Environmental Factors, Managerial Skills and Performance of Small and Medium Enterprises (SMEs) in Manufacturing Sectors in Oyo State, Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
Business environmental factors present opportunities and threats that every organization must find a means of coping with in order to achieve their stated objectives. It is therefore pertinent for business organizations to take cognizance of these environmental opportunities and threats irrespective of their goals and aspirations. Thus, managers must identify, analyze and respond appropriately to emerging environmental challenges because of their wide impact on the performance of the organization. This study therefore examined the influence of environmental factors, managerial skills on Small and Medium Enterprises (SMEs) performance in the manufacturing sectors in Oyo State, Nigeria. This study is underpinned by the contingency theory and resource based theory. A descriptive research design was adopted for this study. The
population of the study consisted of 31,739 registered SMEs operating within Oyo State. For this study, sample size of 395 was calculated and obtained using Taro Yamane sample size formula (1967). Out of the 395 questionnaires administered to the selected SMEs’ owners/managers in the three senatorial districts in Oyo State, only 320 questionnaires were recovered fully filled, making the response rate to be 81%. The formulated research hypotheses were tested using multiple regression analysis through SPSS version 27.0. The findings revealed that environmental factors have significantly impacted profitability in the small and medium scale enterprises (SMEs) in Oyo State (R-Square = 0.720, F-statistic = 10.61); the environmental factors have a significant impact on innovation in the SMEs manufacturing sector in Oyo State (R-Square =0.625, F-statistic = 1.988); the environmental factors have significantly impacted sales revenue in the SMEs manufacturing sector in Oyo State (R-Square = 0.824, F-statistic = 1.926); the environmental factors have significantly influenced employee satisfaction in the SMEs manufacturing sector in Oyo State (R-Square = 0.520, F-statistic = 1.585); the managerial skills have significantly impacted SMEs performance in the manufacturing sector in Oyo State (R-Square = 0.78, F-statistic = 0.637The study concluded that SMEs performance in the manufacturing sector in Oyo State is significantly influenced by managerial skills and environmental factors. Based on the findings, it is recommended that Oyo State government should implement economic laws that control SMEs competitiveness, investigate the many taxes imposed on SMEs as well as try to control business operations.
Key words: Business environmental factors, economic factors, political factors, technological factors, socio-economic factors managerial skills, SMEs performance
Word Count: 363
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Keywords
Business environmental factors, economic factors, political factors, technological factors, socio-economic factors managerial skills, SMEs performance
Citation
Kate Turabia