This chapter traces the evolution of modern business enterprise in an emerging Nigerian economy, from the colonial period up to the present time and the challenges which top managers had to contend with in a rapidly changing business environment. In this context, the modern business enterprise is viewed as an institution profoundly affecting and being affected by the environment in which it operates. In tracing the evolution of modern business enterprise in Nigeria, five distinct stages or phases are identified from the 1850s up to the present time. The unique characteristics of each stage as well as the implications for enterprise management and organization development are reviewed. The chapter also examines the key environmental forces which are likely to shape and influence the future direction of business enterprise development in Nigeria and for which the Company Board and top managers must be fully prepared in order to ensure survival and long-term profitability of their organizations.