PROBLEMS OF STATE-OWNED ENTERPRISES
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PROBLEMS OF STATE-OWNED ENTERPRISES
Abstract
This study is a field survey research design that was carried out to discover the Problems Facing State-Owned Enterprises in Enugu State “A case study of Presidential Hotels, Enugu and Nike Lake Hotels (Protea Hotel) Enugu.”
The goals of which are to determine the function of advertising in developing mass awareness for the enterprises and to know whether the timeliness of these enterprises is adequately communicated in our government enterprises, and to determine the reasons highlighting the current challenges of state-owned firms.
To facilitate this study, the researchers chose all of the personnel from the Presidential Hotels and Protea Hotels (Nike Lake) in Enugu State, a total of 219 people. The questionnaire was utilised by the researchers to obtain data from the respondents.
Yes, no, no idea, good, fair, bad, poor, very poor, or even very good were the options. Following the investigations, some findings were made. It was discovered that promoting and creating mass awareness should be the responsibility of government agents, that getting the services needed at the right time is a poor managerial ability, that non-payment of staff salaries affects staff appreciation of their job.
And that the most effective of all findings was government interference, to which many respondents said yes and which causes the major problem of stasis.
As a result, we urge that the government investigate the difficulties of state-owned firms and seek answers to any issues that may arise.
CHAPITRE I
INTRODUCTION
“PROBLEMS OF STATE-OWNED ENTERTAINMENT IN ENUGU STATE (A CASE STUDY OF PRESIDENTIAL HOTELS AND NIKE LAKE HOTEL (PROTEA HOTEL), ENUGU.”
1.1 Background Of The Study
governmental-owned firms or governmental involvement in business enterprises have a long history in Nigeria, dating back to the British administration.
Ibie (1970:27) revealed this information, and according to him, he divided the enterprises into four categories and declared that history was not chosen but rather inherited. During this time, British administrations were in charge of the colonial public sectors, as was customary.
This category comprises utility service businesses such as education, water, health, and electricity. Following political independence, these state-owned services were automatically preserved by the indigenous public sector.
The second group was the foreign private sector, which was previously in control of the three production chain factors – management, capital, and entrepreneurship. The distribution trades were mostly in the hands of the foreign private sector in this situation.
After independence, it was believed that allowing the expatriate community to control the means of production and distribution would conquer or subordinate the country’s sovereignty to neocolonialism.
Despite the oddity caused by this group, things were rectified by the indigenization policies of the 1970s, which went a long way towards expanding the public sector’s participation and regulatory functions.
According to Ibie, the third group arose from the post-independence desire, which was bolstered by the infusion of the public sector’s oil wealth in order to accelerate economic development by acting as a catalyst in strategic sectors where the indigenous private sector was still unable to take the initiative.
This was the basis for the government to have a substantial impact on iron and steel development, petroleum development, and so on.
The fourth and final business group was that of troublesome spinners, who were perceived by public officers as not being inventive in the private sector.
It was believed that a push into this field would broaden the public sector’s revenue-generating base with the expectation of operating and managing them as efficiently and profitably as the private sector. The belief gave birth to public-sector operations in organisations such as hotels.
Despite this, it was widely assumed that the nationalists who took over the country’s administration following independence in 1960 encountered theoretical issues in galvanising the various sectors of the economy in order to achieve quick technological and industrial progress.
It is also believed that in most developing economies, money was in short supply. Furthermore, skilled staff were scarce, and private investment was minimal.
Today, however, we have various federal and state-owned firms, such as Protea Hotel (Nike Lake Hotels) Enugu, the Airport, and Presidential Hotels, among others.
According to Ugwu (1994:35), Presidential Hotels was founded in 1980 by the Eastern Nigerian Development Co-operation (ENDC) with branches in Enugu, Onitsha, Abakaliki, Aba, Owerri, and Obudu in Cross-River State, with Enugu serving as the headquarters.
The hotels were built as catering rest stops for government officers serving in the colonial administration at the time. When it was established under the Eastern Nigeria Development Cooperation (ENDC), it was not a business endeavour. When Ojukwu was appointed governor of the Eastern region (1966-1967), he changed the name of the catering rest house to progress Hotels.
Between 1930 and 1945, the catering rest house and progress hotels were designated as a non-commercial venture due to government subsidies or grants. During the administration of Ukpabia Asika, another alteration was implemented.
It was converted from Progress Hotels to Phoenix Hotels at this point. However, it was still part of East Central State, and these hotels served to both official and non-governmental needs.
These hotels were renamed Paramount Hotels after General Murtala Muhammed founded Anambra and Imo States on March 16, 1976. Between 1980 and 1985, the Paramount Group, which had branches in Onitsha, Enugu, and Abakaliki, combined with Hotels Presidential Limited Enugu to become Anambra Hotels Limited.
Because the Paramount Hotels Group maintained their internal working organisation throughout the period, the merger was for administrative purposes only.
The administration of the Anambra hotels group regained its autonomy in 1986. Protea (Nike Lake Resort) Hotels are a type of hotel industry that provides cheap services to the public.
It also has various types of attractions, such as golf, swimming, skiing, and outdoor services, which attract holidaymakers.
Most resort hotels are constructed near streams, mountains, or oceans, while some are built on islands, and they serve as vacation destinations for people of all races. According to the book “encyclopaedia” volume 9, resort hotels also give cheap and affordable services.
