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.
1.1 Introduction - - - - - - - 1
1.2 Background of the Study - - - - - - 1
1.3 Statement of the problem - - - - - 4
1.4 Objective of the study - - - - - - 5
1.5 Research Questions - - - - - - 5
1.6 Research Hypothesis - - - - - - 5
1.7 Significance of the Study - - - - - 6
1.8 Justification of the Study - - - - - 6
1.9 Scope of the study - - - - - - 7
1.10 Definition of terms - - - - - - - 7
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction - - - - - - - 9
2.1 Conceptual Framework of the Study - - - - 9
2.1.1 Concept of the Business Environment - - - - 11
2.1.2 The Business Environment: PESTLE Analysis - - - 11
Figure 2.1 PESTLE Model - - - - - - - 13
2.1.3 Other Aspects of the Business Environment That Influence Business 13 - - - 6
2.1.4 Features of Business Environment - - - - 16
2.1.5 Importance of Business Environment to Entrepreneurs - - 16
2.1.6 The External Environment of Business - - - - 17
2.1.7 Types of External Business Environment – A Broad View - - 18
2.1.8 The Internal Environment - - - - - 22
Figure 2.2 Internal Business Environment Model - - - 24
2.1.9 Concept of Small and Medium-scale Business - - - 24
2.1.10 Types 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
2.1.11 Characteristics of SMEs in Nigeria - - - - 27
2.1.12 Importance of SMEs to National Development - - - 28
2.1.13 A Critical Look at the Nigerian Business Environment - - 30
2.1.14 Some Legal Requirements of the Nigerian Business Environment - 31
2.1.15 The Nigerian Economic Environment Outlook - - - 40
2.1.16 Environmental Factors and Their Impacts on Entrepreneurial Activities 43
2.2 Empirical Review of Previous Studies - - - - 46
2.3 Theoretical Framework of the Study - - - - 47
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Area of Study - - - - - - - 49
3.2 Research Design and Source of Data - - - - 49
3.3 Study Population and Determination of Sample Size - - 49
3.4 Research Instrument and Technique - - - - 49
3.5 Procedures for Data Collection and Analysis - - - 49
3.6 Limitation of the Study - - - - - - 50
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation and Analysis
4.1.1 Questionnaire Response Rate - - - - - 51
4.1.2 Data Presentation and Analysis - - - - - 51
4.2 Test of Hypothesis
4.2.1 Test of Hypothesis One - - - - - - 60
4.2.2 Test of Hypothesis Two - - - - - - 61
4.2.3 Test of Hypothesis Three - - - - - 62
4.3 Discussion of Findings - - - - - - 63
CHAPTER FIVE
Summary, Conclusion and Recommendation
5.1 Summary - - - - - - - 65
5.2 Conclusions - - - - - - - 66
5.3 Recommendations - - - - - - - 67
5.4 Proposal for Further Studies - - - - - 68
Bibliography - - - - - - - - 69-72
