PROBLEMS AND PROSPECTS OF OPERATING A SMALL SCALE BUSINESS IN ENUGU METROPOLIS

(A CASE STUDY OF GRAND METROPOLIS HOTEL, ENUGU)

By

AGWARA STANLEY

Presented To

Department of Business Administration and Management

ABSTRACT

This research work is a very crucial study for the managers and prospective owners of Small Scale Hotel. The study has motivated by the diminishing state of the hotels and also the prospects.

To solve the research problem, both the primary and secondary data were collected. The research instrument used in collecting the data were questionnaire, oral interview and field visits. The respondents comprises of the owners, managers and workers Small Scale Hotels in Enugu.

In organizing and presenting data collected, tables and percentages were used. The various hypothesis were tested using the chi-square.

1. Most of the respondents rated the performance of hotels as being below standard and easily sheet down.

2. Most of the respondents rated the hotels and yielding profits with bright future.

3. Most of the respondents between most operators of the hotel are illiterates, has little money and keep no records of business.

4. Base on findings, the researcher recommend that:

(i) All hotels and prospects ones should study the proposed sight of their business before location. i.e proper financial records should be kept e.g the cash book

TABLE OF CONTENT

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE:

INTRODUCTION

11 BACKGROUND OF THE STUDY

12 STATEMENT OF THE PROBLEM

13 PURPOSE OF THE STUDY

14 SCOPE OF THE STUDY

15 RESEARCH QUESTIONS

16 RESEARCH HYPOTHESES

17 SIGNIFICANCE OF THE STUDY

18 LIMITATIONS OF THE STUDY

19 DEFINITION OF TERMS

CHAPTER TWO:

REVIEW OF RELATED LITERATURE

21 DEFINITION OF SMALL SCALE BUSINESS

22 WHY PEOPLE WANT TO GO INTO BUSINESS OWNERSHIP

23 SSCOPE OF SMALL SCALE BUSINESS

24 TOLE OF SMALL

25 SOURCES OF FUND FOR SMALL SCALE BUSINESS

26 GOVERNMENT COMMITMENT TO ENCOURAGES THE SMALL SCALE BUSINESS ENTERPRISES

27 FEASIBILITY STUDY

28 PROBLEMS OF SMALL SCALE ENTERPRISES

REFERENCES

CHAPTER THREE:

RESEARCH DESIGN

31 AREA OF THE STUDY

32 POPULATION OF THE STUDY

33 SAMPLE AND SAMPLING PROCEDURE TECHNIQUES

34 INSTRUMENT FOR DATA COLLECTION

35 VALIDATION OF THE INSTRUMENT

36 RELIABILITY OF THE INSTRUMENT

37 METHOD OF DATA COLLECTION

38 METHOD OF DATA ANALYSIS

CHAPTER FOUR:

DATA PRESENTATION AND ANALYSIS

41 PRESENTATION AND ANALYSIS OF DATA

42 TESTING OF HYPOTHESIS

43 SUMMARY OF RESULT

CHAPTER FIVE:

DISCUSSION, RECOMMENDATION AND CONCLUSION

51 DISCUSSION OF RESULT/FINDINGS

52 CONCLUSION

53 IMPLICATIONS OF THE RESEARCH FINDINGS

54 RECOMMENDATIONS

55 SUGGESTIONS

BIBLIOGRAPHY

APPENDIX: QUESTIONNAIRES

CHAPTER ONE

INTRODUCTION

11 BACKGROUND OF THE STUDY

The Hotel business of what could be described as small scale hotel business started as a result of movement of people from one place or town to another These movement are categorized in:-

a Movement which one locality or town for example going to work from one's house within the same city or from one's city to another

b Movement from one town to another like in the case of Ogui migration where there is an exodus of the people from rural area to the developed Ogui area In this case, people concerned to go out for greener pasture like looking for better jobs and business

c Movement from one country to another for wither business, study or search for better jobs

d Movement to places of interest like - the Olumo Rocks in Abeokuta or Yoruba game reserve

In 7course of these movement, it has not been easy for people to carry along the required quantity of food and drinks that would last them the length of time they would stay outside their homes The instructive desire to help in feeding of these group of travelers brought about the business of hotels

Before the 15^th century, what used to be called inns existed in Europe These were place where travelers called spend a night or two or even more and were served food and drinks at a cost The inns were merely remedy by inn-keepers between 1750-1850, the year of industrial revolution, the business of hotels became a common thing all over Europe

In Nigeria, the business is beleected to have started with the arrival of Europeans into the country Before the Europeans, all travelers woe only cafered for by their hoppetabeo natures Travelers who come to peace mission were virtually carried for by their hosts These Europeans or their guide had to make do with the local food which brought about some kind of exchange process As this process continued, it dawned on the local people that food could be prepared and sold to these travelers who moved from one place to another This was the early shape of hotels unfit it grew to its present standard which was made possible by the attendant development of the country by the presence of the Europeans

However, the small scale business may not be said to have attained its height in hotel management and its operations due to the difference in tradition and cactane in Nigeria The different ethnic groups or race have their favante dishes some of these dishes are beginning to gain national acceptances, while others are steel confined to their local use by the people concerned For instance garri is more or less a national food because majority of Nigerian do eat it One the other hand, "Tuoo" for instance still remain the food for the Northern part of the country

Hotels plays very important role in the economic activities of the country because almost all business endeavour depends on hotel foundation eats across feeding the work force of the economy

