ABSTRACT
Small-scale
businesses are the lifeblood of economic growth of any nation, Nigeria
inclusive. On the other hand, Home Economics is a course of study that injects
entrepreneurial skills into individuals. This study is set out to investigate
the survival strategies among Home Economics graduates in Lagos State. To do
this, since it is impossible to cover the whole twenty local government areas
in Lagos, five local government areas were selected for sampling. The
researchers employed a self-structured questionnaire to collect quantitative data. 50 small-scale business owners (the majority of whom
have educational background in Home Economics) responded to the questionnaire
which was analysed using descriptive statistics. Microsoft
office excel and SPSS were the tools used to analyse the data collected.
The main
findings of this study showed that most small-scale business owners in Lagos
adopt Focus Strategies. Businesses that use Focus Strategies
concentrate on particular niche markets and, by understanding the dynamics of
that market and the unique needs of customers within it, develop uniquely
low-cost or well-specified products for the market. The study recommends that owners of
small-scale businesses in Lagos should continue to take full advantage of
survival strategies that work for them.
It is also recommended, among other things, that business owners should properly scan the
Nigerian, especially Lagos State business environment in order to identify the
opportunities and threats therein, and develop the various strategies that will
help them to adapt to the changing environments as they emerge.
TABLE
OF CONTENTS
CONTENTS
Page
Title Page.............................................................................i
Certification...................................................................ii
Dedication..............................................................................iii
Acknowledgements....................................................iv
Abstract...................................................................................v
Table of Contents.................................vi
CHAPTER
ONE
GENERAL
BACKGROUND TO THE STUDY
1.1
Introduction
1.2 Statement
of the Problem
1.3 Aims of
the Study
1.4
Significance of the Study
1.5 Research
Questions
1.6 Scope and
Limitations of the Study
1.7
Definition of Terms
1.7.1 Survival
1.7.2 Strategy
1.7.3 Entrepreneur
1.7.4 Public Sector
1.7.5 Business Environment
1.7.6 Private Sector
1.7.7 Corporate Planning
1.7.8 Management
1.8 Conclusion
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Introduction
2.2. Theoretical
Framework
2.3. The
Nature of Small Business
2.3.1 Definitions
of Small Business
2.3.2 Types of Small Scale Business
2.3.3 Characteristics of Small Business
2.3.4 Challenges of Small Business
2.3.5 Contributions of Small Scale Business to
Economic Development in Nigeria
2.4 The Philosophy and Concept of Home Economics
2.4.1 Definitions of Home Economics
2.5
Historical Development of Home Economics in Nigeria
2.5.1 Pre-Colonial Era
2.5.2 Colonial Era
2.5.3 Post-Colonial Era
2.6 Careers
in Home Economics
2.6.1 Food and Nutrition
2.6.2 Clothing and Textiles
2.6.3 Child Care and Family Relations
2.6.4 Consumer Education
2.6.5 Family Health
2.6.6 Housing and Utilities
2.7 Survival
Strategies of Small Business
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1.
Introduction
3.2. Research Design
3.3. Population of the Study
3.4 Population of the Study
3.5 Sampling Design Sample Size
3.6 Research
Assistant
3.7 Research
Instruments
3.8
Reliability and Validity of Data
CHAPTER
FOUR
Data Analysis and Presentation
4.1.
Introduction
4.2
Respondents' Demographic Characteristics
4.3 Data
Analysis
CHAPTER
FIVE
DISCUSSION,
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1.
Discussion
5.2 Findings
5.3
Recommendations
5.4
Conclusion
REFERENCES
APPENDIX
1
APPENDIX
2
Chapter One
Background
to the Study
1.1 Introduction
Small-scale business is a
privately owned and operated business with relatively small turnover and staff
numbers, typically seen as constituting part of a specific commercial or
economic sector (Wiktionary). Small-scale businesses have become prevalent in
the present day Nigerian economy. In fact, this sector caters to economic needs
of the largest percentage of the Nigerian population; and being the lifeblood
of the Nigerian economy, its significance could be relished and appreciated
when one understands the prominent roles it plays in the economic evolution of
Nigeria over the years. According to Chris et al (2000), small-scale businesses
are those which are owned and controlled by one or a few persons, with direct
owner’s influence in decision making, and having relatively small share of the
market in the applicable industry.
