Abstract

Decrease in the supply of portable drinking water across most settlements in Nigeria and the continuous increases in demand for drinking water gave birth to sachet water otherwise called ‘Pure Water”. The study into this industry is imperative, as it provides drinking water to many households in addition to employing many youths, thereby decreasing unemployment and enhancing economic growth. However, it has been observed that many of the factories within the industry collapse barely few years after commencing operation. This research therefore aims to examine the causes of the collapse sachet water factories (CSWFs) in Tarauni, Kumbotso, Dala, Nassarawa, Municipal, Gwale and Ungoggo of Kano Metropolis, Nigeria. Survey research design was adopted. One hundred and sixty-nine (169) samples of CSWFs and their employers were identified, questionnaires were distributed to proprietors. Result of a descriptive statistics has shown that 8 of the 16 challenges have significant impact with ownership structure and government bureaucracy having the largest with 7.58 score. A correlation analysis has suggested that the factors have a mean score of 5.231 and standard deviation of 1.60075. The paper thus recommends provision of industry specific loans for sachet water operators by the Bank of Industry; owners should employ professionals to conduct intensive market survey and develop a realistic business plan, in order to minimize failures; Cooperative organization should be formed by the SWFs, to support their member, in case of difficulties.

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