THE SURVIVAL STRATEGIES OF SMALL BUSINESSES
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
2.0 LITERATURE REVIEW
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.2 Data analysis
This project examined the Survival of Small Scale Business in the Development of Nigeria economy. It accessed the opinion of some randomly selected staff of Oarie Equipment Service Nig Ltd. The study was carried out through the use of questionnaire, observations and interviews of personnel. The aim is to find out some of the factors that hinder the survival of small scale business in Nigeria. A review of related literature examined the concept. One hundred and thirty three (133) staffs were used as sample in the company under study. Three hypothesis were formulated from the analysis of data, problems that hinders the survival of small scale business identified. In view of these problems, the following recommendations are made among others. The proprietors of small scale business should grant the importation of inevitable raw materials duty free in order to reduce high cost of production. The proprietor of small scale business of local and international bodies should assist small scale business to grow, reduce and maintain proper financial record keeping.
- Background of the study
Business is defined as all the commercial and individual activities that provide goods and services to maintain and improve our quality of life. Small scale business in Nigeria was not pronounced until the emergence of the white men. Until recently the concept of small scale business was taking seriously in Nigeria due to the fact that most people depended on working in the offices after graduating from school. Since 1911 and Schumpeter’s original description of an entrepreneur, the entrepreneur has changed. Most modern entrepreneurs are replicative, which means they are involved in conventional activities and contribute little to industrial revolutions and economic growth (Griffiths, Kickul, Bacq, & Terjesen, 2012). The majority of recent entrepreneurship researchers have focused on the lone entrepreneur and his or her entrepreneurial activities (Griffiths et al., 2012). Schumpeter’s entrepreneur has changed but the key characteristics of the entrepreneur, the ability to change, learn, and innovate remains attributed to Schumpeter’s entrepreneurship theory (Louca, 2014). Schumpeterian entrepreneurial small business owners focused on searching for and creating new economic opportunities (Block et al., 2017). Dhliwayo (2014) found that if 7 a business consistently offers the customer something new or different from its competitors, it will have a competitive advantage. The advantage, however, is temporary which means that the company needs to continually search for innovations. Dobni, Klassen, and Sands (2016) emphasized that protecting market position is not a viable business strategy. The researchers found that depending on the status quo is risky and almost always proves fatal for the organization. Osenieks and Babauska (2014) found that the complexity of innovation has increased because of the increased amount of knowledge that is available to organizations to help make their strategic choices. Bates and Robb (2014) found that small business owners who used the innovative entrepreneurial process to plan and organize their activities into business strategies may be able to keep their business viable. The innovative entrepreneurial process is comprised of the activities entrepreneurs undertake in pursuit of their innovative business ideas. Taneja, Pryor, and Hayek (2016) created a model to help small business decision makers understand strategic innovation and its key elements. In the model, the researchers listed the key elements as: (a) passion for creating and innovating, (b) cooperation and collaboration, (c) internal innovation capabilities, (d) organizational culture, and (e) supportive employees, customers, and suppliers. Small business owners using new and innovative techniques to operate their business successfully within a given market made the entrepreneurship theory applicable to this study.
Small scale businesses are known to be a major tool for rural industrialization and equitable distribution of income. It also serves as a “nursing bed” for entrepreneurial growth, development and maturity. Note that one factor that has been identified as militating against rapid industrialization of Nigeria, is poor supply of management talent and professionalism. Small scale business also plays a very crucial role in the generation of employment because most of the firms are labour intensive. Small scale industries contribute towards a more equitable distribution towards a more equitable distribution of income in the economy through the provision of livelihood and low cost goods and services which satisfies the demand or need of low income consumers. The contribution of HR to the global business is fundamental (Renteria, 2011). The global talent management strategy is found to be highly embedded in the broader business structure and shifts in the direction of globalization, entailing epochs and episodes of internationalization (Sparrow, Farndale & Scullion, 2013). Sustainable competitive advantage in global trading is deployed by the HR department (Scott-Jackson, Druck, Mortimer & Viney, 2011). Human talent underscores a key role in the competitive growth of organizations (D Ulrich, Younger, Brockbank & M Ulrich, 2012). Competitive advantage in the global economy is driven by intangible assets that are tied to people and those assets must be managed with the same discipline, integrity, and transparency with which traditional capital assets were managed in the last century. (Rivera & Smolders, 2013). During the 2008-2010 economic recession, organizations reduced costs by 13%, not by a reduction in head count but by owning a world-class HR function (‘Despite Recession, World-Class HR Organizations Reduce Costs by 13 Percent’, 2011). Organizational capability is needed with new forms of international mobility and to be able to handle global talent management, emphasis is laid on the importance of leveraging emerging markets (Ferndale, Scullion & Sparrow, 2010) and on the existence of centralized policies and guidelines (Patterson, 2014). Tata is a good example in the way it behaved within its original structure but also with respect to its acquired businesses, which include Jaguar, Land Rover and Tetley Tea (Reilly, 2012). Today’s human resources manager is responsible for a plethora of duties that is no longer considered a luxury only for the very large and highly successful organizations; but necessity for the small business as well (Zilm, 1997). Polling about 37,000 employers from 27 countries and territories, Manpower (‘Recruitment Solutions’, 2007) discovered that 41 percent of employers worldwide are having trouble filling vacant positions due to a lack of suitable talent available in their markets. It is thus very important to retain key employees as productivity loss due to the initial learning curve of starting new job can cost 1% to 2.5% of total revenue for companies loosing employees (Rollag, Parise & Cross, 2005). As per a global workforce study, 65% of the 32,000 full-time workers participating in the survey were found to be not highly engaged (TalentReward – Global Workforce Study, 2012). In another recent study of workplace trends, the Society of Human Resource Management (SHRM) forecasts a more competitive global business landscape, that will be affected by economic growth from emerging markets such as India, China and Brazil and an increased global competition for job, market and talent (SHRM Workplace Forecast, 2013). Small companies may find their talent pool shrinking and it is for them to see this as an opportunity and lay the foundations to support future growth and become a global recruiter as well. It has observed that many Nigeria, especially the younger generation; do not have a favourable disposition towards setting up a small scale. business. Instance where some people manage to set up small scale businesses, we set the turn-over of the business is very high. This project therefore is an attempt to look more closely at small scale business in Nigeria, their problems and prospect.
