Environmental Factors: A Panacea for Survival and Growth of Small and Medium Scale Businesses in Nigeria.

Abstract

This study examined impact of the environmental factors on the performance of small and medium scale businesses (SMEs) in Nigeria with special emphasis on three selected Construction Company (PaChuks, Setraco and Triple C Manufacturing Company) all situated at Awka metropolis of Anambra State. The study aimed to find out the extent to which environmental factors affect organizational growth, the relationship between various Federal Government macroeconomic policy variables and performance of SMEs and how they can be effectively managed. The underlying SME theory in this study is Network Approach model. The study adopted the descriptive survey research design, making use of one hundred respondents randomly selected from the three selected SMEs. However, a sample size of eighty respondents was determined using the Taro Yamane formula. The Questionnaire was used as primary source of data collection for this research work. The findings of this study reveal that SMEs are faced with several challenges which are; difficulty in obtaining capital, inadequate competent personnel, shortage of raw materials etc. the researcher recommends that Government strengthens SMIEIS, BOI and other financing windows, lower interest rates and other cost of funds, expand Industrial Development Centres and enhance sources of finance available to the industries.