Business is important in our society because we depend on it for survival. We make contact with business everyday. Business organisations provide our basic needs such as food, shelter and clothing. They also provide us with leisure, recreation, entertainment, reduction etc. many of us work in business organisation and therefore depend on them for our income and general welfare. One can see that our society cannot do without business organisation.
A business is said to have failed when it cannot function in a way that will male co-operate objectives attainable. The aim of every entrepreneur is to run a successful business. No one aims to start a business which will be a failure. Unfortunately, as we have observed, many businesses do not survive or succeed, thereby disappointing their proprietors.
The most business failure occurs at the level of small business they fail because of mismanagement. According to statistics Canada (failing concerns: business bankruptcy in Canada, 1997), most business fail because of weak general management, weak financial management or weak marketing capabilities.
The main reason for failure is inexperienced management. Managers of bankrupt firms do not have the experience, knowledge, or vision to run their businesses. Even as the firms age and vision remain critical deficiencies that contribute to failure.
But in Nigeria, statistics show that “two-thirds of new employer establishments survive at lease two years, and 44 percent survive at least four years. “This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.
1.1 STATEMENT OF PROBLEM
The causes and effects of business failure in any society cannot be over looked. Every organisation be it private or public is established to meet some needs. The objective behind every established business organisation is profit. And this could be achieved through effective and efficient performances of its operators which involves acquiring managerial skill, coping with uncertainly, adequate planning among others. The absence of these in any business among others. The absence of these in any business organisation might result to business failure. Here lies the problem of most business organisation.
1.2 OBJECTIVE OF THE STUDY
The main objective of this work is to access business failure in Nigeria: specific objective are:
1.3 SIGNIFICANCE OF THE STUDY
This research will make the following contributions to business organisation, in particular to mankind in general. It may serve as a reference material to those who have in the future that wish to conduct a study on the research topic. It will help to identify those factors impeding the success of business organisation. It will help us to suggest solution to problems affecting business organisation. It will contribute towards effective operation of business organisation, it will also help to know the different type of business organisation. In addition to the above mentioned, this study will also produce a report which may stimulate further debate research on business failure, causes effects and remedies.
1.4 RESEARCH QUESTIONS
Ho: Business failure does not have negative effects on the society.
Hi: Business failure has negative effect on the society
Ho: Nigerian cannot progress without the existence effective and efficient business organisation.
Hi: Nigerian can progress without the existence effective and efficient business organisation.
Ho: There is no significance relationship between business and economic development.
Hi: There is significant relationship between business and economic development.
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of this study is limited to the subject matter and the activities of the case study.
It covers all the functions of business and the problems associated with it. However, as this research project deals on business failure, causes, effects and remedies with the particular reference to Champion Breweries Plc. Uyo. The finding of the research can then be generalized to suit all other business organisation operating in Nigeria as their functions are the same.
Writing of the project was not an easy task to the research because of the problems of reaching the respondents whom questions are directed to through questionnaires and direct interviews due to the high cost of transportation from the researchers school to the company which the researcher used as case study.
Another limitation of the study is time. The availability of carrying out this research work is very short and at time, it is being combined wit the regular lectures. As a result, the researcher finds little or no time to carry out the research properly.
In addition to above, some respondents are reluctant in giving out information, to back the researcher, in writing this work. The sourcing of books on the research topic posed yet another problems to the researcher but the researcher tried his best to make the writing of the project a successful encounter.
1.7 DEFINITION OF TERMS
Business is the sum total of all the legal activities undertaken by man with the aim of maximizing profit and minimizing waste and lost thus; a process which leads to the elevation of the standard of living of the people. Oni et al (1988) defines business as an organized effort or activity by a person or a group of persons employing the resources of the environment to produce and distribute goods and services with the objective of making profit.
Is a person who see a business opportunity, obtains the needed capital knows how to put together an operation successfully and has the willingness to take a personal risk of successor failure.
Management: Is the body of knowledge about managing, it is also seen as a process of planning, organizing, directing, controlling and coordinating the activities of the organisation goals and objectives.
Organisation: The process of identifying and grouping the work to be performed, Udeme (2005) defines organisation as an organize system or institution of social relationship that embodied certain valves and procedures that meet certain basic societal need.
Failure: Longman Active Study Dictionary, sees failure as lack of success in achieving or doing something.
Profit: Is the excess of revenue over all paid out costs including both manufacturing and overhead expenses.THE EFFECT OF BUSINESS FAILURE IN NIGERIA: CAUSES, EFFECTS AND REMEDIES
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