A Survey Of The Management Problems Of Business Centres

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A Survey Of The Management Problems Of Business Centres


The cardinal objective of this study are to survey the management problems of Business centers in Awgu Local Government area of Enugu state. Awgu as a geographical entry is full of men and women, people of proven integrity who have tested their power sin the distributive trade. This economic approach varies with economic culture of our people and therefore, requires the application of comparative law of requisite variety, which states that individualks with the widesty variety of responses will usually control the environment and situation to their benefit.

This study therefore is a token contribution towards attaining this aspiration as it tries to explain approaches that will lead to the side tracking of these barriers to business centers in Awgu .

The study is divided into five chapters. Chapter one is introduction of the topic of study.

The second chapter tried to explain what other people both Nigerian and people of other countries have written about business centers in particular both their problems and prospects.

The third chapter deals with research design and methodology, and also how the sample size was determined. The population consists of 75 respondents, all of whom were used in the study.

Then chapter four deals with presentation and analysis of data and the data for this study was gathered through the use of questionnaire were distributed to respondents and were later collected from them personally by the researcher.

Chapter five deals with the findings, that lack of finance and government policies frustrates most proprietors of Business centers and then concluded that f they should be encouraged by government and financial institutions, Business centers will be a progressive venture.

The researcher therefore made recommendations that government should provide an adequate capital to the prospective owners of the Business centers by setting up a recognized schemes and commercial banks that can grant assistance to them. And moreso, one should have enough capital himself before venturing into such a business.

Chapter One


1.1 Background of the Study:

Many advanced countries of the world that have attained or are attaining the peak of their industrial development and economic growth began with business centers.

Technology has evolved the functions of the office to rely on different types of improved and standardized equipment. It has also devised varied stages and concepts for effective communication within and outside the organization. It enables the host of system, equipment and materials essentially computer-based to achieve the set goals of an organization in relation to the function of office such as obtaining storing processing and distribution of information.

Business centers serve as centers of information, such centers take in, process, store and relay data and messages in different situation such as financing, marketing, building, manufacturing, servicing or advising so as to enable the different types of people tom function in their jobs.

Some time ago, this set ups were neglected in our economic sectors. But in recent times, due to unemployment trend in our country, business centers have started to grow in all aspects of our economy.

According to Omordion (1970), “it is dominated that the industrial sector in most countries in terms of the number and employment. There simply can be no doubt whatsoever that the business centers constitute the real fabric of the nation’s economy.

Government of most nations particularly in the development countries have started recognizing this new shift with great enthusiasm as against their former policies of capital intensive.

It is in recognition of this positive bearing of business centers in national development that Nigerian governments both federal, state and local are now mounting series of programmes designed to sensitize and stimulate the people into appreciating the impact of business centers in out national economy, going through the positive effects which increased activity of business centers could have on the national economy, it will be clear that it is mostly for national policy which encourage establishment of business centers and through this enterprises the nation realize long run betterment of hr balance of payment position.

Starting of one-man business is venturing into the known, which if fraught with many problems.

In realization of this obvious fat and the importance of this category of business to our national economic growth, the study therefore studies some of the peculiar factors hindering industrialization Enugu state n terms of business centers.

1.2 Statement of Problem

Being a paid employee now in the country is a very risky business because country is a very risky business because of the state of the Nigeria economic which is not stable. This has motivated both government (Federal, stage, and local governments.) as well as individuals to focus their interest on business centers development. At least, it will solve the problem of unemployment for the owner and create some employment opportunities for others.

But to their dismay, the venture, which they thought to be a profit one seem not to break even probably because of lack of financial and administrative acumen.

Oshogbemi, (1979) maintained that the enthusiasm not-with-standing, only very few individuals succeed in establishing their own business centers. This shows that the dynamics role of business centers in our national economic progress and the motivation of entrepreneurs are not being realized.

Realizing the prospects of business centre development to any developing nation such as ours, the fundamental quest that arises is how can the dynamic role of this sub-sector be more effectively and economically enhance?

It is therefore important to create serious awareness among the people with more emphasis on business centers as best alternative trade.

Most importantly, there is need to find the possible fctors militing against the sectors developments, thus the need for research on this subject as this.

1.3 Purpose of the Study

Therefore, this research work is designed to find out the following:

  1. Whether lack of capital outlay inhibit the establishment of business centre.
  2. To know the effect government policies have on establishment business centers.
  3. To know if lack of raw materials is one of the problems
  4. To know if land as one of the major factors in establishing of industry discourages people to set up business centers.
  5. To know if lack of machineries and equipment is one of the problems

Another aim of this study is to identify the core problems that hinder people from establishing their own business centre in Awgu local government area of Enugu state . Also, how the result of this will benefit the people who own the business centers.

