Mediating Role of Entrepreneurial Mindset and the Relationship between Government Policies and SME’s Success

Abstract

This study explores the role of entrepreneurial mindset as a mediator in the relationship between government policies and the success of small and medium enterprises (SMEs) in Imo State, Nigeria. Previous research has largely focused on SMEs in mature economies, with limited attention to developing nations like Nigeria, particularly on the moderating role of the entrepreneurial mindset. To address this gap, the study formulated six objectives, six research questions, and thirteen hypotheses. A total of 334 questionnaires were distributed to SMEs registered in 2020, using stratified random sampling. Data were analyzed using both descriptive and inferential statistics, including regression analysis and Pearson Product Moment Correlation Coefficient (PPMC), at a 0.05 significance level. The findings revealed that government policies related to support, market pressure, and insecurity significantly impact SME success, with entrepreneurial mindset playing a crucial mediating role. The study concludes that fostering an entrepreneurial mindset strengthens the positive impact of government policies on SME success. It recommends targeted support for SME owners and policymakers to enhance SME performance in Imo State.