Long ago, many Nigerian have engaged them in one or
tow business entity to promote the economic growth and to earn a
living.Unfortunately it have been observed from the past analysis and
experience that most of them are not living up to the expectation. In
view of this it is important to carry out a research analysis on problem
and prospect of business to know or uncover the reason behind their
business. It is a pity that immediately any thing business is mention,
the only thing that comes to the mind of a typical Nigerian is buying
and selling of goods but business if broader than that. Business means
any lawful activity one engages on to satisfy peoples wants and needs to
earn a living. For the purpose of this research, I want to narrow out
minds to business as any profit directed economy or commercial
activities that provides goods and services necessary to a nation
standard of living.
Business ownership can be classified into two basically:
(i) Public enterprise and
(ii) Private enterprise
The private comprise of sale proprietorship, cooperative society and partnership etc.
In this research work, we are going to concentrate mainly on issue that concerns the partnership business.
According to Boron Donan (1976) partnership can be
defined as a business relationship between two or more persons who
jointly own and manage a business. The maximum number is usually 20
persons. The following problem lead to the formation of a sole
proprietorship and others
- Delay in the decision making process
- Crisis of confidence
- Chained activity all new members to the old ones etc.
STATEMENT OF PROBLEM
A large proportion of the business entities in this
country are face with similar problems. This problem hinders partnership
business and thereby causing their contribution to the nation economic
development limited. Some of this problem is;
- Poor source if fund
- Poor feasibility study
- Absence of rules and regulation
- Inability to differentiate between personal and business affair
- Negligence on the part of some partners
- Wrong decision taking without considering the necessary factor that can affect it
- Lack of competitive awareness
- Lack for assessment on the strength and weakens of a business
PROBLEM OF PARTNERSHIP BUSINESS
1.poor sources of fund: the major source of fund for the partnership
business is from their little savings and gift from friend which is not
enough to start a capital outlay of a standard business and hence the
business fails within a short period of time.
2. Poor feasibility study: not business that can survive without
overcastting and knowing the future of that business that is how it can
survived and whether it is gainful
3. Lack of lay down rules: most partnership business do not have a
laydown rule as a guide to the business and ownership and most of the
time, the terms of agreement which will lead to quarrying and winding
4. Inability to differentiate between business and personal affair.
This happen personally where the partners take up the business property
as their personal property
5. Negligence on the part of some partners: most of their workers
because of the numerous engagements easily show a non challant attitude
toward define responsibilities.
6. Wrong decision taken: this has made many investors to wind up
thanking government decision are trials to every other decision.
7. Lack of competitive awareness: many partners in Nigerian don’t
take the reactions of the competitors into consideration, like issue of
pries tags special discount etc.
8. Personal strength and weakness in business: many of the business
do assess their strength and weakness in business, hence they experience
Summarily, many business do not have adequate training, as a result,
the business folds up as a man’s business. Lac of the tehnologioal kow
how also causes their failure. They likewise ignore the accounting
procedure of handling business, having poor accounting records.
In this study the researcher intends to deal with the following problems:
- Common problem facing partnership business in the area of planning, finance and management
- The cause of this problem
- How to solve the problem
- The future prospects of partnership business in Nigeria
PURPOSE OF THE STUDY
In the work the researcher intends to find out or investigate the following things in view of the problem listed above
- Whether partnership business carry out feasibility study or not before embarking on any business
- Whether most for the partnership business use deeds
- Whether they keep proper accounting records
- If the partnership business on their own plan their work
- Whether there is any effect of poor capital base on the partnership management
- Whether the mismanagement of fund affect the management of partnership business.
The researcher in his cause of writing have tried to study and
understand the problem and how they have frustrated the effort of some
partnership business owners and some suggestions to elicit them and some
recommendation and how to handle some of other problem
SIGNIFICANCES OF THE STUDY
In this work, the researcher intends to go into
details and find out the problem facing partnership business in Nigeria.
The researcher is interested in identifying the major problem that
hinders from a worthy growth in the business. There are chosen areas of
focus specified in the objective of the study.
From the various analyses, there is a clear indication that many for
the partnership business set up in Nigerian are not living up to
expectation. It is hoped that a clear analysis of this problem and
prospects of partnership will uncover the causes of poor performance and
suggestion that could be relevant help to solve some problem
STATEMENT OF HYPOTHESIS
Hypothesis is research answers to problem, which are in essence
subjected to some test. From this assertion, it is necessary to state
out some of the hypothesis
(a) Using the null hypothesis
Hi: for the negative
Ho: for the positive
Hi: inability of the some partnership business to differentiate their
personal affair and business affair is a problem to partnership
business in Nigerian.
Ho: inability of the some partnership business to differentiate their
personal affair and business affair is not a problem to partnership
business in Nigerian.
Hi: Esco & Co has been experiencing problem in quick decision taking
Ho: Esco & Co has not been experiencing problem in quick decision taking
Hi: partnership business is been neglected in today’s business activity
Ho: partnership business is not been neglected in today’s business activities.
Hi: there is a feasibility study before embarking on any partnership business
Ho: there is no feasibility study before embarking on any partnership business.
SCOPE OF THE STUDY
The topic of this research is on partnership business. It
is assumed that it cannot be applied to the larger firm. It focus is on
the problem and identification on why and how the listed factors have
hindered the growth of partnership business in Nigeria. The researcher
will try to cover all aspect of partnership with middle literature
review and the case study, which is the major point of reference.
LIMITATION OF THE STUDY
The researcher was restricted from the collection of vital
information due to the tie factor in combining this academic work with
the researchers study. More so poor financial base to get all
information needed for the study and lack of more cooperation on the
side of my case study.
Limitation of time: the time schedule for the research work was the
time the researcher was suppose to be reading and making prep aeration
for his examination
Financial constraint: the researcher could not meet up with the
financial obligation as a student, because of this; the work is limited
to some areas.
Lack of relevant data: due to instability in the Nigerian government,
most for the workers were on strike as of the time there office were
visited. Base on the inadequate finance, such place were not visited
Attitude of interviewees: many of them have this problem of non-challant attitude, which made them not to cooperate.
DEFINITION OF TERMS
- Partnership business: a business carried out by two or ore persons who jointly own it and mange it together.
- Significances: important of the work been done at a particular time to the users
- Hypothesis: suggestion put forward at a starting point for reasoning or explanation
- Constraint: hindrance or limitation to the progress of the work.
- Relevant: things related to the issue at hand or important solution to the work at hand.
- Interviews: a formally arranged meeting to get the opinion of person, company of group by the person called the interviewer
- Feasibility study: study carried out to find out fact about a particular business or project of its profitability.
THE PROBLEM OF PARTNERSHIP BUSINESS IN NIGERIAN
(A CASE STUDY OF ESCO AND CO, WARRI DELTA STATE)