AN ANALYSIS INTO THE CAUSES OF FAILURE OF SMALL SCALE BUSINESS ORGANISATION IN ENUGU.

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ABSTRACT

 

An analysis into the causes of failure of Small Business Organisation in Enugu State is a topic chosen from the marketing field.

This first approach to the contemporary marketing project retains the same conceptual frame work.  The project may be the most illustrative in the title “SMALL BUSINESS FAILURE”.

It deals with causes of business failure in Nigeria such as government regulation inadequate experience in the field like inadequate capital,  lack of raw materials and other logistic problems.  It also deals with the solution to their problems.

I sincerely belief that this project work will meet the expectation of my numerous readers.

CHAPTER ONE

 

• INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          The problems of small business failure is as old as the history of business itself a large  number if business which started with so much optimism and promise have failed.

The problms that confront business in its own right could contribute a great threat to the survival of he business.  It is better to indicate here that the survival of business if any person managed economy to a great extent depends on sometimes sheer luck rather on managerial and technical capability as would have seen the case.

Business failure if like sickness such as malaria it always do not come without symptoms.  The Main symptoms of immediate business collapse according to Ifedi (1986) are detoriating capital, decrease in sales, decline profit and high debt ratio.  Once these factors are noticed in business, the entrepreneur should know that he business is at its collapse.  A large number of  business have failure in Enugu state.  The problem of business  failure is now a great concern to managers, entrepreneur customers and workers, an each can play an important role in minimizing it.

In order to minimize business failure, effects should be made to determine the cause of such failure and appropriate steps to reduce them to an acceptable proportion.  This is the concern of this study.

 

• STATEMENT OF PROBLEM

The study will attempt to sort out what business failure will be like in the economic cycle and the problems that are associated with business failure in small scale enterprises.

The problems can be classified this, general and specific factors.  Both factors are highlighted below:

1. Government polices and regulations.
2. Inflation and business cycle.
3. Managerial incompetence.
4. Inadequate capital.

In considering the problems as stated above, a question has to be asked.  How easy it is for small business to fight against failure.  The magnitude of this problems and its implication have inspired this research.

 

• SIGNIFICANCE OF THE STUDY

It is certain that in Nigeria today causes of business failure are rampart tot he point that is calls for some  aestivation into the cause, conseque