Given the economic realities in Nigeria, the country must constantly create new jobs, and diversify the industrial and commercial sector to take advantage of human and natural resources through entrepreneurship development. The present research aims to identify the role of government policies on the relationship between innovations, technology and entrepreneurship development in Nigeria. Questionnaire was distributed to Small and Medium Scale Enterprises (SMEs) in Osun State. Structural Equation Model was used to analyze data using Partial Least Square Method (PLS 3). The results based on findings shows that a positive significant effect was found between government support, innovation and technology on entrepreneurship development. Government policies were found to have fully moderate the relationship between innovation, technology and entrepreneurship development. Government polices was found to be the most explanatory variable of the study having the highest effect on the entrepreneurship development. Therefore, the study recommends that government should enact policies that will encourage and promote the use of technology and support innovative ideas to bring economic growth through entrepreneurship development.