External and Internal Environmental Factors as Predictors to Business Performance of Small and Medium….

The outcome of the result is in parallel to the study of Ontorael, Suhadak, and Mawardi (2017, p. 54), who stated that external environmental factors affect the performance of the business of SMEs positively and significantly. That also indicates that if the external environment is good, the performance of the business is better.

5.5 Significance on the Relationship between Level of Internal Environmental Factors on Business Performance

The study presents the significant relationship between internal environmental factors on the business performance of SMEs located in Tagum City. This signifies that internal environmental factors improve the business performance of SMEs located in Tagum City. The computed r-value of 0.855 with a p-value of <0.01 indicated a positive relationship between variables. The positive r-value showed a direct correlation between the variables, suggesting that as the factors of internal environment increases, the business performance goes high.

The study results are in accordance with Ontorael, Suhadak, and Mawardi (2017, p. 55), who stated that the internal environmental factors significantly and positively influence the performance of the business of SMEs. This leads to the company's gain while being competent in the business industry.

5.6 Regression Analysis on the Influence of the Domain in External and Internal Environmental Factors that Predicts to Business Performance among SMEs in Tagum City

The study presents the influence of the domain on the external and internal environmental factors that predict significantly the business performance of SMEs located in Tagum City. The outcome of this study shows that external environmental factors do not have that much influence, while internal environmental factors positively influence the business performance of SMEs.

The results are supported by the previous study of Alkali and Isa (2012, p.626), who stated that some external environmental factors do not significantly influence the performance of the business. However, when taken as a whole, external and internal environmental factors significantly influence the business performance of SMEs (Ontorael, Suhadak, & Mawardi 2017, p. 47).

VI. CONCLUSION

The outcome and findings of the study are concluded and presented in this section. The overall level of external environmental factors on SMEs in Tagum City was very high. This meant that SMEs in Tagum City were always affected by external environmental factors or conditions in running a business. The overall level of internal environmental factors among SMEs in Tagum City was high. The result meant that SMEs in Tagum City were often affected by internal environmental factors or conditions in running a business. The overall level of business performance on SMEs located in Tagum City was high. This result signifies that the business performance of SMEs located in Tagum City is very good. There relationship between external environmental factors, internal environmental factors and the business performance of SMEs in Tagum City is significant. Furthermore, only the domain of the internal environmental factors significantly predicts the business performance of SMEs in Tagum City. However, when taken as a whole, both external and internal environmental factors positively influence the performance of the business SMEs in Tagum City.

VII. RECOMMENDATION

In the foregoing findings, conclusions and possible implications, the researcher came up with the following recommendations on how to elevate the level of business performance of SMEs located in Tagum City.

First, the researcher recommends to the that SME owners or managers that they may upgrade their facilities to be able to provide services that will help expand the business. They may invest in technology to adopt a modernized setup which may help the business improve and provide a more efficient process. In this way, the business can increase its competency and adjust to any changes in the economy. Moreover, they may attend training and seminars related to management and leadership to provide a just system and benefits to the company's employees. For the Local Government Unit, the future proposal of rules and regulations should be directed and made easy for the SMEs. This allows businesses to prepare for any changes made that can affect the business economic activities. This is consistent with the study of Ontorael, Suhadak, and Mawardi (2017, p. 55), which stated that external and internal environmental factors affect significantly the performance of the business

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