CHAPTER ONE

BACKGROUND OF STUDY

There is contestation that little and medium scale business in any country wherever they operate play necessary role within the economic process and development of that country or nation and it improves the standard of lifetime of people (Ohanemu, 2006).
Business organizations anyplace within the world operates inside environments that per Adidu & Olanye (2006) is AN combination of all conditions, events, circumstances and influences that surround and impact the business.
In management, the term “Environment” doesn’t essentially mean physical surroundings however, it’s used as a complete forces, factors and influences that surround and have an effect on business organizations as a separate entity likewise as alternative business organizations. this implies that business organizations should act with those forces that influence its selections, directions, actions, size, health, profitableness and performance of the organization as an entire.
Ukaegbu (2004) declared that the up to date setting is turning into dynamic and competitive and since business organizations don’t operate in vacuum, they have an effect on and ar laid low with setting conditions. Therefore, business organizations no matter their objectives should take into thought, these environmental opportunities and constraints. Businesses have an effect on the setting by providing the specified product and services thereby tributary to the event of the business by presenting opportunities and threats. One factor to be emphasised at this time is that, the extent to that managers may determine, appraise and react to the environmental forces can have goodish impact on structure performances.
Kuye, (2004), emphasised that the necessity to check business settings is extremely necessary considering the actual fact that business organizations don’t operate in vacuum and an efficient management in advanced and dynamic society needs the assessment of strengths and weaknesses of the organization and therefore the opportunities and threats provided by the challenges of the external environment, thus for survival and growth, organizations should cope and adopt to those challenges exhibit by the ever dynamical setting (internal & external) {in that|during which|within which} managers operate implies that mangers should not solely remember of what constitutes the weather of their business setting however conjointly ought to be able to reply to the forces of the setting which inevitably impinges on the operations of the business.
Ukaegbu (2006) additional declared that the link between a business and its host setting will be examined from 3 strategic ways;
Firstly, the organization will be viewed as mercantilism numerous forms of inputs (resources), like human resources, capital, social control and technical inputs. These inputs ar then remodeled to impress output that takes the shape of products and services. A second approach is that the study of the link between the organization and therefore the society. It focuses on the strain and legit rights of various claimants like staff, consumers, suppliers, stakeholders, government and therefore the community. a 3rd approach is to look at the organization as in operation in AN external setting of opportunities and constraints. therefore no single approach is comfortable for all times and altogether circumstances. they’re complementary. parts|the weather} external to the organization affects its performance likewise as those elements inside the organizations.
1.2 STATEMENT OF the matter
the results of setting on structure performance vary from one state of affairs to a different. The setting appropriate for the expansion of a selected business could also be hostile to the survival of another business. the issues that necessitated this analysis ar as follows:

Assess impact of environmental factors that has the performance of little scale enterprises in Oshimili North authorities space
the power to spot, appraise and react to the challenges ar crucial to structure performance.

Therefore, this study seeks to analyze the impact of business setting on structure performance of little scale business in Oshimili North authorities space.
1.3 OBJECTIVES OF THE STUDY
The purpose of the study is to assess the extent to that environmental issue affects the performance of little business enterprises, appraise it, verify its success and failure and discuss its possible effects on structure survival and growth. the opposite objectives this analysis seeks to attain are:

to see the extent to that environmental factors have an effect on structure growth and survival of little scale business.
to see the link existing between little scale business and its in operation environments.
to see the challenges facing little scale businesses inside Oshilimi North authorities space.
to look at however little scale business manage these environmental factors.

1.4 analysis queries
In order to make a definite answer to the impact of environmental factors on the performance of little scale businesses, the subsequent analysis queries shall be tested;
i To what extent do environmental factors have an effect on growth and survival of little scale businesses.
ii. Is there a relationship existing between little scale business and its in operation setting.
iii. What ar the challenges facing little businesses inside Oshimili South authorities Areas.
iv. however do little scale businesses manage these environmental factors?

What ar the offered incentives provided by the govt to support little scale businesses?

1.5 analysis HYPOTHESIS
The following developed hypothesis would be tested so as to assist give answers to the analysis questions;

H0: there’s no important relationship between external setting factors and performance of little scale business.

H1: there’s important relationship between external setting factors and performance of little scale business.

H0: there’s no important relationship between accumulated productivity of little business and socio-cultural factors inside the business setting wherever it operates.

H1: there’s important relationship between accumulated productivity of little business and socio-cultural factors inside the business setting wherever it operates.

H0: there’s no important relationship between the commercial enterprise incentives provided by the govt, and increased performance of little business.

H1: there’s important relationship between the commercial enterprise incentives provided by the govt, and increased performance of little business.
1.6 SIGNIFICANCE OF THE STUDY
This study are extremely helpful once its completion for each current and future entrepreneurs, business organizations and therefore the government. This analysis study on the results of setting factors on performance of little scale business in Oshimili North authorities space would have goodish edges on the tiny scale business in operation inside this business setting therein it would;

facilitate these businesses become sensitive to the uncontrollable external environmental factors striking on the performance of their businesses and the way they’ll effectively manage these factors and prime the opportunities for increased productivity and profitableness.
To AN entrepreneur: The information obtained from this study can alter them to grasp however crucial environmental factors ar and the way to effectively manage these factors for the survival and growth of little scale businesses.
To organizations and therefore the society: The study can equally be helpful to organization and therefore the society at massive within the sense that information regarding technological advancement generation through little scale business supply of credit facilities to ascertain little business are nonheritable.
To the Government: This analysis will be helpful to the govt within the formulation of policies towards little scale enterprises development in African country. it’ll conjointly facilitate the govt to spot the importance of little scale enterprises within the action of economic process and development in African country.

1.7 SCOPE OF THE STUDY
This study covers environmental factors and its effects on the performance of little scale businesses in Oshimili North authorities space. The study primarily centered on the challenges of those businesses managing the dynamic nature of their business setting in achieving structure performance.
1.8 LIMITATIONS OF THE STUDY
However, there have been some constraints that impinged on the analysis, these are;

money constraint: the value of sourcing info and administering queries was quite on the high aspect, including visiting numerous little businesses within the numerous cities that created up the authorities.
The restricted timeframe given to attain the analysis was conjointly a constraint to the study.