Business In Nigeria Research Articles

Crowdfunding: An Alternative to Funding Women Entrepreneurs

Traditionally, Small businesses in Nigeria find it particularly difficult to fund their operations from formal sources. The situation becomes more challenging when women are involved because of cultural bias. Credit is rarely made available to women as many perceive a business run by women a big risk. Several government credit intervention programmes in the past were initiated but the problem of financing remained unsolved. Similar businesses in more developed economies are turning to innovative financing known as crowdfunding. The need to explore such a financing mechanism in Nigeria is the aim of this study. We employed a cross-sectional and retrospective mixed-methods approach, utilizing both quantitative and qualitative data. Findings from this study show that gender was not significant for understanding crowdfunding as a means of raising money from the public over the internet. This finding is very revealing as it shows that cultural barrier faced by women in accessing credit from traditional lenders will be solved by crowdfunding.

Nexus Of Liquidity Management And Corporate Business Failures In Non –Financial Sectors’ A Case Of Nigeria

This paper examined the imperativeness of liquidity management – a key survival strategy of listed companies on the Nigeria Stock Exchange Markets and retrospectively assessed the salient variables on delisted corporate firms in Nigeria. Data were randomly collected from ten companies each from 114 listed and 82 delisted companies on the Nigeria stock exchange market records from January 2016 to 31st December, 2018 - healthy listed companies and 2006 -2008 for delisted records of failed companies. In all, twenty companies were analysed with two-tailed test using a significance level of 0.05 to test the possibility of the relationships, The existence of a positive relationship between liquidity management and profitability of corporate firms in Nigeria were established as the result of the study showed that adequate liquidity management spurs rapid cash growth, effective operating activities and profit making propensity of corporate healthy businesses which invariably were lacking in the delisted companies and resulted into eventual failure. Also, a higher cash flow from operations reduce the chance of a firm growing resulting into eventual liquidation. Cash flow from investing activities is however seen as a factor that exert a positive influence generally on corporate businesses in Nigeria. The study concluded that ill management of business liquidity is the major cause of failure of corporate businesses in developing economy and as such cash flow from operations, investments and financing activities of a firm should be adequately monitored by the company managers, investors, creditors and suppliers and even the government to forestall financial distress of companies in developing economy.

Impact of Piracy and Sea Robberies on Fishing Business in Nigeria: A Focus on Lagos Coastal Area

Impact of Piracy and Sea Robberies on Fishing Business in Nigeria: A Focus on Lagos Coastal Area

Analysis of Forest Based Mortar and Pestle Marketing in Oyo State, Nigeria

The emerging high level technology is a threat to small scale retail livelihood business in Nigeria. Wood carving business particularly mortar and pestle production and marketing, is an important component of local household economy and culture of many tribes especially in southwestern Nigeria. This study analyzed marketing of mortar and pestle in Oyo state, Nigeria. Primary data were collected through administration of questionnaire using snowballing technique to select 37 traders who are involved in marketing of mortar and pestle in five major markets in Ibadan metropolis. Data were analysed using descriptive statistics to describe socio-demographic characteristics of the respondents while marketing margin analysis was used to determine the profitability in mortar and pestle among the traders. The results revealed that majority of the respondents involved in mortar and pestle marketing were male (90.3) with more than three-quarter having primary education (87.1%). The respondents are in their active and middle age with average age of 38 years. The estimated monthly return on the marketing of mortar and pestle was ₦19,000.00. Vitellaria paradoxa was ranked first among the tree species used in mortar production while Irvingia gabonensis was ranked last. The average price of Vitellaria paradoxa ₦4,000.00 was highest while Pterocarpus soyauxii was the cheapest for all the types of mortar and pestle in terms of size. Majority (90.32%) of the respondents laid emphasis on the type of tree species when choosing mortar and pestle for either domestic or commercial uses. The study therefore recommends that efforts be made towards sustainable forest management and encourage private individuals on establishing economic tree plantations in order to ensure continuous availability of wood species for mortar and pestle business.

