1

CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the

organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock

waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nations foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 1985 Import 1981 N,000 1982 N,000 1983 N,000 1984 N,000 1985 N,000 946,567 327,870

Total food 1,820,2151,642,2451,296,714843,246 Wheat 159,422 79,629 5% 255,717 243,067

C/o of total 35%`

9%

20%

29%

Source: Federal Office of Statistics, Lagos Given the above circumstances, there was a clear need for government action to check the outflow of the nations declining important. Besides, it can also be argued that there were suitable local substitutes of wheat flour for bread baking; rice, cassava, maize and sorghum have been mentioned as such foreign exchange earnings through what

suitable substitutes. To some people these substitutes were at least as good as wheat as it

FIGURE 1.1.1 FOREIGN EXCHANGE SPENT ON WHEAT AND FOOD IMPORT 1981 1985
2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000

1981

1982

1983 YEAR

1984

1985

Source: Federal Office of Statistics, Lagos was suggested that local bakers rejecting them were doing so our of ignorance, or out of a slavish preference for imported products or whether one accepts the above arguments or not, what has become clear is that the effect of the ban on the importation of wheat was swift devastating on the bakery industry. In Enugu Urban alone, some famous baking houses closed up. Nigerline bakery, St Georges Bakery, many bakeries and Mothers Pride Bakery all shut down between the middle of 1986 and the end of 1987. As at the time of starting this project, not every operations. A far more reaching effect on this ban on the industry as a whole is that it has quite clearly changes the eating habits of many Nigerians. Bakery has resumed

Ubiquitous bread on the breakfast table has vanished and the frequent sight of peoples snacking on bread in the afternoon has also disappeared. The primary demand for bread products in this country has certainly contracted since then.

1.2 STATEMENT OF THE PROBLEM Such is the background for this study. Most baking houses are small scale business who face the task of devising survival strategies to deal with major changes in government policy that threaten their very existence. Our focus is on suitable survival strategies for the banking industry given their operating circumstances since 1986. We are interested in finding out how those who are still in business dealt with the new condition in which they found themselves. In particular, we will be looking at the organizational changes, financial management strategies, and other operating techniques that they had to adopt in order to survive.

As for the baking houses that closed down, we shall explore whether there were forces other that the ban on imported wheat that engendered their demise. The study will cover a broad section of the bakeries in Enugu urban. See Appendix A.

1.3 OBJECTIVES OF THE STUDY In general, the study hopes to take a close look at the baking houses in Enuguu urban since 1986. Specifically it is intended to find out the following: (a) What changes have those who continue to operate made in their structure and method of operation in order to cope with the ban? (b) What new financial arrangement have they made following rising production cost resulting from the ban? (c) (d) Have they coped with the sourcing of raw materials? What new challenges they now face three years after the ban or import flour?

For completeness, it is also necessary to examine the cases of those baking houses that were found to have closed down as a result of the ban. Although there may be problems obtaining information from some of these outfits, whose operating records may no longer be available, an effort would be made to access the general operating state of such baking houses before the ban. This should enable one determine whether such baking houses were already having serious operating difficulties before the ban or whether their extinction is to be blamed on the ban. 1.4 SIGNIFICANCE OF THE STUDY This study should be of considerable interest to policy makers in government, to the bakers and distributors of bread products and consumers and to the public at large. The study hopefully, will give government some documented information on the effect of the major policy changes introduced in 1986. The information should enable

government to establish what new measures need to be taken as well as provide some basis of determining in

advance, the likely consequences of similar measures in future. Bakers should use the study to understand fully the impact of the changes on their industry. The study will highlight how they have fared; the successful ones will see what it was that enabled them weather the consequences of the ban on wheat importation. Those who failed to do and indeed why they have ceased to be in business. In the end, the industry will be better placed to cope better with similar situations in the future. The researchers understanding on the challenges and the survival strategies of small scale industries will be greatly impacted. The bread consumers, through this work, shall gain first hand information of the difficulties the bakers go through to provide them with the bread they love to eat. They will better appreciate the need to pay a little more for this product. The general reader will equally find the work a useful contribution to knowledge. 1.5 HYPOTHESIS In this study, the following hypothesis have been formulated:

1.

The ban on wheat importation did not cause any significant changes in the methods of operation of bakeries.

2.

New challenges faced by bakers are not as a result of ban on importation of wheat and its products.

3.

The sources of raw materials for bakeries remained unchanged after the ban on wheat importation.

4.

New financial arrangement are made by bakers are not as a result of the increase in costs of wheat flour.

5.

The ban on wheat importation did not cause the demise of a significant number of bakeries.

1.6 SCOPE OF THE STUDY The emphasis of this study is on small scale bakeries in Enugu Urban. The study intends specifically to investigate the impact of ban on wheat importation on bakeries and the strategies adopted by them to survive. 1.7 LIMITATION OF THE STUDY

10

This study was constrained by many factors among which were time, funds, and the unco-operative attitude of some respondents. The researcher found the study very time demanding in data collection and production. Often the researcher is rebuked for being absent from work in process of carrying out the study. Owing to the pressure of work, more intensive and extensive investigation could not be carried out. Some respondents were unwilling to complete the questionnaire, some others completed their own reluctantly. The study turned out to be very expensive on purchase of materials, field work and production.

