Abstract:

This paper empirically examines Small and Medium Scale Enterprises (SMEs) and its sustainability. The clothing industry is of great importance to Nigeria economy in the areas  such as creation of jobs, provide a vehicle for reducing income disparities, increase the export exchange generation etc. The main objective of this paper is to examine the impact of environmental factors in Nigeria. In order to achieve this objective, the study administered three hundred and fifty (350) questionnaire to entrepreneurs in the clothing industry, Kano State using simple random sampling technique. The dependent variables used include profitability, sales volume and productivity of SMEs while independent variables are managerial competence, industrial competition, consumer taste, technology and insurgency. The result of the analysis showed that environmental factors play an important role in determining the sustainability of Small and Medium Scale in Nigeria. Based on this, it was recommended that the Nigerian Government should collaborate with the private sector to put in place the necessary infrastructure supports like regular power supply, good roads, water, and enhanced security across the states in order to encourage setting up of new businesses and their sustainability. Also, the government should adopt policy measures to maintain a favourably low commercial banking lending rate as this will accelerate high investment in Small and Medium businesses and subsequently in the long-run contribute significantly to economic growth and development.