Effect of Agripreneurship on Employment and Income Generation in Cattle Fattening Business in Nigeria

Abstract Unemployment is a major issue in Nigeria because the youth finds it difficult or impossible to secure jobs that meet their expectations. There appears to be a mismatch between graduate skills and those sought by employers. The study investigated the effect of International Institute of Tropical Agriculture (IITA) youth Agripreneurs (IYA) programme on employment and income generation on cattle fattening enterprise under the N2Africa Borno youth project. A two-stage sampling procedure was used to select IYA participants and non-participants. Results revealed that the majority of respondents were males in both categories. It also indicated that youths who are in their productive age are more into cattle fattening enterprise in both categories. The study also found that, unemployment and skill acquisition are the main driving reasons for participating in IYA. It also indicated that both categories of respondents’ required external capital support for start-up of their enterprise, and that IYA programme participants on the average earn more income per month than non-participants. IYA programme participants generated more employment opportunities which implied that the programme had not only empowered participants but also made the participants’ become employers. The study recommended that there is a need to support youths with funds, access to trainings on capacity development and skill acquisition to make them self-employed and job creators.

Predicting Customer Behavior with Combination of Structured and Unstructured Data

Presently, there are numerous e-marketing and m-marketing mediums that exist such as YouTube, SMS, What Sapp, Google, twitter, yahoo, Facebook, LinkedIn, email and personal blogs. These mediums are beginning to be used for marketing purposes, particularly by the SMEs in Nigeria. The aim of this research is to address the problem of deciding which of the mediums mentioned above is mostly appropriate to target customer of a particular SME and also to discover the type of data that is most appropriate for analysis in making this decision. In order to achieve this, data was gathered by administering questionnaires and pre-processed based on structured and unstructured data sources. The J48 decision tree classification algorithm was used to mine the data, relevant predictions were made from the structured and unstructured data and the results were evaluated. The results revealed that predicting from unstructured data expresses more of popular opinion, so decision can start from unstructured results and be fined tuned or validated with predicting from structured data. Though structured prediction appears to be better than unstructured, unstructured prediction is still very valuable in situations where there are no structured data such as analysing text messages. Also, Models developed for predicting customer behaviour as regards the marketing channels studied, will form the foundation for marketing decision making, in small and medium businesses in Nigeria.

Effect of Microfinance Banks on the Growth of Selected Small and Medium Scale Enterprises in Makurdi Metropolis, Benue State

This study examined the effect of microfinance banks on the growth of selected small and medium scale enterprises in Makurdi Metropolis, Benue State.The study was anchored on Pecking Order theory. The researcher used both primary and secondary sources from a population of 960 and a sample of 282 respondents obtained by the use of a structured questionnaire. The data collected were analyzed using descriptive statistics such as frequency, simple percentage and the relationship between the variables of the model was tested using multiple linear regression analysis. The result of the regression analysis indicates that a positive relationship exist between Credit by Microfinance (CMF) Job Creation (JOC) of selected SMEs in Makurdi Metropolis and the relationship is statistically significant (p<0.05). A positive relationship exist between Credit by Microfinance and Business Expansion (BEX) of selected SMEs in Makurdi Metropolis and the relationship is statistically significant (p<0.05). A negative relationship exist between Savings Mobilization and the Growth of Small and Job Creation (JOC) of selected SMEs in Makurdi Metropolis and the relationship is not statistically significant (p>0.05). A positive relationship exist between Savings Mobilization (SMB) and Business Expansion (BEX) of selected SMEs in Makurdi Metropolis and the relationship is statistically significant (p<0.05). It was concluded that micro finance does enhance the job creation and expansion capacity of small business in Nigeria. It was recommended among others that microfinance bank should adopt similar strategies adopted by deposit money banks in deposit mobilization because it is by so doing that they will be able to grant quality loans to entrepreneurs which will lead to job creation in the economy.

