ABSTRACT
This research was embarked upon to gain institute into growth
of indigenous firms in Nigeria. This is specifically an attempt to
investigate the impact of indigenous firms among others. The
objective are not only to acquaint equitable growth for indigenous
firm and also to cheek the challenges and prospects and to equally
highlight its relevance among indigenous firms review of relaxed
literature and theoretical framework also is arranged in logical
sequence for the purposed of this study secondary sources, this data
was analyzed using simple percentage and chi square. The
researcher also found out that the growth of indigenous firms also
affects the scope-economic growth of our economy. It is clear to
note that indigenous firms have created impact on the country economy
through export promotion financial institution and industrialization
development strategies.
Finally, the summary of findings conclusion and
recommendation where not left out, they are expected to serve as a
basis for further researchers.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
One of the major economic backwardness of the most
third world countries like Nigeria is the over prolonged sojourn of
private foreign divestment in them. The predatory exploitative
orientation and activities of foreign monopoly capital, it inherent
tendency to resist and hamper local industrialization and to
perpetuate merchant capitalism and its determination and deliberate
efforts to retard the growth of endogamous entrepreneurship all this
have heavily influenced Nigeria economic history for well over a
century.
This foreign dominance of commercial activities in Nigeria was
made possible by restrictive practices employed by the established
merchant firms. It is important to note that commercial banking is a
major source of credit (capital) was solely owned and controlled by
foreign elements. Their policies were made towards satisfying the
needs of foreign enterprise, indigenous entrepreneurs merely subjected
on the crumbs that fell on the gable.
(Ezeigwe .J. O) Nigerian government in the 1950s operated mainly
an open door policy which attempted to live foreign investors into the
country.
After the civil war, experiences showed that the issue of
indigenous participation in the Nigerian economy once can be
re-opened. The dubious role played by foreign investors at various
stages of the civil war and the acute shortage of essential commodities
at the same period and the spirally inflationary trend that followed
post war reconstruction and rehabilitation programs had contributed
to inform the government that there was the necessity to allow the
indigenes of Nigeria and government a hand in deciding their economic
fortune. The government was further persuaded by radical agitation
of the politician s and the masses to do something about their
economic difficulties.
With these pressures and economic difficulties mounting higher
and higher, the government decided to whittle down foreign dominance of
the economy on 23rd February 1972, the military government
promulgated the Nigeria enterprise promotion Decree No. 4 of 1977
popularly known as the indigenization decree the following were the
objectives.
- To create opportunity for our people
- To raise the proportion of indigenous firms and ownership of the productive sectors of the economy.
- To maximize local retention of profit
- To involve more Nigerians in the management and decision
making process of business enterprises. All in an effort to enhance
indigenous growth of Nigeria firms.
PROBLEMS STATEMENT
A number of problems have been identified as being
responsible for the backwardness and retardation in the general
growth of Nigeria indigenous firms the persistent set back in the
growth of the indigenous firms have been assumed to center on the
followings: Inadequacy of capital, poor technological manpower
deficiency, mass illiteracy, management incapability and marketing in
competency (National and internationally) etc there are many more
that form the cove problems of the growth of our indigenous firms.
It is the intention of the researcher therefore to take a
critical examination of the internal and external factors affecting the
growth of our indigenous firms.
There is a general contention that the rate of growth of our
indigenous firms, especially since the pushing aside of the aliens, has
been slow. This statement in the growth of indigenous firms in
Nigeria, problems and prospects will be investigated and possible
recommendation given as to the solutions.
OBJECTIVES OF THE STUDY
The main aim of the study is to evaluate the challenges
associated with the growth rate of indigenous companies in Nigeria. The
specific objectives of the study are:
1) To identify the growth challenges being faced by indigenous firms in Nigeria.
2) To render possible solutions to the challenges for use by the indigenous company managers in Nigeria.
3) To examine the contributions of some government
establishments and the activities of their officers in terms of
investment, capital formation and cost control.
RESEARCH QUESTIONS
- What are the growth challenges faced by indigenous companies in Nigeria?
- How can the growth challenges facing indigenous companies in Nigeria be properly addressed?
- What contributions have government establishments made towards the growth of indigenous companies in Nigeria?
RESEARCH HYPOTHESIS
- Ho: Lack of sufficient capital and poor financial management does not hinder the growth of indigenous firms in Nigerian.
Hi: Lack of sufficient capital and poor financial management hinders the growth of indigenous firms in Nigeria.
- Ho: Marketing of products is not a major problem facing indigenous firms in Nigeria.
Hi: Marketing a product is a major problem facing indigenous firms in Nigeria.
SIGNIFICANCE OF THE STUDY
The study will help pin point the various growth challenges of
indigenous companies in Nigeria as well as solutions to these
challenges. Findings and recommendations from the study will enable
company managers and the government to rally together and develop
better policies that will encourage our Nigerian owned companies to
grow. The study will also bring out strategies and techniques that can
be adopted by indigenous companies in Nigeria to beat foreign owned
firms and survive competition.
SCOPE OF THE STUDY
The study is limited to the growth challenges of indigenous
companies in Nigeria, using Ibom PowerCompany as a case study. Findings
and recommendations from the study may not be used to generalize all
indigenous companies in Nigeria as the researcher could not reach
out to more indigenous companies in Nigeria due to time and financial
constraints.
LIMITATION OF THE STUDY
The only limitation faced by the researcher in the course of
carrying out this study was the delay in getting data from the various
respondents. Most respondents were reluctant in filling
questionnaires administered to them due to their busy schedules and
nature of their work. The researcher found it difficult to collect
responses from the various respondents, and this almost hampered the
success of this study.
ORGANIZATION OF STUDY
Chapter one of this study includes the general
introduction, background information about the study, statement of
the problem, objectives of the study, research questions, scope of
the study, significance of the study, and the limitation of the study.
Chapter two reviews all relevant literatures
relating to the study as well as the researcher’s views concerning
previous studies on the challenges of income taxation.
Chapter three includes the methodology applied in
collecting and analysing data, population definition, study site,
and limitations.
Chapter four presents the results of the study as well as data analysed, and the interpretation of the analysed data.
Chapter five includes a summary of the study, conclusion and recommendations based on the findings from the study.
DEFINITION OF TERMS
MONOPOLY: Means the sole right to trade on a particular goods or services.
CAPITAL: This means wealth or property that can be placed to produce more wealth.
INVESTORS: it means group of persons or organizations that invest a business venture.
ECONOMICS: The production principles and distribution of goods and services and the development of wealth.
INFLATIONARY: This means the persistent and continuous
rise in prices and wages caused by increase in money supply and demand
for goods and resulting in a fall in the value of money.
FIRMS: Means business company or an organization.
MERCHANT: Person involve in trade or commerce.
SECTORS: that parts or branch of a particular area of activity especially of a country’s economy.