THE CONTRIBUTIONS AND EFFECTS OF BUSINESS PARTNERSHIP ON THE NATION’S ECONOMY.
(A CASE STUDY OF MEZUE AND ASSOCIATES ENUGU.)
Nigerian Economy is one of the vibrant economies in the world. Although the nation is still regarded as under developed country, but the rate of her involvement in international business cannot be neglected.However, the economic progress and exploits can be attributed to the various forms of business formation available and practiced in Nigerian Economy. These range from; Sole Proprietorship, Partnership, Joint Stock Company to Co-operatives. Among these forms of business establishments, Partnership Business is more predominant in the economy. The reason for this is obvious. Partnership as the name implies is an association of two or more persons carrying out business in common for the sake of profit maximization. This association can be a mixture of academic talents, money, skills, e.t.c of persons. This fusion of efforts and ideas undoubtedly creates room for business growth and success. One therefore cannot proceed to ask the question, “what are the benefits of this enterprise i.e. PARTNERSHIP?” or why do people establish it ?”
Meanwhile, as the researcher proceeds and advances in his research, these questions will receive their most appropriate answers. Also, vague ideas about partnership and its activities will be explained including its pre-historic era.
Above all, the effects and contributions of Business Partnership, which is the core of this research work will be outlined, with recommendations for its improvement, survival and continued growth.
LIST OF TABLES
4.1 GOVERNMENT SUPPORT ON PARTNERSHIP
4.2 REASONS FOR ITS GROWTH
4.3 CREATION OF EMPLOYMENT
4.4 GROWTH OF PARTNERSHIP IN NIGERIA
FUTURE PARTNERSHIP IN NIGERIA
TABLE OF CONTENTS
1.1 General Background Of The Study
1.2 Statement Of The Problem
1.3 Purpose Of The Study
1.4 Scope Of The Study
1.5 Research Questions
1.6 Research Hypothesis
1.7 Significance Of The Study
1.8 Definition Of Term
2.1 Meaning/History of Partnership
2.2 Merits and Demerits of Partnership In Nigeria
2.3 Problems Hindering or Encouraging The Growth of Partnership In Nigeria
2.4 Contributions of Partnership to the Nation’s Economy
3.1 Research Design
3.2 Area Of Study
3.3 Selection Of The Population
3.4 Sample & Sampling procedure
3.5 Instrument for Data Collection
3.6 Validation of The Instrument
3.7 Reliability Of The Instrument
3.8 Method of Data Collection
3.9 Method of Data Analysis
4.1 Presentation of Data and Analysis
4.2 Testing of Hypothesis
4.3 Summary of Results
5.3 Implication of the Research Findings
5.5 Suggestions For Further Research
The aim of this chapter is to present the introductory they part of this work, which is sub-divided in the following sub-headings below:
1:1 BACKGROUND OF THE STUDY
Over the years, especially before and immediately after independence (1940’s-1970’s), business activity in Nigeria were dominated by government and public establishments. Little or nothing was known about group business establishments. Few economic association existed in the form of co-operatives and amalgamations. The economy survived this economic state because of the resources it was endowed with, coupled with the fact that there was better management and administration of the nation’s economy. Although, the nation survived economically, there was still a need to increase the number of business concerns in the economy, at least to solve some of the macro-economic problems of the society like unemployment and others.
However, it is pertinent to note that this state is unattainable without accelerated growth of business establishments, which only formation and initiation of enterprises is the antidote. To solve this problem, the Federal government identified and recognized three legal ways by which business can be set up in the economy.
These ways include:
The formation of Private and Public Joint Stock Companies under the Company’s Act of 1961, which was changed to companies, under the companies Allied Matters Decree of 1990 by the Military regime under General Ibrahim Babangida.
Secondly, is the formation of co-operative societies and the last is Partnership Act of 1890.
Meanwhile, the law establishing partnership business was enacted under registration of business names Act of Federal Republic of Nigeria in 1961 and was later revised by the Babangida’s Administration under the companies and Allied matters Decree of 1990. Before this development, Partnership Act was one of the statutes borrowed into our legal system in 1990, being enacted in 1890.
The partnership business came into existence as a result of large capital outlay required in setting up a limited liability company. It was also to maximize the advantages of incorporated companies over smaller ones
At present, partnership business has been noticed to be one of the tools conditionally available to improve the functioning of development which include; creation of jobs, improving the standard of living of Nigerian citizens, developing infrastructural educational facilities, as well as social facilities.