Besides the fact remains that a good number of hotels in Nigeria needs better operations and management These observation daily considers the cactaral background and ethnic difference in the country, the problems and prospects of operating and managing hotels in Nigeria therefore are what this research is all about In order to accomplish this study some hotel in Ogui Enugu has been selected as a case study

12 STATEMENT OF THE PROBLEM

Government of Federal State and Local levels have set agencies that are specifically changed with providing funds and other services for the small scale business people The purpose of establishing these support agencies by government is to encourage the rapid development of small or medium scale industries in the country for government want to encourage school levels to establish their own small business or unemployment and for economic development

These support agencies are National Directorate of Employment (NDE), Funds for Small Scale Industries (FSSI) and National Economic Reconstruction Funds (NERFUND) have their various functions Some are established to provide loans, render advisory services, identify source of raw materials, structure their organisation which could be managerial or technical/structuring

But inspite of all efforts being made, the performance of small scale business in Nigeria are still below expectation

Especially in the small scale hotel business today, these is relatively high rate of business failure, low productivity, managerial management, financial stringency, and of good human relations under capitalization etc small scale hotels still perform below expectation? What are the courses of small scale hotel business failure?

13 PURPOSE OF THE STUDY

The study will address the following purposes:-

1 To find out why some small scale hotel still perform below standard

2 To find out why there is high rate of business failure in small scale hotels

3 To determine the extent of managerial incompetence of owners of small scale hotels in the management of their business

4 To determine why there is poor human relations with small scale hotels

5 To find out the causes of low productivity in small scale hotels

6 To determine the extent of financial stringency in the operations of some scale hotels

7 To recommend what should be done to improve standard of small scale hotels

14 SCOPE OF THE STUDY

This work covers a selected hotel in Enugu The Grand Metropolis in the Eastern part of Nigeria I strongly believe that careful analysis of fault obtained will enable me to make general observations regarding hotel business in the other cities of Nigeria

This study tries to identify areas of problem such as financials, marketing, advertising, expansion and other meaningful suggestion that will help managers in this sector to surmount them

15 RESEARCH QUESTIONS

To solve the research problem, I have asked the following research questions

1 Are small scale hotels performing below standard?

2 Are there high rate of business failure in small scale hotels?

3 What is the extent of managerial incompetence of owners of small scale hotels?

4 Are these low productivity in small scale hotels?

5 Does poor human relation have negative effect on the turnover of small scale business

6 What is the effect of financial stringency on the operation of small scale hotels?

16 RESEARCH HYPOTHESIS

The following hypothesis will be used in the study:-

1 Ho: Most small scale hotel do not perform below standard

Hi: Most small scale hotel perform below standard

2 Ho: Owners of small scale hotel do not make good profits

Hi: Owners of small scale hotel make good profits

3 Ho: There is no financial stringency in small hotel business

Hi: There is financial stringency in small hotel business

4 Ho: There is good human relations in small hotel business

Hi: There is good human relations in small hotel business

5 Ho: Most operators of small hotel are not illitrated

Hi: Most operators of small hotel are illitrated

17 SIGNIFICANCE OF THE STUDY

The study is very timely, especially today that the nation is striving towards better economic development and growth This study will be of immense benefits to both the operating and potential hotel because it will give a thorough insight into hotel operations This is aimed at patting hotels in trace operative, so that those concerned will got to know what the business is about In the same vein, different categories of hotel customers will be put in a position where they can appreciate hotel problem and probably adjust their irrational behaviours The work unravels the technicians of the game and to ensure success of the operation by discussing things live customers - workers relationship, marketing strategies, behaviour in the restaurant

The study should create the long required awareness in the hotel business because it will emigration the hotel on its potentials and how best to top them optionally and also appreciate and how best to top them optionally and also appreciate the important role it plays in the society and national economy

18 LIMITATIONS OF THE STUDY

I must acknowledge the fact that the information obtained from my respondent are not hundred percent correct, some may be beased due to human faultiness Those who have responded without beas woaed have helped in on small ways in making this work successful

As a student, there is both time and financial constraints, hence my decision to limit the steady to Enugu many foods prepared in international hotel or hotels elsewhere other Nigeria food are mainly prepared and served Such food include foo foo, eba, amala, rice, beans, fried plantain, stew, pepper soup, agba, salad and so on Others include take away food like meat pile, sausage-roll, hotdog, bread and tea, moi-moi, akamu, pap etc in short, the research work is on hotel seeling available food in Nigeria

19 PIFINITION OF TERMS

A, hotel means a place or building where means and drinks are served Bedrooms are provided for accommodation There are other facilities provided, such as casmo, swimming pool, playing grounds like femiscourt, and others There are other pab houses such as guest house, inn, resort and motel

i Foo-foo:- This means founded yam or cassava that of the Southern part of Nigeria

ii Amala:- Food prepare in solid form like pounded yam and eaten with draw soup It is usually common on the Yoruba speaking area of Nigeria

iii Draw soup:- This is like stew and is usually prepared with okoro or ogbono cut in pieces It is very delicious and makes the eating of solid food more pleasurable

iv Pepper soup:- This is a traditional Nigeria food prepared with meat, and salt to taste It is usually taken in relaxation time

v Eba or Garri:- It is usually in form of pounded yam but it made with boiled water

v Moi-Moi:- This is a land of food made from granted beans