Evaluation of Socio-Cultural and Political Factors on Small Scale Business Performance

Abstract

The research explores the influence of environmental factors on the performance of Small and Medium Scale Enterprises (SMEs) in Oda, Ondo State. Primary data were gathered through the administration of questionnaires to the selected SMEs. Analysis of the data was conducted utilizing Simple Percentage, Chi-Square (X2), and Regression Techniques. The findings of this study clearly show that political and social-cultural factors have significant impact on SMEs performance in Ondo state with the result of hypotheses shown that there were significant positive effect of political and socio-cultural factors through monetary and fiscal policies on the existence of small scale business in Ondo state as the situation was showed through t-statistic and p-value (P= 0.022<0.05) on coefficient value (t=2.098>2.00) and F-stat value 7.617= p(0.034) that showed the robustness of the model with significant differences on the impact of economic factor through government measurement and control from how it was before the inception of this government tenure in Ondo state. The research concludes that environmental factors significantly affect the performance of SMEs in Niger State. In light of these findings, it is recommended that owners and managers of SMEs strategically involve themselves in ongoing monitoring and environmental scanning. This involves a thorough analysis of strengths, weaknesses, opportunities, and threats to consistently assess the overall health and vulnerabilities of their businesses.