ENVIRONMENTAL FACTORS AND MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) OF BAYELSA STATE, NIGERIA

Abstract

This study, conducted in Bayelsa State, Nigeria, investigated how environmental factors physical, legal, and technological environment influence Micro, Small, and Medium Enterprises (MSMEs). Using a descriptive survey design, researcher collected data from 319 SMEDAN-registered MSMEs via a 30-item questionnaire. The data was then analyzed using multiple linear regression with SPSS version 25.The physical environment showed a moderate influence on micro-enterprises (R=0.141, p=0.012).The legal environment had a highly significant influence on small enterprises (R=0.840, p<0.001).The technological environment moderately influenced medium enterprises (R=0.204, p<0.001).Overall, the combined environmental factors demonstrated a highly significant relationship with MSMEs (R=0.934, p<0.001).The study recommends that the government invest in improving physical infrastructure (like electricity, roads, and water) in areas with high MSME concentrations. It also suggests simplifying legal procedures and regulations for MSMEs and fostering collaboration among educational institutions, professional organizations, and associations to provide tailored digital skills training. The study concludes that there's strong statistical evidence of a relationship between environmental factors and MSMEs in Bayelsa State, Nigeria