STRATEGIC FEASIBILITY STUDIES FOR SMALL SCALE BUSINESS SURVIVAL
(A CASE STUDY OF MR. HILLS RESTAURANT NASARAWA)
CHAPTER ONE
1.1 INTRODUCTION
Every nations of the world yearn for economic growth and development in line with sustainable, purposeful economic policy and attainable programmes of achieving the fundamental objectives in attaining a greater height. The role and contributions of a small scale business outfit towards the realization of this mindset cannot be over emphasized. Nigeria cannot be left out of this struggle as a lot is yet to be done in this wise. It is pertinent to create enabling environment that will enhance economic growth and development.
Naturally speaking, small scale businesses are the bedrock of economic growth and sustainable economic independence.
This project research is carried out to examine the methods and ways of surviving on small scale business in a long period of time.
- BACKGROUND KNOWLEDGE OF THE STUDY
Mr. Hills restaurant is one of the major fast food joints in Tammah, Nasarawa, with its bakery business in Keffi same Nasarawa State. Mr. Hills restaurant was established in 2009 by Mr. Peter Hills who is the sole owner of the business (Mr. Hills).
Mr. Hills Restaurant is engaged in all assorted kinds of food, drinks and snacks such as rice, beans, spaghetti, meat pie, chicken pie, semovita, amala, pounded yam, alcoholic and non-alcoholic drinks etc. The restaurant has over 20 staffs and according to Mr. Peter Hills sustaining the business has not been easy due to lack of capital structure, lack of promotional budget, poor competitive position, lack of close supervision and monitoring of performance, poor staffing, lack of facility and lack of experience.
- STATEMENT OF THE PROBLEMS
The following statement of the problem shall serve as a guiding principle on how and what the research should investigate pertaining business failure. The problems goes thus: “could it be that, small business failure is attributable to inadequate capital structure, poor staffing, inadequate record keeping, close supervision and monitoring of performance on the part of the entrepreneur, business location and inadequate promotional budget for efficient and effective small business management in Nigeria?”
1.4 THE PURPOSE OF THE STUDY
The purpose of this research work are listed below:
1. To find out whether small scale business failure is caused by inadequate finance, poor staffing, inadequate credit control, promotional budget and poor supervisory management of the enterprise.
2. To find out how best small scale business enterprises can be operated successfully.
3. To proffer solution and recommend ways of preventing business failures.
4. To find out how feasibility studies can aid business survival.
5. To find out the various survival strategies available to small scale business survival.
- OBJECTIVES OF THE STUDY
The objective of this study is not only to fulfill the departmental requirement for the award of Higher National Diploma.
- The study seeks to present to business owners some strategic feasibility studies reports for small scale business survival.
- It seeks to set out basic management techniques for business management to apply.
- It is also set out to equip business men with necessary tools to prevent business failure.
- It is hoped that the rate of business failure will reduce since many businessmen are not trained in business management field so this study seeks to present to them with basic business management techniques for survival.
- SIGNIFICANCE OF THE STUDY
This project work will not only be significant to Mr. Hills Restaurant but also:
- Serve as a guide to small scale business operators.
- Serve as a reference point to the academia and future research fellows.
- This study will also serve as a source of information through the provision of comprehensive and instructive analysis as a strategy to educate individuals and organization more about business surviving techniques for small scale enterprises in an economic development.
- RESEARCH METHODOLOGY
Relevant data gathering techniques will be adopted in this project work. The data gathering instrument will be a combination of questionnaire and personal interviews.
The questionnaire method with personal interview will be chosen as well as a check list to aid the respondents to oral dictation and explanation from the questions.
- RESEARCH QUESTIONS
The following questions were asked during the oral interview
1. Do SMEs commence business with inadequate capital?
2. Do SMEs recruit qualified staff to run the firm?
3. Are there traces of failure to poor record keeping?
4. Has there been lack of proper supervision and monitoring of performance?
5. Is the business poorly located?
6. Do you have a properly promotional budget allocation?
7. Has there been poor credit control system in the firm?
1.9 RESEARCH HYPOTHESES
The hypothesis formulated by the researcher in which this research works will be based:
Ho: Strategic feasibility studies do not have any effect on the survival of small scale business.
Hi: Strategic feasibility have a tremendous effect on the survival of smalls scale business.
The above formulated hypothesis will be subject of concern of this research ad data will be collected to support the above formulated hypothesis.
1.10 SCOPE OF THE STUDY
The strategic feasibility studies concentrate on finding out the rate of business failure as it relate to:
- Inadequate capital structure
- Poor staffing
- Poor record keeping
- Lack of close supervision and monitoring of performance by the businessman.
- Poor business location
- Inadequate promotional budget
- Inefficient and effective credit control.
Above all, the researcher limit the studies to SMEs in Nasarawa with particular reference to Mr. Hills Restaurant.
1.11 LIMITATIONS OF THE STUDY
The following are some of the hindrances experienced by the researcher
a. Source of Information:- Inadequate information has lead to the drawback of the research work by the researcher due to poor network service and the non-respondent attitude of the interviewee.
b. The ASUP Strike Action:- Yes, the strike action embark upon by The Academic Staff Union of Polytechnics (ASUP) hindered the research work because before the strike, the researcher was making use of the school library information as a result, these services were cut off. However, thanks to e-library facilities in the neighbouring states which helped out in the end.
- DEFINITION OF RELEVANT TERMS
Entrepreneur:- According to Ball Back (1980) Someone who can identify and take on business opportunities by establishing a business and taking risk in order to make profit.
Entrepreneurship Development Programme (EDP):- According to Ball Back (1980). This is a programme set up by government for graduates and school leavers to acquire skills to be self employed.
Liquidation:- This is selling of all company’s assets, in parts for their tangible worth.
Strategy:- According to Alfred Chandler (1962) refer as the determination of the basic long goals and objectives for an enterprise and the adoption of a course of action and the collection of resources necessary for achieving these goals.
Management:- This involves effectively getting activities completed with the people in a dynamic setting. (Druckler P.F. (1970)
Feasibility study:- According to Olaegba B.A. (2007). This simply means a well detailed study that examine the profitability, feasibility and effectiveness of a proposed investment opportunity.
SMEs: This simply means Small and Medium Enterprises.
GNP: Ben Alaba O. (2007)This refers to Gross National Product. Which simply means the quantity of goods and services produced in a country.
REFERENCES
Chanaller A.D. (1962), Strategy and Structure, New York,
Anchor Books.
Drucker P.F. (1970), Management, London Pan Books
Ewurum U.J.F. (1996). Principles of Management, Gordan Jornal; A Journal of Management and Computer Technology Vol 1 December.
Gomez and barikin (2002), Management policy, New Deihi; Prentice Hall of India Private Ltd., 2nd Edition.
Stoner (1978), Management, 5th Edition, New Dehili: Prentice Hall of India.