REFERENCES 1. Annual Abstract of Statistics, Federal Office of Statistics, Lagos 1986, PP 148 and 152. 2. Ikeane Vicky Ngozi ECA Gives recipe on composite flour programme. Daily Times of Nigeria Limited, Lagos.

11

CHAPTER TWO 2.0 REVIEW OF LITERATURE This chapter is review of some literature considered relevant to the study. 2.1 DEFINITION OF SMALL SCALE INDUSTRIES Various definitions of Small Scale industries (SSI) exist experts agree that a universally best definition may not be

12

possible because definitions are relative to the environment and functions intended. The United Nations Economic Commission to Asia and Far east defined a Small Scale Industry as one operated mainly with hard labour usually not exceeding 50 workers, if no motive power is used, or 20 workers if motive power is used. in Indonesia, an industry is considered small if it employed less than 10 full time workers and does not use motive power. The Indonesian definition does not exclude household and cottage industries. The centre of management sciences in Delft University, the Netherland, for instance, classifies handicrafts and cottage industries as establishment employing less than 10 persons. To them small scale industries are firms employing 10-99 person in which manager personally performs all the management production. In Nigeria, many definition exist for small scale industries. The industrial research unit of Obafemi Awolowo University, Ife, defines a small scale industry as one whose functions without taking part in actual

13

total assets in capital, equipment, plant and working capital are less than N250,000 and employing less than 50 full timer workers. In Enugu state, the ministry of finance and Economic Development, defines Small scale industries and industries employing not more than 10 person. The Federal Ministry of Industries amended its 1970 definition of SSI as industries with capitalization of N150,000 or less. The Central Bank of Nigeria recognizes small scale industries as ventures with annual sales turnover of not more N500,000. For the purpose of this work, the CBN definition shall be adopted because of its lack of complexity. 2.2 BAKERY It is defined as a bake house. It is a house or place used for baking bread, cake etc.

2.3 QUALITIES OF SUCCESSFUL ENTREPRENEUR A set of character traits has been identified by some authorities and organizations as being unique and constant among successful entrepreneur. One such proponent, Dr. Johnny Eluka, identified some characteristics of success

14

owner/manager

among

which

are,

great

sense

of

independence, a strong sense of enterprise, and domination as much by personal and family considerations as by professional choice. The small business career services equally identified the following characteristics as being peculiar for successful entrepreneurship. 1. 2. 3. 4. 5. Total commitment of the project. Not starting a project they do not intend to finish Willingness to take risks Physical energy Choosing business associates for talents rather than on grounds of friendship. 6. The tendency to regard monetary reward as measures of success rather than as end on itself. 7. A successful entrepreneur is a realist, who knows the limit of his abilities. The National Directorate of Employment (NDE), a government agency, set up to generate employment and encourage entrepreneurship, sees potential successful

15

entrepreneurs as he who possess some psychological traits which are either latent and could be aroused by training. The entrepreneur has to be an originator of profitable business ideas. The entrepreneur must possess the ability to gain command of the opportunities and combine resources in a new way that will be profitable. He/she must be prepared to risk personal energy and financial resources to achieve unpredictable results. How accurate one can, even with the most sophisticated apparatus predict successful

entrepreneurship traits shall remain a matter of conjecture and personal opinion. 2.4 OBSTACLES TO THE RAPID GROWTH OF SMALL SCALE INDUSTRIES. Small scale industries face a lot of problems that retard their rapid growth. Bosewall described the small scale industrial sector as a two-edged sword on one hand a source of vitality and renewal, on the other a spectacle of inefficiency and decay.

16

Aluta categorized the factors that constitute obstacles to these industries into four-managerial, technical,

commercial and financial. The management problems arise from the inability of the manager/owner to manage. Most promoters of small scale ventures are not schooled practices. At the same time, they are unable or reluctant to employ personnel capable of articulating their management policies. Ovuorie itemized the problems as: i. ii. iii. Inability to understand operating environment Inability to define business goals Lack of improper record keeping. The technical problems of small scale industries arise from their inability to acquire modern production equipment and the low level of technical knowledge among in modern business

entrepreneurs and the small size of the market. Iwuji and Okoroafor asserted that the technical obstacles are caused by low technical know-how which limits their ability to

17

initiate product variation in design and quality according to changes in demand. Abiola noted that another technical problem facing small scale industries is the irregular supply of raw materials, and since foreign exchange inadequacy will remain with us for some long time, he advised entrepreneurs to venture into industries with large independence on locally sourced inputs. Akwaeze grouped the technical problems of Small Scale industries into two: One is the procurement of raw materials and The their other standardization, is the choice of storage and

preservation.

appropriate

technology- perhaps the greatest obstacle faced by small scale businesses is the commercial problem. In the words of Akalonu. Marketing is the foundation of all successful business activities. Every enterprise must accept the over-riding need to satisfy the requirement of its market if it is to achieve satisfactory return on investment.

