PROFIT MAXIMIZATION: A STRATEGIC TOOL FOR SURVIVAL OF BUSINESSES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Business is an institution organized and operated to provide goods and services under incentive of private gain. the fundamental purpose of any business in the society is to provide goods and services for consumption and the process make profit. business is any human activities that is involved in the production and distribution of goods and services through a socially organized system of exchange. business comprises a wide variety of activities aimed at satisfying the needs and desire of people. It is the sum of total of human activities involved in a production and distribution of goods and services for the purpose of satisfying human wants. Business also refers to the whole field of industry, trade and finance and comprises activities such as agriculture, mining, quarrying, manufacturing, processing and retail distribution and services of all kind (Etuk 1995).

Business survival is the continued existence of a business despite prevailing unfavourable environment. A business cannot survive for a long time if it does not make use of strategies that will enable it maximize sufficient profit. Profit can be used to meet the home for business man. It could also be used to pay salaries of employees, buying raw materials etc.

Upon this background therefore, this research work seeks to examine the profit maximization as a strategy that can enhance the survival of small scale business enterprises.

1.2     Statement of the Problem

The contributions of small scale business to the growth of any economy cannot be over emphasized. A cursory survey of small scale business enterprises in Nigeria reveal the incessant case of collapse of such business enterprises within few years of their existence. the ugly situation is traceable to the use of ineffective business strategies by owners or operators of these enterprise. The continued collapse of small scale business enterprises will Leighton the level of unemployment and poverty in the country which will sub squally impact negative on the nation’s gross domestic product (GOP). These issues raised the concern of the researcher in examining the strategies for enhancing business survival in Nigeria.

1.3     Objectives of the Study

This research study intends to achieve the following objectives.

1.  To find out the strategies that can be used to enhance business survival inNigeria.
2. To examine the role that government play in the promoting the business profitability and survival.
3. To identity the factors militating against profit maximization as a strategy for business survival in   small scale enterprises in Nigeria.

1.4     Research Questions

The following research question was formulated based on the objectives of the study;

(1)     What is the contribution of small scale business to Nigeria economy?

(2)     What are the strategies that can be used to enhance business survival in Nigeria?

(3)     What is the role government play in the promotion survival in     Nigeria?

(4)     What are the factors militating against business survival in small     scale           enterprises?

1.5 Hypotheses

1. Ho: Creativity is not a strategy for the survival of small and medium enterprises in Akwa-Ibom State.
2. Ho: High risk taking is not responsible for the survival of small and medium enterprises in Akwa- ibom State.
3. Ho: The identification of areas of opportunity for business operation is not a strategy for the survival of small and medium enterprises in Akwa-Ibom State.

1.5     Significance of the Study

This study will be beneficial to operators and owners of business enterprises in Akwa Ibom State and Nigeria as a whole as it will keep them to evaluate their operation and also highlight the challenges

CHAPTER TWO

LITERATURE REVIEW

Conceptual Review

Nature And Meaning Of Small And Medium Enterprises

Small business covers a variety of enterprises. It encompasses sole proprietorship or entrepreneurship, family businesses and partnerships, and may be incorporated or unincorporated. The term also includes such professionals as Accountants, Lawyers, Doctors, Engineers, and Architects, who are self employed. Others are repairmen and roadside auto- servicemen known generally as “roadside mechanics” in Nigeria.