<![CDATA[This study aims to analyze the influence of government policies, including business legality, business assistance, entrepreneurship training, stock limitation, and price control, on the business performance of small grocery stores, in Wonocolo District, viewed through the theoretical perspective of The Law of Unintended Consequences. Small grocery stores were chosen as the object of this research because they represent one of the most common forms of micro-enterprises and play a vital role in the socio-economic system by providing essential goods for local communities. However, in practice, small grocery store owners often face internal and external challenges, including the effects of government policies that may impact their business stability and sustainability. This study employs a descriptive quantitative approach with a sample of 80 respondents selected using a random sampling method within the Wonocolo District. Data were analiyzed using binary logistic regression with the aid of SPSS version 26 to assess the effect of government policies on business performance. The result indicate that business legality, assistance, and training programs have no significant effect on business performance, while stock limitation and price control have a negative and significant effect. These findings confirm the existence of unintended consequences in policy implementation, where legality, assistance, and training policies exhibit neutral consequences due to subuptimal execution, whereas stock and price control policies generate unexpected drawbacks that adversely affect business performance. The study suggests that policymakers should consider these findings as an evaluation basis design more contextually appropriate and adaptive policies for micro-enterprises.]]>
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