EFFECT OF BUSINESS ENVIRONMENT ON PERFORMANCE OF SELECTED SMALL AND MEDIUM ENTERPRISES IN GUSAU

A. M. ADENIRAN; P. M.  OWAH

A. M. ADENIRAN Department of Business Administration Faculty of Management and Social Sciences Federal University, Gusau Zamfara State
P. M. OWAH Department of Business Administration Faculty of Management and Social Sciences Federal University, Gusau Zamfara State

Keywords: Political, technological, business, environment, policymaker

Abstract

This study examined the effect of the business environment on the performance of selected small and medium enterprises (SMEs) in Gusau. The study focuses on four key dimensions of the business environment: political, technological, and economic. A simple random sampling technique was employed to select a sample of 50 employees from various organisations. Data was collected through a questionnaire and analysed using frequency analysis, the simple percentage method, and regression. The study revealed that all independent variables except the technological environment have a significant positive effect on the performance of SMEs. The study recommends that policymakers should prioritize creating a stable political environment that encourages business growth and investment, which can be achieved through transparent governance, consistent policies, and a supportive regulatory framework, and establish platforms for regular dialogue and engagement between government officials and SME stakeholders to address their concerns, gather feedback, and ensure that policies and regulations are designed to support SMEs. More so, the government should implement measures to ensure a more predictable and stable economic environment in Gusau.