Modelling business failure among small businesses in Nigeria

Purpose - Despite the reported high bankruptcy rate among small businesses (SMEs) in Nigeria, this study is the first to develop failure prediction models specifically for SMEs using financial and non-financial variables. Methodology - The study employed logistic regression to a sample of 344 SMEs during the period 2000–2014. Findings- The increased in the predictive accuracy of the model shows that data relating to the age of business and location make a significant contribution. Additionally, the study finds that high leverage and operational expenses and low profitability are associated with SMEs failure. The prediction accuracy rate was 92.1 and 93.8 percent for model 1 and model 2 respectively. Conclusion- The findings will serve as an early warning signal for management to take proactive measures to overcome the threats of failure. Financial institutions such as banks will benefit from this study as it will help them set their internal control systems and procedures to manage credit risk for SMEs.

Gauging parameters for e-procurement acquisition in construction businesses in Nigeria

e-Procurement tools build on traditional methods of procurement by integrating the processes and people involved in construction businesses through Internet-supported information and communication technologies. In spite of how crucial these tools are there is a need to for strategic management decision making before they are procured and used because of the cost and technical implications involved. The study examined the gauging parameters for e-procurement acquisition in the construction businesses by firms and organisations in Nigeria. The study utilized a survey approach of actual users of e-procurement tools and technologies in the Nigerian construction industry. A total of 759 actual users were identified from several cities in the study area. Data obtained were analyzed in stacked bars, frequencies and categorical regression. The study presented the significant gauging parameters that can influence e-procurement technology acquisition. They include staff strength of the construction business, presence of quality internet facilities, security level and validation capacity of e-procurement transactions, supportive policy and legislative framework in e-procurement usage and computer literacy level of construction stakeholders participating in an e-procurement environment. In conclusion, the study developed a framework to guide construction businesses in e-procurement technology acquisition. Every construction organization should have unique metrics for measuring and predicting technology acquisition in order to avoid obsolescence and waste of scarce resources. There is a need for supportive policies and legislative frameworks that encourage e-procurement usage among construction stakeholders in the different countries.

The Ease of Doing Manufacturing Business in Nigeria: The Role of Tax Authority (an Enlightenment of the Functions, Scope and Mode of Operations of FIRS)

Tax is the soul of economy. When the tax system is crippled, the economy collapses. The over long dependence on monopolistic oil economy has deeply affected the level of tax compliance culture of Nigerians. Consequently, the recent attempt to increase revenue from non-oil sector and reduce non-compliance in paying tax as well as expand tax net by Federal Inland Revenue Service (FIRS) in Nigeria has been negatively construed by some circles as a hard approach that undermines the ease of doing business in Nigeria. This has led some persons and group of persons to begin to demand for more clarification and enlightenment on the functions, scope and mode of operations of FIRS so that their tax compliance level could be improved. It is as against this backdrop that this paper examines the ease of doing manufacturing business in Nigeria and the role of tax authority. This paper concludes that improvement in tax administration ease of doing business would likely increase tax compliance as well as tax revenue generation and in turn provide funds that can advance the functions of government towards promoting the objective of manufacturing industry, and which will in turn boost the ease of doing business in the sector. Among others, this paper recommends FIRS to have more effective and efficient structure of taxpayers’ service department that would support in addressing the taxpayers’ grievance and regularly educate all the stakeholders in improving tax compliance culture.

Mitigating the Challenges of Small and Medium Enterprises in Nigeria

Purpose- The purpose of the paper is to provide owners and managers of small businesses with necessary information about the challenges facing small businesses in Nigeria and present the possible tools, policies, and strategies to mitigate them. Design/Methodology- Using the multi-case qualitative study, managers of successful small businesses narrated in an interview the tools, policies, and strategies they used to mitigate the identified challenges. The study answered the central question: what are the tools, policies, and strategies used by managers of successful small businesses to mitigate the challenges facing their firms? Findings- The findings identified continuous government intervention and support to small businesses as a major tool that reduced the challenges facing the sector. Practical Implications- The information found in this study can be used by small business managers to mitigate the challenges facing small businesses and reduce their massive failure in the economy. Mitigating the challenges facing small businesses in Nigeria will increase the number of successful small businesses, which will result in the reduced unemployment rate in the economy. A reduced unemployment rate in the Nigerian economy will increase the wellbeing of citizens, thereby reducing the unemployment rate in the economy.

