EXTERNAL BUSINESS ENVIRONMENT AND THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN JOS-SOUTH LOCAL GOVERNMENT, PLATEAU STATE

Abstract

The dynamic nature of the business environment today calls for critical attention insustaining MSMEs. This study, however, seeks to investigate the effect of Business Environmenton the performance of Micro, Small and Medium Enterprises in Jos-South, Plateau State, Nigeria.The specific objectives were to examine the effect of the external business environment, whichincludes the social environment and the technological environment, on the performance of Micro,Small and Medium Enterprises in Jos-South, Plateau State, Nigeria. The study adopted a surveyresearch design. The method of data collection was a questionnaire for obtaining primary data.The population of the study comprised 7,987 Micro, Small and Medium Enterprises in Jos-South,Plateau State, Nigeria, while the sample size of the study was 419 respondents using a stratifiedsampling technique. The method of data analysis employed was multiple linear regression.Findings revealed that the social environment positively and significantly affects the performanceof Micro, Small and Medium Enterprises in Jos-South, Plateau State, Nigeria. Meanwhile, thetechnological environment positively but insignificantly affects the performance of Micro, Smalland Medium Enterprises in Jos-South, Plateau State, Nigeria. The study concluded that the socialenvironment influences the performance of MSMEs in Jos-South Local Government, PlateauState. It was recommended that, managers and owners of MSMEs in Jos-South, Plateau State,Nigeria, should remain committed to understanding the local culture, lifestyles, and relationshipdynamics of the people. Also, the government should ensure that affordable and accessiblefinancing schemes are established to enable MSMEs to acquire and maintain modern technologicalfacilities without excessive cost burdens. This will reduce the incidence of businesses collapsingdue to an inability to adapt to rapid technological changes.