Business Failure and Account Performance in Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
It has been argued in recent times that the monetary value of corporate failures is of colossal notation which could faster economic growth. Therefore the following are the main aim of this study
- To know why business are failing.
- Investigate whether government policies and actions affect operational performance
- Do business rely on accounting profession (Auditing) as tool for their performance
- Identify and analyze strategic corporate plans adopted byh business.
- Assess the preparedness of companies to respond to remedial dosage of companies corporate objectives
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The objective of this chapter is to highlight causes of business failure cited by literature as explaining the small and medium scale business failure phenomena. The review examines the different perspectives (causal descriptions) under which small and medium scale business failures have been discussed. The chapter ends with a critical evaluation of conventional small and medium business failure theories as well as lessons that could be learnt from the existing theories for researchers interested in undertaking similar studies in Nigeria.
Research on small business failure reveals that winding up or discontinuation of any enterprise for whatever reason, is not limited to any particular part of the world, neither is it dependent on technological advancement, colour, race, level of education of promoters etc. Large and small businesses do fail from time to time in technologically advanced countries as well as in the developing world. There is no gainsaying the fact that from empirical evidence of most businesses that fail, one observes that one or more of the above stated qualities are lacking in either the promoter(s) or the employees, or both. It is also possible that the promoter may have some of these qualities but the environment may not be conducive to a successful business operation. Jennings and Beaver (1995) were critical of many studies of small business failure because they tended to focus on symptoms or reasons cited for failure, by proprietors rather than root causes of failure. We need to recognize three levels of ‘causes’. First, there are inherent or generic problems of smallness and the key one is the dependence of the firm on only one ownermanager in most cases. Then there are root causes of failure that can be detected for individual firms, such as a lack of finance or poor management. In addition, there are symptoms of problems or failure that proprietors tend to confuse with root causes. For example, a lack of inventory or poor planning may be a symptom of incompetent management and to remedy either symptom will not solve the key problem. Some symptoms may not present themselves to the proprietor because of a lack of expertise or the right type of information. Still on the subject of small business failure, Jennings and Beaver (1995) opine that the root cause of small business failure is almost invariably a lack of management attention to strategic issues. Notwithstanding the fact that common skills and abilities are required, the management process in small firms is unique and cannot be considered to be the same as professional management in larger firms practiced on a reduced scale.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter deals with the method used in collecting data required in carrying out this research work it explains the procedures that were followed and the instrument used in collecting data.
SOURCES OF DATA COLLECTION
Data were collected from two main sources namely
Primary source and secondary source
primary source: These are materials of statistical investigation, which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment, the researcher has adopted the questionnaire method for this study.
Secondary data: These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY CONCLUSION RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to examine business failure and account performance.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the business failure and account performance in Nigeria.
Summary
The purpose of the study was to investigate the rate of business failure and account performance; however, the fact that management determines the causes of the failure of small scale business in Nigeria implies that the problems of such enterprises are half solved. Given that management develops policies for solving the problem of the small scale enterprises, it implies that most of the enterprises will be properly guided in the pursuit of their goals.The fact that management sometimes has poor attitude to training implies that the organization’s human resources has to wake up in the performance of their duties.
Conclusion
Poor management affects the growth of small scale enterprise. Management determines the cause of failure of small scale business in Nigeria. Organization have poor attitude to training Government does not always create conducive environment for small scale businesses. Workers sometime implement management policiesManagement develops policies for solving the problems of small scale enterprises. Competent hands are sometimes involved in business strategies. Management does not always have financial management strategies. The profitability of small scale organizations have not greatly improved. Marketing strategies and financial strategies are not strong enough to run the business.
Recommendation
The researcher recommends that poor management of business resources should be avoided. Organizations should have good attitude to training. Management should always determine the causes of failure of small scale business in Nigeria. Government should try as much as possible to provide/create a conducive environment for business activities. Workers should ensure that they abide by the rules, regulations, policies laid down by the management. Management should have good financial strategies which encompass revenue generation and how it should be spent. Organizations should always strive hard in order to make sure that the organizations profit base is increased.
Reference
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