IMPROVING MARKETING FUNCTIONS THROUGH SOCIAL MEDIA PRESENCE AMONG CONSTRUCTION SMEs

With over 3.5 billion people connected to the internet, small and medium-scale (SME) construction businesses have the opportunity to enhance their customer base. The study assessed ways by which marketing functions of SME construction businesses can be improved through social media presence of the firms. The study used a quota-purposive sampling of construction businesses in Nigeria's mega city, Lagos State. The small and medium scale construction businesses comprised of consulting and contracting firms. Using a questionnaire instrument, the social media arm of the marketing unit of SME construction businesses was measured. Presentation of the data was carried out using pie charts and principal component analysis. The study identified two main critical success factors (CSFs)-Firm/Social Media characteristics and Security/Investment factor enabling the Social Media infrastructure for SME construction businesses. A focus on these entities would ensure the successful integration of social media marketing strategies in the traditional marketing functions of construction SMEs. The survival of SME construction business is hinged on the availability of customers which social media exposure helps attract and interact with potential customers. SME Construction businesses of the 21st century must align with the 'global village' trend of incorporating social media applications in their traditional marketing functions.

Establishing Corporate Insolvency: The Balance Sheet Insolvency Test

Cash flow and balance sheet insolvency tests are the two predominant means of determining insolvency. A company is cash flow or commercially insolvent if it is unable to pay its debts as they fall due. Balance sheet or technical insolvency occurs where the value of a company’s assets is less than the amount of its liabilities, taking into account both contingent and prospective liabilities. The term liabilities is broader than debts as it encompasses liquidated and unliquidated liabilities arising from contracts, tort, restitution etc. Commercial insolvency is clearly the more prominent of the tests. In its analysis of resolving insolvency in assessing ease of doing business in Nigeria in 2019, the World Bank Group stated the basis for insolvency proceedings in Nigeria as being inability to pay debts as they mature. This typifies a widely held misconception that technical insolvency is not recognized under Nigerian law. Establishing commercial insolvency is comparatively easier. Commercial insolvency may be established by the neglect of a debtor to pay a single due debt. In the context of restructuring, a creditor’s immediate concern is often the debtor’s ability to make payments as they mature as opposed to whether its assets are sufficient to meet its present and future liabilities. Unsurprisingly, virtually all reported cases of winding-up of companies for inability to pay debts are premised on commercial insolvency under section 409(a) of the Companies and Allied Matters Act 1990 (CAMA). Despite its seeming obscurity, balance sheet insolvency test is commonly employed in commercial transactions as an event of default. This provides counterparties with early warning signs in ongoing or long-term contracts where there are no avenues of making demands capable of triggering commercial insolvency.

The Evaluation of the National Policy on Ease of Doing Business in Nigeria

The difficulty of doing business in Nigeria has gained currency in the national discussion in a recent time. This research paper aimed to review the successes and failures in the implementation of the ease of doing business in policy. It examines the effects of the various programmes put in place for realization of the policy objectives. Having adopted secondary method of data collection, this paper therefore concludes that even though the policy has recorded some little degree of successes, the business climate in Nigeria is still far from friendly due to some implementation paradoxes that have beclouded the policy objectives. The paper will therefore proffer some policy recommendations that may be instrumental for the actualization of the policy objectives.

Understanding and Overcoming Barriers to Small Business Growth: Nigerian Evidence

