Business Environment Essay

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CHAPTER ONE INTRODUCTION 1.1 Background of study: “Business Environment encompasses the climate or set of conditions, economic, social, political or institutional in which business operations are conducted.” Arthur M. Weimer 2016. According to KJ Singh, a business enterprises cannot exist in vacuum, it requires necessary factors and forces such as; natural resources, places suppliers, competitors, Marketing intermediaries, customers, economic, natural forces, cultural forces, political forces etc. The business environment can be categorised into two types; internal environment and External environment. Understanding the function and behaviour of both kind of environment has resulted in the success of Small and Medium Scale business in Nigeria, although not all environmental…show more content…
This means that business organizations must interact with those forces that influence its decisions, directions, actions, size, health, profitability and performance of the organization as a whole. Referring to the environment, it goes beyond the immediate physical environment it also include unseen forces which could be manmade or natural, this factors influence the operation of the small businesses. Managing dynamism of these forces for the improvement and maintenance of business performance in the Nigerian business. 1.3 Objectives of Study The main objective of this research is to examine the effect of the environmental factors on on the performance of SMEs. In order to achieve aforementioned, the following specific objectives will be carried out: 1. To weigh the importance of performance to business small scale business. 2. To examine how the small and medium scale enterprises must manage environmental trends for performance
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