Problems Encountered By Managers In Setting Up A Small Scale Hospitality Business

Project and Seminar Material for Human Resource Management (HRM)

Problems Encountered By Managers In Setting Up A Small Scale Hospitality Business


Abstract


Small scale business is the hub and foundation of industrialization and development. this research is centered on the problems encountered by managers in setting up small scale hospitality business in Nigeria, as hospitality industry in recent time has contributed immensely to national economic development.

The result is aimed at identifying the problems militating or hindering the smooth operation of small scale hospitality business such as restaurant especially in Enugu state.

Data were collected from both primary and secondary sources which include oral interview, questionnaire and textbooks. This work identified such problems hindering the smooth operation of small scale industry as lack of adequate finance, lack of technical know-how, competition of small and large scale businesses and poor managerial ability.

In a bid to help the industry strive and grow, government has taken some measures to boost the activities of small scale businesses including hospitality industries. This measures includes policies that aimed at encouraging small scale business, incentives in the form of loan without interest and other grants, providing financing through its agencies such as (FUSSI) Fund for Small Scale Industries.

More government intervention is solicited to enable the small scale business grow amidst severe competition from medium and large scale businesses.


Chapter One


Introduction

1.1 Background of the Study

There exist lots and lots of business ventures that are being engaged by individuals, group of people or association, firms, industries and government with the main aim of maximizing profits. They range from small scale to medium and large scale. In the Nigerian economy, the small scale enterprises are the most common form of business. The aim of any economy (either industrialized or non industrialized) depends largely on how well organized the small industries are, for instance if we look at the standard of practice of small scale industries in economically developed countries. The small scale enterprise in Nigeria seems too stagnant, less adventurous than developed countries. Meanwhile in economically developed countries small scale business are better organized and coordinated than in the developing countries because the governments appreciate their significance to the national economy.

In the hospitality industry there are more small scale businesses than the medium and large. Most of the small scale hospitality businesses are essentially one person’s operation which makes such companies sole proprietorship business ventures. The profit of the business is reaped solely by the owner; this includes people or an individual who wants to invest in that type of business. It is also the easiest form of business ownership to organize in the hospitality industry because there is relatively small capital to use for setting up small scale hospitality business.

The owner also has managerial freedom and this will help the owner employing his or her incentive to the maximum. Those business owners are seen as entrepreneurs. Entrepreneurs are risk avoiders, not necessarily risk takers; they appear to be risk takers because they see market differently than the other forms of businesses. They can be referred to as risk eliminators because they seem to methodically eliminate all the factors that might prevent them from getting into a particular market (Thomas and Norman, 2011).

Small businesses do not conform to any parameters because much of their activities depend on the industry in which they operate also line personalities and aspirations of who is in charge of these businesses. They provide financial opportunity and a chance to develop wealth. It is a place where creative, motivated individuals can use their talents and expertise to the fullest, because it provides satisfying careers and job opportunities and it’s also the back bone of the market economy of the word. Every big business in the hospitality today starts as a small business, and it started with an entrepreneur, who at first earns little or no profit.

In setting up small scale hospitality business managers do encounter some problems which could be inadequate finance, inadequate marketing of products, lack of competent staff, technologies etc. therefore, this work intends to carryout a study on the problems encountered by managers in setting up a small scale hospitality business in Enugu urban using Emily Restaurant Enugu as a case study.


1.2 Statement of the Problem

Historically, setting up a small scale hospitality business has always been a huge task, but today it is gigantic due to manifolds increase in the prices of nearly each and everything that is required to make a hotel of the best standards. Hospitality businesses usually are a spectacular display of architecture combined with luxury at its best and conventionally are built in accord with the contemporary and futuristic designs with distinction for not only the exterior outlook but at the same time interiors are also given a chic and edgy styles with an intricate eye for details on every aspect. The Hospitality Industry is ever evolving, ever changing not by its nature but due to the need of an hour. New and progressive concepts like Boutique Hotels, Green Hotels, and Healthy Hotels have emerged in the market with time, leading to the evolution and growth of new trends in the Hospitality industry. Industry has always operated in a unique manner (i.e. ―it acts for adopting the changes brought by the new introduced trends and technology‖).


