GOVERNMENT ECONOMIC POLICIES AS CORRELATES OF ENTREPRENEURIAL PROFITABILITY OF SMALL AND MEDIUM SCALE BUSINESS OPERATIONS IN PORT HARCOURT

Abstract

The study investigated government economic policies as correlates of entrepreneurial profitability of small and medium scale business operations in Port Harcourt. Three objectives, research questions and hypotheses guided the study. Correlational design was adopted for the study. The population was 4198 registered businesses in Port Harcourt. Simple random sampling technique was adopted in selecting a sample size of 399 business operators. A self-structured questionnaire titled "Government Economic policies questionnaire and Entrepreneurial profitability questionnaire was used as instrument for data collection. Three experts validated the instrument. Pearson’s Product Moment Correlation (PPMC) was used to determine the reliability of the instrument and a coefficient index of 0.82 and 0.74 was obtained which indicates that the instrument is reliable. Pearson's Product-Moment Correlation Coefficient (PPMC) statistics was used to answer the research questions and hypotheses. Findings from the study revealed a very weak negative correlation between cashless policy, Ease of doing business policy and microeconomics policy and entrepreneurial profitability of Small and Medium Scale business operations in Port Harcourt. Based on the findings the researcher recommended among others, that there should be increase awareness and training for small and medium scale businesses to fully adopt cashless transactions. Government should also collaborate with financial institutions to provide reduced transaction fee cost for small and medium scale businesses.