The Effect Of Environmental Factors On The Performance Of Small And Medium Scale Business In Nigeria

1.2 STATEMENT OF THE PROBLEM

The effects of environment on organizational performance vary from one situation to another. The environment suitable for the growth of a particular business may be hostile to the survival of another business. The problems that necessitated this research are as follows:

• Assess impact of environmental factors that has the performance of small scale enterprises in Oshimili North Local Government Area

• The ability to identify, evaluate and react to the challenges are critical to organizational performance.

Therefore, this study seeks to investigate the impact of business environment on organizational performance of small scale business in Oshimili North Local Government Area.

1.3 OBJECTIVES OF THE STUDY

The purpose of the study is to assess the extent to which environmental factor affects the performance of small business enterprises, evaluate it, determine its success and failure and discuss its likely effects on organizational survival and growth. The other objectives this research seeks to achieve are:

i) To determine the extent to which environmental factors affect organizational growth and survival of small scale business.

ii) To determine the relationship existing between small scale business and its operating environments.

iii) To determine the challenges facing small scale businesses within Oshilimi North Local Government Area.

iv) To examine how small scale business manage these environmental factors.

1.4 RESEARCH HYPOTHESIS

The following formulated hypothesis would be tested in order to help provide answers to the research questions;

H0: There is no significant relationship between external environment factors and performance of small scale business.

H1:  There is significant relationship between external environment factors and performance of small scale business.

H0:  There is no significant relationship between increased productivity of small business and socio-cultural factors within the business environment where it operates.

H2:  There is significant relationship between increased productivity of small business and socio-cultural factors within the business environment where it operates.

H0:  There is no significant relationship between the fiscal incentives provided by the government, and enhanced performance of small business.

H3:  There is significant relationship between the fiscal incentives provided by the government, and enhanced performance of small business.