EFFECT OF BUSINESS FAILURE IN NIGERIA
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EFFECT OF BUSINESS FAILURE IN NIGERIA
Chapter one
GENERAL INTRODUCTIONS
1.0 Introduction
Business is vital in our culture since it is necessary for survival. We communicate with businesses every day. Business organisations meet our basic requirements, such as food, housing, and clothing.
They also supply us with leisure, relaxation, amusement, and reducing services. Many of us work in commercial organisations and consequently rely on them for our income and overall well-being. One may see that our society cannot function without corporate organisation.
A business is said to have failed when it is unable to function in a way that makes its goals feasible. Every entrepreneur wants to manage a successful firm. No one wants to establish a business that will fail. Unfortunately, as we have seen, many businesses do not survive or flourish, disappointing their owners.
Most business failures occur at the small business level, and they are caused by mismanagement. According to Statistics Canada (failing concerns: business bankruptcy in Canada, 1997), the majority of businesses fail due to poor general management, poor financial management, or poor marketing capabilities.
The primary cause of failure is inexperienced management. Managers of bankrupt organisations lack the necessary expertise, knowledge, and vision to run their businesses. Even as companies age, vision remains a fundamental weakness that contributes to failure.
However, in Nigeria, statistics reveal that “two-thirds of new employer establishments survive at least two years, and 44% survive at least four years.”This is a far cry from the previously accepted idea that half of enterprises fail in their first year and 95% fail within five years.
1.1 Statement of Problem
The reasons and consequences of company failure in any society cannot be ignored. Every institution, whether private or public, exists to answer a certain purpose. Profit is the primary goal of any formed commercial entity.
And this might be accomplished through the effective and efficient performance of its operators, which includes developing managerial skills, dealing with uncertainty, and sufficient planning, among other things.
The lack of these in any firm, among others. The absence of these in any corporate organisation may lead to business failure. Herein lays the difficulty with most commercial organisations.
1.2 Objective of the Study
The primary goal of this study is to investigate company failure in Nigeria: Specific objectives are:
To determine the many causes of company failure in Nigeria.
To assess the impact of this failure on socioeconomic and political development.
To assess the influence of sociopolitical instability on corporate performance in Nigeria.
1.3 Significance of the Study
This study will make the following contributions to business organisation, and so to humanity in general. It may be useful as reference information for people who desire to do further research on the research topic.
It will assist in identifying the factors hindering the success of a company organisation. It will assist us in suggesting solutions to difficulties affecting the business organisation.
It will contribute to the efficient functioning of business organisations and will also assist in understanding the various types of business organisations.
In addition to the foregoing, this study will create a report that may spark more debate about company failure, causes, repercussions, and solutions.
1.4 RESEARCH QUESTIONS.
What are the major elements that lead to company failure in Nigeria?
How does corporate failure affect Nigeria’s socioeconomic and political development?
How does the business environment affect business failure in Nigeria?
1.5 Hypotheses.
Ho: Business failure does not have a detrimental impact on society.
Ho: Business failure has a detrimental impact on the society.
Ho: Nigeria cannot advance without the establishment of an effective and efficient corporate organisation.
Hi: Nigerians can progress even without an effective and efficient business organisation.
Ho: There is no meaningful relationship between business and economic development.
Hi: There is a strong relationship between business and economic development.
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