EFFECT OF ENVIRONMENTAL FACTORS ON BUSINESS

PERFORMANCE IN EKITI STATE

BY

ADENUSI ADESANMI ADEGOKE

NOU135604509

BEING A RESEARCH PROJECT SUBMITTED TO THE

DEPARTMENT OF ENTREPRENEURSHIP, SCHOOL OF

MANAGEMENT SCIENCE, NATIONAL OPEN

UNIVERSITY OF NIGERIA, VICTORIA ISLAND, LAGOS

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF BACHELOR OF SCIENCE (B.Sc) DEGREE IN

ENTREPRENEURSHIP

FEBRUARY 2019

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 DECLARATION

I, Adenusi Adesanmi Adegoke, a student of National Open University , Ado-Ekiti Centre,

Department of Entrepreneurship, Matric number Nou135604509 declare that this project titled:
‘Effect of Environmental Factors on Business Performance in Ekiti State’ for the award of
Bachelor of Science Degree (B.Sc) in Entrepreneurship was done by me under the supervision of
Dr. E.Adedayo Olutoye. This work is original and has not been previously presented in its
entirety for obtaining any qualification in this university.

………………………
Signature & Date
Adenusi Adesanmi Adegoke,
NOU135604509

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 CERTIFICATION

This is to certify that this research work was carried out by Adenusi Adesanmi Adegoke, Matric

number NOV135604509, of the Department of Entrepreneurship, National Open University,

Ado-Ekiti Centre. It has been found to be adequate both in scope and quality, in partial

fulfillment of Bachelor of Science Degree (B.Sc.) in Entrepreneurship..

……………………………… ……………………
DR OLUTOYE E.ADEDAYO Date
Project Supervisor

……………………………… ……………………
PITAN OLUWAYEMISI 0. (Ph.D) Date
Study Centre Director

……………………………. …………………...
External Examiner Date

……………………………….. ………………….
Dean of Faculty Date

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DEDICATION

iv
ACKNOWLEGEMENTS

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 TABLE OF CONTENTS

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of contents vii

Abstract x

CHAPTER ONE

1.0 Introduction 1

1.1 Background to the study 1

1.2 Statement of the problem 2

1.3 Objectives of study 3

1.4 Research Questions 4

1.5 Research Hypotheses 5

1.6 Significance of the study 5

1.7 Scope of the study 6

1.8 Limitation of the study 7

1.9 Organization of the study 7

1.10 Definition of terms 8

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CHAPTER TWO LITERATURE REVIEW

2.0 Introduction 10

2.1 Conceptual Literature 10

2.1.1 Feature of SMEs 11

2.1.2 Relevance of SMEs in Economic Development 11

2.1.3 Alleviating Poverty in Ekiti State 13

2.1.4 The Blueprint of NAPEP has the following Feature 14

2.1.5 Source of Fund for SMEs 21

2.1.6 Factors Determining Performance of Small and

Medium Sized Enterprises Are State As follows 23

2.1.7 Content of Government Policies With Respect to Empowering SMEs 23

2.1.8 Micro-Credit Delivery in Ekiti State 25

2.1.9 Content of Foreign Agencies 26

2.1.10 Problems of small medium scale enterprise (SMEs) in Ekiti State 28

2.1.11 Prospects of small and medium scale enterprises (SMEs) in Ekiti State 29

2.2 Theoretical Literature 31

2.2.1 Resource base Theory 31

2.2.2 Competitive strategy theory 32

2.2.3 Innovation theory 33

2.3 Empirical Review 35

2.4 Gaps in Reviewed Literature 37

2.5 Summary of Review Literature 38

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CHAPTER THREE RESEARCH METHODOLOGY

3.0 Introduction 40

3.1 Research Design 40

3.2 Area of Study 41

3.3 Sources of Data Collection 41

3.3.1 Primary Source of Data 41

3.3.2 Secondary Source of Data 42

3.4 Instrument for Data Collection 42

3.5 Determination of Population Size 43

3.6 Sampling Techniques and Sample size Determination 44

3.7 Method of data Analysis 45

CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA

4.0 Data Presentation 46

4.1 Respondent Characteristics and Classifications 49

4.2 Presentation and Analysis of Data According to Research Hypotheses 51

CHAPTER FIVE FINDINGS, RECOMMENDATION, AND CONCLUSION

5.0 Summary and findings 59

5.1 Recommendations 60

5.2 Conclusion 63

Area for further study 63

References 64

Appendix 67

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 ABSTRACT

The role demands of small and medium scale enterprises as engine of economic growth for

industrialization and employment generation, government at all levels had put in place measures,

policies, and incentives to promote this sector for self sustainability have been globally

acknowledged The determinants of performance of small and medium sized enterprises in Ekiti

State revolved round her abundant human and natural resources as harmonized by the effective

governmental policies and programmes toward the sustainable economic growth,

industrialization and employment generation. The support by the government through its policies

and programmes to individual and various groups to leverage on the resources in an investment

friendly environment affect directly and indirectly the performance of this sector. The findings

recommend supportive policies and conscious measures that will enhance the performance of

small and micro, small and medium scale enterprises in Ekiti State of Nigeria.

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