ABSTRACT

The research was designed to analyze the environmental factors and the performance ofsmall and medium enterprise, in Aba. Abia State. Size of 100 was used in tire course oftire study. Specific objectives are: to identify the extent to which business environmental factors influence the performance of SMEs, evaluate the relationship in business environment constraints and SMEs performance in Aba, and assess the new challenges factors that affect the performance of SMEs. Primary' data was used to elicit response from respondents through a well-structured questionnaire. The method of data analysis employed was regression to ascertain relationship among variables. Hypothesis one showed F-value. 1.550 < 2.796ap value, which indicated an inverse relationship and insignificance. The second hypothesis revealed that correlation was at 1.000 and significant at 0.01 which indicated that the respondents were 99.9% sure of their responses. The F - value 2.262 indicated that the overall regression model was significant (f value> p-value) fromthe ANOVAtable showed the variation in correlation dependent variable, explained by x (independent variable) the third hypothesis, revealed F - value 2.262 indicated that the overall regression model was significant, where F - value is greater than p-value i.e (F. 2.262 >.355). There is therefore the need for SMEs in Abia State Metropolis lo critically adopt efficient and resilient approach towards their line of operation us far as findings have revealed the impact these factors will have on their performance. It was recommended that partisan politics should not be indulged in as this hurt their businesses because of victimization.