Impact of Government Policies and Financial Support Programs on the Success of Women-Owned Small and Medium Enterprises in Nigeria

Abstract

This paper studies how small and medium-sized enterprises (SMEs) led by women can lead to a sustainable livelihood and poverty reduction within the Federal Capital Territory (FCT), Abuja, Nigeria. The study employed mixed method which meant that the survey was done on 185 women entrepreneurs in six major business sectors and in-depth interviews as well as focus group discussions were held to investigate the nature of relationship between government policies, financial support as well as business performance. Both descriptive and inferential statistics and multiple regression models were used in the analysis of quantitative data, whereas qualitative data were interpreted using a thematic analysis. The results identify that access to credit, the level of education and awareness of government assistance plays a major role in determining the outcome of entrepreneurship in terms of income, savings and growth of business. Nonetheless, impediments like lack of awareness of policies, bureaucracy and gender constraints derail the effect of these interventions. Informal to informal support systems are important in closing institutional gaps including cooperatives and savings groups. Triangulation of results indicates that although a formal program involves government, which can enhance economic participation of women, it is essential to make the programs more available, inclusive, and sensitive to local situations. According to the study, holistic, gender sensitive policy options are essential towards realizing maximum potential of women entrepreneurs in poverty reduction and sustainable development.

Keyword: Women entrepreneurs, SMEs, sustainability of livelihoods, government policy, access to finance, poverty reduction, gender equity, Microcredit

DOI: 10.7176/JESD/16-5-06

Publication date: July 30th 2025