IMPLICATION OF SOCIO-CULTURAL ENVIRONMENT ON THE PERFORMANCE OF SELECTED SMES IN KANO STATE, NIGERIA
Authors:
OJOBI Mark Onu, AHMED Aliyu Tanko & NDAM Dindul
Abstract:
This study was undertaken after the realization that most SME owners in developing economies like Nigeria deliberately or ignorantly underestimate the implication of the elements of the socio-cultural business environment on such performance variables as sales turnover and profit margin. The major objective was to evaluate the implications of socio-cultural environment on the performance of selected small and medium scale enterprises (SMEs) in Kano State, Nigeria. This empirical study gathered data from secondary and primary sources. Specifically, copies of questionnaire were administered on randomly selected 25 SME owners/managers each from 4 purposively selected groups or sectors including fabrics/fashion; ICT accessories; Bureau De Change dealers and restaurants/eateries. The simple percentage (%); correlation coefficient and the analysis of variance (ANOVA) statistical tools were employed in the analysis of data collated and it was discovered that some elements of the socio-cultural environment have more implications on some performance variables than others. Generally, the result showed that the socio-cultural environment has positive and significant implication on performance of SMEs if properly understood and taken seriously. Consequently, the study recommended that as part of government’s efforts in encouraging the growth and development of SMEs, owners/managers should be formally or informally trained on how to scan the environment and, this training and implementation of knowledge acquired should be taken very seriously by these owners/managers.