This study examines the impact of government policies on business failure among SMEs in Abuja metropolis. The research aims to explore how government policies influence access to credit, labour market regulations, and business survival rates among SMEs. The study employed a descriptive analysis, utilising data collected from SMEs through questionnaires. A total of 336 questionnaires were distributed, and 327 were retrieved, yielding a response rate of approximately 97.3%. The findings of the study reveal significant positive relationships between government policies and the three examined variables. Specifically, the analysis indicates that supportive government policies significantly enhance access to credit, positively influence labour market regulations, and improve business survival rates among SMEs. These results highlight the critical role of government interventions in facilitating the growth, efficiency, and sustainability of SMEs in Abuja metropolis. The study concludes that effective government policies are essential for the success of SMEs and recommends continuous refinement of these policies to support SME development. Further research is suggested to explore additional factors influencing SME performance and the broader economic impact of government policies on the SME sector.
Keywords: Government Policies, Small and Medium Enterprises, business failure