1.2 STATEMENT OF THE PROBLEM
Following the down of global economic situation, the nation (Nigeria) and Etsako West Local Government in particular, men have began to have a rethink of what they can do. Successive government emphasized and encouraged self reliance for economic survival. This is why the government has been making efforts to encourage the establishments and growth of small scale businesses in the country.
In view of this, the federal government of Nigeria established the industrial development centre. This was fashioned out to render extension service to the small scale business sector through the Nigeria bank for commerce and industry (NBC).
Despite their effort, the problem of survival still threatens the small scale business. A number of problems hinder the survival of small scale business. The researcher in order to find out how this small scale business would survive, decide to carry out an inquiring to this regard.
- On availability of entrepreneurial skill hinder the survival of small scale business.
- Limited capital needed also to render or hinder the survival of small scale business?
iii. The market available also affects survival of small scale business.
1.3 RESEARCH HYPOTHESIS
The following hypothesis drawn from this research work:
Ho: The survival of small scale business operation is not traceable to lack of positive business attitude.
Hi: The survival of small scale business operation traceable to lack of positive business attitude.
Ho: Lack of financial record keeping does not affect proper accounting and survival of small scale business.
Ho: Lack of financial record keeping affect proper accounting and survival of small scale business.
Ho: Competition from foreign products does not hinder the survival of small scale business.
Hi: Competition from foreign products hinder the survival of small scale business.
1.4 PURPOSE OF THE STUDY
This research aims at taking a critical look of the survival of small scale business in Etsako West Local Government, so as to ascertain following.
- Small scale business can survive even in an epileptic economy like the Nigeria economy.
- Whatever with adequate feasibility study, a wider market can be explored.
iii. Small scale business play an important role in the development of Nigeria economy.
- What are the factors preventing the survival of small scale business.
- Government assistance of small scale business in Nigeria.
- Analyzing the future prospects of small scale business in Nigeria.
1.5 SCOPE OF THE STUDY
This research is aimed at studying small scale business ownership and it is operated by individuals in Nigeria. The entrepreneurs may decide to run the business themselves or appoint manager and few staffs to help in managing the business. The focus of this study is limited to a selected small business enterprise in Etsako West Local Government Edo State.
1.6 SIGNIFICANCE OF THE STUDY
The research study will be of great importance to the enterprise under study in terms of knowing their growth and management deficiency of their survival.
This study will also be useful to students and researcher of small scale business particularly in the area of analyzing the problems and prospects of small scale business, it will enable them to know why some small scale business survive and other fail.
Furthermore, this research will be useful to my entire nation, because it will enable small scale business owners to evaluate their business whether their standard of performance is up to standard of performance is up to standard or not.
Another significance of this study is that it will provide the basis for further research work which will lead to a better basis for effective economic development and growth.
1.7 LIMITATION OF THE STUDY
The following factors militates this research work:
- Hospitality and inadequate co-operation of respondents: The owners and managers of the business enterprises finds it difficult in releasing the information needed for this research work. Each time the researcher visits their shops, she is told by the managers to call again for the fact that he is buys and cannot attend to her now or that he is traveling
- The accuracy and reliability of data of information supplied by the employers and staffs of the enterprise to the researcher could be independently verified.
1.8 OPERATIONAL DEFINITION OF TERMS
Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation
Strategy is a high-level plan to achieve one or more goals under conditions of uncertainty. In the sense of the “art of the general”, which included several subsets of skills including “tactics
Business strategy. A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning
Survival skills are techniques that a person may use in order to sustain life in any type of natural environment.
1.9 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.