Government formulates many rules and regulations that guide businesses.
Businesses will normally change the way they operate when government change these
rules and regulations have an influence on the competitiveness and profitability of
businesses (Adeoti et al; 2012). Business owners must comply with the regulations
established Federal, State and Local Government. Small business is facing many
challenges nowadays none which are more forebiding than burden. Federal government
regulations and mandates that threatens investment and stifle job growths. When
government imposes regulations on small businesses that drive up the cost of doing
business, it's like imposing a tax.
While tax as a compulsory contribution to state revenue, level by the government
on workers' income and business profit added to the cost of some goods, service and
transactions (Adeoti; 2005).
Government can implement a policy that can change the social behavior in the
business environment. For instance, the existence of the Nigeria Breweries Plc
operation under the company law regulating the activities of business enterprises as due
to the fact that the following itemized law, acts have been regulating the activities of
this company with the motive of enhancing the social, political and economic growth
and development of the country (Fubora; 1994). Some o the agencies responsible for
business regulations are Standard Organization of Nigeria (SON), Anti-Counterfeiting
Collaboration (ACC), Music Regulation of Nigeria (MRN) etc.
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 can use other means such as import duties and to regulate
business in Nigeria, in order to protect domestic industries and produces against foreign
1.2. STATEMENT OF THE PROBLEM
The influence of government on business has taken to different dimension. The study
aims to look at the effect of government regulations on business management through
the acts and laws. Lack of technology, managerial skills and adequate legislature to
protect government regulations are among the problems facing government regulation
in Nigeria. A lot of businesses has collapsed due to lack fo proper planning and
monitoring by the government. Some of which are political instability. Some of which
are political instability, lack of credit control, high interest rate on credit facilities
amongst others. However, government regulations is being challenged for its
development contribution still faces many obstacle that limit their long term survival
and development. Researches on government regulation has shown that the rates of
failure in developing countries is higher than in the developed countries.
1.3. OBJECTIVES OF THE STUDY
There are various aims/objectives behind the course of this study. Some of the
objectives are to:
Highlight the reasons for government regulation on business management in
Examine the role of government regulation in the development of business
management in Nigeria.
Analyze the strategies used by government in regulating business management in
Examine the effects of government regulation on business management in Nigeria.
1.4. SIGNIFICANCE OF THE STUDY
It is hopefully that the essence of any research work is its importance to the concerned
area of study and the society at large. The research work will contribute immensely to the
advancement of knowledge. The result of findings will also be useful for the future
researcher who might intend to embark on a related course of study.
1.5. SCOPE OF THE STUDY
The study covers the effects of government regulation o business management in
Nigeria, however for effective and proper conduct of the research work, the study is being
restricted to be carried out in Nigeria breweries, Plc, Oyo State because of convenience
and access to data that would be used for the course of the study considering the vast nature
of business in the country, Nigeria Breweries Plc, Ibadan will be the case study of
representing large number of business regulations by the government.
1.6. STATEMENT OF THE HYPOTHESIS
1. Ho: Government regulation do not enhance effective business management
Hi: Government regulation enhance effective business management in
2. Ho: Government regulation is not a failure in developing countries like Nigeria.
Hi: Government regulation is a failure in developing countries like Nigeria.
3. Ho: Lack of managerial skills do not affect government regulation on business
management in Nigeria.
Hi: Lack of managerial skills affect government regulation on business management
1.7. LIMITATIONS OF THE STUDY
The study was constrained due to decay in response of some workers in giving out
information and unfair cooperation among them. Another factor is financial constraint on
the point of the research writing a research work require a very strong financial
commitment. The researcher being a student with a little financial resources may not be
able to exploits some services of information is a result of mentioned limitations.
Nonetheless, the researcher will utilize better means of information gathering and
materials to aid the effectiveness of the study.
1.8. DEFINITION OF OPERATIONAL TERMS
Some operational terminologies deployed in this research work are defined below:
Government Regulation: is a government process to produce outcomes which might
not otherwise occur, or produce or prevent outcome in different time scales that would
otherwise (Gafar; 2006).
Business management: refers to the individual, who let the strategy of the
organizations and coordinate the efforts of employees to accomplish objectives by using
available human, financial and other resources efficiently. (Adeyemi; 2005).
Policy: is a course of principle of action adopted or purposed by a government, party,
business or individual (Alabi; 2004).
1.9. HISTORICAL BACKGROUND OF THE STUDY
Nigeria Breweries Plc, the pioneer and largest brewing company in Nigeria was
incorporated in 1946. In June 1949, the company recorded a landmark when the first
bottle of star larger beer rolled off its Lagos Brewing bottling lines. This first brewery
in Lagos has undergone several optimization processes and as of today boasts of the
most modern brewery house in the country. In 1957, the company commissioned its
second brewery in Abia. Kaduna brewery was commissioned in 1963 while Ibadan
brewery came stream in 1982. In 1993, the company acquired its fifth brewery in
Enugu, in October 2003, the sixth brewery sited at Ameke in Enugu was commissioned
and christened "Ama Brewery". Ama brewery today is the largest and most modern
brewery in Nigeria. Operation in the old Enugu brewery was however discontinued in
2004, while the company acquired a malting plant in Aba in 2008. In October 2011,
Nigeria Breweries Plc acquired majority equity in Sona System Associated Business
Management Limited (Sona Systems) and Life Breweries Limited from Heineken. This
followed Heineken's acquisition of controlling interest in five breweries.
