Abstract:
This, study investigated the influence of the eternal Business Environment on the performance of Small,
and Medium Enterprises (SMEs) in Abuja, Nigeria; with a particular focus on Customer Satisfaction as a
proxy for SME performance. Using a survey research design, a mixed-method approach was employed;
combining quantitative data from questionnaire res and inferential analyses with qualitative insights from a
5-point Likert scale instrument. The study's framework includes four dimensions of the External Business
Environment: Economic, Sociocultural, technological, and Political factors. The sample of the study was
357 owners/managers of SMEs. Using regression analyses, the study findings reveal a significant positive,
effect of the external business environment on SME performance; with economic, sociocultural, and
technological external business factors positively affecting customer satisfaction. However, the political
environment exhibits an insignificant effect, it indicating its limited influence on SME performance. The study
concludes that of the dimensions of the external business environment tested, the economic environment
has the leading effect on the performance (measured with customer satisfaction) of SMEs in Abuja, Nigeria,
followed by the technological environment and sociocultural environment. It is, therefore, recommended
that economic, sociocultural and technologist al external business environments should be prioritized over
the political environment of SMEs in Abuja, after all, they are not significantly impacted by the political
environment.
