The International Journal of Business & Management

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The study evaluated the effects of environmental factors on the sustainability of selected SMEs in Lagos metropolitan area.

The research employed quantitative methodology using survey questionnaire. A total of 103 questionnaire copies were returned in analysable format from the SMEs’ owners/managers and analysed using percentages, correlational analysis, ANOVA and Multiple Regression.

Findings revealed significant negative correlation between the environmental factors and Lagos SMEs’ sustainability at r = 0.336, P < .05. In more detailed terms, nine major factors, all with p < .05, individually impacted the SMEs sustainability in the following descending order: Inadequate Power Supply, Inadequate Infrastructure, Inconsistent Government Policies, Customer Dissatisfaction, Lack of Employee Commitment, Managerial Inefficiency, Harsh operating environment and Regulations, Firm’s Location, and Inappropriate Technology.

The study concluded that environmental factors, both organisational (internal factors) and government related (external factors) impact the sustainability and survival of SMEs in the Lagos Metropolitan area of Lagos State, Nigeria.


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