Government Policies and Business Sectors in Emerging Economies: Nigeria and South Africa

Scholars have acknowledged that government policies habitually affect business activities indirectly and directly. However, limited focus has been given to their impacts across business sectors. Hence, the question here is whether government policies exhibit equal impacts in every business sector. Hence, the study examined some selected policy factors that boost business activities in two emerging African economies. Specifically, it identifies the most auspicious government policy in each sector. The study was conducted in the commercial hubs of two emerging African economies (Nigeria and South Africa), where most business activities take place. A total of 1,200 semi-structured questionnaires (550 in Johannesburg, South Africa, and 650 in Lagos, Nigeria) were administered. Principal component analysis was utilized to pinpoint the most favourable government policy in each business sector. The findings highlight that some variations exist in the policy implementation tactics of both economies and that government policies exhibit unequal impacts in all the business sectors of both economies. Also, the findings further clinched that some government policies are more auspicious than others in some sectors. The implications for entrepreneurs, researchers and policymakers are further discussed, while a clarion call is made for more in-depth studies on government policies for specific businesses in selected sectors.