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ABSTRACT
The aim of this study was to investigate the influence of environmental factors on viability of SMEs in Nigeria. Within this broad objective, the specific objectives were to: to examine the influence of economic factors, legal factors, political factors, technological factors and social-cultural factors on the viability of SMEs in Benin City. This study used the structured questionnaire to collect the needed information from the owners/managers of SMEs in Benin City. The data generated through the questionnaire were analyzed with descriptive statistics which include frequency, percentages, mean, standard deviation, and standard error mean and inferential statistics (multiple regression analysis). The analyses were aided with the use of the Statistical Package for Social Sciences (SPSS). The study found that economic factors have negative and significant impact on SMEs viability; legal environment have negative and significant impact on SMEs viability; political factors have positive and insignificant impact on SMEs viability; socio-cultural factors have negative and significant impact on SMEs viability; and technological factors have positive impact on SMEs viability in Benin City. On the basis of the findings of this study, it is recommended that: government of Nigeria should address economic factors by reducing the cost of borrowing, offering SMEs unhindered access to bank loans at a cheaper rate without collateral security, striving to bring down foreign exchange rate and stabilizing it and increasing the purchase power of its citizen through increase in minimum wages in order to increase patronize of SMEs products, government should also collaborate with telecommunication companies to improve network quality and reduce the cost of accessing internet and making calls. Doing this will increase internet penetrations, access to internet and use of internet for marketing of SMEs products thereby increasing the viability of SMEs.
