SME policy formulation and implementation in Africa: Unpacking assumptions as opportunity for research direction

• Published in: Journal of business research 2019-04, Vol.97, p.304-315
• Main Authors: Mamman, Aminu, Bawole, Justice, Agbebi, Motolani, Alhassan, Abdul-Razak
• Format: Article
• Language: English
• Subjects: Entrepreneurship; Market imperfection; SME policy formulation and implementation; Sub-Saharan Africa
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/j.jbusres.2018.01.044

The increasing acknowledgement of the role of SMEs in economic growth and reducing unemployment in SSA brings forth the need for research into understanding the role and impact of the SME policy and its outcomes. However, the lack of adequate critical examination of the current SME policies across SSA as well as the absence of a holistic conceptual framework has put limitations on the further development of literature in the field. In this article, we have attempted to critique the existing assumptions underpinning the SME policy. We have also advanced a conceptual framework and propositions to enable the holistic research that can shed more light on our understanding of the interactions between SME policies, the business environment (context), the entrepreneur, and policy outcomes. Finally, we proposed research questions and an agenda that should guide future research. •We advanced research propositions and a conceptual framework for the advancement of research on Entrepreneurship and SME Policy in Africa•We questioned the conventional assumptions underpinning SME policy formulation and implementation•We argue that reasonable regulation of the SME sector can produce genuine entrepreneurs and sustainable enterprises•We argue that reasonable regulation can create new sectors through innovation by genuine entrepreneurs•We argue that emotional qualities not business skills are the foundation of business success