18

Aluko saw the commercial problem as the limited possibilities of market expansion and the absence of steady and guaranteed market. He further stated that small scale industries have little or no capacity for quiet adaptation to changing tastes and fashion. They have no means of assessing trends in the conditions of the market and forecast changes in customer tastes changes. Ones customers tastes changes away from their products or service, they face a crisis. In addition, they hardly, if ever advertise their products or conduct at form of sales promotion. While the financial problems of small scale industries are the inability of the operators to ensure investment capital. Banking establishment insist on

collaterals beyond the capacity of small business operators. Ovuorie in his contribution noted that: Small businesses have little access to loanable funds. Lending institutions conspicuously look down on the small scale operators.

19

The

financial

problems

are

derived

from

the

entrepreneurs limited access to loan funds, the liquidity of his operating capital and the poor management of his credit (Aluko). The limited managerial ability combine with poor technical and commercial techniques to aggravate the risk of lending money to small scale industries. In turn the shortage of business capital further aggravate the technical and commercial problems. 2.5 HOW BUSINESSES Such are the obstacles of the growth of small scale industries that the government adopted certain policy measures to encourage small businesses to national GOVERNMENT PROMOTE SMALL

economic development stated that small enterprises create employment on a large scale and therefore make the possibility of equal distribution of national income more realistic. In 1958, the government of Eastern Nigeria invited the International Labour Organization (ILO) to undertake a study of small scale shore industry in the region, with a view to identifying the problems and recommend ways and

20

means of offering them assistance (Otiteh). The same government made a request to the United States Agency for International Development (USAID) to study the local small scale industries. The study was intended to collect information on small industries, identify obstacles to foster growth. The result was the tulby Report 1960 on Development of Small Industries in Eastern Nigeria. The Industrial report, recommended Centre the (IDC) establishment as an of

Development

agency

responsible for full scale assistance for rapid development of small scale industries (Otiteh). In 1971, the Federal Ministry of Industries took over the IDC and adopted it for the entire nation. In pursuit of the recommendations of the tulby report, the Enugu state government promulgated the edict establishing the Funds for Small Scale Industries (FUSSI). The objectives of FUSSI included the provision of soft loans for the establishment and operation of small scale industries. Writing on the plan for SSI development, the

development commissioner in India (1967) stated that

21

assistance to SSI have to concentrate on measures to improve the quality and competitiveness of the products of the industries. These imply that the managers and their staff must be assisted to improve on a continuous basis their technique of production and utilization of more modern machines and equipment. These will help to up-grade the technical skills and increase productivity in the industries which should include the provision of industrial extension services, credit facilities for fixed and working capital, provision of factory sites in industrial estates, government patronage in the purchase of their products and supply of machines on hire purchase terms etc. In response to the cry of finances by small scale industries, the Central Bank of Nigeria (CBN) directed the commercial banks to lend a minimum of 16% of their aggregate loans and advances to SSI (Oshunbuji). According to Obaula, a number of

government initiatives at promoting the growth of the small scale industries since 1986 includes, the National Economic Reconstruction Fund (NERFUND), the CBN managed small and medium enterprises loan facilities, the Nigerian Bank for

22

Commerce and Industries (NBCI), self-employment

(NDE)

approach. He noted, however, that these measure were inadequate because the complementary services that must be sold with the credit of facilities for small project financing are lacking. The capacity, often taken for granted the lacking or limited. Hence, close monitoring and guidance may be a necessary part of the package. Reiterating the problems of raw materials to SSI. Akwaeze, recommended that

government should assist small scale industries to procure raw materials. 2.6 STRATEGY: CONCEPT AND ADAPTATION TO

SMALL SCALE BUSINESSES. Strategy is the selection of goals, the planning and allocation of resources, for attaining goals. Learned, defined strategy as: The Pattern of objectives, purpose or goals or major policies and plans for achieving goals, stated in such a way as to define what businesses the company is on or to be in and the kind of company it is.

23

Ansofi, would rather look at strategic decision process, which he sees as the corporate decision of defining what business the company is or likely to be in and its objectives. Strategy, to Chandler is the determination of the basic longterm goals and objectives of an enterprise and the adoption of course of action and allocation of resources necessary for carrying out these goals. Uchegbu states that corporate strategy requires rational thinking as well as systematic and orderly approaches as methods. The businesses has to select what product it can produce or deliver best, and what set of customers and customers needs it can serve best. Decision will be taken on scale of production methods, organizational structure and employment of appropriate personnel. He further observed that a strategy may be unwritten and for a small scale enterprise, contained in the heads of the entrepreneurs. Jiallma Ban argued that whether in small business or big business the task of enterprise management requires the systematic approach and discipline fostered by business

24

strategy. He further remarked that firms operating in a turbulent environment (such as Nigeria) has three tasks for it to succeed, namely: a. Systematic scorning of environment, by the

organization. b. Identification of the environmental threats and

opportunities by the firm, and c. Making intelligent adaptation to the changing

environment by the company. Ifedi quoted excerpts from symposium papers on Survival strategies in business in a Depressed

Economy: Implication for Manager decision as follows: Only through strategic planning mechanism can companies convert problem into opportunities and give the firm a fighting chance of survival. Industries must strive to achieve a comparative advantage through high quality products Introduction of overall cost efficient production, maintain diversification and production derive as

