THE PROBLEMS OF PARTNERSHIP BUSINESS IN NIGERIA
This research is aimed at identifying the problems of partnership business in Nigeria and how to sole some of them. This as an attempt to present the frame work which will help various group of persons in partnership businesses and others desiring to become one to have a clear understand of some the problem they are to encounter in the business, especially those of them who are in a haste to form one without understanding the terms of the business neither having any form of agreement. Worthy to mention is the funding which constitute a lot of problems, lack of good planning and good management techniques not being applied which often militate against the progress of the partnership business.
In terms of organization this work is divided into five chapters enumerated as follows.
Chapter two: deals with the subject matter under review with reference to books of other authors, published journals, magazine of different opinion.
Chapter three: Discuss the methods of research the researcher embarked upon with the various instruments used in carry out the wok.
Chapter four forms the core of this research. Data’s collected were presented, analysed and interpreted and the hypothesis tested.
Summary of the findings, implications, conclusion and recommendations.
A list of bibliography and an appendix are provided at the end of this chapter for further classification and information on this study.
TABLE OF CONTENT
1.1 Statement of problem
1.2 Aims and objectives
1.3 Significance of the study
1.4 Statement of the hypothesi
1.5 Scope and limitation of the study
1.6 Definition of terms
2.0 Literature review
2.1 General nature of partnership business
2.2 Historical views of partnership business
2.3 Definition of partnership
2.4 Types of partners
2.5 Banking of partners
2.6 Kinds of partnership
2.7 Applicable laws of partnrship in Nigeria
2.8 Special characteristics of partnership business
2.9 Formation and operation of partnership
2.10 Formation procedures
2.11 Partnership deed
2.12 Power and liabilities of partners
2.13 Advantages and disadvantages of patnership
2.14 Limitation to partners’ liabilities 3
2.15 Dissolution and winding up of partneship
3.0 Summary, Findings, conclusion and recommendation
Long ago, many committed Nigerians have engage them self in one or two business entity to enhance economic growth. They engage them self in various sector of the economy to earn a living.
From past analysis and experience in this present economy has shown that many of these business organizations are not living up to expectation. In view of these it is hoped that a research analysis of the problems and prospect of business will be uncovered and causes of their poor performance. Orientation differs, ones the word ‘business” is pronounce, the message that rings in the mind of men especially in Nigeria is buying and selling of goods. But business is broader than that. Business can be defined as any activity one engage himself or herself with lawfully to earn a living, for the purpose of this research, I want to consider business as “every profit directed economic and commercial activities that provides goods and services necessary to a nation standard of living.
Business ownership can be classified into two namely: public enterprise and private enterprise.
Private enterprise comprises of sole proprietor ship, co-operative society partnership and limited company.
In this research we are going to concentrate mainly on issue concerning “partnership business”. According to Boron, Donan (1976) Partnership was defined as a business relationship between two or more persons who jointly own and manage a business. The maximum number is usually put at twenty people.
People find it easier to engage in sole proprietor ship and others to avoid certain problems that may arise in partnership business such as
- delay in decision making
- crisis of confidence
- chained activities of all new members to old ones.
1.2 STATEMENT OF PROBLEM
A larger proportion of the business entities in this country are faced with similar problems. These problems hinder the growth and development of partnership business in this country, thereby limiting their enormous contribution towards the nation economic development. Some of these problems are listed below.
Poor finding sources
lack of feasibility study
lack of lay down rules
inability to differentiate between personal and business affairs.
negligence on part of some partners.
taking decision without comparative analysis and good understanding of national economic trend.
lack of competitive awareness
lack of personal assessment on strength and weakness of the business.
PROBLEMS OF PARTNERSHIP BUSINESS
1) POOR FUNDING SOURCES: The major sources of partnership business fund is form the little savings of the owners and friend which is inadequate to service the capital out lay of the business hence they fail within the shorted period.
2) LACK FEASIBILITY STUDY: Handly business survives the test of time without feasibility study why because of the poor capital base and ignorance.
3) LACK OF LAY DOWN RULES: Most of the partnership businesses do not have any laid down rule that is guiding the business and most of the time terms of business are not defined which usually end up in quarreling and winding up.
4) INABILITY TO DIFFERENTIATE BETWEEN BUSINESS AND PERSONAL AFFAIR: This usually constitute a lot of problems in partnership in terms of management where some of the mix up will take the business property like a personal property.
5) NEGLIGENCE ON PART OF SOME PARTNERS: Most of the partners because of their numerous engagements easily show a non chalant attitude toward their defined responsibility.
