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This project titled “the effects of the business environment on an organization’s performance” is a project which talks about the business environment and performances of an organization.

This project is written to see how all the factors of the environment that is both the external and internal factors of the business environment will affect the performance of an organization.

This research will therefore have information on how the business environment will have impacts on the performance of an organization using the town Buea as a sample to get information for the project.

And the results of this project are to prove if the business environment will actually affect this business performances or organization negatively or positively and the analyses and proving of the results will be done to see whether more of the organization’s performances concern is affected negatively or positively.



1.1 Background of the study

During the 1940s and 1950s business historians pioneered the study of entrepreneurship. The interdisciplinary Center for Research on Entrepreneurial History, based at Harvard Business School which included Joseph Schumpeter and Alfred Chandler, and its journal Explorations in Entrepreneurial History were key institutional drivers of the research agenda.

However the study of entrepreneurship ran into formidable methodological roadblocks, and attention shifted to the corporation, leaving the study of entrepreneurship fragmented and marginal.

Nevertheless business historians have made significant contributions to the study of entrepreneurship through their diverse coverage of countries, regions and industries, and in contrast to much management research over the past two decades – through exploring how the economic, social, organizational, and institutional context matters to evaluating entrepreneurship

According to Nikhil Scares (2004), business environment means all of internal and external factors that affect how a company functions including employees, customers and management, supply, demand and business regulations.

The term business environment connotes external forces, factors and institutions that are beyond the control of the business and how they affect the functioning of the business enterprise. The business environment affects things like the decisions, strategies, process and the performance of the business or organization.

The environment consists of those factors which are beyond the control of the organization itself. These factors include the legal, political, social, economic, technological factors. And these factors provide both threats and opportunities to the business.

Since business make demand on the society and the society also expects demand from the business, managers in any organization must interact with and respond to environmental factors internal or external to their organization. The relationship between the business and the society and also within the business is what we call the business environment.

The relation between business and the business environment has been given attention the last few decades.

The Cameroonian business environment has been evaluated and addressed by several scholars and several suggestions have been recommended the have been an invincible change according.

Jaw Maritz (2013), Cameroon is unique because it has both French and English as official languages.

Given as the country Cameroon is bilingual, both the French speaking and English speaking business people will find a possible way to operate in the country. The economic activities of the country is distributed across a number of cities which is different from other countries in Africa were most commercial or economic activities are centralized in their capital cities.

So far, over the past years, Cameroon has been characterized by positive economic growth and also supported by large public infrastructure. However, national poverty has remained the same. Why is this so and how does it affect organization performance?

1.2 Statement of research problem:

The project problem or statement of the research or project here is looking at the impact or the effects that the business environment has on the performance of an organization, and how do those factors considered in this analysis also affect the organization as a whole, that is a businesses or organization found in Cameroon to be precise.

To conclude, the problem at hand is looking at the impacts or effects of the business environment on the performance of a company.

1.3 Research questions:

 Some questions which were formed or which will be used in the research or to assist in getting some information include:

  • To what extent will political instability affect the business environment of an organization?

  • What are the factors to be considered or the factors to study when looking at the effects of the business environment on business performances?

  • How is the business environment related to a business or businesses?

  • To what extent will political instability affect the business environment?

1.4 Objectives of the study:

 In order to understand why we are interested in this topic, we took this objective to be the main objective of this research, which is to know the impact or effects that a business environment will have on an organization. Especially in my country Cameroon. These are other sub objectives in the research

  • To know the extent to which political instability affect the business environment of an organization
  • To know the factors to be considered or the factors to study when looking at the effects of the business environment on business performances.
  • To see how the business environment is related to a business or businesses.
  • To know the extent to which political instability affect the business environment.
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