How it can also benefit the entire Enugu and more so, those who manage the business or about to engage in one

1.3 Scope of Study:

This research project cover the problem, of establishing business centers with particular reference to at least ten (10) business centers in Awgu and its satellites towns of Awgu town, Mgbowo, Mmaku, Agbogugu, Ihe, Owelli-Court, Ugbo, Ogugu, Ituku, and Isu – Awaa.

1.5 Research Question

To satisfy the inquiring nature of this study the following questions will be answered.

  1. Does lack of capital outlay inhibit the establishment of business centers?
  2. What effects do government policies have on the establishment of Business centre in Awgu
  3. What effect does lack of raw materials have on establishment of business centers in Awgu?
  4. What are the effects of land as one of the Major factors have in establishment of Business centre?
  5. What effect does lack of machineries/equipment have in establishing Business centers?

1.7 Significance of the study:

Business centre ownership is the shortest route to the acquisition of capital and of course participation and contribution towards the economic, social, political and industrial growth of any nation-Enugu state in particular.

This research will enable any person who may read it to appreciate what business centre are, benefit of it, the expected problem a entrant may encounter and finally, proffering possible solutions to the problems.

Chapter Five

5.0 Discussion, Implication and Recommendation

5.1 Discussion of Result

This chapter is designed to discuss the data gathered and analyzed in the previous chapters. From the results of data presented and analyzed, the following findings were made.

In analyzing the data relating to research question I, which posed the question “when you finally made up your mind to have your own business center, was finance a serious hindrance to your taking off?

  1. It was found that finance was a serious, hinderance for most of the business center owners and most of them actually started the business with their personal savings as shown in Table 4.1 and 4.2. This also goes to answer the question in chapter one (1.5) that lack of captital inhibits the establishment of business centers.
  2. From the data presented in table 4.5, it was found that government policies have effects on the establishment of business center. The researcher found that taxation hinders the establishment of business centres in the state.
  3. It was found that machineries and equipment acquisition have been a problem to our industries, this was proved in Table 4.7 most of the business centres owners lack the fund needed for acquiring the machines and some do not find the right type of machines needed for their business.
  4. Raw materials to some extend is a problem, especially to those whose raw materials sourcing is abroad but for those raw materials that are sourced locally, they encounter just little problems and do not pose serious problem. This was shown in table 4.9.
  5. Another key problem that was found by this study is that of industrial plots, although government has been trying to solve this problem, it has been found out that those who acquire their business premises on rent still find high rental fee to be their problem. This goes to prove the question in chapter one hat land is a problem is establishing business centres, as was shown in table 4.13 and 4.14.

5.2 Conclusion

The concept of modernization and economic development revolves around both explicit and implicit valve judgments of humans person towards the use of his ingenuity and resources to fashion out a better society for himself and others alike. It has therefore been the view of many people that business centres, which have been ascribed as the booster to rapid industrialization and economic developments, should be used for this purpose. Thus, Enugu state being a subset in the economic entity called Nigeria, it will therefore be more expedient for all to start the economic and industrial process with what we have improved on it so that it can get expanded in the future.

It is the contention of the researcher that raw materials problems as far as business centres are concerned should not be of much bearing since busineee center raw materials abound in abundance in the state and the federal and state government are seriously making efforts to help in solving this problem.

These business center owners are always handicappe financially because of htier low capital base sine most of the time they prefer to go it all alone in sole proprietary form.

5.3 Recommendations

This work has tried to survey and find out the management problems of business center in Nigeria. As a result of the findings the following recommendations have been made:

  1. Government should endeavour to provide adequate capital to the prospective owners of the business.
  2. The government should also set up a recognized schemes and commercial banks that can grant assistance financially to the owners of the business center. This will tremendously help to eliminate the high financial burden of the owners and can also encourage others to join the business.

5.4 Implications of the Results

This research on the survey of the management problems of business
centers was designed to solve the financial problems of the business center establishment in the country.

5.5 Suggestion for Further Research

For further research on the topic, which centered on the survey of the management problems of business centers in Awgu local government area of Enugu state, the researcher hereby suggests that the topic should include:

  1. Youths involvement in the establishment of business centers .
  2. Functions and problems of self-employment in Enugu state metropolises.

5.6 Limitation of the Study

While carrying out the research there were some limitations, which
militated and hindered the effective conduct of the research such as:

  1. There were some environmental problem of a situation where some official documents that would have helped in the research work could not be reached due to official policy against releasing them.
  2. Time factor has been of serious effect on the conduct of this research and this made it impossible to cover the entire Awgu local government areas.
  3. Some respondents’ attitude were not very encouraging, some of the people could not respond to the question administered, this was a very difficult task as our people are very secretive that they would not like to give out the secrets of their success.
  4. Finally, financial problem was also among the factors that hindered a perfect research work, which the researcher aimed at.

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