In his own understanding,
Robert (1994) sees small-scale businesses as businesses that are “independently
owned and operated, have capital contribution from limited number of
individuals, would operate in a local area, probably, not be dominant in its
field of operation.” Furthermore, Osize (1984) defines small-scale business as
an enterprise which is owned, managed and controlled by one or two persons. In
this business, family influence in decision-making has an undifferentiated
organizational structure;
has a relatively small share of the market and employs less than 50 people. The
Third National Development Plan defines a small-scale business as a
manufacturing establishment which employs not more than ten people, or whose
investment in machinery and equipment does not exceed six hundred thousand
naira.
The Central Bank of
Nigeria (1983), in its guidelines, as quoted in Joseph et al (2016),
“classified small-scale business as the business with an annual income or asset
of less half a million naira (#500,000).” They also cited the Federal
Government Small Scale Industry Development Plan of 1980 which defines a
small-scale business enterprise in Nigeria as “any manufacturing process or
service industry with a capital not exceeding #500,000 in manufacturing and
equipment alone.” Small businesses are privately owned corporations,
partnerships or sole proprietorships that have fewer employees and /or less
annual revenue than a regular-sized business or corporation. Businesses are
defined as “small” in terms of being able to apply for government support, and
quality for preferential tax policy varies, depending on the country and
industry (Wikipedia). Small businesses are seen as the engine of economic growth
in Third World countries and Advanced Nations (Adebiyi et al, 2017). More so,
it is a well-known fact that machines
or motors cannot function without an engine, no matter how
beautifully-made. Alese (2017) is apt in
his argument about the importance of SMEs when he states thus:
…almost
all countries that have focus on SMEs sector have ended up
in the significance reduction in poverty
level and its attendant enhan-
cement in the quality and standard of
living, reduction in crime rate
increase in per capital income as well as
rapid growth in national out-
put among other salutary effects.
In the same vein, Small
and Medium Businesses have been, to a great extent, acknowledged as the oil
needed for lubricating the engine of social and economic transformation of any
nation (Odah, 2005). Small- scale industries are functional in all divisions of
economy. Nonetheless, their importance is experienced in distributive trade,
transportation and local production; and their leading roles are: mobilize
equity for investment, provide goods and services for the nation, and establish
employment for job seekers. In a detailed survey of the economy of Lagos State,
it is observed that the slight advancement made so far would not have been
possible without the activities of small-scale businesses being carried out in
the state. Organizations vastly owned by individuals, more often than not,
empower their workers with equity to initiate their own small-scale businesses
as a reward for years of devoted service. This phenomenon is most common among the Igbo
extraction of Nigeria, where an apprentice would be financially empowered on
completion of his apprenticeship. A
lot of young people are taking advantage of the metropolitan nature of the
Lagos State to run various small-scale businesses; and this sector has always
been a go-to ground for Home Economics graduates any day any time.
According to Cambridge
Dictionary, Home Economics is the study of cooking, sewing, and subjects
relating to the management of a home. The American Home Economics Association
defines Home Economics as a field of knowledge and service concerned primarily
with strength of family (Balogun, 2009). Home Economics, at the international
meeting of the Permanent Council of Home Economics (Berlin, 1965), was
described as the possible knowledge of all problems regarding home and family,
emphasizing research finding dissemination on matters concerning food,
clothing, shelter, health, human relationships. Home Economics is also defined
by Merriam-Webster as “a subject or class that teaches skills (such as cooking
or sewing) which are useful in the home.” It is one of the subjects in the
Technology Education Key Learning Area (TEKLA) at junior secondary level. It
comprises major areas of study on food, clothing, home and family which
intertwine with the six knowledge contexts proposed in the Technology Education
Key Learning Area Curriculum Guide (Primary 1-Secondary 3). The six knowledge
contexts are: Information and Communication Technology, Materials and
Structures, Operations and Manufacturing, Strategies and Management, Systems
and Control and Technology and Living (Balogun, 2009).
