CRITICAL ANALYSIS OF BUSINESS FAILURE IN NIGERIA AND POSSIBLE SOLLUTIONS (FAITH PRESS, UYO)
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1.0 BACKGROUND OF THE STUDY
Business is absolutely a complex activity. This is because it involves a lot of technicalities ranging from the task of planning to control of such plans in order to achieve the desire objectives of profit maximization. It is in view of this, that this study is mainly centered on the floating of a business to a stage where it finds it difficult to keep it’s head above water.
In the late 70s business was in its period of boom, the economy was doing well at that point in time and the exchange rate was appreciable within this period. International trade was easy as a result of lesser trade restrictions and foreign exchange control.
During this period, Faith printing press was a beneficiary of the prevailing policies such as the importation of papers and other printing materials. These goods were usually tax free by the agencies concerned, as a result of the significance the government attaches to the publishing sector and the clearance procedures at the port were effective and efficient then.
In the late 80’s as a result of the military take-over, various decrees and policies came into place. The economy became unbearable for the citizens and their purchasing power became very low, thereby forcing business not to live up to their required billing. What followed was that industries started operating on short run, and later businesses started folding up.
The various trade restrictions, VAT policies on goods imported did not help matters. The result effect of all these, was folding up of businesses. Against the business affected was then within our locality the -Faith printing press. The concerns shown people in the locality spearheaded an agenda to resuscitate the company and prevent it from total collapse.
The process of doing this proved difficult due to the extent of funds require to source for foreign exchange needed for the importation of raw materials there were other problems that seem intractable. But the people and company unite make persistence efforts to resuscitate the company but the more difficult problems that resulted, Motivated an interest to study the problems of business failure and the possible solutions.
1.1 HISTORICAL BACKGROUND OF FAITH PRINTING PRESS
Faith printing press is a sole proprietorship business. It is own by Chief Gabriel O. Faith. It was established on 20th August 1969 and was situated at V.V.I Lagos/Keffi Street, Uyo.
Faith printing press was set-up with the objective of providing the best quality printing jobs to customers at affordable prices and at the due appointed time. At the early life of the press, it started with letterpress and binding machine. Namely: Adana, Letterpress Heidelberg and Cutting Machines.
In the course of expansion, the press relocated to N.C-.3 Oshogbo Road, Uyo in 1979. The press increased its machineries by purchasing Rota prints, plate maker, camera, and kond. During this period the press has increased its area of specialization from letter press to offset printing.
In 1985, the press moved to J.11 main street BadarawaUyo and finally relocated to its permanent site V.V. 15 Nassarawa Road, Uyo in June 1993. in its present site, it has acquired additional machines such as multilith 1850, Stitching machine, computers and Ruling machines.
This organization is engaged in the publishing of companies Annual reports, text-books, invoices, Receipts calendars, invitation cards, Business cards e.t.c. Faith printing press is an organization worthy to be emulated, Judging by its achievement within the period of its existence. The organization has render a lot of its services to prominent companies & government parastatals within this country, among them are: Nitel Headquarters- Lagos, National electric power authority Uyo, Uyo state water board, Ahmadu Bello University Teaching Hospital, Uyo, Bayero University Kano, Nice Top papers industries Uyo etc.
1.2 STATEMENT OF THE PROBLEM
Business entrepreneurs today are making a lot of efforts in order to make their investment a perpetual going concern. Every means available at their disposal are being made available terms of capital base sophisticated equipmentsetc so as to meet-business demands and sustain the completive market environment.
How everinspite of these tremendous effort businesses are still failing and these are owing to various factors that pose myriads of problems.
1.3 STATEMENTS OF HYPOTHESIS
The following hypothesis has been formulated to serve as a guide for this study:-
That efficient management of resources could not lead to business failure of _Faith printing press
That inefficient management of resource could lead to business failure in Faith printing press.
1.4 OBJECTIVES OF THE STUDY
This study intends to achieve the following objective
To find out how Faith printing press should operate to avoid failure.
To examine the implications of government economic policies on the survival or failure of Faith printing press.
To find out and how to avoid business collapse with reference to Faith printing press
To examine the use and control of resources in Faith printing press.
1.5 SIGNIFICANCE OF THE STUDY
This study is significant in that its will also identify possible mistakes if any, which could lead to business failure.
It will also point out possible solutions to business failure with reference to Faith printing press, Uyo. It will be also investigate some important factors to be considered before setting up a business and those that will be implemented in the course of business.
Finally, the study will be useful to the management of Faith printing press, Uyo as it will help in tackling the problems militating against the operations of the company.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
This study is untaken to find out the fundamental obstacles of business failure and possible solutions for a sustainable economic development with a case study of Faith printing press Uyo. The study is concerned in the first place with the source of funds available for printing press firms and then their management system i.e its efficiency; it will appraise these two factors and provide possible solutions.
The selected firm is a small printing press, it however engages in different types of activities ranging from supplies, printing contacts and binding.
The limitations of this study are many, though not unfamiliar, as every project work deals with such limits, it includes the following:-
i. The time limit for the submission of this project will not be sufficient. this is due to the compressed academic calendar that makes up a semester during which the research work is being made.
ii. In adequate finance.
iii. Lack of full co-operation from officials/workers of Faith printing press whose views are important to this topic. Despite these difficulties it is the hope of the researcher that this study will be of value to future researchers and also printing (private) operators.
1.7 DEFINITIONS OF TERMS
This is an attempt which is aimed at explaining and defining of terms and abbreviations used according to the meaning of the contexts. Such terms includes the following:-
a. LIQUIDATION:- This is a process where a company can no longer Maximize profit and is being forced to wind up.
b. OVERHEAD COST:- These are the cost incurred as a result of involvement in production of goods and services.
c. WORKING CAPITAL:- This is the amount set aside for the running of the business.
d. MANAGEMENT:- The authorities that are concerned with decision making
e. CASH BOOK:- This is a principal book account used for reading business transaction.
f. CAPACITY:- Ability to hold, contain, get hold of, learn Things, qualities ideal etc.