Environmental Factors and Sustainability of Micro, Small, and Medium Scale Enterprises in Lagos Mainland Local Government Area, Lagos State, Nigeria

Williams Oseghai Egboh; Samuel Abimbola Odunlami

Williams Oseghai Egboh Graduate Student, Department of Business Administration, Augustine University, Ilara Epe, Lagos State, Nigeria
Samuel Abimbola Odunlami Department of Business Administration, Augustine University, Ilara Epe, Lagos State, Nigeria

Keywords: Environmental Factors, Government Policies, Infrastructural Facilities, Employment Creation, Revenue Generation

Abstract

The main objective of the study is to investigate the effect of environmental factors on the sustainability of micro, small and medium scale enterprises (MSMEs) in Lagos Mainland Local Government Area, Lagos State, Nigeria. Survey research design was used for the study. Data was collected through the use of questionnaire. Convenience sampling technique was used to survey 780 MSMEs in Lagos Mainland Local Government. Descriptive statistics was used to analyze the respondents’ biodata while multiple regression analysis was used to test the hypotheses formulated. The study found that environmental factors (government policies, infrastructural facilities, and global pandemic outbreak) have no combined significant effect on each of the dependent variables (employment creation, revenue generation, and workers’ loyalty) in MSMEs in Lagos Mainland Local Government Area. The study concluded that policies initiated and implemented by the Nigerian government to ensure that businesses operate smoothly, efforts made by the government to provide infrastructural facilities needed for businesses to carry out their activities effectively, and global pandemic outbreak that take place in countries across the world may or may not lead to creation of employment, assist MSMEs in generating revenue, and influence workers to remain loyal in their workplace. The study recommended that owners/managers of micro, small, and medium scale enterprises in Lagos Mainland Local Government Area should initiate and implement other actions that will boost employment creation, assist them in generating sufficient sales needed to run their business very well, and influence the loyalty of their workers since government policies, infrastructural facilities, and global pandemic outbreak have no combined significant effect on each of the dependent variables (employment creation, revenue generation, and workers’ loyalty).