1.1 BACKGROUND TO THE STUDY
Economic development of any nation can
only be achieved by incorporating their local investment with the use of
foreign skills, technologies, experts and management. For this to be
successful, the manager and investors must contribute their best of
services. Sometimes, the investor act as the manager and their roles can
also be separated (Kim & Seo, 2003). In Nigeria, recession is
ravaging the economy; entrepreneurship appears to be the only solution
towards economic diversification. The need for Nigerian government to
follow this trend came to be very important considering the various
efforts of the government to bring investors into the country.
Nigeria as a country has been regarded
to be Giant of Africa due to her leading roles in the continent but the
country remains to be poor and underdeveloped. The inability of the
country to develop economically necessitates the need to invite the
efficacies foreign investment inflow into the country. But it was quite
unfortunate that African countries in general had not been be to attract
much attention of investors due to the struggling economies of the
region, as well as lack of proper management in host countries.
Developing countries including Nigeria have not managed investment to
its maximum due to the hostile investment climate (Asiedu, 2002). No
matter how important an investor is, the role of the manager cannot be
A manager is a person who manages or is
in charge of something. Managers can control departments in companies,
or guide the people who work for them. Managers must often make
decisions about things. According to Fayol (2008), a French management
theorist, managers must be able to do planning, organizing, leading,
coordinating and controlling. A business manager is a person who drives
the work of others in order to run a major business efficiently and make
a large profit. A manager should have working knowledge of the
following areas, and may be a specialist in one or more: sales,
marketing and public relations; research, operations analysis, data
processing, mathematics, statistics and economics; production; finance;
accounting, auditing, taxes and budgeting; purchasing; and personnel.
Other technical areas in which a business manager may have expertise are
law, science, and computer programming.
In many businesses in Nigeria, the role
of business manager may grow out of a small business owner's desire to
shed some of the multiple roles mentioned above in order to focus on
specific aspects of company expansion or market penetration. The
business manager for a time may share duties with the investor, as the
investor gains trust in the business manager. Ideally, the business
manager and the investor work synergistically to ensure that the
business of running a successful business is attended to. This can often
be a process of the investor relinquishing the functions for which
there is a comparative disadvantage for his or her continued involvement
It is true that having a specialization
in a particular field such as the above-mentioned (sales, marketing,
public relations, finance, etc.), a manager will be able to perform his
or her work more efficiently but, despite all the academic qualities
that a business manager should have, a business manager should also
develop personal qualities that will be helpful in performing his or her
work in a more efficient manner. An investor allocates capital with the
expectation of a future financial return (Lin, 2015). Types of
investments include: equity, debt securities, real estate, currency,
commodity, derivatives such as put and call options, futures, forwards,
etc. This definition makes no distinction between those in the primary
and secondary markets. That is, someone who provides a business with
capital and someone who buys a stock are both investors. An investor who
owns a stock is a shareholder (Blanchard, 1982).
The main motive of the investor is the
assumption of risk in anticipation of gain but recognizing a higher than
average possibility of loss. The term "speculation" implies that a
business or investment risk can be analyzed and measured, and its
distinction from the term "investment" is one of degree of risk. It
differs from gambling, which is based on random outcomes. Investors can
include stock traders but with this distinguishing characteristic:
investors are owners of a company which entails responsibilities
1.2 STATEMENT OF THE PROBLEM
This study is analyzing the similarities
and differences between Nigerian managers and investors. The role of
managers and investor s has been considered very important to the
success of a business. The researcher is examining their various roles
within the Nigeria context. Also, a business manager should be willing
to accept constructive criticism from the investors, develop social
skills, be organized, be honest, be able to take good decisions and
develop intimate relationships with his or her subordinate staffs. Also,
business managers should be good listeners and listen to the needs of
the other employees and customers. This will increase the profit of the
investor. In Nigeria for instances, the term investor is associated with
a means of getting rich quickly. Historically, the road to successful
investment is founded on preparation, with various short-term goals that
help smooth the journey to the ultimate and determined financial
achievement. From the foregoing, it will be very necessary to provide an
analysis of the similarities and differences between managers and
investors within the Nigerian context.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the similarities between the Nigerian managers and investors.
- To examine the differences between the Nigerian managers and investors.
- To identify the roles of Nigerian managers and investors in ensuring business success.
1.4 RESEARCH QUESTIONS
- What are the similarities between the Nigerian managers and investors?
- What are the differences between the Nigerian managers and investors?
- What are the roles of Nigerian managers and investors in ensuring business success?
HO: There are no significant differences in the roles of managers and investors in Nigeria
HA: There are significant differences in the roles of managers and investors in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
- The findings from this study will reveal in an analytic manner the
similarities and differences in the roles of investors and managers in
- This research will be a contribution to the body of literature in
the area of the analysis of the similarities and differences between
Nigerian managers and investors, thereby constituting the empirical
literature for future research in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study is limited to the analysis of the similarities and differences between Nigerian managers and investors.
LIMITATION OF STUDY
Financial constraint- Insufficient fund
tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data
collection (internet, questionnaire and interview).
Time constraint- The researcher will
simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.