Effect of External Environmental Factors on Business Performance of Small-Sized Rice Mills Enterprises within Bauchi Metropolis

Abstract

This research delved into the intricate dynamics of how external business environment affect the performance of small-sized rice mills. The main objective of the study is to investigate the effect of external environmental factors on business performance of small-sized Rice Mills enterprises within Bauchi Metropolis, Nigeria. The independent variable is external environmental factors [political, socio-cultural and economic environment] while the dependent variable is the performance of SMEs. The study used survey research and population of this study comprises of 79 small-sized rice mills enterprises in Bauchi metropolis, Nigeria. The study sampled 46 respondents and utilized purposive sampling to select small-sized rice mills firms within Bauchi metropolis. Data were collected through a structured questionnaire administered to 46 respondents who are owners of small-sized Rice Mills enterprises in Bauchi Metropolis of Nigeria.  Descriptive statistics and multiple regression analysis were employed to rigorously analyze the gathered data. The findings reveal that both the economic and socio-cultural environments exerted a statistically significant influence on the performance of small-sized rice mills enterprises. In contrast, the political environment was not found to have a significant impact on the performance of these enterprises. The study concludes that understanding and effectively managing the economic and socio-cultural dimensions of the external environment are crucial for enhancing the performance of small-sized rice mills in Bauchi metropolis. However, the political environment which is an integral aspect did not emerge as a significant factor influencing their performance. To bolster the performance of small-sized rice mills, it is recommended that these enterprises proactively adapt strategies to navigate and capitalize on economic and socio-cultural factors. Additionally, ongoing engagement with political stakeholders is advised to foster a more conducive political environment that aligns with the needs of these enterprises.