The physical work environment plays a pivotal role in shaping the performance of small and medium enterprises (SMEs), yet its impact remains underexplored, particularly in developing regions like the Federal Capital Territory (FCT), Abuja. This study investigates the relationship between the physical work environment and SME performance, focusing on two dimensions of the physical work environment workplace design and layout, and health and safety conditions and their influence on operational efficiency and employee productivity and well-being. Using a descriptive research design, data were collected from 299 SME owners/managers and employees through structured questionnaires. The sample was drawn from a population of 2,184 registered SMEs in FCT-Abuja using simple random sampling. Multiple regression analysis was employed to test the hypotheses, with results indicating that work place design and layout, as well as health and safety conditions, significantly influence SME performance. Specifically, workplace design and layout positively impacted operational efficiency, while health and safety conditions enhanced employee productivity and well-being. The findings underscore the importance of investing in functional and safe workspaces as a strategic lever for improving SME performance in resource-constrained environments. Based on these results, the study recommends that SME owners prioritize ergonomic workplace designs and robust health and safety measures, while policymakers provide financial incentives and strengthen regulatory enforcement. These insights contribute to the broader discourse on SME performance and offer practical guidance for fostering sustainable economic development in FCT-Abuja.
Yusuf Bature2 Dare Daniel Joseph1 & Yakubu (2026) studied this question.