POLICY AND INSTITUTIONAL INNOVATION FOR SUSTAINABILITY: IMPACTS ON MICRO AND SMALL MEDIUM ENTERPRISES
POLICY AND INSTITUTIONAL INNOVATION FOR SUSTAINABILITY: IMPACTS ON MICRO AND SMALL MEDIUM ENTERPRISES

Summary/Abstract: Aim: This study examines how policy and institutional innovations influence the sustainable performance of Microand Small Enterprises (MSMEs) in Nigeria’s Ogun–Lagos border region. The research specifically investigates theeffects of tax incentives, access to finance, and infrastructural support on core sustainability metrics—growth,profitability, and environmental resilience.Methodology: Adopting a mixed-methods approach, data were collected from 450 MSMEs and analyzed usingANOVA, correlation, and multiple regression analyses to assess both overall and sector-specific policy impacts.Key findings: The findings reveal that institutional credit schemes and targeted tax incentives significantlyimprove MSME sustainability outcomes, particularly in enhancing long-term growth and profitability. In contrast,the effects of infrastructural support were more uneven, influenced by sectoral and geographic disparities.Statistical analyses also highlight that enterprise size and sector mediate policy effectiveness, with micro-enterprises and service-sector firms benefiting less from standardized interventions.Policy Implications: These results underscore the importance of context-sensitive policy design, especially incomplex, multi-jurisdictional environments like Nigeria’s border communities. The study advocates for a moreadaptive institutional framework, where fiscal, financial, and infrastructural policies are harmonized to meet thelocalized needs of MSMEs. Such tailored approaches are critical to promoting inclusive, resilient growth andaddressing systemic challenges in underserved regions.

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