Purpose: This study sought to understand the barriers hindering the growth of small businesses in Nigeria, and to investigate the various strategies small business owners and managers develop to overcome these barriers.
 Design/methodology/approach: A qualitative research design using in-depth, semi-structured, face-face interviews was utilized to obtain the barriers to growth as well as strategies developed to overcome them by 15 sachet water company managers in Minna, the capital city of Niger State in North Central Nigeria.
 Findings: The major internal barriers to growth identified included unmotivated employees, lack of modern machinery, lack of storage capacity and poor marketing and distribution strategies, while the major external barriers included weather conditions, poor electricity, bad roads and competition. Strategies to overcome these barriers included creating a family atmosphere, hiring more workers, using alternative power and forming a union to control prices.
 Research limitations/implications: This study was limited to 15 sachet water companies in Minna, Niger State, so it is difficult to generalize the findings to other states and to other industries.
 Practical implications: The results of this study will be beneficial to several stakeholders: sachet water companies in Minna and beyond, other SMEs as well as policy makers. For sachet water companies in Minna and beyond, by understanding the various strategies which the interviewed managers use to overcome their internal and external challenges, a diffusion of learning will occur, whereby other sachet water company managers can inculcate some of these effective strategies into their own operations. As for other SMEs, some of the identified barriers will also be the same ones they face. The strategies the interviewed managers use to overcome these challenges can also provide guidance for these SMEs. Finally, by clearly identifying the barriers hindering the growth of these sachet water companies, this study provides policy makers with clear guidance on what policies need to be instituted to help these SMEs overcome their challenges and contribute their quota to the growth of the Nigerian economy.
 Originality/value: By utilizing semi-structured interviews in surveying the 15 sachet water managers in Minna, Niger State, this study overcomes the weakness of the vast majority of prior studies which utilized questionnaires. The major disadvantage of adopting questionnaire to measure attitudes and perception is that, respondents will be denied the opportunity to air out their views about the subject matter.

Is Nigeria’s Corporate Affairs Commission (CAC) Serious About Online Company Registration?

Nigeria recently introduced her e-registration system, allowing for online company registration.1 The process is meant to be fully online and accepts the electronic signatures of directors and subscribers at the initial registration stage. The dilemma, however, is that on completion of the registration, the Corporate Affairs Commission (the Commission/CAC) requires promoters to submit hard copies of the incorporation documents which must be physically signed. Electronic signatures on such documents are unacceptable.2 This article argues that such requirements constitute a bureaucratic bottleneck in the company registration process, are a disincentive to doing business in Nigeria and defeat the entire purpose of the e-registration system.

The Impact of Strategic Planning on Growth of Small Businesses in Nigeria.

Purpose- There is a need to develop a framework that will improve the understandings of business planning and performance and its effects on growth particularly during the stages of small business development. The study attempted to fill in the gap stated. 
 Design - The single case qualitative study relates small business growth with strategic planning where financial performance, market share, sales, and profits or instead return on investment is used to measure the growth. Existing literature fails to establish a concrete relationship between strategic planning and growth of small businesses which indicates a gap in the literature that will help understand the steps of managing the organizational transition of small business growth. 
 Findings - The study fails to establish a significant relationship between formal planning and transitional growth, but instead found the influence of the planning process in communication the owner’s goals, vision, mission, and intentions to both internal and external stakeholders of small businesses. The study influence of the shared vision with customers on making them loyal and advertisers through word of mouth. The study revealed how customers’ word of mouth increased the customer base of small businesses thereby increasing the product demand and eventual expansion of capacity leading to the growth of small businesses. The growth of small businesses will result in an increased reduction in the unemployment rate which will reduce the poverty rate in the Nigerian economy. 
 Practical Implications- Answering the primary and supporting questions will help small business owners to understand how strategic planning is essential in the transitional growth of their businesses.