25

well as being more cautious and serious in taking investment decisions. After the symposium, six strategic process plans for survival identified were situation analysis, business

environment review, planning assumptions, strategic results, strategic programmes, and strategic resources. Ugorji believes that for a business to achieve its plans and objective, it must be geared towards a careful and detailed appraisal for the environment in which it went to operate and then harness and employ those strategies that may be suitable to the customers it wants to satisfy in terms of service ideas and products. Jerry Johnson thinks that there are two alternative options open to small scale business for survival. The first option involves accepting a low share in a dominated market, avoiding competition with big

companies, reducing spending on research development. The second option requires the entrepreneur to segment, innovate in the market specialize in the segment and keep control at the top. Okoh writing on the Survival Strategies for Small Businesses pointed out that entrepreneur should heed

26

the call to look inwards for sourcing for raw materials locally for their productive activities. Ifedi concluded that corporate strategy is comparative for corporate survival because of its simplicity, effectiveness and disciplined planning mechanism. 2.7 THREATS AND OPPORTUNITIES IN THE BAKERY INDUSTRY IN NIGERIA. Bakery industry like any other industry exists in a changing environment. In recent years, the industry has been threatened by various adverse environmental

conditions. Before 1984, Millers imported all their raw materials needs such as wheat and wheat flour on open licenses. In 1984, customs tariff import prohibition No. 2 order banned the importation of wheat flour under license. Again, in 1986, the Customs and Excise Decree No. 3 1986 placed a blanket ban on wheat and wheat products importation of wheat products in importation. As Nkpoloukwu observed, a lot of foreign exchange was being wasted to sustain the

importation of wheat.

27

The

introduction

of

the

structural

adjustment

programme (SAP) has resulted to higher production cost (Gbodo Nosi) prices of bread had to increase and given falling real income, effective demand for bread products started to decline. Higher cost meant larger working capital and the financial institutions were reluctant to grant credits given the tight fiscal policy consequent on SAP. The flour mills in Nigeria are suffering losses because of under-utilization of capacity due to shortage of raw

materials. A report by Dantata showed that at the Northern Nigerian Flour Mills Limited, turnover fell from N48.5 million to N18.4 million by year ended, March 19. This represents a 62% fall. Another threat to the industry is low demand for flour made from wheat grown locally. Ogedengbe stated that the contention is not quality, but the wheat variery among which are hardred winter, hard-red spring, Iduram and White. Only white wheat is grown in Nigeria. And white wheat is only suitable for the production of pastries, crackers, noodles but not bread. Unavailability of skilled labour force is also serious threat to the industry. According

28

to Ugboaja Small Scale Industries experience high labour turnover as a result of inability of the industry to attract and retain skilled labour force and inadequate technical training in our education system. Inspite of the seemingly intractable threats, the

industry still harbour viable opportunities for growth, one major advantage, savage and small reported, was that bread has no good substitutes. According to survey reported by Ngozi Ikenao, wheat farmers in Kano state made 200% profit on wheat sales. In order to accelerate wheat production, government has offered several incentives as subsidy to wheat farmers. Kanu, reported that by 1988, the

government of Kano state had invested about N25 million naira in subsidies and other support services. Kanu,

assuming a present total production of 300,00 metric tones of wheat in 19, projected that by 1992, Nigeria whet metric tones. That is, 600,000 more than projected domestic consumption of wheat and wheat products of 1.4 million metric tones (see table 2.7.1.)

29

Table 2.7.1.

PROJECT WHEAT PRODUCTION AND

CONSUMPTION IN NIGERIA 1988 1992.

Year Target population (Tonnes) 1 2 Public Sector Investment 3 27 million 63 million 100 million 138 million 175 million December 5, Target Consumpti on (Tonnes) 4 1,200,000 1,250,000 1,300,000 1,350,000 1,400,000 1988, P. 12. 5=2-4 -900,000 -525,000 -150,000 225,000 600,000 Daily Times Difference Tonnes

1988 300,000 1989 725,000 1990 1,150,000 1991 1,575,000 1992 2,000,000 Source: Business times, (Nig.) Limited Lagos.

From the foregoing, one can assert that all hope is not lost for the bakery industry in Nigeria, especially with the latest reports that bread can be made from rice, cassava, barley or sorghum flour (Ikeano)

REFERENCES

30

1.

Akalonu Canice (1989) Lack of Marketing Skill Hinders

Small Scale Buiness, Guardian Financial Weekly, Guardian Newspapers Limited, Lagos. 2. Aluko S.O. (1972) A.O. Oguntoye and Y.A. Afonga (ed) Small Scale Industries in Western Nigeria. Ile Ife (Industrial Research Unit, Obafemi Awolowo University, Ife. 3. Anambra State Ministry of Finance and Economic Development Industrial Survey (Industrial Survey

Division, Enugu). 4. Bosewell Jonathan, The Rise and Decline of Small Firms (George Allen and Urwin Limited London. 5. Central Bank of Nigeria, Credit Policy Guidelines

Monetary Policy Circular No. 21 Central Bank of Nigeria, 1986) 6. C.E. Iwuji and A.E. Okoroafor Small Scale Industry and Employment Generation in Human resources and African (ed) by Ukandi G. Domachi and Victor Diejemah (Praeger Publisher, New York, 1979)

31

7.

Eluka

J.

