Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between government entrepreneurship policy and business growth of informal sector businesses has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Enugu State where operating conditions differ markedly from more developed markets.

Enugu State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While government entrepreneurship policy is widely discussed in policy and industry circles, empirical evidence on its actual effect on business growth of informal sector businesses within Enugu State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to government entrepreneurship policy are helping or hindering business growth of informal sector businesses — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Government Entrepreneurship Policy on business growth of informal sector businesses in Enugu State.
2. To assess the extent to which government entrepreneurship policy influences business growth of informal sector businesses within the study area.
3. To identify the challenges associated with government entrepreneurship policy in relation to business growth of informal sector businesses.
4. To recommend strategies for optimizing government entrepreneurship policy in order to improve business growth of informal sector businesses.

1.4 Research Questions

1. What is the effect of government entrepreneurship policy on business growth of informal sector businesses in Enugu State?
2. To what extent does government entrepreneurship policy influence business growth of informal sector businesses within the study area?
3. What challenges are associated with government entrepreneurship policy in relation to business growth of informal sector businesses?
4. What strategies can be adopted to optimize government entrepreneurship policy in order to improve business growth of informal sector businesses?

1.5 Significance of the Study

Beyond its academic contribution to the field of entrepreneurship, this study has practical value for management teams within Enugu State seeking to understand how government entrepreneurship policy translates into measurable outcomes around business growth of informal sector businesses. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Government Entrepreneurship Policy and its relationship with business growth of informal sector businesses within the context of Enugu State. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.