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ABSTRACT
This research work is on causes of business failure and possible solutions with a case study of Faith printing press, Uyo. business failure is when a firm is suffering from either technical insolvency or bankruptcy or when it happens that a firms total revenue do not cover its total cost , this can be avoided by finding solutions to business failure by way of managing recourses in a proper way. It is in view of this that a research work as this was undertaken.
The research work contains five chapters, the introduction examines the historical background of the case study and so on and also limitations of the projects were outlined. chapter two was centered on the literature reviews with a view of bringing out what business entails, its operations and impact on the society ,its mode of operations and why and how failure occurs in business enter prices. Population sample and sources of data collocation were the various methods of data collection adopted .such as desk research ,personal interview as well as questionnaires
In chapter four presentation and analysis of data was shown in the write up. The data collected were analyzed and presented based on the research questions, which form the views and opinions of the respondents drawn.
In the final chapter, summaries and recommendations were made on the subject matter.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Business is absolutely a complex activity. This is because it involves a lot of technicalities ranging from the task of planning to control of such plans in order to achieve the desire objectives of profit maximization. It is in view of this, that this study is mainly centered on the floating of a business to a stage where it finds it difficult to keep it’s head above water.
In the late 70s business was in its period of boom, the economy was doing well at that point in time and the exchange rate was appreciable within this period. International trade was easy as a result of lesser trade restrictions and foreign exchange control.
During this period, Faith printing press was a beneficiary of the prevailing policies such as the importation of papers and other printing materials. These goods were usually tax free by the agencies concerned, as a result of the significance the government attaches to the publishing sector and the clearance procedures at the port were effective and efficient then.
In the late 80’s as a result of the military take-over, various decrees and policies came into place. The economy became unbearable for the citizens and their purchasing power became very low, thereby forcing business not to live up to their required billing. What followed was that industries started operating on short run, and later businesses started folding up.
The various trade restrictions, VAT policies on goods imported did not help matters. The result effect of all these, was folding up of businesses. Against the business affected was then within our locality the -Faith printing press. The concerns shown people in the locality spearheaded an agenda to resuscitate the company and prevent it from total collapse.
The process of doing this proved difficult due to the extent of funds require to source for foreign exchange needed for the importation of raw materials there were other problems that seem intractable. But the people and company unite make persistence efforts to resuscitate the company but the more difficult problems that resulted, Motivated an interest to study the problems of business failure and the possible solutions.
1.1 HISTORICAL BACKGROUND OF FAITH PRINTING PRESS
Faith printing press is a sole proprietorship business. It is own by Chief Gabriel O. Faith. It was established on 20th August 1969 and was situated at V.V.I Lagos/Keffi Street, Uyo.
Faith printing press was set-up with the objective of providing the best quality printing jobs to customers at affordable prices and at the due appointed time. At the early life of the press, it started with letterpress and binding machine. Namely: Adana, Letterpress Heidelberg and Cutting Machines.
In the course of expansion, the press relocated to N.C-.3 Oshogbo Road, Uyo in 1979. The press increased its machineries by purchasing Rota prints, plate maker, camera, and kond. During this period the press has increased its area of specialization from letter press to offset printing.
In 1985, the press moved to J.11 main street Badarawa Uyo and finally relocated to its permanent site V.V. 15 Nassarawa Road, Uyo in June 1993. in its present site, it has acquired additional machines such as multilith 1850, Stitching machine, computers and Ruling machines.
This organization is engaged in the publishing of companies Annual reports, text-books, invoices, Receipts calendars, invitation cards, Business cards e.t.c. Faith printing press is an organization worthy to be emulated, Judging by its achievement within the period of its existence. The organization has render a lot of its services to prominent companies & government parastatals within this country, among them are: Nitel Headquarters- Lagos, National electric power authority Uyo, Uyo state water board, Ahmadu Bello University Teaching Hospital, Uyo, Bayero University Kano, Nice Top papers industries Uyo etc.
Below is a sample of what Faith printing press Organizational chart should look like.
Managing
Director
Press maintenance
Manager manager/ engineer
Production
Cashier
Cashier Receptionist
Lithographer printing section Finishing section
With And And
Apprentices Apprentices Apprentices
Drivers Gate men
1.2 STATEMENT OF THE PROBLEM
Business entrepreneurs today are making a lot of efforts in order to make their investment a perpetual going concern. Every means available at their disposal are being made available terms of capital base sophisticated equipments etc so as to meet-business demand
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