GOVERNMENT REGULATION AND CONTROL OF BUSINESS IN A DEVELOPING ECONOMY

(A CASE STUDY OF SUNRISE FLOUR MILLS NI. LTD.)

By

CHIME STELLA OLUCHUKWU

Presented To

Department of Business Administration and Management

ABSTRACT

The significance of government regulation and control of business in a developing economy lies in the fact that with laid down rules (laws) guiding the operation of business organization particularly in developing economy, their would be all sorts of business malpractices that will not hinder the growth and development but also drawn the economy.

The task of the research work is to investigate and examine government regulation and control of business in developing economy using Sunrise Flour Mills Nigeria Plc as a case study with the view to establish why government regulates and control business is to identify general acceptable solution to their problems.

In this course of research, primary and secondary sources were used to obtain information. Having analysed the data tested, the researcher discovered the following:

- That government regulation and control of business in developing economy has not really done much in the area of sound development.

- That there is instability in government policy which leads to the various abandonment of many plans and programmes scheduled to regulate and control the business organization.

- That government is liable to meeting up with the demand of regulating business organization developing economy.

- That over-regulation of business activities is mostly responsible for the year performance of business organization.

- That all system of regulation and control of business in developing economy is uncoordinated etc.

The researcher recommended the following:

- That government regulation and control of business should conform with system developing economy.

- That they should deregulate some of the information.

- That relevant information should be disseminated to business organization.

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 RESEACH HYPOTHESIS

17 SIGNIFICANCE OF THE STUDY

18 LIMITATION OF THE STUDY

19 DIFFINITION OF TERMS

REFERENCES

CHAPTER TWO

REVIEW OF RELATED LITERATURE

21 WHAT IS REGULATION?

22 WHY GOVERNMENT REGULATES AND CONTROL BUSINESS IN A DEVELOPING ECONOMY?

23 TOOLS USED BY GOVERNMENT FOR EFFECTIVE AND EFFICIENT REGULATION AND CONTROL

24 HOW GOVERNMENT REGULATES SUNRISE FLOUR MILLS LTD AND UAC FOODS NIGERIA PLC

REFERENCES

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

31 RESEARCH DESIGN

32 AREA OF THE STUDY

33 POPULATION OF THE STUDY

34 SAMPLE AND SAMPLING TECHNIQUE

35 INSTRUMENT FOR DATA COLLECTION

36 VALIDATION OF THE INSTRUMENT

37 RELIABILITY OF THE INSTRUMENT

38 METHOD OF DATA COLLECTION

39 METHOD OF DATA ANALYSIS

REFERENCES

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

41 DATA PRESENTATION AND ANALYSIS

42 TEST OF HYPOTHESIS

43 SUMMARY OF RESULTS/FINDINGS

REFERENCES

CHAPTER FIVE

DISCUSSION, RECOMMENDATION, AND CONCLUSION

51 DISCUSSION OF RESULT/FINDINGS

52 CONCLUSION

53 IMPLICATION OF THE RESEARCH FINDINGS

54 RECOMMENDATIONS

55 SUGGESTIONS FOR FURTHER RESEARCH

REFERENCES

BIBLIOGRAPHY

APPENDIX 11

CHAPTER ONE

INTRODUCTION

12 BACKGROUND OF THE STUDY

This could be traced back before, the independence of Nigeria Then, there was little or no manufacturing taking place The role envisaged for the colonies by our colonial masters was that of producers of raw materials and consumers of finished products Planned industrial development did not really commence until after Nigeria gained her sovereignty, there was change in economic activity due to the power shift from the colonial masters to the Nigerians (INDIGENISATION POLICY OF 1972)

In order to consolidate her political positions, Nigeria government started to encourage individuals to establish industries mainly for import substitutions Manufacturing firms were set -up by private individuals for production of goods and services such as food processing, agro-allied industry, chemical, pharmaceutical industry, based industry & petrochemical industry etc

Owing to the government encouragement on indigenization programmes in 1972 more business were established (as mentioned above) Also because of the vital roles business play in the economy, more manufacturing / multinational companies were established so as to stimulate economic activities and as a means to develop the economy as a whole Although, ever before the independence, most manufacturing sector that were operating in Nigerian economy were largely owned by foreigners and due to the indigenization programme that encouraged private owned businesses, Nigeria took interest in the operation and establishment

Most of the business owners or manufacturers were profit conscious instead of the consumer protection

In fact, almost everybody wants to make it fast, and become a millionaire overnight This ambition is what made most manufacturers to be producing low standard products which are detrimental to the health of the general public Most products are below standard and do not at times achieve the objectives of their production

(Nnenna B Ani, 1999: 9) Because of the values average Nigerians attached to money (wealth), no matter how the wealth is a acquired, they don't care to know

This is why people go into swindling (419) where they dupe unsuspected business men or innocent members of the public

Instead of causing more harm to the Nigeria economy, they should have gone into goods and services productions in other to will improve on the economy (Nnenna B Ani, 1999:2) Thus conserving our dwindling foreign exchange earnings and generating employment opportunities for our school leavers and university graduates and earns some foreign exchange for the economy just as there was a tendency that manufacturing system / multinational companies will be of great help to the whole economy