6) TAKING DECISION WITHOUT COMPARATIVE ANALYSIS AND GOOD UNDERSTANDING OF NATIONAL ECONOMIC TREND: This has made many investors to wind up in the sense that government decision stands final to every other decision that have been in existence.
7) LACK OF COMPETITIVE AWARENESS: Most partnership business in Nigeria does not take into account the possible reactions of competitors, such as serve price cuts or special discount to retailers.
8) LACK OF PERSONAL STRENGTH AND WEAKNESS ASSESSMENT IN BUSINESS: Many in partnership do not assess their weakness and strengths in business hence they experience failure.
In summary many of the partnership business set up are without any formal training in this area, as result of this the business usually fold up after some time lack of technology and other operational problems confronting their growth. They like wise ignore the accounting procedure of the big business; hence they end up in having poor accounting records. Also on few occasion you can see a partnership business that carried out a feasibility study to know how possible and viable the proposed business would be before embarking on it.
In this study the researcher intends dealing with these problems
1. Common problem facing partnership business in the area of planning, finance and management.
2. The causes of these problems
3. How to solve these problems
4. The future prospect of partnership business in Nigeria
1.2 AIMS OF OBJECTIVES
In this work, the researcher intends to find out or investigate the following things in view of the problems listed above.
1. Whether partnership business carry out feasibility study or not before embarking on any business.
Whether most of the partnership business uses deed.
Whether they keep proper accounting record
If partnership business owners plan their work
Whether there is any effect poor capital base or inadequate capital has on partnership management.
Where mismanagement of fund affect the management of partnership.
The researcher in the course of the writing has tried to study and understand the problems and how they have frustrated the effort of partnership business owners and some possible suggestion to elicit them and recommendation on how to handle some of the problem
1.3 SIGNIFICANCE OF THE STUDY
In this work, the researcher intends to go into details and find out the problems facing partnership business in Nigeria. The researcher in interested in identifying the major problems that hinders them from a worthy growth in business. There are choice area of focus specified in the objectives of this study because many feel committed to economic growth of the nation, as such involves themselves in one business activity or the other in the various sector of the economy.
From series of analysis, there is a clear indication that many of the partnership business set up in Nigeria are not living up to expectation. It is hoped that a careful research analysis of these problems and prospect of partnership will uncover the causes of poor performance, and suggestion that could be of relevant help to be profile for handling some of the confronting situations.
1.4 STATEMENT OF HYPOTHESIS
Hypotheses are research answers to problem which are in assonance guesses that are subjective to some test. From this assertion the research deemed it necessary to state out the following hypothesis.
a. Using the null hypothesis
Hi: For the positive
Ho: For the negative
Hi: Inability of some partnership business to differentiate their personal and business affair is a problem to partnership business in Nigeria.
Ho: Inability of some partnership business to differentiate their personal and business affair is not a problem to partnership business in Nigeria.
b. Hi: ESCO & Co has been experiencing problems in fast decision taking.
Ho: ESCO & Co has not been experiencing problems in fast decision taking.
c. Hi: Business capital is at times raised through borrowing.
Ho: Business capital is not at times raised through borrowing.
d. Hi: Business in partnership has some trace of negligence.
Ho: Business in partnership has not a trace of negligence.
e. Hi: Partnership business has been embarking on feasibility study.
Ho: partnership business has not been embarking on feasibility study.
1.5 SCOPE OF THE STUDY
The topic of this research is on partnership business it is assumed that it cannot be applied to larger firms. Its focus is on problems identification on why and how the listed factors have hindered the growth of partnership business in Nigeria.
The writer couldn’t go far because of inadequate time as a student and poor financial base; it was not possible to get all information needed because of lack of time and cooperation on the part of the point of my case study.
1.6 DEFINITION OF TERMS
1. PARTNERSHIP BUSINESS: A business consignment carried out between two or more person who jointly own and manage a business.
2. SIGNIFICANCE: Importance of the work being done at particular time to the users.
3. HYPOTHESIS: Suggestions put forward as a starting point for reasoning or explanation.
4. CONSTRAINTS: Hindrance or limitation to the progress of the work.
5. Revenant: things that are related to the issue at hand or important solution to the work at hand.
6. INTERVIEWS: A formerly arranged meeting to get the opinion of persons, coy or group by the party called interviewer.
7. FEASIBILITY STUDY: Study carried out to find out facts about a particular business or project of its profitability.
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