THE ROLE OF POLITICAL STABILITY IN SHAPING THE BUSINESS ENVIRONMENT
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ABSTRACT: THE ROLE OF POLITICAL STABILITY IN SHAPING THE BUSINESS ENVIRONMENT
This study aims to: 1) determine the influence of political stability on investment decisions; 2) examine the relationship between political stability and market confidence; and 3) analyze the effects of political stability on long-term business planning. Utilizing a survey research design is appropriate for capturing diverse perceptions and experiences. The sample size of 350 respondents, determined through Taro Yamane’s formula, includes business executives from various sectors. Abuja, being the political capital, is chosen for its relevance. The survey instruments achieve a reliability coefficient score of 0.87. Results show that political stability significantly enhances investment decisions, boosts market confidence, and facilitates long-term planning. Stable political environments attract foreign investments and reduce risks associated with market volatility. The study suggests that governments should prioritize maintaining political stability to create a conducive business environment, fostering economic growth and development.
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