The Conceptual Framework of the Effect of Location on Performance of Small Firms

Abstract

There are abundant studies examining the performance of small firms with their studies frameworks. Most of the studies focus on the common attributes and categories that neglect the aspect of location. However, the inconsistent results on the relationship between entrepreneurial factors and firm performance have led the authors to propose a contingency model in which the effects of individual determinants, external factors and firm characteristics on firm performance are moderated by location. The paper argues the significance importance of location factor in the development of entrepreneurship and small business in Nigeria and thus suggests that location factor should be given an urgent consideration as a vital factor that would positively affect small business performance.