BASIC ISSUES INVOLVED IN BUSINESS AND THE STRATEGIC INTENT
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BASIC ISSUES INVOLVED IN BUSINESS AND THE STRATEGIC INTENT
Chapter one
1.1 Introduction
As countries work to realise political independence, the concept of economic self-reliance evolves in meaning and purpose. This is true for the Nigerian scenario.
This economic self-sufficiency cannot be attained in an economy dominated by foreign capital, particularly foreign entrepreneurs. This would lead to the repatriation of resources required for indigenous economic development to foreign countries.
In an effort to reduce the weight of the nation’s reliance on foreign countries and foreign entrepreneurs, the Federal Government of Nigeria has designed and implemented a number of strategies to provide her citizens with the necessary skills, a favourable environment, and financial assistance to create wealth.
Individuals have bravely accepted the risk of entrepreneurship in order to assist and strengthen the realisation of an independent economy. Unfortunately, they lack the necessary skills and knowledge to drive this process.
The small company sector’s low productivity is one of the factors contributing to the country’s over-reliance on foreign economies. This research focuses on emphasising strategic management approaches that will help small businesses grow.
To do this, we will concentrate on the hierarchy of strategic intent in the strategic management process. This is the missing variable in Nigerian small businesses’ “Modus Operandi” (mode of operation).
1.1.1 Background of the Study
Diagram of the Earth at night.
The diagram above is made up of hundreds of satellite photographs of the world collected at night and published by two researchers in 2002 (Michael and Stephen, 2003:9).
Some areas of this image suggest that highly developed countries, such as the European Seacoast, the Eastern United States, Eastern China, and Japan, are lit up at night. Whereas Africa, the poorest region, is predominantly dark. (Michael and Stephen 2003:9). This nightlight is man-made.
Analysing the causes of these disparities reveals that the volume and form of human activity in various economies vary greatly.
Nigeria is one of Africa’s largest nations, with a population of more than 130 million. Despite all of the Laurels she has gotten for her contributions to the stability of other nations, she continues to suffer from the horrible affliction, POVERTY. This is due to inadequate management of physical and human resources, rather than a lack of them.
The vast majority of the country’s population has an extremely low standard of living. This applies not only to her counterparts in wealthy countries, but also to small elite circles inside her own society.
This low standard of living manifests itself statistically and qualitatively in the form of low income (poverty), restricted education, short life and work expectancies, a high newborn mortality rate, inadequate housing, and, in many cases, a pervasive sense of malaise and hopelessness.
The low productivity of the small company sector is a major contribution to the country’s weak growth rate. To this extent, we might argue that increasing the productivity of the small company sector is a vital condition for improving Nigeria’s quality of life.
Individual economic advancement is necessary for the realisation of economic self-dependence or determination.
1.2 Statement of Problem
Nigerian entrepreneurs have failed to transition from traditional methods of conducting a business to modern management strategies. This has deprived them of their competitive advantage and left them at the mercy of larger enterprises on both the local and international levels.
Nickels et al. (2002: 176) claimed in 2002 that the small company sector produced around 40% of the United States’ GDP (gross domestic product) and employed a population larger than that of Australia and Canada combined.
In contrast, the Nigerian small company sector contributes little to the country’s economic progress. Low productivity has reached epidemic proportions in the region, posing an economic concern.
According to studies, the reason for this sector’s low production is a lack of management strength. A. W. Okparanma’s unpublished material identifies managerial, financial, infrastructure, technological, and social challenges hindering the development of Nigeria’s small businesses.
He goes on to say that many entrepreneurs lack the managerial abilities and talents required to plan, organise, direct, and control their human and physical resources.
Although these issues are real, they are the result of “internal lapses” caused by a lack of strategic intent in the “modus operandi” (style of operation) of Nigerian small businesses.
These tiny company enterprises have not established a solid foundation on which to stand and operate. They lack a vision, goal, and objectives, and have not defined their businesses in terms of client group, customer function, or alternative technology.
1.3 RESEARCH QUESTIONS.
The following research questions will help achieve the study’s objectives:
What is strategy?
How might the strategic management concept help small businesses succeed?
Is Nigeria’s small company vulnerability caused by internal or external factors?
How can small enterprises’ productivity be measured?
1.4 OBJECTIVES AND PURPOSE OF STUDY
For any research article to be thorough and have some amount of validity, specific objectives must be established and standardised. Based on the study’s problem description, the following objectives were established to drive the research inquiry:
To determine the extent to which the strategic management concept has been utilised by small business organisations in Nigeria.
Explain the concept of strategic management and how it relates to small businesses.
To teach Nigerian entrepreneurs how to tackle entrepreneurial difficulties objectively.
To demonstrate the importance of the small business sector in the growth of the Nigerian economy.
Reinforce and refocus Nigeria’s small business sector for favourable results.
Make recommendations based on the findings.
1.5 Research Hypothesis
The importance of hypotheses in this study cannot be overstated. It acted as a guide in designing the route of investigation, selecting the types of data required, determining the appropriate statistical treatment, and analysing the study’s findings. The following hypotheses constitute the basis of this study:
H0 – Small enterprises cannot thrive in Nigeria, nor can they contribute to its economic growth.
H1: Small enterprises can survive in Nigeria and contribute to its economic development.
H2 – Applying strategic management to small enterprises does not improve their performance.
H3 – Applying the strategic management idea to small enterprises can boost performance.
H4 – The performance of small businesses cannot be measured.
H5: Can the parameters for measuring small business success be determined?
1.6 Significance of Study
This study is expected to provide valuable insights into the overall contributions of small enterprises to the nation’s economic prosperity.
It will help Nigerians understand the importance of the strategic management concept to small business growth.
The study would help small business owners understand the complexity of business.
Understanding the strategic intent will assist small business owners prioritise their efforts.
The study would help small business entrepreneurs make better use of the country’s resources, minimising reliance on foreign countries.
It will benefit the academic community by expanding the body of knowledge and serving as a forum for future research studies on the application of strategic management to small firms in Nigeria.
1.7 Limitations of the study
This study examines the strategic intent of the strategic management concept in regard to small enterprises in Nigeria, specifically Port Harcourt. It includes all of the strategic variables in the strategic management model but does not include small enterprises from other countries.
The study also did not conduct research into other functional areas of management, which affect the productivity of small firms in Nigeria.
This study excludes other strategic steps that small businesses must take in order to succeed.
Although the delimitations were purposely imposed on this study by the researcher, the nature of the research work itself limited the researcher’s ability to make generalisations. The restrictions are:
The reliability of the questionnaire responses could not be verified.
Due to budgetary and time restrictions, a convenient sample was chosen, limiting generalisation to only those who completed the survey.
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