The effect of government regulation on business in a developing economy has in the fact that will and down rules (laws) guiding the operation of business organization all sorts of business malpractices that wouldhave hnder the growth the and development through economy boost will be discarded.
The purpose of this research work is to investigate and examine the effect of government regulation on business using Nigeria Brewery limited (NBL) as a case study wit the view to establish an acceptable solution to their problems.
The source of this research work is from the secondary and primary sources. It was found that:
- There is instability in government policy which leads to the various abandonment of many plans and programmes scheduled to regulate the business developing economy.
- Over regulation of business activities is mostly responsible for the year performance of business organization.
- All system of regulation and control of business in developing economy is uncoordinated
TABLE OF CONTENTS
1.1 Background of the study
1.2 Statement of the study
1.3 Objective of the study
1.4 Research Questions
1.5 Hypothesis Formulation
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitations of the Study
1.9 Definition of Terms
2.0 Research Design and Methodology
3.1 Research Design
3.2 Sources of Data Collection
3.3 Population of the study
3.4 Sample and Determination of Sample Size
3.5 Method of Data Collection
3.6 Method of Data Analysis
4.0 Data presentation and analysis
4.1 Presentation and Analysis of Data
4.2 Testing of Hypothesis
4.3 Summary of Results
5.0 Discussion, recommendation and conclusion
5.1 Discussion and Results Findings
1.1 BACKGROUND OF THE STUDY
In a country with mixed economy such as Nigeria, both the government and private individual turn the economy jointly. This means that private individual, groups as well as the three levels of government are free to establish business enterprises. The three levels of government low include the local, the state and the Federal Government, respectively. In this modern world, mixed economy appears to the most prevalent economic system but what makes the difference is the degree of the mixture.
Therefore, government has some important roles to play in this type of economy. Based on the importance of government regulations on business in the country, government regulatory power on business activities was included in section 16 (1) and (s) of the 1979 federal constitution. In 1984 as well, the former was modified by the then federal military government. This modification was also included in section 16 (1) and (3) of 1999 constitution of the federal republic of Nigeria. And both constitutions specified the following as regards our national economic activities.
Section 16 (1) states that the state shall within the context of the ideal and objectives, for which provisions are made in this constitution, control the national economy in such manner as to be secure the maximum welfare, freedom and happens of energy citizen on the basis of social justice and equity of status and opportunity. Without prejudice to its right to operate or participate in areas of the economy, other than the major sectors of the economy.
According to sub-section 4 of section 16, the major section includes activities directly concerned with the production, distribution and exchange of wealth, or of goods and services. These major sectors of the economy will be declared from time to time by a resolution of each house of the National Assembly to be managed and operated exclusively by the government of the federation.
Without prejudices to its right to operate or participate in areas of the economy, to manage and operate the major section of the economy.
Moreover, according to section 16 (3); a body shall be set up by an act of the National Assembly which shall have power to review from time to time the ownership and control of business enterprise operating in Nigeria and make recommendation it some and to administer any law for the regulation of the ownership and control of such enterprise.
Therefore, it is clear that the role of government is to protect and represent the interest of the society and the citizenry in which business operates. It can be further said that government through regulations protects consumers from abuse, they ensure efficiency in the use of resources and promote equitable distribution of income.
Government policies are the most dynamic of all government influence on business in Nigeria. This is due to instability in Government of Nigeria and has contributed to massive change in policies affecting the operation of business.
These policies may include monetary or fiscal policies. Fiscal policies which is a macro-economic tool that involves the use of government spending and taxes (T) in guiding the nation’s economy to achieve pre-determined economic good. Monetary policy on the other hand is the regulation of money and the terms and availability of credit. Government can regulation of business activities.
Conclusively, government can use other means such as import duties and tariffs to regulates business in Nigeria, in order to protect domestic industries and producers against foreign competition.
1.2 STATEMENT OF PROBLEMS
The influence of government on business can take so many forms. The study aims to look at the regulation or government regulation towards Nigeria Breweries Plc Enugu and also suggest how to increase the company’s efficiency through the regulation. Government has realized that political independence without economic independence is meaningless.
The research on government regulation with particular reference to Nigeria Breweries Plc Enugu has raised some questions among experts and professionals, which this study has attempted to address. These include;
a. Can government regulation in organization be minimized and for untimely eliminated?
b. Can organization exist without regulation?
c. Is regulation beneficial or detrimental to organizational goal?
d. How can organization efficiency be increased by regulation?
1.3 OBJECTIVES OF THE STUDY
The aim of emery firm such as Nigeria Breweries Plc is to be efficient in the discharge of its service. It is through effective and efficient regulation that organizational misconduct can be avoided.
The overall objective of these measures will be to ensure the profitability of the organization. This is addition to the above stated measure; the researcher wants to achieve through the study the following objectives.
1. To find out whether regulation exist in Nigerian Breweries Plc Enugu
2. To examine and assess various regulation traceable in the company.
3. To identifying whether a specific method of regulation actually exist in Nigerian Breweries Plc Enugu.
4. To identify problems if any encountered in regulating in the organization.
5. To find out the consequences of regulation in the Nigerian Breweries Plc Enugu (activities).
6. To recommend ways organizational efficiency can be increased through regulation.
1.4 RESEARCH QUESTION
1. What is really the reason why government regulation will neglect by firms (company)?
2. Why is it that companies at time refuse to give assistance to government when they needed it.
Based on the study as had been discussed above, the following hypotheses have been formulated;
Ho: Some government regulatory measures in business have not adversely affected the growth and structure of Nigerian Breweries Enugu.
H1: Some government regulatory measures in business have adversely affected the growth and structure of Nigerian Breweries Enugu.
H0: Because government does not always seek the opinion of public in matters pertaining to business, its regulatory policies have not been very effective.
H1: Because government always seek the opinion of public in matters that concerns business, its regulatory measure have been effective.
H0: Nigerian Breweries Plc may not be forced to sub-optimize research due to increasing government regulatory measure.
H1: Nigerian Breweries Plc may be forced to sub-optimize research due to increasing government regulatory measure.
1.5 SIGNIFICANCE OF THE STUDY
Business had been criticized seriously due to discriminatory rates and policies. The economic power had been in the hands of all kind of processing and manufacturing industries through trusts and corporate merger. Meanwhile, due to this government in order to rescue the economy has come up with so many regulatory measures which are beneficial to the following people;
c. Consumers etc.
In fact it is because of these, it becomes necessary to study the effect of government regulation on the management of Nigerian Breweries Plc Enugu.
1.6 SCOPE OF THE STUDY
The study of this topic the Effects Of Government Regulation On Business is suppose to include many kinds of business sector both private and public sector. In order to manage the topic and carryout the study effectively and effectively the researcher deemed it fit to restrict the topic to the effects of government regulation on business and it affects Nigerian Breweries Plc Enugu.
Although, reference will be made on a general basis because of the diverse native of business.
1.7 DEFINITION OF TERMS
The following terms or words used in this study will be defined:
Business: This simply means an economic activity undertaken to produce goods and or services.
Mixed Economy: It is a system of economy in which both private individuals and government jointly run the economic activities of the country.
Fiscal Policy: It is a tool or measure which the government used in regulating the economy through taxes and government spending.
Monetary Politic: This is another measure used by the government in order to control the supply of money and the terms and availability of credit in the nation.
Government: It is an agency designed to administer the affairs of a state or nation.
Regulation: This is the system which government in controlling the economic activities of the nation.