Intersections between policy and institutions: a focus on enterprise growth in Swaziland

Abstract

Purpose - Public policy supported by effective institutions is one of the key strategies for promoting entrepreneurial activities. However, the problem is that an enabling environment that supports entrepreneurship is often lacking in several African countries. The aim of this article is to deepen our understanding of the mix of policy and institutional factors which create an enabling environment for enterprise growth in Swaziland. Design/methodology/approach - Primary data are sourced from 200 enterprises across Swaziland's main regions and hypotheses are statistically tested using correlational and regression analyses. Findings - Results show that a mix of different institutional and state support factors such as access to markets, education and training, access to finance, contract enforcement, regulations and business support programmes all have a significant and positive impact on enterprise growth. Research limitations/implications - Study implications relate to the need for specific and targeted policy interventions required to foster an enabling environment in order to stimulate enterprise growth in Swaziland. Originality/value - Empirical investigations on enterprise growth in under-researched developing market contexts, such as Swaziland, are important since in many developing and emerging markets small enterprises are at the epicentre of the economy Moreover, this study adds to the stream of research highlighting that the application of institutional theory provides a detailed theoretical understanding of the actors and the process by which enterprise policy is formulated.