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
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
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
The researcher recommended the
That government regulation and control of business should conform with system
That they should deregulate some of the information.
That relevant information should be disseminated to business organization.
TABLE OF CONTENT
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Scope of the study
1.5 Research questions
1.6 Research hypothesis
1.7 Significance of the study
1.8 Limitation of the study
1.9 Definition of terms
REVIEW OF RELATED LITERATURE
2.1 What is regulation?
2.2 Why government regulates
and control business in a developing economy?
2.3 Tools used by government
for effective and efficient regulation and control
2.4 How government regulates
sunrise flourmills ltd and uac foods nigeria plc
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
3.2 Area of the study
3.3 Population of the study
.3.4 Sample and sampling technique
3.5 Instrument for data
3.6 Validation of the
3.7 Reliability of the
3.8 Method of data collection
3.9 Method of data analysis
PRESENTATION AND ANALYSIS OF DATA
4.1 Data presentation and
4.2 Test of hypothesis
4.3 Summary of results/findings
DISCUSSION, RECOMMENDATION, AND CONCLUSION
5.1 Discussion of
5.3 Implication of the
5.5 Suggestions for further
1.2 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
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
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
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.
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
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.
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.
(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?
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
Ho: Government law affects the business
Hi: Government law does not affects the
business operations adversely.
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
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
DIFFINITION OF TERMS
This refers to the body of persons governing a state.
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.
This is an economic activity in production of goods and services for the
satisfaction of mankind.
TERMS AND CONDITIONS APPLY
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