EVALUATING THE GROWTH CHALLENGES OF INDIGENOUS COMPANIES IN NIGERIA
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
Finally, the summary of findings conclusion and
recommendation where not left out, they are expected to serve as a basis
for further researchers.
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.
.J. O) Nigerian government in the 1950s operated mainly an open door
policy which attempted to live foreign investors into the country.
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.
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.
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.
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.
To examine the contributions of some government establishments and the
activities of their officers in terms of investment, capital formation
and cost control.
- 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?
- 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
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.
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.