SOCIO-ECONOMIC FACTORS AND PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN ABIA STATE

Abstract

The general purpose of this study is to examine the influence of socio-economic factors on the performance of micro and small enterprises in Abia State. The study used both primary sources of data. The population of the study comprised of 315 micro and small enterprises in the selected Local Government Areas in Abia State and Taro Yamane formula was used to arrive at a sample size of 176. The study used regression analytical technique to analyze the effect of socio-economic factors on the performance of micro and small enterprises in Abia State. The empirical result reveals that socio-economic factors have significant influence on the performance of micro and small enterprises in Abia State at 5% level of significance. The study recommends that micro and small scale enterprises need to continuously monitor their environment that they operate in, understanding that the ethics, social norms, traditional values and practices and cultural diversity is important to the performance and survival of the business.