ANALYSIS OF ENVIRONMENTAL SCARCITIES, ENTREPRENEURIAL ADAPTATION, AND INSTITUTIONAL GAPS IN SMALL-SCALE ENTERPRISES IN NIGERIA
Keywords:
Constraint Frontier, Small-Scale Enterprises, Environmental Scarcities, Institutional Gaps, Entrepreneurial Adaption
Abstract
This study examines the intricate relationship between the business environment and the performance of small-scale enterprises (SSEs) in Ibadan North, Nigeria. Grounded in systems theory and resource-based view, the research conceptualizes the operating environment as a "constraint frontier" that defines the limits of entrepreneurial possibility. Through a descriptive survey design, data were collected from 250 entrepreneurs, managers, and staff using structured questionnaires, with analysis conducted via descriptive statistics and Chi-square tests. Findings reveal that environmental factors—particularly access to credit, infrastructural deficiencies, and unstable government policies—constitute binding constraints that significantly impede SSE performance. Statistical evidence confirms significant relationships between external environmental factors and performance (χ²=195.023, p=0.000), socio-cultural factors and patronage (χ²=82.877, p=0.000), and government policy and enhanced performance (χ²=126.108, p=0.000). Despite these challenges, SSEs demonstrate remarkable adaptive resilience through strategies prioritizing customer satisfaction, workforce training, and operational flexibility. The study identifies critical institutional gaps in financial intermediation, infrastructure provision, and policy coherence that perpetuate environmental scarcities. The research concludes that sustainable SSE development requires targeted institutional reforms that systematically lower transaction costs, mitigate risks, and expand the entrepreneurial opportunity space. Policy recommendations emphasize the need for credit market innovations, strategic infrastructure investment, and stable regulatory frameworks to transform the constraint frontier into an enabling ecosystem for SSE growth and economic development.
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References
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Rothenberg, S. 2003. Knowledge content and worker participation in environmental management at NUMMI. Journal of Management Studies, 40(7): 1783-1802.
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Adebayo, R.S. 2005. The Impact of Environmental Factors on Strategy Formulation: The Offa Polytechnic Journal of Business and Management Studies, 1(4): 70-75
Adelegan, O.J. 2011. Infrastructure deficiencies and investment in Manufacturing firms in Nigeria:Journal of Economics and International Finance 3(9): 542-552. Retrieved Aug. 4 2014 from http://www.academicjournal.org/JEIF
Adenikinju, A. 2008. The efficiency of the energy sector and its impact on the competitiveness of the Nigerian economy.Journal of Economic Management, 7 (1): 1-38
Adewunmi, W. 1998. Business management: An Introduction. Lagos Macmillian Publishing company.
Adidu, F. A &Olannye, A. 2006. Basic small business entrepreneurship: a modern approach, Royal Pace Publishers, Agbor, Delta State.
Akeredolu, E. O. 1975. The underdevelopment of indigenous Entrepreneurship in Nigeria. University Press, Ibadan.
Akintunde, S. O. 2008. Business and Entrepreneurship Education for Sustainable Development; A Lecture Presented at the 2nd National Conference of Institute of education of OlabisiOnabanjo University on 27thFebrurary, 2008 on Education for sustainable Development.
Akjao, B. B. 1999. Economic Development in Nigeria: History and Trends. Ageless Friendship Press.
Andrew, K. 1997. “Key to Social Responsibilities” Cited by Adeleke, P. in Managing Nigeria’s Economic System, Inaga, E. Nigeria, Heinemann Education Books Nigeria Limited.
Arrow, K. J. 1962. Economic Welfare and the Allocation of Resources for Invention: In Nelson R. (ed.), The Rate and Direction of Inventive Activity (pp. 609 – 625). Princeton: Princeton University Press.
Asika N. 1991. Research methodology in Behavioral Sciences Longman.
Asika N. 2004. Research Methodology: A process Approach. Mukugamu Enterprises Lagos.Babson: p. 150-164.
