EFFECT OF SOCIO-CULTURAL ENVIRONMENT ON SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN LAGOS STATE NIGERIA

Shamsideen Alade FAHM; Ibrahim Yusuf OHIDA; Clement Ikenna OKEKE; Bushira Mohammed YUSUF

Authors

Shamsideen Alade FAHM Department of Business Administration, Nasarawa State University, Keffi, Nigeria.
Ibrahim Yusuf OHIDA Department of Business Administration, Nasarawa State University, Keffi, Nigeria.
Clement Ikenna OKEKE Department of Business Administration, Nasarawa State University, Keffi, Nigeria.
Bushira Mohammed YUSUF Department of Business Administration, Nasarawa State University, Keffi, Nigeria

Keywords:

Socio-cultural, Environment, Values, Attitude, Religion, SMEs Performance

Abstract

SMEs in Lagos State, Nigeria, play a vital role in driving economic growth but often face significant challenges due to informal operations and a lack of structured governance, prompting questions about the influence of socio-cultural factors on their performance. This study examines the effect of socio-cultural factors on SMEs performance in Lagos State, Nigeria, employing a survey research design. A sample of 429 purposively selected respondents representing SMEs in Lagos State were administered with a structured Likert scale questionnaire to collect data which was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0 software. The findings revealed a significant positive relationship between values, attitudes, and SMEs performance, while religion had a negative and insignificant effect. Based on these results, the study concludes that socio-cultural factors, particularly values and attitudes, are effective tools for enhancing SMEs performance. It recommends that SMEs managers in Lagos State should embrace these socio-cultural factors; values and attitudes to streamline their operations and improve overall performance, while further exploring the role of religion in this context.