However, this project is project is neither aimed at proving that partnership business is the sole instrument for National development, nor that development cannot proceed without partnership firms, but rather, it will show that partnership will have a positive role in the development process of the Nigerian economy. It is pertinent to note that this form of business is now in transitional stage of rapid growth. therefore the effect of any employment policy by the government will definitely affect the economic system
The case study, Mezue and Associates, is an Estate Management Firm and a partnership formed by three(3) persons. It was registered according to the rules and regulations, governing the Nigeria Institute of Estate Surveyors and Landlords (NIESL) in 1980. The firm went into full business in 1981 as an Estate Management firm, to provide real professional estate services to the general public. The firm also indulges in valuation of property services to people that need professional touch in services rendered to them.
Presently, all the partners partake in the firm’s management. As a matter of fact, since the firm is a professional association, all its members must have a minimum qualification of being a Graduate in Estate Management. Mezue &Associates has other autonomous branches located in Lagos, Onitsha, Aba and a head office in Enugu. The autonomy of branches empowers the various branch managers to take their decisions by themselves, in accordance with laws governing the firms, otherwise, all “ultra vires” acts by the members do not hold the firm vicariously liable. For a partner to be admitted, all the existing partners must be aware, and then the Nigerian Institute of Estate Surveyors must be qualified too.
Since dissolution is considered a threat, a partner can only disengage by notifying other members and the professional body governing the firm.
1:2 STATEMENT OF THE PROBLEM.
Naturally, a business organization will be constrained by a number of factors that could jeopardize the successful running of the business. Therefore, the determination of constraints will be a step towards its mitigation. The effects or impacts of partnership business can only come to light if some internal and external variables (problems) are considered and identified.
These problems include:
Ø To investigate the efficiency of its management.
Ø To investigate the reasons for lacking continuity.
Ø To investigate into unlimited liability on the part of some members (partners).
Ø Since people of different walks of life come together to form a business, there is a possibility f disagreement among them.
Ø Lack of adequate capital for expansion.
Furthermore, a critical analysis will show that inefficient managerial capabiity, is one of the evils plaguing the partnership business in Nigeria. This is because, ”all Tom, Dick and Harry” is jumping into partnership with or without the technical know-how which is a pre-requisite for anyone to be a businessman.
Finally, the researcher believes that the government ability to enact laws that will remove the automatic dissolution of partnership business, by the death of a partner or in the event of bankruptcy of a partner, will go a long way in solving a major problem.
1:3 PURPOSE OF THE STUDY.
The purpose of the study can be itemized as follows:-
1:4 SCOPE OF THE STUDY
In carrying out this research, one partnership firm was selected for study, of the effects of this type of business on the Nigerian economy. The firm is Mezue & Associates located at Ogui-Road in Enugu state.
The general study was limited by high cost of transport and time involved in sourcing information from other cities outside the researcher’s base in Enugu.
1:5 RESEARCH QUESTIONS
1:6 RESEARCH HYPOTHESES.
With reference to the research questions and research objectives, the following hypotheses were formulated.
Ho: Business partnership does not contribute satisfactorily to the growth of Nigerian economy.
Hi: Business partnership contributes alot to the growth of Nigerian economy
Ho: Business partnership has no bright future in Nigeria.
Hi: Business partnership has bright future in Nigeria.
1:7 SIGNIFICANCE OF THE STUDY.
This study is meant to examine the advantages which Nigeria as a country and her citizens are enjoying and had enjoyed, since the law establishing partnership was enacted.
The research will also find solutions to some problems associated with partnership in particular and business development in general.
However, the findings of information recorded in this research will provide information for the government and partners as well as some interested persons, who want to form partnership business on what and how successful partnership business is.
1:8 DEFINITION OF TERM
Firm: This is regarded as another name for partnership.
Vicarious liability: Liability or debts transferred to the principal of a business From the agent
Dissolution: The Closure of an enterprise /organization.
Disengage: The withdrawal of persons or
Organization from carrying out its business operation.
Economy: This is the sum of all economic activities going on within the geographical boundaries of a country e.g Nigeria.
Business: This is every profit oriented and commercial activities that provides goods and services to satisfy the needs of the nation.
Partnership: According to partnership Act of 1890,Section (1); it is the relationship, which subsists among one or carrying out business in common with a view of profit.
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