This study explored the role of government policies to support entrepreneurship and the growth of Small - Medium Enterprises (SMEs) in the Libyan economy. Due to the current situation of the business in Libya, urgent policies need from the Libyan government to focus on several aspects of SMEs for entrepreneurship and economic growth. Because of these challenges, the objective of this study is to establish a solid foundation for understanding the government's role in promoting entrepreneurship, also creating business for SMEs. The study found some circumstances that promote entrepreneurship and the environment of SMEs in the Libyan economy, such as investigating the impact of various types of recent government policies, identifying difficulties and challenges, improving the higher education system, and analysing Libyan decision-makers perspectives. As a result, the study indicated that Libyan government policies for entrepreneurship play a positive and crucial role in the development and growth of SMEs.