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 in
sustaining MSMEs. This study, however, seeks to investigate the effect of Business Environment
on 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, which
includes 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 survey
research 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 stratified
sampling technique. The method of data analysis employed was multiple linear regression.
Findings revealed that the social environment positively and significantly affects the performance
of Micro, Small and Medium Enterprises in Jos-South, Plateau State, Nigeria. Meanwhile, the
technological environment positively but insignificantly affects the performance of Micro, Small
and Medium Enterprises in Jos-South, Plateau State, Nigeria. The study concluded that the social
environment influences the performance of MSMEs in Jos-South Local Government, Plateau
State. 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 relationship
dynamics of the people. Also, the government should ensure that affordable and accessible
financing schemes are established to enable MSMEs to acquire and maintain modern technological
facilities without excessive cost burdens. This will reduce the incidence of businesses collapsing
due to an inability to adapt to rapid technological changes.