POLICY AND INSTITUTIONAL INNOVATION FOR SUSTAINABILITY: IMPACTS ON MICRO AND SMALL MEDIUM ENTERPRISES
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Abstract
Aim: This study examines how policy and institutional innovations influence the sustainable performance of Micro and Small Enterprises (MSMEs) in Nigeria’s Ogun–Lagos border region. The research specifically investigates the effects of tax incentives, access to finance, and infrastructural support on core sustainability metrics—growth, profitability, and environmental resilience.
Methodology: Adopting a mixed-methods approach, data were collected from 450 MSMEs and analyzed using ANOVA, correlation, and multiple regression analyses to assess both overall and sector-specific policy impacts.
Key findings: The findings reveal that institutional credit schemes and targeted tax incentives significantly improve MSME sustainability outcomes, particularly in enhancing long-term growth and profitability. In contrast, the effects of infrastructural support were more uneven, influenced by sectoral and geographic disparities. Statistical analyses also highlight that enterprise size and sector mediate policy effectiveness, with micro-enterprises and service-sector firms benefiting less from standardized interventions.
Policy Implications: These results underscore the importance of context-sensitive policy design, especially in complex, multi-jurisdictional environments like Nigeria’s border communities. The study advocates for a more adaptive institutional framework, where fiscal, financial, and infrastructural policies are harmonized to meet the localized needs of MSMEs. Such tailored approaches are critical to promoting inclusive, resilient growth and addressing systemic challenges in underserved regions.
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