EFFECT OF ENVIRONMENTAL FACTORS ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (CASE STUDY OF POLY VENTURE ADO EKITI)

This paper examined the environmental factors and growth of small and medium-scale enterprises in Ado Poly Venture, Nigeria. The questionnaire was distributed using cluster sampling. 48 copies of the questionnaire were used for analysis with a population of 40 registered SMEs operating within the Ado Poly Venture. Multiple regression analysis was employed to process the data. The findings revealed that the economic and socio-cultural environment has a positive and significant effect on the performance of SMEs at 5% significant level, while the technology environment have positive effect on SMEs' performance but not significant 5% significant level. The study concluded that environmental factors on small and medium-scale enterprises has positive effect on performance. The study therefore recommended that owners/managers of SMEs should have a positive perception towards the economic environment, as customers today tend to have control of the economic environment in order to increase their performance. The study also recommended that owners/managers of SMEs should adapt to the cultural environment in which their business is set, thereby producing what the cultural environment wants. This can be done by carrying out feasibility studies to know what the environment really needs. Finally, the study recommended that prompt knowledge of new technologies should be adapted by the owners/managers of SMEs, as it will go a long way in enhancing the quality of goods and services.