The Influence of Economic Policies on Small and Medium Enterprises (SMEs) in Developing Countries

Abstract

In developing nations, Small and Medium Enterprises (SMEs) play a critical role in job creation, economic development, and the reduction of poverty. However, government-enacted economic policies have a major impact on their durability and rate of growth. This study looks at how trade, monetary, fiscal, and regulatory policies affect the growth of SMEs in emerging countries. It looks at how policies like tax breaks, easy access to financing, subsidies, and regulatory changes impact the business climate and impact the resilience and performance of small and medium-sized enterprises. This research shows the gaps where policy intervention is required and identifies critical aspects that support the development of SMEs by evaluating the advantages and disadvantages of various policies. The results highlight the need for cohesive and supportive policy frameworks that tackle the particular difficulties faced by SMEs in emerging environments. The purpose of this document is to help stakeholders and policymakers develop policies that promote the success of small and medium-sized enterprises (SMEs).