The Impact of Business Environment on the Survival of Small Scale Businesses in Nigeria
Subject Areas : General Management
K. Agbolade Obasan
1
(Department of Business Administration, Olabisi Onabanjo University, Ogun State, Nigeria)
Keywords: Business environment, Small scale business, Survival, Strategies, Opportunities, Threats,
Abstract :
the best deal. Nowhere is more real than today business environment which affect the success or otherwise of anybusiness venture. Several authors have attributed failure of businesses particularly small and medium scaleenterprises to various factors ranging from training of the entrepreneur to exposure and experience while someanalysts opined that business environment could impact on small and medium scale enterprises. Hence, using thelogistic regression technique to analyze primary data obtained through a structured questionnaire administered toEighty small scale businessmen and women operators in Ijebu North Local Government area, (Ogun State)South-West Nigeria, this study seeks to ascertain the nature of the relationship between business environment andthe survival of small and medium scale businesses in Nigeria.The obtained result revealed that the model of logistic regression was able to predict the distribution of 72.15% ofthe observed values of the dependent variable as factors such inflationary trend; infrastructural facilitiesaccessibility and government policy serve as barriers to business growth and survival. Hence, it is recommendedthat small business operators must developed and adopt scientific and rational business management strategiesthat will aid and increase their understanding of both their business and its environment in order to facilitateplanning and predictions on the most significant factors that affects business survival.