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

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

Chapter One

Preface

Background Of Study

Oshimili North LGA with headquarters at Akwukwu- Igbo was created out of the defunct Oshimili LGA in December, 1996. It has a population of about 80,000 people who are generally operating Small and Medium Scale businesses.

There’s contestation that small and medium scale business in any country where they operate play important part in the profitable growth and development of that country or nation and it improves the quality of life of individualities( Ohanemu, 2006).

Business associations anywhere in the world operate within surroundings which according to Adidu & Olanye( 2006) is an total of all conditions, events, circumstances and influences that compass and prompt the business association.

In operation, the term “ Environment ” doesn’t inescapably mean physical surroundings but, it’s used as a total forces, factors and influences that compass and affect business associations as a separate reality as well as other business associations. This means that business associations must interact with those forces that impact its opinions, directions, conduct, size, health, profitability and performance of the association as a whole.

Ukaegbu( 2004) stated that the contemporary terrain is getting dynamic and competitive and since business associations don’t operate in vacuum, they affect and are affected by terrain conditions. thus, business associations irrespective of their objects must take into consideration, these environmental openings and constraints. Businesses affect the terrain by furnishing the needed goods and services thereby contributing to the development of the business by presenting openings and pitfalls. One thing to be emphasized at this point is that, the extent to which directors could identify, estimate and reply to the environmental forces will have considerable impact on organizational performances.

Kuye,( 2004), emphasized that the need to study business surroundings is veritably important considering the fact that business associations don’t operate in vacuum and an effective operation in complex and dynamic society requires the assessment of strengths and sins of the association and the openings and pitfalls handed by the challenges of the external terrain, hence for survival and growth, associations must manage and borrow to these challenges posed by the ever changing terrain( internal & external) in which directors operate means that mangers mustn’t only be apprehensive of what constitutes the rudiments of their business terrain but also should be suitable to respond to the forces of the terrain which inescapably impinges on the operations of the business association.

Ukaegbu( 2006) further stated that the relationship between a business association and its host terrain can be examined from three strategic ways;

originally, the association can be viewed as importing colorful kinds of inputs( coffers), similar as mortal coffers, capital, directorial and specialized inputs. These inputs are also converted to provoke affair which takes the form of goods and services. A alternate approach is the study of the relationship between the association and the society. It focuses on the demands and licit rights of different heirs similar as workers, consumers, suppliers, stakeholders, government and the community. A third approach is to view the association as operating in an external terrain of openings and constraints. therefore no single approach is sufficient for all times and in all circumstances. They’re reciprocal. The rudiments external to the association affects its performance as well as those rudiments within the associations.

Statement Of The Problem

The goods of terrain on organizational performance vary from one situation to another. The terrain suitable for the growth of a particular business may be hostile to the survival of another business. The problems that needed this exploration are as follows

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

The capability to identify, estimate and reply to the challenges are critical to organizational performance.

thus, this study seeks to probe the impact of business terrain on organizational performance of small scale business in Oshimili North Local Government Area.

Objects Of The Study

The purpose of the study is to assess the extent to which environmental factor affects the performance of small business enterprises, estimate it, determine its success and failure and bandy its likely goods on organizational survival and growth. The other objects this exploration seeks to achieve are

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

To determine the relationship being between small scale business and its operating surroundings.

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

To examine how small scale business manage these environmental factors.

Exploration Questions

In order to arrive at a precise answer to the effect of environmental factors on the performance of small scale businesses, the following exploration questions shall be tested;

i To what extent do environmental factors affect growth and survival of small scale businesses.

ii. Is there a relationship being between small scale business and its operating terrain.

iii. What are the challenges facing small businesses within Oshimili South Original Government Areas.

iv. How do small scale businesses manage these environmental factors?

What are the available impulses handed by the government to support small scale businesses?

Exploration Thesis

The following formulated thesis would be tested in order to help give answers to the exploration questions;

H0 There’s no significant relationship between external terrain factors and performance of small scale business.

H1 There’s significant relationship between external terrain factors and performance of small scale business.

H0 There’s no significant relationship between increased productivity of small business and socio-artistic factors within the business terrain where it operates.

H1 There’s significant relationship between increased productivity of small business and socio-artistic factors within the business terrain where it operates.

H0 There’s no significant relationship between the financial impulses handed by the government, and enhanced performance of small business.

H1 There’s significant relationship between the financial impulses handed by the government, and enhanced performance of small business.

Significance Of The Study

This study will be largely useful after its completion for both current and unborn entrepreneurs, business associations and the government. This exploration study on the goods of terrain factors on performance of small scale business in Oshimili North Local Government Area would have considerable benefits on the small scale business operating within this business terrain in that it would;

Help these businesses come sensitive to the willful external environmental factors knocking on the performance of their businesses and how they can effectively manage these factors and eclipse the openings for enhanced productivity and profitability.

To an entrepreneur The knowledge attained from this study will enable them to know how critical environmental factors are and how to effectively manage these factors for the survival and growth of small scale businesses.

To associations and the society The study will inversely be useful to association and the society at large in the sense that knowledge about technological advancement generation through small scale business source of credit installations to establish small business will be acquired.

To the Government This exploration will also be useful to the government in the expression of programs towards small scale enterprises development in Nigeria. It’ll also help the government to identify the significance of small scale enterprises in the achievement of profitable growth and development in Nigeria.

compass OF THE STUDY

This study covers environmental factors and its goods on the performance of small scale businesses in Oshimili North Local Government Area. The study principally concentrated on the challenges of these businesses managing the dynamic nature of their business terrain in achieving organizational performance.

Limitations Of The Study

still, there were some constraints that crashed on the exploration, these are;

Financial constraint The cost of sourcing information and administering questions was relatively on the high side, which included visiting colorful small businesses in the colorful municipalities that made up the original government.

The limited time frame given to achieve the exploration was also a constraint to the study.

References

Adidu & Olannye( 2006) Basic Small Business Enterpreneurship A ultramodern approach, Royal Place Publishers, Agbor, Delta State

Asika Nnamdi( 2004) Research Methodology A process Approach. Mukugamu Enterprises Lagos.

Edett, I. A( 2001) Small and Medium Scale Enterprises Development in Nigeria Ageless Friendship Press.

Elikwu Michael( 2008) Research Project Made Easy A simplified Approach to write and Defend A God Research Report, Cin- Eight Publishers, Lagos.

Ohanemu.C.( 2004) The Complete entrepreneur Managing the small scale assiduity. Rockfied Publishers, Lagos