(1989)

Small

Business

Management

(Unpublished Lecture Notes) State University of Science and Technology, Enugu. 8. Federal Republic of Nigeria, Industrial Policy Guidelines Monetary Policy Circular No. 21. Central Bank of Nigeria, 1986. 9. G.C. Akwaeze Managing Agro-Allied and Small Scale Industries Management Today, July (August 1989) 10. Ituama Ben How does the environment affect

marketing? Guardian Financial weekly, June 26, 1989, Guardian Newspapers Limited, Lagos. 11. Jack M T Ovurie Coping with Small Size Business Business Times, 18 June, 1990. (Daily Times Limited, Lagos) 12. Macdonald A.M. et al chambers Twentieth century Dictionary W & R chambers Ltd. Edinburgh, 1970. 13. M.K.O. Abiola Role of Small Scale Industries Business Concord, 9th December, 1988 Pg. 11 (Concord Press Nigeria Limited, Lagos)

32

14. Stapanete J.E. Industrial Development in Indonesia (U.N.O. Technical Assistance Programmes 1955) pg. 4466. 15. Tan J. Veen Van The Netherlands Communications Vol. 1 Pg. 6 16. The Observer, Small Business Career Services (The observer Newspaper London, March, 1980) Pg. 2-3. 17. United Nations, Economic Survey of Asia and Far East (UN Bangkok, 1958 (1959) Pg. 99-100

33

CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 3.1 INTRODUCTION This chapter attempts to discuss the methods, designs and procedures employed in the study. It will discuss the choice of data collection instruments, the proposed method of analysis and presentation of findings. The research design adopted for this work by the researcher is the survey design. 3.2 DESCRIPTION OF RESPONDENTS The target population were owners/managers of the 83 bakeries in Enugu urban which were operating in 1986, that is up to the period of the ban of wheat importation. Forty of them were still operating in 1989. Forty three have gone out of business. 3.2.1 Sample Size

In order to determine the sample size, Yamanes formula was applied as shown below. n = N

34

I + N (e)2 Where n = N e I = = = Sample Size Population = 83 level of significance 0.05 9 constant

And substituting the values n = 83 1 + 83 (0.05)2 = 83 1.2075 = 69

The researcher faced the additional task of determining the proportion of the functional and extinct bakeries to include in the sample. The problem was solved by adopting Bowleys

proportional allocation formula. nNh N Where nh = number of units allocated to each stratum. n Nh = = total sample size number of items in each stratum in the population. nh =

35

Proportion for functional bakeries nh = 69 x 40 83 Proportion for extinct bakeries nh = 69 x 43 83 = 25

For a check of accuracy K nh K nhi = = nh1 + nh2 nhk 34 + 35 = 69 = h

Sample for functional bakeries 34 Sample for extinct bakeries Total sample size 35 69

3.3 METHOD OF SAMPLE SELECTION The sample was selected by the simple random method. The names of the functional bakeries were written on a piece of papers which were folded and put in a bag. After mixing the slips thoroughly, the researcher selected one slip at a time. The name on the slip was recorded and

36

returned to the bag. The method of sampling is called balloting with- replacement. The slip were mixed up again before another slip was selected. This operation was continued until the proportion needed for the functional bakeries were completed. This process was repeated for the extinct bakeries. This process of sample selection is random, which is the method whereby each unit of the population has an equal change of being selected. 3.4 SOURCES OF DATA Both primary and secondary data were used in the study. the researcher generated the primary data through the survey conducted. The secondary data were collected from the records of the Association of Master Bakers and confectioners (Enugu branch), Newspaper, Journals, Official statistics published by government agencies and ministries. 3.5 PROCEDURE IN GATHERING DATA The instrument for gathering data were a structures questionnaire augmented with additional information from

37

oral interviews. The questionnaire were administered to functional bakeries in Enugu, while the proprietress of extinct bakeries were located and interviewed. Eighteen items of questionnaire were developed to elicit information on the four primary hypothesis of the study (Appendix D). The researcher developed the interview questions from hypothesis number 5 (Appendix E). 3.5.1 Instrument Validity

Instrument validity refers to the method of determining the extent the instrument measures what it purports to measure. In order to validate the instrument, the

questionnaire were first vetted by the academic adviser and all his recommendations and corrections were affected. In order to further validate the instrument, the questionnaire were applied on a pilot study of seven bakeries in Emene, Enugu. The interview question were equally vetted by the adviser before being administered. Inconsistencies

discovered were corrected.

38

3.5.2

Instrument Reliability

Reliability is a test of the degree of consistency of responses collected by the use of the instrument. To test the reliability of the responses to the pilot study were compared to the responses from the main study. The two were consistent. We therefore, conclude that the instrument was reliable. 3.6 METHOD OF DATA COLLECTION Data for this study was collected through questionnaire and oral interview. The questionnaire were delivered in person to the manager of the bakeries and collected later when completed. The researcher considered the managers as the ones qualifies in a small scale bakery to provide the information sought by the questionnaire. In the end, 34 managers representing 85% of functional bakeries completed the questionnaire used in the analysis, appendix B. Among the 35 extinct bakeries were willing to take part in the study, appendix C. The others have sold their business

39

or have left the area altogether. The researcher was therefore forced to interview those available for the analysis. While this small number makes general conclusions tenuous, the research is satisfied that if respondents gave enough honest and useful answers to make the study relatively valid. 3.7 METHOD OF DATA ANALYSIS The collected data were first classified with the aid of frequency tables. Using percentages, a comparative

relationships were established. The researcher also used bar charts and pie charts to represent the data. In order to be able to draw reliable conclusion from the data analysis, the chi-square statistics were employed to test the stated hypothesis.