At the secondary school
level, the Home Economics curriculum will provide students with opportunities
to understand basic human necessities and to study the well-being of individual
families and societies, building up their awareness of the various dimensions
affecting well-being. “It will provide students for further studies, for week
or both…and aim[s] to strike a balance between breadth and depth to respond to
current social, economic and technological developments both globally and
locally” (Kamminga, 1998). Home Economics is offered as a course of study in
many higher institutions in Nigeria. The entry qualifications for studying it
have been reviewed to include the physical science, even as required for
traditionally noble disciplines such as medicine. The University of Nigeria,
Nsukka was the first to run Home
Economics at degree level; and the scope of the course has continued to widen,
creating an avenue for numerous businesses and professionalism in Home
Economics as seen today (Balogun, 2009). The majority of graduates in Home
Economics in Nigeria, and Lagos State in particular are small business owners
because it is a course that offers opportunities for self-reliance. Thus, owing
to the vital functions of small-scale in the economic growth, so to speak, of
Nigeria, some strategies and relief agencies were initiated and organized by
the Federal Government of Nigeria to support the development and solve some
challenges being faced by small-scale businesses. Some of these agencies
include: National Directorate of Employment (NDE), Entrepreneurship Development
Program (EDP), Industries Development Centre (IDC) among others. The NDE was
inaugurated in 1988, and part of its aims is to give loans to young graduates
to establish small businesses, create jobs and grow the economy.
Despite all these
privileges, however, the general economic condition of small-scale industries
is that the owners are weak. The financial institutions’ stringent requirements
in securing loans have almost squeezed the small-scale businesses dry (Nzelibe,
1988). Nzelibe further states that at least, three (3) out of every four (4)
small-scale businesses flunk every year. To obtain statistical data on the
mortality rate of small-scale businesses yearly in Nigeria is definitely
arduous if not remarkably difficult. The absence of legal requirement,
enforcing the regulation of small-scale business failure could be responsible
for this difficulty. Only the listed companies are obliged to provide report of
intention to wind-up. Nonetheless, professional observations have been made on
the percentage of business extinction in Nigeria. 90% of such failure could be
pursued to lack of adequate planning, inexperience, deficient administrative
skill, poor financing, bad record keeping and ineffective marketing techniques.
The remaining 10% is reported to be the oversight on the part of the entrepreneurs,
the employee and natural disaster. This brings us to the concept of survival
strategies for small-scale businesses.
According to John
Gillespie, a financial consultant, “companies in “survival mode” are like
critical-care patients…[who] are ailing, unstable and prone to wild,
unpredictable ups and downs” (Reinink, 2010). In his words, survival mode means
cutting costs, laying off employees, tightening profit margins and saving cash,
in stark contrast to growth mode, during which a company reinvests profits,
expands operations and brainstorms growth strategies with long-term payoffs.
Reinink also quotes Gillespie as saying that “while survival mode is a
necessary evil during tough financial times, businesses that maintain a
reactionary mindset for too long risk missing out on new revenue streams and
losing market share. But shifting into growth mode too soon can jeopardize
everything the company worked to save.” Business expert like Marc Kramer (2020)
has suggested some survival strategies in business which include looking at
your accounts payable and receivables, letting vendors know if need to make
partial payments, looking at your full and part-time staff among others.
Looking into survival strategies of small-scale businesses among Home Economics
graduates in Lagos State, it is hoped that the knowledge obtained while in
school should be applied in order to weather the storm of economic downturn.
1.2 Statement of the Problem
Home Economics is an applied course
which offers individuals who choose it as a dream career a myriad of
opportunities in the small-scale business world. Various government agencies
such as National Directorate of Employment (NDE), Entrepreneurship Development
Program (EDP), Industries Development Centre (IDC), Small Business
Administration (SBA), Economic Development Administration (EDA), CBN Micro,
Small and Medium Enterprises Development Fund (MSMEF), Agric-Business Small and
Medium Enterprise Investment Scheme (AGSMEIS), Accelerated Agricultural
Development Scheme (AADS) among others who offer grants and financial support
to small businesses with the aim of growing the economy of the country. Lagos,
being the commercial nerve center of Nigeria, has benefited immensely from all
these laudable programs and initiatives.
As
Okon & Edet (2016) put it, small businesses remain the engine of growth in
an economy like Nigeria. The SMEDAN also reported that 80% of growing business
owners in Nigeria do not survive their first 5 years in business (Agwu &
Emeti, 2014). This revelation is shocking despite all the grants and financial
aids being given to the business owners; therefore, the general problem is the
high failure of Nigerian small businesses. The specific problem is that the
majority of Nigerian business owners are bereft of strategies to survive their
first 5 years of business activities.
