Government Policies and the Performance of Small and Medium Enterprises in Burundi: Evidence from Ruyigi Province

This study examined the effect of government policies on the performance of small and medium-sized enterprises (SMEs) in Ruyigi, Burundi, with specific reference to Economat General and Société de Génie Rural et de Construction (SOGERCO). Using a mixed-methods approach, the study adopted both descriptive and correlational research designs. Data were collected from 20 respondents comprising owners, employees, and customers through questionnaires and interviews. Quantitative data were analysed using SPSS version 25, while qualitative data were analysed thematically. The findings revealed a weak positive relationship between government policies and SME performance (r = 0.289, p > 0.01). Regression analysis further showed that government policies had a positive but statistically insignificant effect on SME performance (β = 0.289), explaining approximately 8.4% of the variation in enterprise performance (R² = 0.084). Despite the weak statistical effect, government policies related to taxation, licensing procedures, and business registration were found to influence key performance indicators such as profitability, sales volume, and customer satisfaction. The study concludes that although government policies affect SME performance, they are not the dominant determinants of enterprise success in Ruyigi Province. The study recommends improved policy formulation, consistent implementation, and the incorporation of SME-specific realities to enhance enterprise performance and sustainability.