40

REFERENCES 1. Association of Master Bakers and Confectioners,

Membership Register, Enugu Branch, 1986. 2. Association of Master Bakers and Confectioners,

Membership Register, Enugu Branch, 1989. 3. Y. Yamane, Statistics: An Introductory Analysis 3rd Edition, (New York: Harper and Row Pub.) 4. R. Kumar Sum, A Manual of Sampling Technique (London: Heineman 1976) 5. Nwanna O.C. Introduction to Educational Research (Ibadan; Heineman Limited, 1981)

41

CHAPTER FOUR PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA In this chapter we present the data collected on this study and attempt to analyze them so that appropriate inferences can be drawn from them. The data were presented here in sections. Section 1: Section information 1 on Profile of Bakery Managers of the the presentation provides of the profile

owner/managers

functional

bakeries. They are presented in tables 4.1.1 and 4.1.2 Table 4.1.1: Percentage Distribution of Bakery

Proprietors by Age and Sex. Age/Sex Under 30 30 40 40 50 M 2 9 10 F 3 5 Total 2 12 15 Percentage 6 35 44

42

50 60 Total Percentage

4 25

1 9 75

5 34 26 100

15 100 -

Source: Field Survey The main point that emerged from this table is that bakery industry in Enugu Urban has significant male managers/ owners. 74 of the owner/managers are makers contrary to general belief that bakery is essentially a female profession. TABLE 4.1.2 DISTRIBUTION OF BAKERS BY THEIR EDUCATIONAL QUALIFICATION. QUALIFICATION FREQUENCY FSLC 3 WASC 17 OND 3 HND 4 FIRST DEGREE 7 TOTAL 34 Source: Field Survey PERCENTAGE 9 50 9 12 21 100

Another significant finding is that bakery industry in Enugu is owned and managed by reasonably educated people. All of them had at least First School Leaving

43

Certificate. Nearly half of them are educated beyond secondary school level. Section 2: Operation/Production Strategy In section 2, we present the operational changes that have taken place in bakery industry since the ban on importation of wheat. This main aspects of the operations were examined, namely; number of shifts per, production methods and volume up till 1986. All the baking houses operated for 24 hours and ran up to 3 shifts a day. As for operations method, most of them had fully mechanized production processes for shaping, cutting and placing dough on bread palates. A significant observation is on that since that time most of the bakeries maintained semi-mechanized and fully mechanized operations. Only 4 of the bakeries that is 12% were forced by declining volumes to change to manual operations. Table 4.2.1 Operational Changes in Baking Industries since 1986 Types of No. of bakeries % maintaining pre Shifts per 2 6 of No. forced changes 32 94 of to bakeries % of operation Total make total

44

day Production method Production

30 8

88 24

4 26

12 76

Volume Source: Field Survey Significant changes occurred in the production volume because of rising cost. Only 8 of the bakeries or 24% have been able to maintain their pre-1986 volume of production. These findings are summarized in table 4.2.1. and figure 4.2.1. HYPOTHESIS TESTING Bakers were asked if they had made some changes in their methods of operation because of the ban on wheat. The responses are shown in table 4.2.1. Figure 4.2.1: Changes in Operations Strategies These responses indicate that substantial changes has taken place between 19 and 19 in the operational methods of bakers 32 of them (74%) has ceased to operate shift duties; 4 (12%) had changed from a fully automated process to manual operations. 26 (76%) had made major changes in

45

their distribution methods. These observations are reinforced by the hypothesis testing shown below. HYPOTHESIS RESTATED Ho: The ban on wheat importation did not cause any significant changes in methods of wheat importation. Hi: The ban on wheat importation caused a significant change in methods of operations of bakeries. 1. The application formular is the chi-squared test

formular: X2 (0 e)2 e observed frequencies expected frequencies

where O = e 2. =

From the observed frequencies in table 4.2.1 expected frequencies were computed using the formula: e = (row total) (column total) Overall total

The computed values are shown in table 4.2.2. Table 4.2.2: CHANGES IN OPERATION

46

Operation Total Shift Production 34

No Change

Change

2 (13)

32 (21)

Method Production 30 (13) Volume Total 3. 4. 8 (13) 40 (39) Chosen level of significance = 0.05 Degree of freedom for 2 and 3

4 (21) 26 (21) 62 (63)

34 34 102

Contingency table given as (K 1) (r 1) Where K = number of columns r = number of rows (2-1) (3-1) = 2 5. Critical value for 2 degree of freedom at 0.05 level of significance. X2 0.05 = 5.991 Test Statistics: X2 = (0 e) 2 e (2-13) 2 x (32 21) 2 21

x (30-13) 12

12

x (4-21)2 x (8-13)2 x 21 13

47

(26 21)2 21 = 9.3 x 5.8 x 22 x 13.8 x 1.9 x 1.19 = 53.99

Decision: calculated x2 is greater than the critical value. We therefore reject the NULL hypothesis and accept the alternative that the ban on wheat importation caused major changes in methods of operation of bakeries.

