IMPACT OF ENVIRONMENT FACTORS ON BUSINESS PERFORMANCE IN KWARA STATE, NIGERIA
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Date
2017-06
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Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria
Abstract
It has been argued that more than 70% of SMEs go into extinction within first five years of establishment. Despite their contribution to the economy, high mortality rate amongst them is of great concern to all stakeholders. Therefore, the main purpose of this study was to determine the impact of environmental factors on the performance of SME. The population of this study was 2703 SMEs in Ilorin. The study adopted purposive sampling technique to select a sample size of 336. Data was analysed using both descriptive and inferential statistics. The hypothesis was tested using both regression and correlation. The result of the analysis reveal that (i) with the result of hypothesis one (R= 0.747, Rsquare = 0.558, (0.000)< 0.5). This implies that 55.8% varaiation in the dependent variable (Efficiency of SMEs) is caused by the independent variables (Employees' competencies). (ii) while hypotheses two result indicate R(325)=0.125, P=0.024<0.05. This revealed that a positive relationship exist between technological advances and innovativeness of SME, which is significance at P-value of 0.024. (iii) and lastly for hypotheis three result (R = 0.855, Rsquare= 0.732, (0.000)< 0.5). This implies that 73.2% variables (Economic factors). The study concluded that employees' competencies, technological advances and economic factors are key determinants of SME performance. It is therefore essential fro SMEs to put their business environment into consideration in their strategic management planning in order to survive the complexity and dynamism of the environment.
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Keywords
ENVIROMENTAL FACTOR, PERFORMANCE, INNOVATIVENESS, SUSTAINABILITY, SME