Boulding, K.E. 1956. General System Theory: The Skeleton of Science, Retrieved Wednesday December 3rd, 2014 from: www.panarchy.org/.../systems.1956.html
Brammer, S., Jackson, G., and Matten, D. 2012. Corporate Social Responsibility and Institutional Theory: New Perspectives on Private Government, Socio-Economic Review, 10:3-28.Retrieved online 28th November 2014 from: http//www.ser.oxfordjournals.org
Brian K. B., Donald D. B., Duane I. R. and David J. K., Jr. 2013.Constructs in Strategic Management.Organizational Research Methods 16(1), pp. 3-14, sagepub.com/journalsPermissions.nav.
Carroll, A. 1979. A Three Dimensional Model of Corporate Performance. Academy of Management, 4: 497-505
Chicha, J., Julien, P.A. 1979. Les Stratégies des P.M.E. etleur Adaptation au Changement: Départementd'administration et d'économique, Université du Québec à Trois-Rivières.
Demola, A. V. 1996. Economic Reforms and Micro Economic Management in Nigeria.MC Graw Hill companies Incorporated.
Edett, I. A. 2001. Small and Medium Scale Enterprises Development in Nigeria: Ageless Friendship Press.
Elikwu M. 2008. Research Project Made Easy: A simplified Approach to write and Defend A God Research Report, Cin-Eight Publishers, Lagos.
Eze, O.R and Ogiji, F.O. 2013. Impact of Fiscal Policy on Manufacturing Sector Output in Nigeria: An Error Correction Analysis..International Journal of Business and Management Review, 1(3): 35-55
Fransen, L. 2012. Multi-Stakeholders Governance and Voluntary Program Interactions: Legitimating politics in the Design of Corporate Social Responsibility. Socio-Economic Review, 10: 163-191
Gado, N.D. and Ezie, O. 2014. Error Correction Modeling of Petroleum Profit Tax and Income per Capita in Nigeria: International Journal of Economics, Commerce and Management, 2(9): 1-16. Retrieved online Tuesday 16th December, 2014 from http://ijecm.co.uk/
Gasse, Y. 1978. Characteristics, Functions and Performance of Small Firms: Ownermanagers in Two Industrial Environments (2 volumes), Ph.D. thesis, Northwestern University, Evanston Ill., University Microfilm International, no 79-3265.
George, B. D. 2000. The Role of Government and the Private Sector in Fighting Poverty. London Gee.
Gibcus, P. and Kemp, R.G.M. 2003.Strategy and small firm performance: Research Report H200208, Scientific Analysis of Entrepreneurship and small and medium enterprises (SCALES). ISBN: 90-371-0876-8.
Glueck, W.F. 1977. Management, Hinsdale, I.L.L.: The Dryden Press.
Iarossi, G. and Clarke, G.R.G. 2011. Nigeria 2011: An Assessment of the Investment Climate, World Bank, Africa Finance and Private Sector Development (AFTP), June 2011
Ihunweze A. 2004. Small and Medium Enterprises: Development Challenges and Prospects. Being paper Presented at 2004, annual Management Conference of Nigeria Institute of management (chatered) at International Conference Centre, Abuja.
King, A. 1995. Innovation from differentiation: pollution control departments and innovation in the printed circuit industry. Ieee Transactions on Engineering Management, 42(3): 270-277.
King, A. 1999. Retrieving and transferring embodied data: Implications for the management of interdependence within organizations. Management Science, 45(7): 918-935.
Kwaghe, A.K. 2001. Power failure and its effect on Business survival in Nigeria: A case study of small and medium scale Enterprises in Abuja, Journal of management and Research Development, (2) 1:61-68.
Laufer, J.C. 1974. “Comment on devient entrepreneur”, Revue française de gestion, vol. 2, p. 18-29.
Lawal, A.A. 1993. Management in Focus, Lagos, Abudul, Industrial Enterprises.
Lorrain, J., Dussault, L. 1988, “Relation between Psychological Characteristics,
Lorrain, J., Dussault, L. 1988. “Les entrepreneurs artisans etopportunistes: unecomparaison de leurscomportements de gestion”, Revue internationale PME, vol. 1, no 2: p. 157-176.