The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

Aim/Purpose: This study seeks to investigate if participation in business association’s programs through the traditional and new media platforms influences family businesses in South Eastern Nigeria to diversify into similar or different businesses. Background: Before the advances in information and communication technology, businesses were carried on via the traditional media. The application of these advances has changed the way business communications and transactions are conducted globally in both family and non-family businesses. Businesses are adapting to today’s turbulent environment by opening similar or different businesses in the same or different locations that are hinged on the traditional and new media platforms. Nigerians are largely involved in social network through the traditional (face-to-face contact) and new media (e.g., Facebook, WhatsApp, Twitter, YouTube and Instagram). Moreover, in spite of the commonplaceness of family businesses in Nigeria, these businesses still experience weak diversification, bankruptcy and loss of socio-emotional wealth. Consequent upon the foregoing, this paper specifically investigates if involvement in social network via the traditional media (i.e., participation in business association’s meetings, workshops, seminars) and the new media (i.e., participation in the business association’s interactive sessions on trending business issues through the association’s online social platform like WhatsApp, Twitter), influence family businesses in South Eastern Nigeria to diversify into similar or different businesses. Methodology: The study adopted a qualitative methodology. The qualitative data were generated via interview involving 30 purposively selected businesses from South Eastern Nigeria. This comprises 15 family businesses each that have respectively adopted related and unrelated diversification strategies. Two respondents (i.e., the business owner and a top level manager) each were drawn from the selected businesses. In all, 60 respondents were interviewed. Since the unit of analysis is the family business, the interview transcriptions from all the respondents were subjected to thematic content analysis on the basis of the family businesses. Contribution: Active involvement and participation in all the meetings, discussions, workshops and seminars of the social network via the traditional and new media platforms facilitates the adoption of related or unrelated diversification in family businesses. Moreover, the adoption of similar social network platforms like WhatsApp and Twitter in all the relationships among and between employees and managers, and the transactions of the businesses is one of the key factors for achieving successful related or unrelated diversification in family businesses. Findings: In spite of the risky nature of the business environment, the adoption of related diversification strategies is significantly influenced by resources such as business consultancy services garnered through the traditional and new media platforms of the social network. Also, family businesses that are actively involved in a social network where the actors interact through the traditional and new media are influenced by the resources acquired to consider adopting unrelated diversification. These resources include: better understanding of the nature of business challenges, environments and experiences; and different lines of businesses. Thus, the traditional and new media platforms are complementary in their roles. Recommendations for Practitioners: Family business owner-managers could use the findings to develop related or unrelated strategies for diversifying into existing or new markets. This can be through the localization of manufacturing plant, improvement of product packaging, sitting of sales outlet closer to the consumers, introduction of lower prices for products/services, introduction of new and better ways of service delivery, or development of more compelling promotion strategies. Recommendation for Researchers: As a veritable guide, this study could guide future researchers in the formulation of their objectives, selection of instrument for data collection and respondents, and adoption of method of data analysis. Impact on Society: Successful diversification suggests the establishment of new or more businesses. Consequently, these new or more family businesses are expected to translate to more employment opportunities and by extension reduction in unemployment and poverty rates in the society. Future Research: Further studies should be carried out to enhance the development of family businesses, contribute to the existing literature and ensure the generalization of the findings.

Environmental Factors: A Panacea for Survival and Growth of Small and Medium Scale Businesses in Nigeria.

This study examined impact of the environmental factors on the performance of small and medium scale businesses (SMEs) in Nigeria with special emphasis on three selected Construction Company (PaChuks, Setraco and Triple C Manufacturing Company) all situated at Awka metropolis of Anambra State. The study aimed to find out the extent to which environmental factors affect organizational growth, the relationship between various Federal Government macroeconomic policy variables and performance of SMEs and how they can be effectively managed. The underlying SME theory in this study is Network Approach model. The study adopted the descriptive survey research design, making use of one hundred respondents randomly selected from the three selected SMEs. However, a sample size of eighty respondents was determined using the Taro Yamane formula. The Questionnaire was used as primary source of data collection for this research work. The findings of this study reveal that SMEs are faced with several challenges which are; difficulty in obtaining capital, inadequate competent personnel, shortage of raw materials etc. the researcher recommends that Government strengthens SMIEIS, BOI and other financing windows, lower interest rates and other cost of funds, expand Industrial Development Centres and enhance sources of finance available to the industries.

Family business and succession in developing economies: the Nigerian perspective

Studies have shown that despite the enormous business activities in Nigeria, family businesses appear fragile and less successive. This incessant discontinuation of family businesses often add to the already high business failure rates in the economy. Therefore, this study is conducted to find out the reasons why family businesses in Nigeria do not thrive beyond the third and fourth generations. Using qualitative and explorative research, case studies were carried out among business owners in Ile-Ife Community, in the South Western Nigeria. Responses were analysed with Atlas.ti to bring out various thematic issues from the data collected. The results suggest that most business owners have succession plans but vary in their implementation approaches. Fundamentally, their succession plans are being affected by their family structures and successor's personal interest. Also, the findings suggest that business owners who have gone beyond the first generation sustained their businesses through innovative strategies.