*4.2.11 Business regulation problem*

Government regulations have an effect on the performance of SMEs or any other business. The regulations enforced by the government can promote or hinder business growth. Some businesses are required to sell their products through some outlined procedures and their adherence assures them of continuity in business. For example some gold miners are required to sell minerals through the government agencies and are not allowed to export them on their own. In Kenya a study found that a positive relationship existed between profitability and other government requirements in some sectors [25].
