Abstract
The paper was designed to examine the impact of external business environment on the performance of Small and Medium Scale Enterprises operated by entrepreneurs in Nigeria. The study was limited to primary data obtained from some selected SMEs in Abuja. Secondary sources of data were utilized for the study from relevant literatures. The findings from reviewed literature showed that the external business environment (political, economic, legal, socio-cultural, technological, environmental and financial environment) have influence on entrepreneurial operators in Nigeria. The researcher also identified that lack of the knowledge of the influence of environmental factors have made businesses not to prepare for environmental changes. It was also discovered that there exists relationship between SMEs and the environment in which it occurs. The study concluded that SME operators should understand all these types of external business environment and their implications on organizational performance of their business activities in order to identify opportunities and threats to their businesses and update their knowledge, understanding and skills to meet the predicted changes in realm of their enterprises.
Table of Content
1.0Introduction-------1
1.1Statement of the problem-----2
1.2Objective of the study------3
1.3Research Questions------3
1.4Research Hypothesis------3
1.5Scope of the study------4
2.0Literature Review
2.1Conceptual Framework of the Study----4
2.1.1PESTLE Analysis-------4
Figure 2.1 PESTLE Model-------6
2.1.2Concept of the Business Environment----6
2.1.3Features of Business Environment----7
2.1.4Importance of Business Environment to Entrepreneurs--8
2.1.5The External Environment of Business----8
2.1.6Types of External Business Environment – A Broad View--9
2.1.7The Internal Environment-----12
2.1.8Concept of Small and Medium-scale Business---13
External Environmental Factors and Their Impacts on Entrepreneurial Activities14
2.2Theoretical Framework of the Study----16
3.1Research Methodology------17
3.2Data Analysis-------17
3.3Results and Discussion of Findings----18
4.1Summary and Conclusion------19