Nigeria Breweries Plc has a rich portfolio of high quality brands, star larger beer,
the first in the portfolio was launched in 1949, this was followed by Gulder Larger Beer
in 1970, Maltina, the nourishing malt drink was introduced 1976, followed by Legend
extra stout in 1992, Amstel Malta was launched in 1994 while Heineken larger beer
was re-launched into the Nigerian market in 1998.
Nigeria Breweries Plc is the foremost sponsor of sport in the country with
sponsorship covering football, athletics, tennis, cycling, golf, squash, dart, sailing
among others. The aim is to develop Nigerian sportsmen and women to participate in
national and international sports and boost the sport profile of the country. The
company is also involved in the development of leadership, musical and movie talents
through various programmes. Some these activities are captured in the company's
social and environment report.
AIMS AND OBJECTIVES OF THE NIGEIRAN BREWEREIS PLC
· To be the leader in Nigeria marketing high quality brands to deliver superior
customer satisfaction in an environment friendly way.
· To be a world class company.
· Respect for individuals, the society and the environment.
· Performance; a culture of high performance to deliver outstanding value to the
· Passion for quality; not just for the products but also in everything they do.
· Enjoyment; they bring enjoyment to the people through our high quality products,
communication and sponsorship activities.
2.1. BUSINESS MANAGEMENT
Business is referred to as sum total of those activities that have their main purpose
of creation, maintenance and extension of a concern which continues to exist because it
earns profits or other benefit (Akanni J.A. 1988). Business embraces all profit-oriented
economic or commercial activities carried out by an individual or group of persons as a
means of livelihood.
Management is the coordination of all resources of an organization, directing and
controlling objectives. (Oke 2006). He further opined that management is an on-going
activity pursuit of goals and making use of people. However, Fubara B.A. (1994) defined
"business management as the sum of all activities involves the production and distribution
of goods and services for the wage of entrepreneurship. He further opined that these
activities include (among others) financing, purchasing, production, selling or distribution,
advertising and expanding.
Therefore, business management is an organized effort directed at satisfying human
wants and needs through the provision of goods and services (S.O. Omoniyi;
2005). He further explained that the essence of a business enterprise is to profitably produce
and distribute goods and services to satisfy economic needs.
Lawal and Babarinde (2005) asserted that business management is a systematic
coordination, allocation and appropriation of the resources (human, financial, time,
materials and informational resources) of an organization in such a way that ensures the
achievement of goals and objectives. However, it follows the objectives of different
enterprises which are generalized goals, aims or target determined by promoters and
2.2. REASONS FOR STARTING BUSINESS VENTURES
Birley S. (1996) explained that "there are several reasons why individuals want to
start business of their own". Some changes in the society often create need for development
of business entrepreneur. For instance, in one country, we may have destroyed some
businesses and industrial facilities. In population or a general situation permiting a boom
in commercial enterprises by a youth today knows the meaning of unemployment or
retrenchment. In any case, other reasons may include any one of the following:
· To provide needed services to the communities
· To utilize available resources more efficiently
· To offer employment of people including oneself
· To practice trade for which one had been trained. For instance, a doctor may decide to
open a health clinic, an engineer may want to establish a technical workshop or a food
specialist may desire to open a restaurant.
· Dissatisfaction with one's present job
· Dissatisfaction with the salaries and wages which do not seem to keep pace with the
rate of inflation.
2.3. CAUSES OF BUSINESS FAILURE IN NIGERIA
There is insufficient capital outlay, there is lack of capital or inadequate capital to
buy the stock and equipment. Securing of loans from Banks and Financial Institutions takes
time, most banks requires the satisfaction of many conditions before loans are granted, and
the business in Nigeria finds it difficult to secure the loans.
There is also the use of obsolete business methods, and equipments as a means of
maintaining stocks and inventory. These old methods do not tally with modern businesses
procedure, making it rewarding. Most business ideas are things inherited from parents and
most of the ideas dies with the originator. Some are not specific in nature and cannot be
assessed easily. There is also the lack of credit control, as money could be brought in and
taken out of the business easily for personnel and not business purposes.
There is the absence of business planning done by rule of thumb and haphazardly.
This makes it difficult to detect and understand the practicable and unpredictable market
changes. The non-existence of actual planning strategies makes it difficult to standing
changing dynamic and every unpredictable economic and business conditions. There is
also the failure to maintain plan of emergences, the failure to anticipate and plan for the
financial demands and needs of the business in Nigeria. These problems retard growth and
development coupled with the above problems is that of low motivation and lack of
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- Abayomi Adekunle (Author), 2017, Government regulation on business management in Nigeria, Munich, GRIN Verlag, https://www.grin.com/document/374849