External Business Environment and the Growth of Small and Medium Enterprises (SMEs) in Abuja, Nigeria

The study investigated the effect of the external business environment on the growth of small and medium enterprises (SMEs) in Abuja, Nigeria. The target population consisted of 613,492 registered SMEs in Abuja (SMEDAN, 2020). A survey research design was employed, with structured questionnaires distributed to 399 SMEs selected from three Area Councils: Abaji, AMAC, and Gwagwalada. Simple random sampling was used to ensure a representative sample of SMEs in the agricultural and manufacturing sectors. The sample size was calculated using Slovin’s formula (1960), and data analysis was conducted using multiple linear regression. A total of 370 completed questionnaires were retrieved. The findings revealed that the external economic environment had a significant positive effect on SME growth, with a t-statistic of 25.450 (p=0.000), indicating a positive relationship. Similarly, the legal environment, with a t-statistic of 11.104 (p=0.000), was found to have a significant positive effect on SME growth. Both the economic and legal factors were found to significantly influence SME performance in Abuja. Based on these findings, it was recommended that policymakers focus on stabilizing the economic environment through measures such as inflation control and reducing borrowing costs, while also streamlining legal processes to reduce administrative burdens on SMEs. This will enhance the growth and sustainability of SMEs in the region.

1 01 Dec, 2024

pg: 11

JBMIC PORTAL SYSTEM

Contri. 1+