(Ojemba G Agbo 1999:67) They are a few things a developing country needs as much as multinational companies These are few contributions from which it can benefit so much as from the multinational corporation can make In the economy of developing or less developed countries in which Nigerian is one, the impact of Multinational Corporation may be described as follows;

Health, employment, education, creation of industries, skills development, social responsibility etc So the companies like UAC foods plc, Gumess, smith Laline Beedan, M&B etc, have through these provisions really created a great development to our economy

On the other hand, many harm have been done to the development of the Nigerian economy, there are loops holes on the total development They have not been performing as expected Sunrise floor mills and UAC foods Plc in Enugu state have not found to be different in the case of ignorance and mismanagement of resource

Because of the damages caused by most business to the economy as a developing one, government therefore embark on regulation and control of business to enhance this level of productivity and also to make positive impact on the economy

12 STATEMENT OF THE PROBLEM

The performance of business organization in Enugu State is major source of concern and worry to all well meaningful citizen of the state, even the state government Most of the business organization in Enugu State are equipped with numerous men, materials and other resources to manage

Inspite of government regulation and control aimed at setting these businesses on a sound footing, the management of these business organizations have proved to be inefficient, ineffective and non-result oriented Even the government owned industry performed woefully

Looking intently at this statement, we can deduce that Nigeria is endowed with many natural resources, numerous to mention, inspite of the level of natural resources that Nigeria has, mismanagement, lack of direction and misappropriation among others are the factors that are militating against the development of the Nigeria economy

The researcher will however go further to add other factors as government regulation and control imposed on these business organization which have proved to be impediment to the profitability of these business These regulation and control include appointment to this business of unskilled/or untrained staff

13 PURPOSE OF THE STUDY

The broad purpose of the research is to study government's regulation and control of business in a developing economy The specific purposes are to find out,

(i) The reason why government regulates and controls business organization in a developing economy

(ii) The tools used by government for effective and efficient regulation and control

(iii) And how government regulates sunrise mills ltd and UAC foods plc

14 SCOPE OF THE STUDY

The research topic spans over businesses in Nigeria developing economy, but the researcher cover only two business organizations in Enugu State, sunrise flour mills Ltd and UAC foods Plc

Normally, the nature of the study requires a random drawn from a large population to validate the initial postulations that most of these business organizations in Nigeria perform below expectation

The research does not ignore this important research requirement, but sees the concentration in Enugu State as not neglecting the validation of the generalization because it has become an accepted fact that most business organization perform badly, for this reasons, the researcher believes that what obtains in the rats village is also, obtainable in the rabbits village

Therefore, our findings in these business organizations would be applicable to other business organizations in Nigeria economy

15 RESEARCH QUESTIONS

(1) Does any factor constitutes the major projective of the business organization?

(2) What are the factors responsible for the poor performance of the business organization?

(3) Does the organization has performance rating?

16 RESEACH HYPOTHESIS

Ho: Government regulation is contrary to the private objective of the business

Hi: Government regulation is not contrary to the private objective of the business

Ho: Yearly national budget affects business

Hi: Yearly national budget does not affects business

Ho: Government law affects the business operations adversely

Hi: Government law does not affects the business operations adversely

17 SIGNIFICANCE OF THE STUDY

It is worthy to note that today is a review of yesterday and the basis for future plans of action That Nigeria economy is in stage of development today is an evidence that , the economy will develop and appreciate to the benefit of all This research study is therefore relevant first to various sectors of the economy It is equally relevant to policy making bodies of government as tasks participation in some business in the economy as concerned

It is hoped that this study will benefits top management of these business organizations' whole operations, and providing a kind of check-up list for efficient business management for the academic and Nigeria society The research study will serve the purpose of arising deeper and genuine interest on the subject matter for further research aimed at eliminating these terrible situations from our system It is by deliberate action that the intention of this study is to contribute towards improving the quality of business administration and management in Nigeria and in the particular case in Enugu State

18 LIMITATION OF THE STUDY

The actual limitation of the study was the differently and unwillingness of both the government agencies and the business organization being studies to release needed information records and some documents

The documents, they said are not for public consumptions Original reports and financial statements were not released, funding, inferences were based on aggregate (final) figure which are difficult to dismantle, for the purpose of time analysis and comparison

Nevertheless, responses were got through personal interviews and questionnaires

The researcher was also constrained by time factor Though a research of this sort is combined with classroom work within a short time However, these limitations were gotten over and the study conclusively carried out hundred percent error free However, I hope the readers of this work would find it interesting and useful even though it may not meet their expectations

19 DIFFINITION OF TERMS

Government : This refers to the body of persons governing a state

Regulation: This refers to the prescribed rules, authoritative direction correct pattern used to moderate business activities in order to benefit both the government and the citizen of such nation

Business: This is an economic activity in production of goods and services for the satisfaction of mankind

REFERENCES

Nnenna B Ani (1999) "Entrepreneur Development An Overview Enugu; JTC Publishers page 2,9

Ojemba G Agbo (1999) " International Business An introductory Approach Enugu; Iyke ventures production, page 67