ABSTRACT

This research work analyzed the environmental factors influencing the performance of small business enterprises in Abuja Municipal Area Council (AMAC).  Available literatures and Empirical studies reported that small and medium scale businessesimpacted greatly to the development of the economy of Nigeria. Some selected small scaleenterprises from Abuja Municipal Area Council (AMAC) wasusedasastudyand questionnairewereadministered. The researcher used primary data gathered through the instrument of questionnaire on 82 sampled respondents which were analyzed with hypothesis testing using chi-square statistical tool (X2) at 5% level of significant, the available results showed that smalland medium scale businessesare veritable tools foreconomic growth anddevelopment. It also identifiedtheroles and problems encountered by SME’s.  Theresultrevealedthatsmall scale enterprises aresignificantlyfinancedbyinformalsourcesoffinancingthantheformalsources. Therefore, authorities should effectively implement microfinance credits to reach out to SME’s in other to enhance economic growth. Decisionsmustbeinlinewithlongterm survivalstrategiesforgrowth,development andsustainabilityofsuchorganizationsandtheNigerianeconomy at large. Itisobviousthata dynamicSME’ssubsectorisneededfor Nigeriatoattainindustrialization andsustainable of economic developmentandforitsVision20-20 tobeachieved.This subsector istherefore vitalandimperativefortheactualization ofNigeria’s vision.