ECONOMIC FACTORS AND SMALL SCALE BUSINESSES PERFORMANCE: THE CASE OF NIGERIA

The paper investigates implications of economic factors on the recital of small scale enterprises in Nigeria using inflation rate and exchange rate as major economic factors. The study used ex-post factor design of which secondary data were obtained from Central Bank of Nigeria (CBN) statistical bulletin. Ordinary Least Square (OLS) formed the basis for the estimations. The study found a significant negative correlation between high inflation rate and performance of small scale enterprises and significant negative relationship between high exchange rate and performance of small scale enterprises. From the findings, the study concludes that economic environmental factors (inflation rate and exchange rate) have a significant negative effect on the performance of small scale enterprises in Nigeria. JEL: M19,N15,012,Q58