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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The twentieth century industrial revelation experience brought along with it technological developments and the expansion of business organization. As the need for individuals continued to increase, business continued satisfy the increasing needs.
Before Nigeria gained her independence, impact substitution was existing then as a means of industrializing our economy.
Based on that our economy is purely based on production of agricultural products this aspect makes the economy to be the sole producer of agricultural inputs which fluctuates seasonally.
Coupled with the fact that we are developing, many business organization spranly up in the economy, many individuals want into industialisation to shape the future of our economy. To mention somefew industries, which includes the timber industry, textile industry, automobile industry.
Because of the problem suffered by developing countries like Nigeria, these industries fale different constrain and problems to date. The timber business has been in existence ever before the birth of Nigeria but for years the classic image of timber business has been regarded as a mere local business run by lliterates and people of lower class in the society. However the timber business deals mainly with woods of all kinds, like opepe, obeche, Nagzonia, machogang, tick, Abora etc.
These various kinds of woods serve as the main resources on which timber business based. It is an indispensable business in the country because of the services it is kndering to the stimulation of the economy is like other business encounters problems which could be social or economical in nature.
Inspite of these problem encountered in the timber business, it has remained the parrot through which our economy is revitalizing today. This is seen in the roles performed by woods in our modern day life. Today, timber business is among the prime enterprises which is contributing to the economic growth and help in alleviating some of the societal problems by providing technological products that enhance human welfare like television magazines (papers) modera day furniture’s to mention a few are produced from wood processing.
1.2 STATEMENT OF THE PROBLEM
Timber business in Enugu today is faced with a lot of problems that like their counter parts in other states of Nigeria. These problems go a coming way to negate its growth and development in the country and there by limiting its potential contributions to the development of the economy. Among such problems are general lack of funds by proprietors of the business and difficulty in raising it due to limited capital. Thus money to keep the business going and expanding are irrefragably a magohandicap there is lack of managerial acumen due to the proprietors limited education and training. A long side of this, it is lack of technological know how. Although there are many of these timber business in existence today, their impact in terms of the ever charily industrialization of the country is still for fetched. They still operate with in the limit of indigenous market research.
The dealers are confused by what is happening to their traditional markets in this fast moving commercial world. The dynamics of the business environment still look to them like a day dream. They are unable to conduct market survey, dwersity their potential target markets and so on.
Above all, the timber business is faced with problems arising from government fiscal and monetary policies. In recent years, the tax climate and the governments business policies have placed serous restraints on the owners and the opportunities available to them.
1.3 PURPOSE OF THE STUDY
In view of the fact enumerated above the objectives of the study is to examine the problems confronting the timber business. To see to what extent they affect Enugu timber dealers and sawers association in its operations and its possible contribution to the economy. Based on the problems identified by the write, necessary suggestions and recommendation will be offered, which if implemented will help the association to solve most of it not all the problems, besides the recommendations will hopefully be of great help to new aspirants into the business and other business entrepreneur to make their business unique.
1.4 SCOPE OF THE STUDY
This study might have included research in several other tourns in Nigeria like Ibadan, Bendel, Enugu, Aba etc but due to the constraints involved in research work, the researcher could not go beyond kenyatan. The scope of the study is based on timber business in Enugu state. The problems and prospects and it covers only Enugu Timber Dealers and Sawers association.
1.5 RESEARCH HYPOTHESIS
This study intends to test the following hypothesis
HO: To a large extent Natural disaster has no affects on the supply of logs in the timber business.
H1: Natural disaster effect the supply of logs in the timber business.
Ho: The risk incurred in the business has no effect on the timber business.
H1: The risk incurred in the timber business has greatly affected the growth of timber business.
Ho: Government policies has not in any way affected the development of timber business.
H1: Government policies has to a great extent impeded the development of timber business.
1.6 SIGNIFICANCE OF THE STUDY
The study is aimed at exposing the proprietors of timber business to dangers in their business things that they failed people in the past and things that one should avoid to be successful in the field of the business as it affects timber business.
The study hopes to prepare students who may want to go into entre prenueral ventures to explore the timber business to be precise, this study will enable the proprietors in timber business to do things on their own way. It does not mean that you must be successful at the end of it all but definitely it will help improve your chances of succeeding.
The study indicates to timber business dealers how to avoid some of the mistakes in initiating, organization and operating a small scale timber business that has been economically fatal to others, therefore enabling them to achieve the optimum benefits from the limited economic and human resources available to them.
1.7 LIMITATION OF THE STUDY
This research on the problems and prospects of timber business in Enugu state was not an exception to the usual constraints and other problems associated with similar researches in the Nigeria society. The prominent and most peculiar problems or limitations to this research are discussed.
FINANCE:
This was the most difficult problem on the part of the writer. Although financial aid was received from the association this could not be adequate because of other uses to which the aid was channeled more so the present economic condition being experienced in the country generally.
TIME:
The researcher has no sample of time to explore other necessary avenues for timber business.
Non-availability of documented data:
Unfortunately it was not possible to get documented statistic of the activities gong on in Enugu timber dealers and sawers association. This may be due in part to some preservative and discrete attitude of the management who probably might think that such would be revealing the secrets of the business and thus exposing the association strategy to the competitions or the serve government regulations.
1.8 DEFINITION OF TERMS
Development:- a gradual process of growth or the way one exploits
resources.
Innovation;- To make something new
Timber :- Supply of wood for building and growing trees
Wood: substance of which the trunics and branches of trees are
made e.g furnitures, papers etc.
Dealer: Person in a stated types of business.
Technology:- this is the state or act of ding things in the society
Efficiency:- This is the economic
Market:- this is the anena for potential exchange.
REFERENCES
Adinka E.O. (1996) Principle and practice of Marketing Nigeria Jamoe
Enterprises Press Page 108.
Kloee Lawlence (1973) Small Business Management Essential of
Entrepreneurship California, Belmovt Wactsworth
Publisher Company Page 91.
Drucker P.F. (1974) Management tapks Responsibilities and Practices
London, Willians Heinemann Ltd Page 67.
Alabi Akuminade (1990) Small Scale Industies Problem and Prospects
Nigeria, surday New Page 27.
Chukwuamukwu, A.N. (1995) Small Business Management and
Entrepreneurship. Enugu, J.T.C Publishers
Page 127.
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