SOCIAL ENVIRONMENT AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN LAGOS STATE

Abstract

This paper investigated social environment and performance of small and medium enterprises (SMEs) in Lagos State. The study was guided by three research questions and three research hypotheses. Survey research design was employed in the study. The sample size for the study was 387 respondents out of a total population of 11,663 registered SMEs in Lagos State. These respondents were randomly selected in Ikeja, Yaba, Agege, Ikorodu, and Oshodi. A self-designed questionnaire titled “Social Environment and Business Performance Questionnaire (SEBPQ) was used for data collection. Data collected were analysed using simple regression at 0.05 level of significance. The results showed that interpersonal networks have significant effect on business performance among SMEs in Lagos State; relational social capital has significant impact on business performance among SMEs in Lagos State; and structural social capital has significant effect on business performance among SMEs in Lagos State. The study concluded that social environment has significantly positive impact on business performance among SMEs in Lagos State. The study recommended among others that SMEs owners should create and increase their interpersonal networks; and SMEs owners should embrace trust and integrity in their dealings with customers and members of the public.