Government Business Policy Implementation Agents and the Profitability of SMEs in Nigeria

The study examined the effect of the activities of government business policy implementation agents on the profitability of Small and Medium-sized Enterprises in Nigeria, using Awka South, in Anambra state. To achieve the above objective, the study ascertained the extent to which illegal taxes, illegal trade regulations and illegal compliance protocols by implementation agents of government business policy influence SME’s profit growth, using a survey research design. The population of this study was made up of 548 small scale entrepreneurs in Awka south, Anambra State, with a sample size of 149. With the use of structured questionnaires, responses were obtained from managers/owners of 149 SMEs in Awka South. Simple tables, mean, and percentages were used to analyse the descriptive statistics of the data, while Spearman Ranked Order Correlation Coefficient was used to test the hypotheses formulated with the aid of Statistical Package for Social Sciences Version 22. From the correlational analysis carried out, it was shown that, illegal taxes by implementation agents of government business policy significantly and negatively influence SME’s profit growth in Awka South (p=0.010); illegal trade regulations by implementation agents of government business policy significantly and negatively influence SME’s profit growth in Awka South (p = 0.000); illegal compliance protocols by implementation agents of government business policy significantly and negatively influence SME’s profit growth in Awka South (p=0.008). The study recommends that government taxation authorities should enforce transparent tax collection processes, ensuring that implementation agents adhere strictly to legal standards. Additionally, they should conduct regular training programs for these agents to enhance their awareness of legal tax policies and discourage any misuse of authority for personal gain.