RETAILERS CONTRIBUTION AND THE DEVELOPMENT OF RURAL ECONOMY IN ITU LOCAL GOVERNMENT AREA, AKWA IBOM STATE
TABLE OF CONTENTS
Cover page
Title page
Declaration – – – – – – – – i
Certification – – – – – – – – ii
Dedication – – – – – – – – iii
Acknowledgement – – – – – – – iv
Abstract – – – – – – – – – vi
Table of contents – – – – – – – vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – 1
1.2 Statement of the Problem – – – – – 8
1.3 Objectives of the Study – – – – – 10
1.4 Research Question – – – – – – 11
1.5 Research Hypothesis – – – – – – 12
1.6 Significance of the Study – – – – – 13
1.7 Scope of the Study – – – – – – 14
1.8 Limitation of the Study – – – – 14
1.9 Definition of Terms – – – – – – 15
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Brief Introduction – – – – – – 18
2.2 The Concept of Retail Business and Types – – 18
2.3 Features of Retail Business – – – – 20
2.4 Structure – – – – – – – 25
2.5 Place of Small Business in the Economy – – 30
2.6 Problems of Small Business – – – – 45
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Brief Introduction – – – – – – 56
3.2 Area of Study – – – – – – – 56
3.3 Population of the Study – – – – – 57
3.4 Sample/Sampling Technique – – – 58
3.5 Method of Data Collection – – – – – 59
3.6 Description of Instrument for Data Collection – 59
3.7 Method of Data Analysis – – – – – 60
CHAPTER FOUR: PRESENTATION OF DATA, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Brief Introduction – – – – – – 61
4.2 Analysis of Questionnaire Administered – – 61
4.3 Testing of Hypothesis – – – – – 69
4.4 Discussion of findings – – – – – 74
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Brief Introduction – – – – – – 76
5.2 Summary – – – – – – – 76
5.3 Conclusions – – – – – – – 77
5.4 Recommendations – – – – – – 79
References
Appendix A: Letter of Introduction
Appendix B: Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Retailer’s contribution towards development of rural economy cannot be overemphasized. Retailers are the traders who buy goods in small unit from the wholesalers and then in smaller unit to the final consumers. Retailers play an important role in the channel of distribution. They cut as links between the wholesaler and the final consumers. The final consumers are the last channels of distribution where all goods and services are bought and consumed by them. Information is given to retailers, wholesalers and finally to the manufacturers on what type of goods are needed by the final consumers.
The retailers break the bulk by buying goods in small units from the wholesalers then selling them in the smaller units to the final consumers. Without the retailers, final consumers may find it difficult to buy goods in a large quantity from the wholesalers who always sell their goods in bulk.
Sometime, retailers pay for business premises and taxation to government in which government uses these incomes to develop the area by providing electricity, pipe borne water, recreational centre etc. Retailing can be defined as those business activities that involve the direct sale of goods and service to ultimate consumers for personal house hold or non-business use.
The development of rural economy in Itu Local Government Area is largely contributed by the retailers because this group of people is being seen in every corner of the street within the Itu Local Government Area. Rural economy is an approach designed to raise or even change social and economic conditions of rural dwellers the basic objectives of rural development strategy are to improve economic and social conditions of rural communities in an integrated approach, with a view to eradicating poverty.
Rural economy is a process of improving the living standard in the rural areas on a self-sustaining basic through transforming the socio-spatial structures of their productive activities. Agricultural output such as maize, rice, beans, cassava, tomatoes etc are being the hall of rural economy in the rural communities like Mbak, Ikot Akpan, Enen Atai,Urua Ekpa etc.
Rural economy enhances self-reliance participation of farmers in the planning and implementation of development activities at the local community level, by promoting participatory organization of farmers and producers, producers, particularly small holders and rural farmers.
Supermarkets, these are the retailers’ outlets found in every corner of Itu Local Government Area. The supermarket performs retailing function by buying goods in small quantities from the wholesalers and selling them in a smaller unit to the final consumers. These supermarkets located in Itu Local Government Area and its environs make life meaningful to common dwellers. For example a family of two to five people may not buy sugar up to four packets and keep them for their daily use. This product meets easily as it is exposed to moisture. The family can afford a packet that they can consume within short period of time to avoid economic waste. The retailer that own these supermarkets pay taxes to government and in turn government uses these taxes to develop the rural areas.
The location of these supermarkets attract social infrastructure like electricity, pipe borne water, recreational centres etc. for instance the perishable goods in the supermarkets in constant electricity for the preservation of the perishable items. By so doing, electricity can be distributed to the neighbours. Employment opportunities, these supermarkets being about employment opportunities to rural dwellers, such as people who look for jobs get employed. It goes a long way to solve the problem of unemployment and contributes to the development of rural areas.
Specialty store contributes immensely to rural economy. Specialty store is a small outlet that focuses on selling a particular product range and associated item. Most specialty store business operators will maintain considerable depth in the type of product that they specialized in selling usually at premium prices, in addition to providing higher service quality and export guidance to shoppers. The economic importance of this retail outlet is that individual needs are satisfied since they specialized on a particular product. It creates employment opportunity to the people around the Itu Local Government Area.
Another contribution to rural economy is drug store, as its name implies, it is a retail outlet that deals with drugs. Examples of drug store are patient medicine dealer store, hospital dispensary etc. The patient or sick people get their daily drugs from the drug stores. Drugs are very important to human existence. As human beings are living with microscopic organisms which cause diseases to their bodies, the availability of drug stores is essential for healthy living. Most pharmacies sell drugs based on medical doctor’s prescription. The trained and licensed pharmacist can equally prescribe drugs for patients. By so doing, mortality rate can be reduced in Itu Local Government Area of Akwa Ibom State. It is only healthy people can contributes meaningfully on the rural development of any area.
Self service seems to be a major contributor to rural economy. Self-service store is a type of retail business where customers help themselves to the products that they wish to purchase, example of business model that permit their customers an aspect of self-service might include a self-service food buffet, a self-service store play a significant role in an economy. Against this background, this study set to empirically examine the relationship between supermarket, specialty stores, drug stores, and self-service stores and the rural economy in Itu Local Government Area.
1.2 Statement of the Problem
Retailers seem to encounter a lot of problems in the process of distributing goods and services. These problems become a major challenge in the development of rural economy. Sometimes, retailers find it difficult to locate outlet of wholesalers and buy goods directly from the manufactures, this create a major problem to them and they may not have enough capital to buy these goods in large quantity from the manufacturers.
It is worthy nothing that without the services of these retailers, some final consumers would have found it difficult to get satisfaction on goods they want because not every final consumer has enough capital to buy gods in large quantities either from the wholesaler or the manufacturers. Despite the importance of these retailers in the chain of distribution of goods and services, they are not creating meaningful impact on the development of rural economy.
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