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The Impact of Business Environment on SME Performance in Nigeria

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  • AliyuMukhtar Shehu
  • Rosli Mahmood

Abstract

The purpose of this study is to examine the relationship between business environment toward small and medium enterprises (SMEs) performance among Nigerian firms. A quantitative approach was employed, using a cross – sectional research design. The data was collected through the self – administration method from 640 respondents. SMEs are very important to economy growth of Nigeria, they serve as a major source of employment, contributes significantly towards industrial establishment, a source of income generation and help in the development of craftsmanship. A model was developed based on theoretical consideration to examine the relationship. Multiple regression analysis was employed, which reported a significant and positive relationship between the business environment and business performance of SMEs. Implications and future research directions were discussed.

Suggested Citation

  • AliyuMukhtar Shehu & Rosli Mahmood, 2014. "The Impact of Business Environment on SME Performance in Nigeria," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(8), pages 582-592.
    • Handle: RePEc:rss:jnljms:v3i8p5
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    References listed on IDEAS

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    1. Andy Cosh & Xiaolan Fu & Alan Hughes, 2012. "Organisation structure and innovation performance in different environments," Small Business Economics, Springer, vol. 39(2), pages 301-317, September.
    2. Esther-K Ishengoma & Robert Kappel, 2011. "Business Environment and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," African Development Review, African Development Bank, vol. 23(3), pages 352-365.
    3. Muhammad Shukri Bakar & Rosli Mahmood, 2014. "Linking Transformational Leadership and Corporate Entrepreneurship to Performance in the Public Higher Education Institutions in Malaysia," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 4(3), pages 1-8.
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