Business Environment and the Productivity of Micro Businesses in Southeast Nigeria

Abstract

This study investigates the impact of the business environment on the productivity of micro businesses within Southeast Nigeria. The primary objectives were to evaluate how business initiation processes, business environment policies, workplace conditions, and technology adoption affect the productivity of these enterprises. The study population included owners and managers of micro businesses operating within Southeast Nigeria. Data were collected using a structured questionnaire and analyzed using the Statistical Package for the Social Sciences (SPSS) version 28. The findings revealed that business initiation processes significantly affect startup success, explaining 55.2% of the variance (p < 0.05). Business environment policies were found to significantly influence business growth, accounting for 47.5% of the variance (p < 0.05). Workplace conditions were shown to significantly impact salesperson performance, explaining 38.6% of the variance (p < 0.05). Technology adoption had the strongest effect, explaining 63.1% of the variance in bookkeeping quality (p < 0.05). The study concludes that improving business initiation processes, enhancing policy support, optimizing workplace conditions, and promoting technology adoption are critical for enhancing micro business productivity in Southeast Nigeria. Recommendations include simplifying business initiation procedures, streamlining policies, investing in reliable internet connectivity and power supply, and establishing a Business Support Unit to provide guidance and resources for micro businesses.