Journal of African Development

Micro, Small, and Medium Enterprises play a crucial role in economic development by generating employment, promoting innovation, and supporting inclusive growth. Despite their economic importance, MSMEs often face various challenges such as limited financial resources, restricted access to markets, and technological constraints. Governments across the world have introduced several support mechanisms, including financial subsidies and market facilitation programs, to strengthen the MSME sector and enhance its competitiveness. This study aims to examine the impact of government subsidies and market access on MSME performance. The study adopts a quantitative research approach and uses primary data collected from 300 MSME owners and managers. A structured questionnaire consisting of 15 items was used to measure the variables of government subsidies, market access, and MSME performance. Responses were collected using a five-point Likert scale. The collected data were analyzed using SPSS statistical software. Reliability analysis, factor analysis, and correlation analysis were conducted to examine the relationships among the variables. The reliability analysis produced a Cronbach’s Alpha value of 0.884, indicating strong internal consistency of the measurement items. Factor analysis using Principal Component Analysis (PCA) confirmed the presence of three distinct factors representing government subsidies, market access, and MSME performance. The Kaiser–Meyer–Olkin (KMO) value of 0.918 and significant Bartlett’s Test of Sphericity confirmed the suitability of the data for factor analysis. The extracted factors explained 74.428% of the total variance, demonstrating strong construct validity. Correlation analysis revealed a moderate positive relationship between market access and MSME performance (r = 0.435, p < 0.01) and between government subsidies and MSME performance (r = 0.410, p < 0.01). However, no significant relationship was found between market access and government subsidies. The findings indicate that both government subsidies and improved market access independently contribute to enhancing MSME performance. The study highlights the importance of effective government support policies and improved market connectivity in strengthening MSME growth and sustainability