INFLUENCE OF ENVIRONMENT VARIABLES ON THE PERFORMANCE OF SMALL SCALE BUSINESS
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INFLUENCE OF ENVIRONMENT VARIABLES ON THE PERFORMANCE OF SMALL SCALE BUSINESS
Chapter one
INTRODUCTION
The impact of environmental variables on any organisation is significant because it encompasses all of the conditions and factors that can have a direct or indirect effect or influence on the performance or output of managerial efforts in that organisation. Every organisation is influenced by environmental factors.
In most cases, these external variables or aspects pose obstacles and cause problems for the firm. The vast majority of literature in the field of management is focused primarily on larger-scale manufacturing businesses, leaving small-scale businesses to continue to exist in our economy and play a vital and indispensable role, warranting more attention in this kid’s research than they currently receive.
In an era when planned economic development has been defined as the only way to achieve economic take-off in both developed and developing countries, all sectors of the economy must be aware, and the role of small-scale enterprise should be emphasised.
Small businesses are an important part of any country’s economy. It is well acknowledged that the complexity of environmental variables has hampered the management performance of both public and commercial organisations.
Given the sensitivity of this study, as well as the importance and impact of small-scale businesses on the economy, this study will raise awareness about the significance of small-scale enterprises.
It will improve and provide more solutions to the challenges that affect the performance of scale businesses, so expanding its reach and supplementing the existing literature on small scale company operations.
1.1 – The Historical Background
According to Mayer (1982), environmental variables are transient changes that have descriptive and potentially negative impacts on organisations.
Whatever the abstractions of environmental force, the point is that the rate of change in the environment is rapid and accounts for the majority of challenges in corporate management.
Draft (1986) suggested that environmental instability is not always detrimental to organisational performance as long as proper environmental management methods are implemented to establish an acceptable degree of predictability
perception, and nationality in environmental relations. As a result, the issues facing small businesses have become a subject of worry for citizens, entrepreneurs, and the government.
Since 1986, officials have defined a small-scale enterprise as one with a capital of less than N750.00. However, the authors of this book believe that any firm in Nigeria should be considered small.
Its annual turnover capital investment or total assets should be increased to between N1.5 million and N2.0 million, up from the present values of between N150,000.00 and N750,000.00.
The World Bank (1990) used the following criteria to designate firms as small-scale businesses or small industrial firms that are generally contemporary. Organised manufacturing enterprises include those involved in construction maintenance, transportation, and trading.
The enterprise is not organised in a modern manner. In the informer sector, examples include transitional artisans, minor traders, and transport owners. In this approach, neither the number of people employed nor the quantity of starting capital are considered.
Banangida (1990) defined small scale enterprises as those that do not employ more than 50 people and have an initial capital equipment of N600,000.00 in the Nigerian context.
As a result, a small business is any business that is owned, managed, and controlled by a sole proprietor or partners of about two people, has a total asset of less than four million Nigerian, has a relatively small market share, and does not employ more than fifty people.
1.2 Statement of the Problem
The complexities of environmental variables have disrupted the management performance of both public and commercial entities in Akwa Ibom State.
Most Nigerian small businesses rely heavily on imported raw materials and equipment to operate. This heinous and verified situation appears to be the most damaging in Nigeria. This is demonstrated by the high unemployment rate, poverty, low living standards, high crime rate, and other clear indicators.
1.3 Objectives of the Study
Determine whether environmental variables have an impact on the success of small sales businesses.
To determine the challenges created by the environmental variables on the small scale business performance.
To investigate how the operations of small businesses contribute to and improve economic growth in Akwa Ibom State.
To offer recommendations based on the results
1.4 RESEARCH QUESTION.
To guide this research endeavour, the following research questions were developed:
Does an environmental variable affect the control and management of a small business?
Do small-scale businesses contribute to the economy?
Do small-scale businesses have challenges with their company performance?
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