THE EFFECT OF ENVIRONMENTAL FACTORS ON THE SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA

RESEARCH HYPOTHESIS

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

1. 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.

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

H1:   There is significant relationship between increased productivity of small business and socio-cultural factors within the business environment where it operates.

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

H1:   There is significant relationship between the fiscal incentives provided by the government, and enhanced performance of small business.

1.6   SIGNIFICANCE OF THE STUDY

This study will be highly useful after its completion for both current and future entrepreneurs, business organizations and the government. This research study on the effects of environment 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 environment in that it would;

• Help these businesses become sensitive to the uncontrollable external environmental factors impinging on the performance of their businesses and how they can effectively manage these factors and top the opportunities for enhanced productivity and profitability.
• To an entrepreneur: The knowledge obtained 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 organizations and the society: The study will equally be useful to organization and the society at large in the sense that knowledge about technological advancement generation through small scale business source of credit facilities to establish small business will be acquired.
• To the Government:     This research will also be useful to the government in the formulation of policies towards small scale enterprises development in Nigeria. It will also help the government to identify the importance of small scale enterprises in the achievement of economic growth and development in Nigeria.

1.7   SCOPE OF THE STUDY

       This study covers environmental factors and its effects on the performance of small scale businesses in Oshimili North Local Government Area. The study basically focused on the challenges of these businesses managing the dynamic nature of their business environment in achieving organizational performance.

1.8   LIMITATIONS OF THE STUDY

       However, there were some constraints that impinged on the research, these are;

1. Financial constraint: The cost of sourcing information and administering questions was quite on the high side, which included visiting various small businesses in the various towns that made up the local government.
2. The limited time frame given to achieve the research was also a constraint to the study.

REFERENCES

Adidu & Olannye (2006)  Basic Small Business Enterpreneurship: A modern 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 industry. Rockfied Publishers, Lagos