Environmental Factors and Performance of Small-Scale Businesses in Shomolu Local Government, Lagos

The purpose of this paper is to examine the effect of environmental factors on

performance of small-scale businesses in Lagos. This study is to identify the

influence of environmental factors in small scale businesses (SSBs) performance

in Shomolu area of Lagos State. SSBs have been the means through which

accelerated economic growth and rapid industrialization have been envisaged by

creating opportunities for upward social and economic development.

Environmental factors are those variables that contribute to either failure or

success of small scale businesses. These are factors that affect businesses and their

performances measured financially and non-financially. Management

competence, capital investment, competitors, government, suppliers, financial

institutions, investors, wholesalers and trade unions.as well as economic,

technological legal/political, socio-cultural have major influence on the survival

and growth of small business; thus, undermining its potentials in contributing

economic growth and development of the nation. The study concluded that

environmental factors, both organizational (internal factors) and government

related (external factors) impact the sustainability and survival of SSBs in the

Shomolu Metropolitan area of Lagos State, Nigeria and the remedial measures

should be put in place to ensure favourable economic indicators, government policies, credit facilities, functioning infrastructural facilities and good market

networking. It is hoped that these proactive actions will lead to increased and

sustainable performance of small scale businesses in Nigeria in general.