1.3 Aims
of the Study
The statistics has shown that small-scale business is one the most
important sectors in the growth and development of Nigerian economy. There is
an estimated 2 million small-scale industries out of 3 million business firms
in Nigeria (Agwu & Emeti, 2014). This indicates that the vast majority of
Nigerian business firms are still small-scale businesses, and this makes the
sector the backbone of free enterprise which the country operates. The aim of
this study is to investigate and bring forth the survival strategies that could
ensure the success of small-scale businesses being run by graduates in Home
Economics in Lagos State, Nigeria. The study is set out to:
1. Investigate
the survival strategies being
adopted by
Home Economics graduates who are in small businesses in Lagos.
2. Discover
the type of the growth strategy adopted by these Home Economics graduates.
3. Identify
factors that can influence survival strategy.
4. Identify
the relationship between survival strategies of small businesses and their
sustainability.
5. Identify
other challenges that affect the survival of small businesses among Home
Economics graduates.
1.4 Significance of the Study
Having stated what the study is set
out to achieve, as in, aims and objectives, it is hoped that when completed, the study would
achieve the following:
1. It
would be of immense benefits to the students studying Home Economics or
intending to study Home Economics as a course of study in higher institutions.
2. It
would help the community in terms of getting to know about business
opportunities and career paths in Home Economics, and how their business could
survive in the first 5 years and beyond.
3. It
would add to the existing resource materials available for teachers’ and
students’ use regarding Home Economics, small business and survival strategies
and sustainability.
4. It
may serve as a guide to scholars and researchers in the department of Home
Economics who may want to carry out further research on the similar topic.
5. It
could serve as a reference material in the future.
6. It
would help graduates in Home Economics make the best decisions in their current
and future business endeavors.
1.5 Research Questions
The following research questions are put
together to aid this research work:
1. What
are the survival strategies that have been carried out by Home Economics
graduates who are in small businesses in Lagos State?
2. What
type of growth and survival strategy being adopted by small-scale business
owners with background in Home Economics?
3. What
are the factors that can affect survival strategy of small businesses?
4. What
is the relationship between survival strategies of small businesses and their
sustainability?
5. What
are other challenges that affect the survival of small businesses?
1.6 Scope
and Limitations of the Study
Scope refers to “the
range of things that a subject, an activity etc. deals with” Hornby (7th
Edition). The scope here refers to the coverage of this research work as
captured in the topic. However, since there is no resources to sample all
graduates in Home Economics in Lagos, sizeable population would be selected and
sampled from the following five
local government areas: Surulere Local Government, Ikorodu Local Government,
Somolu Local Government, Epe Local Government and Lagos Island Local Government. It
should be noted that Lagos
State has twenty (20) local government areas. The results would then be used to
make a general statement concerning survival strategies of small-scale
businesses among Home Economics graduates in Lagos as a whole. The limitations
of the study include inadequate funding, time constraints, non-availability of
comprehensive data among others.
1.7 Definitions of Terms
1.7.1 Survival
The act or fact of
continuing to exist or live, especially under adverse or difficult
circumstances.
1.7.2 Strategy
This is defined as the
basic goals and objectives of the organization and the major programs of action
or techniques chosen to achieve those goals and objectives and the major
pattern of resource distribution used to relate the organization to its
environment.
1.7.3 Entrepreneur
An individual who is
zealous and able to take business risk with the goals of profit maximization.
1.7.4 Public Sector
This is the sector of the
economy established and funded by the government or its agencies different from
the private sector, and established on behalf of the citizens.
1.7.5 Business Environment
An environment of
association, system etc. whose activities and services are important for the
productive performance of the association but is not subject to the control of
the association.
1.7.6 Private Sector
The sector of the economy
established or operated and owned by individual entrepreneurs with the aim of
profit maximization.
1.7.7 Corporate Planning
This involves planning by
the organization in order to improve the business and meet the demands of the
environment. It may be short or long term planning.
1.7.8 Management
This is accomplishing
things through others. It is the ability of an individuals to solicit for or
draw out the best desired results in others so as to achieve the objectives and
goals of the organization.
1.8 Conclusion
So far, we have given the
background information about the study as well as the statement of the problem.
We have also highlighted the purpose of investigating the topic. Worthy of
mentioning is the significance and relevance of the study to the existing and
future research work, which establishes what the society and individuals stand
to benefit individually and collectively. Research questions and scope of the
study on which subsequent chapters will be built have also been stated. And of
course the meanings of some certain terms as used in the context of this study
have also been explained for better understanding.
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