inflation rate
small and medium enterprises

How to Cite

Oladimeji, M. S., Sofoluwe, N. A., & Odunaya, H. A. (2021). MACROECONOMIC BUSINESS ENVIRONMENT AND THE DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA. Modern Management Review, 26(4), 93-105.


The study evaluates the effect of the global macro-economic business environment on the development of Small-Scale and Medium-Sized Enterprises (SMEs) in Nigeria. Secondary data on the global macro-economic index of SMEs businesses were selected over 35 years (1985–2019). The data collected were analysed using descriptive statistics and multiple regression analysis techniques. The study revealed the positive coefficient value of 354 836.6525 and 24 141 873.6 for the gross domestic product (GDP) on Purchasing Power Parity (PPP) and Budget variables. A negative coefficient value of –16347085.61 and
–232997.0657 was obtained for the inflation rate and the exchange rate, respectively. The coefficient values show the level at which the development of SMEs businesses was affected through the global environmental factors. The study concluded that the global macro-economic business environment directly affects the development of SMEs businesses. The study recommends a policy strategy that will face out the global macro-economic constraints affecting SMEs businesses.


Adeoye, A. O. (2012). Impact of external business environment on organisational performance of food and beverage industry in Nigeria. “British Journal of Arts and Social Sciences”, 6(2).

Adeoye, M. O. (2013). The impact of business environment on entrepreneurship performance in Nigeria computing information systems, “Development Informatics and Allied Research”, 4(4).

Ajayi, A. (2016). Impact of external business environment on organisational performance of small and medium scale enterprises in Osun State, Nigeria. “Scholedge International Journal of Business Policy and Governance”, 3(10).

Aldrich, H. (1979). Organization and Environment. Prentice-Hall: Englewood Cliffs.

Amarasena, A. (2017). Current Trends in the International Business Environment. “Universal Journal of Management”, 5(8).

Aminu, B., Adamu, J., Ibrahim A. (2018). Impact of Small and Medium Scale Enterprises on Economic Growth: Evidence from “Nigeria Global Journal of Economicsand Business”, Vol. 4, No. 2.

Aribaba, F. O., Ahmodu, O. A., Oladele, R., Yusuff, S. A. Olaleye, B. R. (2019). The role of deposit money banks’ loan facilities in financing small and medium-scale businesses in Nigeria. Academic Journal of Interdisciplinary Studies”, 8(2).

Aribaba, F. O., Ahmodu, O. L., Yusuff, A. S. (2018). An empirical study of cooperative societies on credit de livery for small and medium scale businesses in Ondo State. “Nigeria, Singaporean Journal of Business, Economics and Management Studies, 6(8).

Ayedun, T. A., Awoyemi, A. T. (2014). Environment and enterprise survival: An appraisal of cyber café industry in Ondo State. International Journal of Advanced Studies in Business Strategies and Management (IJASBSM), 2(1).

Ayedun, T. A., Olufowobi, A. (2016). Economic recession and survival strategies of fast food outlets in Ondo State, Nigeria. “International Journal of Advance Research in Social Sciences, Environmental Studies and Technology”, 2(1).

Anthony, L., Arthur, S. (2008). The role of micro, small and medium enterprises in economic growth: across-country regression analysis. United States Agency for International Development Micro-Report, No. 135.

Burns, T., Stalker, G.M. (1961). The management of innovation. London: Tavistock.

Chinweuba, E.T., Sunday, C.O. (2015). Quantitative analysis of the impact of small and medium scale enterprises on the growth of Nigerian economy: (1993–2011). “International Journal of Development and Emerging Economics”, 3(1).

Dunning, J. H. (1973). The determinants of international production, “Oxford Economic Papers”, Vol. 25.

Dionco-Adetayo, E. A., Adetayo, J. O. (2003). Business environment analysis: Globalisation era of imperative for small scale industries. “Journal of Social Sciences”, 7(5).

Emery, F. E., Trist, E. L. (1960). Socio-Technical Systems. Management sciences, models and technique, C.W and others Churchman. London: Pergamon.

Eruemegbe, G. O. (2015). Impact of business environment on organisation performance in Nigeria: A Study of Union Bank of Nigeria. “European Scientific Journal Special Edition”.

Franko, L. G. (1971). Joint Venture Survival in Multinational Corporations. New Hork: Praeger Publisher.

Indris, S., Primiana, I. (2015). Internal and external environment: Analysis on the performance of small and medium industry (SMEs) in Indonesia. “International Journal of Scientific and Technology Research”, 4(4).

Lawrence, P., Lorsch, J. (1967). Differentiation and Integration in Complex Organizations. “Administrative Science Quarterly”, 12.

Katz, D., Kahn, R. L. (1966). The social psychology of organization. New York: Willey.

Kotler, P. (1998). Principiile Marketingului. EdituraTeora, Bucureşti.

Kujala, I. A. (2015). SMEs Internationalisation from an Emerging Market to a Developed Market: A case study from Ghana. An unpublished thesis in International Marketing, Abo Akademi University, Finland, Abo Akademi University Press.

McClelland, D. C. (1961). The Achieving Society. Van Nostrand Co, Princeton NJ.

MohdKhiruddin, H. (2000). Aproposed strategic framework for SMEs success. “Malaysian Management Review”, 35 (2).

Mele, F., Pels, J., Polese, F. (2010). A Brief Review of Systems Theories and Their Managerial Applications. “Service Science” 2(1/2).

Motilewa, B. D., Ogbari, M., Aka, D. O. (2015). A review of the impacts SMEs as social agents of economic liberations in developing economies. “International Review of Management and Business Research”, 4(3).

Obasan, K. A. (2014). The impact of business environment on the survival of small scale businesses in Nigeria. “International Journal of Management and Business Research”, 4(3).

Ojo, O. (2009). Impact of Micro Finance on Entrepreneurial Development: A case of Nigeria. A paper presented at the International Conference on economic and administration, organized by the faculty of Administration and Business, University ofBucharest, Romania, 14th–15th November, 2009.

Ozga, S. A. (1960). Imperfect Markets through Lack of Knowledge. “The Quarterly Journal of Economics”, Vol. 74, No. 1.

Parker, P. (2017). Global Business Environment. [Access on the internet]

Porter, M. E. (1990). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

Schumpeter, J. (1949). Theory of Economic Development. [Access on the internet]

Sharma, D. D., Johanson, J. (1987). Technical consultancy in internationalisation. “Interna-tional Marketing Review”, Vol. 4, No. 4.

Sheu, A. M., Mahmood, R. (2014). The impact of business environment on SMEs performance in Nigeria. “International Journal of Management Sciences”, 3(8).

Utile, B. J., Okwori, A. O. Ikpambese, M. D. (2018). Effect of interest rate on economic growth in Nigeria. “International Journal of Advanced Academic Research”, 4(1).

Vijayakumar, S. (2013). The trend and impact of SMEs on economic growth of Sri Lanka. “Journal of Global Business Management and Research”, 2(1).

All texts published in the Journal "Modern Management Review" are available in the full version on the website of MMR. Digital IDs have also been entered from number 19 (3/2012) (DOI: 10.7862/rz.2018.mmr.1)

Open Access – CC BY-NC-ND 3.0 PL

This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles, or use them for any other lawful purpose, without asking prior permission from the publisher or the author.


Download data is not yet available.