Knowledge of the Business Environment and its Impact on the Performance of SMEs (Case study of selected SMEs in Abuja) 2017

This research work examines the level of awareness of SME operators of business environment and its influence on their performance. The researcher intends to find out how the lack of knowledge of laws governing business operations and other external factors can hinder the successful operation of Small and Medium Scale Enterprises in Nigeria. The study was limited to primary data obtained from some selected SMEs in Abuja. Secondary sources of data were utilized for the study from relevant literatures. The findings from reviewed literature showed that the external business environment (political, economic, legal, socio-cultural, technological, environmental and financial environment) have influence on entrepreneurial operators in Nigeria. The researcher also identified that lack of the knowledge of the influence of environmental factors have made businesses not to prepare for environmental changes. It was also discovered that there exists relationship between SMEs and the environment in which it occurs. The study concluded that SME operators should understand all these types of external business environment and their implications on organizational performance of their business activities in order to identify opportunities and threats to their businesses and update their knowledge, understanding and skills to meet the predicted changes in realm of their enterprises.
1.1Introduction-------1 1.2Background of the Study------1 1.3Statement of the problem-----4 1.4Objective of the study------5 1.5Research Questions------5 1.6Research Hypothesis------5 1.7Significance of the Study-----6 1.8Justification of the Study-----6 1.9Scope of the study------7 1.10Definition of terms -------7 CHAPTER TWO LITERATURE REVIEW
2.0Introduction-------9 2.1Conceptual Framework of the Study----9 2.1.1Concept of the Business Environment----11 2.1.2The Business Environment: PESTLE Analysis---11 Figure 2.1 PESTLE Model-------13 2.1.3Other Aspects of the Business Environment That Influence Business13---6 2.1.4Features of Business Environment----16 2.1.5Importance of Business Environment to Entrepreneurs--16 2.1.6The External Environment of Business----17 2.1.7Types of External Business Environment – A Broad View--18 2.1.8The Internal Environment-----22 Figure 2.2Internal Business Environment Model---24 2.1.9Concept of Small and Medium-scale Business---24 2.1.10Types and Classification of Micro and Small Scale Enterprises-25 Table 2.1:   Classification Adopted by SMEDAN ----27 Table 2.2: European Union Definition of SMEs----27 2.1.11Characteristics of SMEs in Nigeria ----27 2.1.12Importance of SMEs to National Development ---28 2.1.13A Critical Look at the Nigerian Business Environment--30 2.1.14Some Legal Requirements of the Nigerian Business Environment-31 2.1.15The Nigerian Economic Environment Outlook---40 2.1.16Environmental Factors and Their Impacts on Entrepreneurial Activities43 2.2Empirical Review of Previous Studies----46 2.3Theoretical Framework of the Study----47 CHAPTER THREE RESEARCH METHODOLOGY 3.1Area of Study-------49 3.2Research Design and Source of Data----49 3.3Study Population and Determination of Sample Size--49 3.4 Research Instrument and Technique----49 3.5Procedures for Data Collection and Analysis---49 3.6Limitation of the Study------50 CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.1Data Presentation and Analysis 4.1.1 Questionnaire Response Rate-----51 4.1.2Data Presentation and Analysis-----51 4.2Test of Hypothesis 4.2.1Test of Hypothesis One------60 4.2.2Test of Hypothesis Two------61 4.2.3Test of Hypothesis Three-----62 4.3Discussion of Findings------63 CHAPTER FIVE Summary, Conclusion and Recommendation 5.1Summary-------65 5.2Conclusions-------66 5.3Recommendations-------67 5.4Proposal for Further Studies-----68 Bibliography--------69-72