The Impact of Macro-Environmental Factors on Business Performance

Kiyentei Benneth Gini and Humphrey Obinna Agala
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Kiyentei Benneth Gini: Department of Economics, Faculty of Social Sciences, University of Port Harcourt
Humphrey Obinna Agala: Department of Economics, Faculty of Social Sciences, University of Port Harcourt

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 11, 1837-1843

Abstract: This paper x-rayed the impact of macro-environmental factors on business performance in Nigeria. The narrative appraisal adopted in this paper showed that macro factors exert influence on and shape. growth and development of businesses in developing economies such as Nigeria. The macro-environment bears more relevance to strategic management, and businesses adjust to the external environment. It further revealed that the government now plays more of a regulatory role in the business environment in some sectors of the economy, and that, though certain measures had been put in place at various levels to engender a conducive business environment for private sector participation, macro (external) factors such as high interest and inflation rates, terrorism, culture, religion, volatile exchange rates, susceptibility of the economy to external shocks, etc., escalated cost of doing business and, thus, posed serious threats to firms performance. Therefore, the paper concluded that macro environments have a significant impact on the success of business activities, and hence such environmental factors must be considered seriously during the process of creating a strategic business plan. Considering these factors will improve the success of the business marketing campaign and the reputation of the brand in the long term. Consequently, reconsideration of such environmental factors that impose unnecessary constraints on businesses was recommended.

Date: 2023
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