of public intervention over the period of 2010 to 2022. Results indicate that government intervention programmes have had a favourable overall impact on business employment creation, sales/turnover, and productivity, with conflicting results for business labour productivity and business survival. Despite the divergent empirical results across programmes, it is imperative for government intervention programmes to address inclusiveness in the designing and implementation phase of grants and subsidies programme, so as to link programme objectives with the intended outcome. https://www.dj.univ-danubius.ro/index.php/AUDOE/article/view/2159Effects, SMMEs, government financial intervention, grant, subsidies |
| spellingShingle | Timothy Aluko Innocent Bayai Prince Enwereji Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence Acta Universitatis Danubius: Oeconomica Effects, SMMEs, government financial intervention, grant, subsidies |
| title | Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence |
| title_full | Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence |
| title_fullStr | Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence |
| title_full_unstemmed | Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence |
| title_short | Effects of Government Financial Intervention for SMME: A Review of Empirical Evidence |
| title_sort | effects of government financial intervention for smme a review of empirical evidence |
| topic | Effects, SMMEs, government financial intervention, grant, subsidies |
| url | https://www.dj.univ-danubius.ro/index.php/AUDOE/article/view/2159 |
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