Fiji

Over the years, various governments have focused on Small to Medium Enterprises (SMEs) but there are many challenges. Cost of setting up the business, business acumen, size of markets, lack of feasibility and market research and high tendency for imports based on preferences, quality and other issues, small industries are known to dominate the informal sector which can betaken advantage by politician making it a source of inefficiencyresulting in welfare cost or deadweight losses, etc.

Question

Identify and discusstwo common casesthat are linked to direct/indirect political influences that often leads to market inefficiencies particularly in developing countries and in this case for Small to Medium enterprises in Fiji. Use local examples and provide thorough justifications.