MACRO-ENVIRONMENTAL FACTORS AND PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN UYO METROPOLIS AKWA IBOM STATE, NIGERIA

The study investigated the effect of macro-environmental factors on performance of small and medium scale enterprises in Uyo metropolis Akwa Ibom State, Nigeria. Specifically, the study investigated the effect of economic, political-legal, socio-cultural, and technological factors on performance of small and medium scale enterprises in Uyo metropolis Akwa Ibom state, Nigeria. The study was anchored with the theoretical lenses of contingency and resource-based view theories. The study adopted descriptive and explanatory designs as research design, and out of 1,367 registered small and medium businesses operating in the study area, sample size of 309 respondents was determined using Yamani formula. Primary data were collected with questionnaire as data collection instrument and data collected were analyzed using analytical tool of Statistical Package for Social Sciences where descriptive statistics such as mean and standard deviation was used to explain the characteristics of survey data and inferential statistics such as multiple regression method to test the hypotheses of the study. Results from the data analysis revealed that the respondents understood all the items measuring macro-environmental factors and performance of small and medium scale enterprises and the test of hypotheses revealed that the both economic and political-legal factors had significant effects on performance of small and medium scale enterprises but both negatively contributed to performance of small and medium scale enterprises. In addition, socio-cultural and technological factors were found to have significant effects on performance of small and medium scale enterprises and both positively contributed to performance of small and medium scale enterprises. The study then concluded that macro-environmental factors significantly predicted performance of small and medium scale enterprises in Uyo metropolis Akwa Ibom State, Nigeria. The study recommends that government’s at all levels-federal, state, and local, in Nigeria should initiate and implement friendly policies that can further the growth and development of small and medium scale enterprises in Nigeria.