Section 3: Marketing Strategies Section 3 is the presentation of the same marketing strategies adopted by bakers in order to survive the ban on wheat importation. Three main areas of marketing strategies were examined. These are distribution, diversification and adjustment of selling prices. Table 4.3.1 Changes in Marketing Strategies among bakers. Marketing strategies No. of bakeries % of No. of bakeries % of force to make total

maintaining pre total 1986

changes

48

Distribution Diversificatio

strategies 14 5

41 15 -

20 29 34

59 85 100

n Selling Prices Source: Field Survey

The finding is that significant changes in the marketing of baking products occurred as follows: a. Before the ban on imported wheat, bakers appointed distributors to whom, they deliver their products and combine this with direct sales to consumers from vans
Key

and from factory sites. 1986 b. After the ban

1986 and given 1989

No change

rising costs change

declining

production volume and other difficulties. Most of the

30

bakeries were unable to maintain delivery vans and hence.

MARKETING STRATEGIES ADOPTED BY BAKERS

20 FIGURE Frequencies 4.3.1

10

Distribution

Prod. Range

Selling Price

49

Source: Field Survey compelled their distributors to collect from the factories. Only 14 of the bakeries or 14% have been able to maintain their pre-wheat-ban distribution methods. Before the ban majority of bakers concentrated on bread alone. The ban caused 29 or 85% of them to diversify their product range. The greatest noticeable change caused by the ban is on prices. All 34 bakers or 100% agreed that they were forced by rising cost to increase their prices. The findings are presented in table 4.3.1 and figure 4.3.1 above. HYPOTHESIS TESTING ON MARKETING STRATEGIES Respondents were asked questions regarding reactions to the new challenges posed by the ban on wheat

50

importation. The reply were collected and presented in table 4.3.1. The proportion of bakers who changed distribution methods was 20/34 = 59 and all the respondents changed selling price. HYPOTHESIS 4 RESTATED Ho: The ban on imported flour has resulted in no significant new challenges among bakers. Hi: 1. by X2 = (0 e)2 e The ban has resulted in new challenges among bakers Applicable formula is the Chi-Square test formular given

where o = observed frequency e = expected frequency 2. From the observed frequencies in table 4.3.1 the expected formula. e = (row total) (Column total) Overall total frequencies were computed using the

Table 4.3.1 shows the computed values

51

Table 4.3.2 New

NEW CHALLENGES FACING BAKERY Distributio 14 (6) 20 (28) 34 (34) Survey Product 5 (6) 29 (28) 34 (34) Selling O (6) 34 (28) 34 (34) Total 19 83 102

Challenges n No change Change Total Source: Field 3. 4.

Chosen level of significance = 0.05 Degree of Freedom for 3 x 2 contingency table given as (K 1) (r-1) Where K = number of columns

r = number of rows (3-1) (2-1) = 2 5. Critical value of 2 degrees of freedom at 0.05 level of significance X2 0.05 = 5.991 Test statistics X2 = (0 e)2 e

(14-6)2 x (5-6)2 x (0-6)2 x (20-28)2 x (29 x 28)2 x (34 x 28)2 10.7 0.17 6 2.3 0.4 1.3 = 20.28 Decision calculated X2 is greater than the critical value (20.88 x 5.991). therefore, we reject NULL hypothesis and

52

accept the alternative that ban on wheat importation has resulted in new challenges among bakers. SECTION 4: FINANCIAL STRATEGIES

In section 4, we present the financial adjustments made by bakers in the face of ban on wheat importation. Two main areas of financial adjustments were examined. These adjustments are in terms of funds invested and sources of finance. Significant changes were made in financial

arrangement by bakers as follows: 7 or 12% of the bakers did not make any changes in funds invested. 22 or 65% of the bakers made any changes in sources of finance. The summary of findings are presented in table 4.4.1 and figure 4.4.1. Table 4.4.1: FINANCIAL ADJUSTMENT AMONG

BAKERIES Financial adjustmen t Invested No. of bakeries maintaining preposition 7 1986 21 % total of No. of bakeries forced to make change 27 79 % Total of

53

Funds Sources

of

12

35

22

65

finances Source: Field Survey HYPOTHESIS TESTING ON FINANCIAL STRATEGIES Respondents reply to question on if the ban on wheat importation resulted to any new financial arrangements were collected and presented in table 4.4.1 and figure 4.4.1. The properties of change in invested funds was 27/34=79 and sources of funds 22/34 = 65.

