The Impact of Volatile Business Ecosystem on the Sustainability of Petty Trading in Nigeria: A study of Selected Petty Traders in Gboko Metropolis, Benue State

Abstract

This study explores how business environmental volatility impacts the sustainability of petty trading in Nigeria Petty trading represents a significant portion of the informal economy, providing livelihoods for millions of people. However, in recent years, petty traders have faced increasing challenges due to Nigeria’s volatile business ecosystem, marked by persistence inflation, and multiple taxations. The overall objective of this study was to determine the impact of a volatile business ecosystem on the sustainability of petty trading in Nigeria. Specifically, the study aimed to: i) Analyse how inflation affects the operation of petty trading in Nigeria ii) Determine how multiple taxes affect the survival of petty trading in Nigeria. The study adopted a survey method. Data were collected from 320 petty traders across ten different locations in Gboko metropolis using structured questionnaires where descriptive statistics and regression analysis were employed to examine the relationship between inflation, taxation, and business sustainability. The findings reveal that inflation and multiple taxation significantly disrupt the operations of petty traders by increasing the cost of goods, reducing consumer purchasing power, and narrowing profit margins. The study recommended that government streamline and harmonize the tax system for informal businesses, ensuring clarity and fairness in taxation. Additionally, policies aimed at controlling inflation and stabilizing the macroeconomic environment should be prioritized.