IMPACT OF GOVERNMENT POLICIES ON SMALL BUSINESS GROWTH IN EMERGING MARKETS

Abstract

Small businesses are crucial drivers of economic growth and innovation in emerging markets, often serving as a foundation for broader economic development. This paper explores the impact of government policies on the growth and sustainability of small businesses in emerging economies. The study examines various policy frameworks, including taxation, access to credit, trade facilitation, and infrastructure development, and their influence on entrepreneurial activity and business scalability. By analyzing data from multiple emerging markets, the research identifies both enabling and constraining aspects of government interventions. It highlights how effective policies, such as streamlined regulatory environments and targeted financial incentives, can foster small business growth, while excessive bureaucracy and inconsistent policy implementation can stifle entrepreneurial potential. The findings underscore the importance of aligning government strategies with the specific needs of small businesses to enhance their contributions to economic development and job creation. The paper concludes with recommendations for policymakers to design more inclusive and adaptive policies to support small business ecosystems in emerging markets.