1.2 Statement Of The Problem
The government’s constant meddling hampered the organization’s growth and maintenance, as well as its management.
Second, the issue of timely payment of staff salaries is a bad issue, and the government is notorious for failing to pay her employees on time. There’s also the issue of training. The state government and even the federal government find it difficult to send their employees to training, and this has an impact on the organization’s manpower planning.
One of the key managerial issues confronting state-owned firms is human resource planning. It is a function of the organization’s staff. This entails assisting in the creation of the organization’s workforce predictions and models. There is a major issue if training is not provided.
There is also a financial matter to consider. The development of state-owned firms at the state level in recent decades, combined with their nearly constant poor economic and financial performance, has exacerbated the global financial crisis of state-owned enterprises.
We also have a problem with undercapitalization. One may question why government-owned profit-oriented firms are unable to obtain loans or financing from financial institutions.
Whereas their private sector counterparts can obtain a line of credit from the same financial institutions with reasonable ease.
Furthermore, where such loans are to be made, financial institutions hedge against the possibility by asking that the prospective government guarantee such loans. We also have the issue of ineffective management boards. Every new military or civilian administration begins by dissolving owned enterprises or companies and appointing new members to replace them.
The civilian administration perceives these board appointments as favours for those who voted for them. The military, which normally enters government on a corrective platform, sees it as an early requirement to replace these civilian appointments as part of the campaign to remove or decrease corruption in public life.
As the case may be, we also have the issue of integrity. Our government-owned or state-owned firms have fared poorly over the years, owing to the fact that they are governed by unscrupulous officials.
The integrity issue undoubtedly concerns a large proportion of intelligent and public-spirited Nigerians. These and other issues plague state-owned firms, and efforts to address them have achieved no productive outcomes.
Given the myriad issues that plague the effectiveness of state-owned firms in Nigeria in general, Presidential Hotels and Protea (Nike Lake) Hotels Enugu in particular, the need for such a study is undeniable.
1.3 Objective Of The Study
The study’s goal is to investigate the challenges of state-owned firms in Nigeria, namely Enugu, with specific references to both Presidential Hotels and Protea (Nike Lake) Hotels Enugu.
The research will focus on the following issues as a more detailed degree of analysis:
(i) Determine the role of advertising in raising public awareness of state-owned firms.
(ii) Determine whether the timing of state-owned enterprises and demand for them in government parastatals is effectively synchronised.
(iii) Determine the elements contributing to the current challenge that the firms are experiencing and devise strategies for successfully utilising employees to obtain and sustain confidence and acceptability of state-owned enterprises.
(iv) To gain a better grasp of the nature and role of management, as well as their job.
(v) Examine staffing as it relates to state-owned firms.
(vi) To make government recommendations.
1.4 Importance of the Research
Given the overarching importance of state-owned enterprises for the rising population and the rapid development of hotels in Nigeria, government policymakers face a significant problem in developing far-reaching and suitable hotel policy.
Marketing departments at state-owned firms are also challenged to develop better marketing strategies so that customers may receive the correct services at the right time and at reasonable pricing.
Furthermore, a critical examination of the problems of state-owned firms is expected to reveal some shortcomings related to service, on the basis of which flesh remedies and means may be provided.
As a result, we genuinely expect that the recommendations resulting from this study will infuse a new level of operational efficiency into Nigeria’s state-owned firms and positively improve the country’s food deficit balance sheet and other economic challenges.
1.5 Research Questions
Question I: Have you ever been unsatisfied with the attitude of this company’s services?
Question II: How do you rate this company’s public-facing services?
Question III: Does the failure to pay employee salaries have an impact on the administration of this business?
Is government meddling the main issue confronting state-owned enterprises?
Question V: Do you typically receive the services of the enterprise at the appropriate time?
1.6 Scope Of The Study
The investigation of the difficulties confronting state-owned firms in Enugu State. The research is focused on two specific sites in Enugu State: presidential hotels, Enugu, and Protea Hotels Enugu, which was previously known as Nike Lake Hotels Enugu.
This study attempts to find solutions to the existing problems of state-owned enterprises, such as non-payment of staff salaries, government interference, which is the major issue, inability of the public to obtain the required and needed services at the appropriate time, lack of staff training, promoting and creating mass awareness, and so on.
These issues make it difficult for state-owned firms to provide services when needed, and the government has no voice in the problems that state-owned enterprises face, generating significant obstacles in economic development and progress.
1.7 Limitations Of The Research
This study is only applicable to Enugu State. It focuses on two sites in Enugu State: Presidential Hotels and Protea Hotels (Nike Lake Resort), which were chosen for their convenience. However, because both of these state-owned firms run under the same economic conditions, it is considered that there are no significant distinctions in their operating systems or difficulties.
1.8 Definitions Of Terminology
(i) STATE-OWNED ENTERPRISES: These are businesses formed by the government to provide public services to the people.
(ii) MANAGEMENT: The act of running or controlling a company or other comparable organisation.
(iii) HOTEL: A structure in which individuals remain for a short period of time in exchange for services such as paying for their rooms and food.
(iv) ENTERPRISE: A big enterprise or business founded by the people of a country, usually with the assistance of the government.
(v) PROBLEM: Something tough to cope with or comprehend. A query or object that can be answered logically or mathematically.
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