Success of Small and Medium Enterprises in Nigeria: Do Environmental Factors Matter?

Abstract

This paper provides empirical evidence to support the thesis that both internal and external factors are critical success determinants of SMEs in Nigeria. Relying of primary survey instrument, and analysing the data utilizing the multiple regression analysis, findings indicate that external environmental factors of infrastructure and institutions matter for SME success, though they were constraining variables to SMEs’ performance. Marketing practices indicated a negative and insignificant relationship with SMEs’ profitability. Policy actions are required on the part of both government and the private sector to address the yawning deficit in infrastructure and institutional efficiency.

Keywords: SMEs, Environmental factors, Institutions, Infrastructure