Effect of Macro-Environmental Factors and the Performance of Small-Scale Enterprises in South East, Nigeria

The study evaluated the effect of macro-environmental factors and the performance of small scale enterprises in south east, Nigeria. The specific objectives were to: evaluate the effect of political/legal factors on the profitability of small-scale enterprises in south east, Nigeria and determine the effect of economic policies on the output of small scale enterprises in south east, Nigeria. The study had a population of three hundred and sixteen (316) of selected Small Scale Enterprises in south east of Nigeria and whole population was made use because of the small number. A survey design was adopted for the study. Instrument used for data collection was the questionnaire. A total of 316 copies of questionnaire were distributed while 307 copies were returned. Two hypotheses were tested using Z – test statistic tool. The findings indicated that Political/legal factors had effect on the profitability of small scale enterprises in south east, Nigeria. Economic policies had effect on the output of small scale enterprises in south east, Nigeria. The study concluded that Political/ legal factors and economic policies had a negative significant effect on the profitability and output of small scale enterprises in South East, Nigeria. Irrespective of kind of organization one is working, private, public or government, one need to understand the organizational environment, because it helps to view the organization from different perspective of which you might not be aware of earlier. The study recommended that among others Government should avoid inconsequential changes in policies such as tax that will affect manufacturing firms but should ensure stability of political incorporation necessary to improve business growth and development.