Public Policy and Small and Medium Enterprise Development in Enugu State

This study examines the effectiveness of public policies targeting small and medium enterprise (SME) development in Enugu State, located in Nigeria's South East geopolitical zone. SMEs are widely recognised as engines of employment generation and economic diversification, yet their development in Enugu State is constrained by regulatory barriers, limited access to finance, and infrastructural deficits. A professional survey design is employed, with data collected from 185 SME operators, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) officials, and state ministry officers. Both quantitative and qualitative methods are employed, with regression analysis and thematic analysis used for respective data streams. The Policy Network Theory and the Resource Dependence Theory jointly underpin the analysis, focusing on how government resource allocation decisions and stakeholder relationships shape policy outcomes for SMEs. Findings indicate that while tax holiday provisions and the Enugu State Investment Promotion Agency have facilitated some formal business registrations, most SME operators remain in the informal sector due to compliance cost barriers and limited awareness of government support programmes. Access to credit through state-backed enterprise funds is restricted by collateral requirements that exclude small operators. Recommendations include the simplification of SME registration processes, reduction of collateral requirements for state development bank loans, and targeted SME capacity building programmes in business planning and financial management. Keywords: public policy, SME development, Enugu State, small business, enterprise support.