The Nature and Effect of Government Policies and Financial Institutions’ Structure on The Growth and Development of Startups: An Introduction

• Author(s): Munashe Naphtali Mupa ; Ebenezer Ekow Pamful ; Johnpaul Chukwudi Nnaji ; Joanna Adu-Boahen
• Paper ID: 1706146
• Page: 253-272
• Published Date: 10-08-2024
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 8 Issue 2 August-2024

Abstract

This research examines and compares the government policies and the structure of financial institutions on the expansion and maturation of small, medium, and micro enterprises (SMMEs) and startups in both developed and developing economies. The purpose of this study is to compare the effects of these variables in a variety of economic settings. Data were collected and analyzed using a qualitative approach consisting of secondary research to shed light on the role that policies and financial institutions play in encouraging entrepreneurial growth. The outcomes emphasize the need for government policies that promote innovation, open access to capital and other resources, reduce red tape in the regulatory process and promote public-private partnerships. Financial ecosystems that provide a variety of financing choices and specialized services for startups and small, medium, and micro enterprises (SMMEs) are prevalent in developed economies like the United States, Australia, China, and Sweden (Hutschenreiter et al., 2019). Nigeria, Rwanda, South Africa, and Zimbabwe are just a few examples of developing economies that confront difficulties such as poor policy implementation, weak regulatory frameworks, and a lack of access to capital and enabling financial institutions (Wang, 2016). Furthermore, recommendations based on the objectives of the research include refining policies, developing specialized financial products and services, implementing initiatives for capacity-building, and enhancing collaboration between policymakers, financial institutions, and entrepreneurs. The purpose of these recommendations is to foster sustainable economic growth, innovation, and employment creation by fostering an environment conducive to startups and small, medium, and micro enterprises (SMMEs). While this study adds to the existing body of information, it is important to note the constraints it faces, such as its short duration and small sample size. Future research may look at a broader range of sectors and additional variables to better understand the complex interaction between government policies, financial institutions, and the expansion of startups and SMMEs.

Citations

IRE Journals:
Munashe Naphtali Mupa , Ebenezer Ekow Pamful , Johnpaul Chukwudi Nnaji , Joanna Adu-Boahen "The Nature and Effect of Government Policies and Financial Institutions’ Structure on The Growth and Development of Startups: An Introduction" Iconic Research And Engineering Journals Volume 8 Issue 2 2024 Page 253-272

IEEE:
Munashe Naphtali Mupa , Ebenezer Ekow Pamful , Johnpaul Chukwudi Nnaji , Joanna Adu-Boahen "The Nature and Effect of Government Policies and Financial Institutions’ Structure on The Growth and Development of Startups: An Introduction" Iconic Research And Engineering Journals, 8(2)