1.3 Objective of the Study

The aim of this project is to carryout a study on the problems encountered by managers in setting up small scale hospitality businesses using Emily Restaurant as a case study.

Therefore, the specific objectives are as follows;

  1. To find out whether the manager of Emily Restaurant encountered some problems in course of setting up the business.
  2. To examine some of the problems encountered in setting up a small scale hospitality business in Enugu.
  3. To investigate whether there are laid down measures or organization that aims at reducing the problems encountered in setting up a small scale hospitality business in Enugu.
  4. To know if the measures or the organization has helped in reducing the problems encountered in setting up a small scale hospitality business in Enugu.

1.4 Research Question

  1. Are there problems encountered in setting up a small scale hospitality business in Enugu?
  2. What are some of the problems encountered in setting up a small scale hospitality business in Enugu?
  3. Are there laid down measures or organization that help to reduce the problems encountered in setting up a small scale hospitality business in Enugu?
  4. Have the measures or the organization helped in reducing the problems encountered in setting up a small scale hospitality business in Enugu?

1.5 Significance of the Study

This study is very timely, especially today that all hand is on desk to enhance the development and growth of the Nigeria’s economy through the small scale enterprises. This study will be of immense benefits to the small scale hospitality businesses as well as other small and medium scale enterprise.

Furthermore, the research work will serve as a secondary data to future researches on small and medium scale enterprises.

Finally, this work is of importance to the researcher in the following ways.

  1. It will expose and enable her to know more about the hospitality organizations.
  2. It will enable her to more about the role, which small scale hospitality businesses play in Enugu.
  3. It will also enable her to know the different meaning/definitions and classifications of small scale hospitality businesses.

1.6 Scope of the Study

The scope of this research is centered on the study of the problems i.e. small scale hospitality enterprise with Emily Restaurant Enugu as a case study.


1.8 Limitation of the Study

The study is therefore limited to Emily Restaurant industries in Enugu Urban. Due to limited time and material resources the study could not cover the entire nation.


Chapter Five


Summary Conclusion and Recommendation

5.1 Summary

This chapter of the study is set aside to determine summarized the descriptive analysis done in the precious chapters. It also gives the conclusion and makes some recommendation.

In the summary the purpose of this study was to examine the problems encountered by managers in setting up a small scale hospitality business. Specifically the study found out whether the manager of Emily Restaurant encountered some problems in course of setting up the business, examined some of the problems encountered in setting up a small scale hospitality business in Enugu, investigated whether there are laid down measures or organization that aims at reducing the problems encountered in setting up a small scale hospitality business in Enugu and, examined the measures or the organization has helped in reducing the problems encountered in setting up a small scale hospitality business in Enugu.

In order to carry out this study research questions formulated to guard the investigation. A total of30 staff of Emily Restaurant, Enugu were randomly selected as enrolled participants for the survey. The study was anchored on the modern theory, and the classical theory.


5.2 Conclusion

In the conclusion the study is beyond doubt and abundantly clear that there are problems encountered by managers in setting up a small scale hospitality business. The hospitality sector is a very important sector in the economy thus these challenges should be adequately addressed.

From results obtained and analyzed, the study reveals that:

  1. There are problems encountered in setting up a small scale hospitality business in Enugu
  2. The problems encountered in setting up a small scale hospitality business in Enugu include:
    • Inadequate finance.
    • Inadequate marketing of products
    • Lack of competent staff and
    • Lack of technology
  3. There are laid down measures or organizations that help to reduce the problems encountered in setting up a small scale hospitality business in Enugu.

5.3 Recommendation

Recommendation on the basis of findings. The researcher made the following recommendation with the belief that when studied and applied, would help to improve the standard already at hand. The researcher recommends that:

  1. There should be laid down measures or organizations that will aim at reducing the problems encountered in setting up a small scale hospitality business in Enugu.
  2. Problems encountered by managers in setting up a small scale hospitality business should be looked into and properly addressed.
  3. The heads of small scale hospitality businesses should be properly trained and guided on steps to take to avoid these problems or to effectively tackle it.

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