In addition to considerably boosting exports and job creation, the small and medium-sized businesses (SME) sector is crucial to the nation's total economy. It is crucial to use cutting-edge and cutting-edge technology if you want to compete in the global market. SME's in Tier 1 cities, such as Hubli, Dharwar, and Belgaum (Karnataka, India), have greater access to these technologies than SME's in Tier 2 cities. This research is being done to pinpoint the performance-influencing factors and to pique entrepreneurs' attention. This research aimed to determine the effects of governmental variables on the performance of small and medium manufacturing firms (SME) in the Hubli-Dharwar area, including frequent changes in tax policies, regulatory concerns, rules and procedures. The pertinent information required for analysis and factor identification was collected using a well-structured questionnaire. The dataset was analyzed using the social sciences statistical software SPSS, and numerous hypotheses were tested. In order to help SME's realize their full potential, it is the responsibility of the involved stakeholders to prioritize this element.

SME’s, Adaptation, Pearson correlation, Descriptive analysis, multiple regression analysis