Business owners in the periphery of African cities suffer from several challenges which include locational deficiency. Some of the challenges are environmental, political and social in nature. The aim of this study is to examine the vulnerability and resilience of small business in Lagos megacity periphery. These selected communities Arepo, Magboro, Mowe and Ibafo are rapidly urbanising peripheral settlements in different stages of transition along Lagos-Ibadan, also in close proximity to Ikeja, the administrative capital of Lagos State. Two-stage sampling techniques were adopted in this study, purposive sampling to select the four peripheral settlements clusters and systematic random sampling for selecting housing units. A cross-sectional research design, using field survey of the case studies was employed. Mixed-method research approach was adopted. The qualitative tools used were in-depth interview schedule. The quantitative method, the survey of case studies utilised structured questionnaires. 160 questionnaires were administered to stakeholders, out of which 158 questionnaires were recovered; given a recovery rate of 98.8%. Findings in this research shows that economic resilience is a function of complex interactions among environmental, social and institutional frameworks prevailing in each periphery. Spatial disturbances such as road inaccessibility, poor connections have great limitations on the economic activities in Lagos megacity periphery. It can be concluded that availability of social infrastructure and good transportation networks are great promoter of economic activities in transitioning settlements. It is recommended that improvement in urban space, in terms of the spatial characteristics; positive policies from the local government should be worked on to improve economic resilience of individuals and business owners.