1* Muhammad Sani Burodo, PhD, 2Samaila Iliyasu & 3Fauziyya Sanusi
1Department of Business Administration and Management, Federal Polytechnic Kaura Namoda, Zamfara State, Nigeria.
2Department of Business Administration, Federal University Gusau, Nigeria.
3 Department of Business Administration, Faculty of Management Sciences, Federal University Birnin-kebbi, Nigeria.
*Corresponding author: [email protected]
Abstract
The study examined the effect of business environment on Small and Medium Enterprises of Katsina State of Nigeria. The population comprised 7,372 registered SMEs operating in Katsina State (Bureau on Public Procurement, 2023). A sample size of 379 was determined using the Taro Yamane formula while the stratified and purposive sampling techniques were used to select the sample representatives. The study adopted a survey design and a set of structured questionnaire was used for data collection which was validated and piloted for reliability. The study’s hypotheses were tested using the Partial Least Square Structural Equation Modeling (PLS-SEM). The findings revealed a positive and significant relationship between Government policies, access to finance, human resources and technological innovation and SMEs performance. Although Government Policies positively influence SMEs performance, but their impact is smaller compared to other factors. Based on the findings, the study recommended that Governments should streamline administrative processes and provide more targeted support to SMEs. Policies should focus on easing regulatory burdens, offering incentives for growth and innovation, and improving communication channels to ensure SMEs can take full advantage of available support. Additionally, SMEs should prioritize the development of their workforce by offering training programs as this will help attract and retain skilled employees, which is essential for sustained growth and innovation.
Keywords: Business environment, Government policies, Human resources, SMEs performance, Technological factors