PROBLEMS ENCOUNTERED BY MANAGERS IN SETTING UP A SMALL SCALE HOSPITALITY BUSINESS (A CASE STUDY OF EMILY RESTAURANT ENUGU)

PROBLEMS ENCOUNTERED BY MANAGERS IN SETTING UP A SMALL SCALE HOSPITALITY BUSINESS (A CASE STUDY OF EMILY RESTAURANT ENUGU)

ABSTRACT

Small scale business is the hub and foundation of industrialization and development. this research is centered on the problems encountered by managers in setting up small scale hospitality business in Nigeria, as hospitality industry in recent time has contributed immensely to national economic development.

The result is aimed at identifying the problems militating or hindering the smooth operation of small scale hospitality business such as restaurant especially in Enugu state.

Data were collected from both primary and secondary sources which include oral interview, questionnaire and textbooks. This work identified such problems hindering the smooth operation of small scale industry as lack of adequate finance, lack of technical know-how, competition of small and large scale businesses and poor managerial ability.

In a bid to help the industry strive and grow, government has taken some measures to boost the activities of small scale businesses including hospitality industries. This measures includes policies that aimed at encouraging small scale business, incentives in the form of loan without interest and other grants, providing financing through its agencies such as (FUSSI) Fund for Small Scale Industries.

More government intervention is solicited to enable the small scale business grow amidst severe competition from medium and large scale businesses.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

There exist lots and lots of business ventures that are being engaged by individuals, group of people or association, firms, industries and government with the main aim of maximizing profits. They range from small scale to medium and large scale. In the Nigerian economy, the small scale enterprises are the most common form of business. The aim of any economy (either industrialized or non industrialized) depends largely on how well organized the small industries are, for instance if we look at the standard of practice of small scale industries in economically developed countries. The small scale enterprise in Nigeria seems too stagnant, less adventurous than developed countries. Meanwhile in economically developed countries small scale business are better organized and coordinated than in the developing countries because the governments appreciate their significance to the national economy.

       In the hospitality industry there are more small scale businesses than the medium and large. Most of the small scale hospitality businesses are essentially one person’s operation which makes such companies sole proprietorship business ventures. The profit of the business is reaped solely by the owner; this includes people or an individual who wants to invest in that type of business. It is also the easiest form of business ownership to organize in the hospitality industry because there is relatively small capital to use for setting up small scale hospitality business.

The owner also has managerial freedom and this will help the owner employing his or her incentive to the maximum. Those business owners are seen as entrepreneurs. Entrepreneurs are risk avoiders, not necessarily risk takers; they appear to be risk takers because they see market differently than the other forms of businesses. They can be referred to as risk eliminators because they seem to methodically eliminate all the factors that might prevent them from getting into a particular market (Thomas and Norman, 2011).

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