Lorrain, J., Dussault, L. 1988. Relation between Psychological Characteristics, Administrative Behaviors and Success of Founder Entrepreneurs at the Start-up Stage, in Kirchhoff, B.A., Long, W.A. et al. (Eds.) Frontiers of Entrepreneurship Research,
Markku&ErlendNybakk. 2010.Importance of Internal and External Factors when Adapting to Environmental Changes in SME Sawmills in Norway and Finland: The Manager's View. Journal of Forest Products Business Research VolumeMcVay, Mary. 1999. Measuring Performance BDS a summory framework, dalamSmall Enterprise Development Vol 10 No. 2: page 17 -29
Melnyk, S. A., Sroufe, R. P., &Calantone, R. 2003. Assessing the impact of environmental management systems on corporate and environmental performance. Journal of Operations Management, 21(3): 329-351.
Miner, J. B. 1990. Entrepreneurs, High Growth Entrepreneurs and Managers: Contrasting and Overlapping Motivational Patterns, Journal of Business Venturing, vol.5, p. 221- 234.
Nigerian Investment Promotion Council (NIPC) (2003) Overview of small &Medium scale enterprises, Longman.
Ohanemu C. 2004. The Complete Enhtrepreneur: Managing the small scale industry Rockfield Publishers, Lagos.
Ohanemu. C. 2004. The Complete entrepreneur: Managing the small scale industry. Rockfied Publishers, Lagos.
Pil, F. K., & Rothenberg, S. 2003. Environmental performance as a driver of superior quality. Production and Operations Management, 12(3): 404-415.
Richard, O. A. 1998. Government Policy and the poor in Developing Countries, Longman.
Rothenberg, S. 2003. Knowledge content and worker participation in environmental management at NUMMI. Journal of Management Studies, 40(7): 1783-1802.
Rothenberg, S., Pil, F. K., & Maxwell, J. 2001. Lean, green, and the quest for superior environmental performance. Production and Operations Management, 10(3): 228-243.
Schumpeter, J. A. (1942). Capitalism, socialism and democracy.New York: Harper & Row.
Shah, P. and Yadav, P. 2014. Cultural Environment and International Business, International Journal of Research in Management and Business Studies, 1(2):37, ISSN: 2348-6503. Retrieved online Tuesday 02/12/2014 from: http://ijrmbs.com/
Smith, A. 1776. An Enquiry Into the Nature and Cause of the Wealth of Nations, London: Edwin Cannan. Also: London: Methuen (1950), Irwin (1963). Re-edited in two volumes. See esp.: edition by James E. Thorold Rogers. Oxford: Clarendon Press (1869).
Smith, N.R. 1967. The Entrepreneur and His Firm: The Relationship between Type of Man and Type of Company, Bureau of Business Research, East Lansing, Michigan: MichiganState University Press.
Smith, N.R., Miner, J.B. 1983. Type of Entrepreneur, Type of Firm, and Managerial Motivation: Implications for Organizational Life Cycle Theory, Strategic ManagementJournal, 4: p. 325-340.
Smith. A.A (1991) Small & Medium scale Enterprises in our Evolution Today. U.K Graham Burn.
Vogel, D. 2006. The Market for Virtue, Washington DC, Brooklyn’s Institute
Walonick, D.S. 1993. General Systems Theory, Retrieved online from http://www.statpac.org/walonick/systemstheory.htm Wednesday 03/12/2014.
Published
2025-04-30
How to Cite
Kolawole, K. (2025). ANALYSIS OF ENVIRONMENTAL SCARCITIES, ENTREPRENEURIAL ADAPTATION, AND INSTITUTIONAL GAPS IN SMALL-SCALE ENTERPRISES IN NIGERIA. J-MACC : Journal of Management and Accounting, 8(1), 186-201. https://doi.org/https://doi.org/10.52166/j-macc.v8i1.11777
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