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BANKING FINANCE

PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

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PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

INTRODUCTION TO CHAPTER ONE OF THE PROBLEMS OF MANAGEMENT OF A RECESSIONARY ECONOMY

1.1 BACKGROUND TO THE STUDY

The primary goal of any private sector enterprise in Nigeria is to make a profit, yet the current economic situation is fraught with uncertainties. Threatens the survival of every business and makes sound liquidity and cash retention the focal point for management rather than achieving maximum profitability in recent years’ experience has shown that no business or industry,

large or small, in Nigeria today can claim immunity from the financial, the threats to economic survival that have developed recession. In light of the dwindling government revenue from domestic taxation and oil acute shortage of foreign exchange removal of petroleum subsidy and the creeping-devaluation of the Nigeria currency,

management attention should be focused on management principles and techniques that can help the business survive within the uncertain economic environment.

1.2 BACKGROUND TO THE STUDY

The number of businesses that have been liquidated or wound up has climbed dramatically in recent years. Banks and other multifunctional enterprises have been closed in Nigeria over the previous 10 years. These recent changes have been an unpleasant development that has resulted in a lack of trust on the part of investors.

Millions of Naira had been lost by investors in these liquidated firms. Furthermore, due to fear of business failure, foreign investors have abandoned the Nigerian economy,

resulting in acute unemployment, low productivity, and non-payment of dividends to shareholders. To that end, a research aimed at resolving these issues is a good development.

PURPOSE OF THE STUDY

 

The purpose of this study is to conduct research on the challenges in the management of Nigeria’s recessionary economy. The study will be guided by the following objectives.

 

1. To identify the challenges of a declining economy

2. To ascertain how these issues affect business management in a slumping economy.

3. To propose a solution to management challenges in a downturning economy.

 

SIGNIFICANCE OF THE STUDY

The importance of this research work is that the results will shed additional light on the management of a recessionary economy. The outcome will, hopefully, totally assist in recommending solutions to such concerns. I also hope that other researchers in the same subject will find this study useful.

DEFINITION OF TERMS

1. Economy: A defined environment for business and other activities.

 

2. Management: The process of doing things through and with people.

 

3. Budgeting: To decide how much money and other products should be purchased and spent.

 

4. Accounting: The practise of demonstrating how financial responsibilities are met.

 

were completed.

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