THE IMPACT OF REGULATORY AND BUSINESS SUPPORT POLICY CHANGES ON ENTERPRISE GROWTH IN MSME CLUSTERS: A STUDY OF SOUTH-EAST NIGERIA

Abstract Regulatory policies and business support initiatives are crucial for fostering the growth of Micro, Small, and Medium Enterprises (MSMEs), especially in emerging markets like South-East Nigeria. This study investigates the effects of regulatory policy dynamics and the reversal of business support policies on enterprise growth within the region. Using a descriptive cross-sectional design, data were collected from 373 MSME respondents through stratified sampling and structured questionnaires. The analysis revealed that regulatory policy dynamics exhibited a negligible effect on enterprise growth (Mean: 3.791 ± 0.727, B = -0.024, t = -0.554, P = 0.580), while the reversal of business support policies significantly hindered growth potential (Mean: 3.928 ± 0.609, B = -0.300, t = -6.278, P < 0.001). The findings underscore the urgent need for stable policy frameworks that enhance the sustainability of MSMEs. Furthermore, while financial policy instability presents notable challenges, consistent support policies are essential for fostering enterprise resilience. This study recommends that policymakers focus on stabilizing and enhancing business support initiatives to create a conducive environment for MSME development, ultimately contributing to economic growth in South-East Nigeria.