HYPOTHESIS RESTATED Ho: The increase in cost of wheat flour has not resulted significantly in new financial arrangements. Hi: The increase in cost of wheat flour has resulted significantly in new financial arrangement. 1. Applicable formula is the chi-square test formular: X2 (o-e)2 e where o = observed frequencies e = expected frequencies

54

Figure 4.4.1: Changes in Financial Arrangements

30 25 20 15

Frequencies Y 10
5

Invested Fund Sources of Fund 2. Source: Field Survey From the observed frequencies, in table 4.4.1 the expected frequencies were calculated using the formula e = (row total) (Column total) Overall total

The computed values are shown in table 4.4.2 Table 4.4.2 Finance Invested fund Sources of CHANGES IN FINANCIAL ARRANGEMENT No change 7 (10) 12 (10) Change 27 (24) 22 (24) Total 34 34

55

fund Total 19 (20) 49 (48) 3. Chosen level of significance = 0.05 4. Degree of freedom for 2 x 2

68

Contingency table given as (K- 1) ( r 1) Where K = number of columns r = number of rows (2-1) (2-1) = 1 5. Critical value for 1 degree of freedom at 0.05 level of significant. X2 0.05 = 3.841 Test Statistics X2 = (0-e) e
2

= ( 7 10)2 x (27 24)2 x (12-10)2 x (22- 24)2 10 24 10 24 = 0.9 x 0.375 x 0.4 x 0.16 = 1.835 Decision: Calculated X2 is less than the critical value (1.835 < 3.81) therefore, we accept the NULL hypothesis that the increase in cost of wheat flour has not resulted in new financial arrangements.

56

SECTION 5: RAW MATERIALS STRATEGIES In section 5, we present the strategies adopted by bakers since the ban on wheat importation in order to survive. Up till 19 all the bakers used 100% wheat flour to produce bread and other bakery products. As for source of supply of raw materials, most of them bought from the open market or direct from flour millers. A significant observation is that since the ban, many bakers have changed the composition of their baking flour. Only 10 or 20% still bake with 100% wheat flour while 24 or 71% have changed to use composite flour. Significant changes were noticed in the source of supply of raw materials. Only 6% or 2 bakers continued to use their regular supply of raw materials, while 24% or 32 of them have had to change supply source. Most bakers now receive their wheat flour from the black market. The findings are presented in 4.5.1 below and in figure 4.5.1. Table 4.5.1: COMPOSITE AND WHEAT FLOUR SUPPLY SOURCE AND USAGE. Raw No. of bakers % of No. of % of

57

Materials

maintaining pre1986

total

bakeries forced to

Total

Supply source composition

position 2

6%

make change 32

94%

of flour (Usage) HYPOTHESIS Source: Field Survey STRATEGIES

10 TESTING

29% OR Key

RAW
No change

24 71% MATERIALS

The reply to question on howChange ban in wheat the importation has affected the source of raw materials for bakeries are presented in table 4.5.1. The table shows that
25 30

the

proportionate

change

in

supply

source

and

for

20 composition of raw materials was 24/34 = 0.71. Frequencies

CHANGES IN SOURCE OF RAW MATERIALS FIGURE : 4.5.1

10 15

Sources of Supply

Composition Raw Materials

Source: Field Survey

58

HYPOTHESIS 3:

RESTATED

Ho: The sources of raw materials for bakeries remained significantly unchanged after the ban on wheat importation. Hi: The source of raw materials has changed significantly

following the ban on wheat importation. 1. by X2 = (0-e)2 e where O = observed frequencies e = expected frequencies Applicable formula is the chi-square test formula given

59

2.

From the observed frequencies in table 4.5.1 the expected formular e = (row total) (computed total) Overall frequencies were computed using the

Raw materials No change Change Total 3. 4.

Supply source 2 (6) 32 (28) 34 (34)

Composition 10 (6) 24 (28) 34 (34)

Total 12 56 68

Chosen level of significance = 0.05 Degree of freedom for 2 x 2 contingency table given as (k-1) (r-1). Where k = number of columns r = number of rows (2 1) (2-1) = 1

5.

Critical value of 1 degree of freedom at 0.05 level of significance X2 0.05 = 3.841

Test Statistics X2 = (0-e)2 e 2 (2-6) x (10-6)2 x (32 28)2 x (24 28)2 =

60

6 = =

28

28

1.7 x 2.7 x 0.6 x 0.6 6.6 Calculated X2 is greater than the critical value

Decision:

(6.6 >3.841) therefore we reject the NULL hypothesis and accept the alternative that the source of raw material has changed significantly following the ban on wheat

importation.

SECTION BAKERIES

6:

REASONS

FOR

DEMISE

OF

DEFUNCT

Section 6 is a presentation of reasons given by managers/proprietors of bakeries for getting out of the bakery business. The reasons were categorized into those related to the ban and those not related to the ban on wheat importation. The reasons given were classified into five, namely: funds, raw materials, labour sales and production. Table 4.6.1 below: shows that 60% of bakers went out of business 1986 and 1989 because of reasons related to the ban on wheat importation. The other 40% went out for

61

reasons not directly related to the ban on wheat importation. The same is true of figure 4.6.1 and 4.6.2 shown. Table 4.6.1 REASONS FOR DEMISE Reasons Fund Raw Materials Labour Sales Production Total Degree Not related 5 2 9 2 5 23 1480 ban % of total 45% 15% 75% 18% 56% 40% Ban related 6 11 3 9 4 33 2120 % of Total 55% 85% 25% 82% 44% 60% -

Source: Field Survey REASONS FOR DEMISE Respondents responses to the cause of folding their bakeries are presented in table 4.6.1. The table shows that 33/56 = 0.60 folded because of ban on wheat importation while 23/56 = 0.40 folded for reasons not related to the ban. HYPOTHESIS 5: RESTATED Ho: The ban on wheat importation did not cause the demise of a significant number of bakeries.

62

FIGURE 4.6.1: REASONS FOR DEMISE OF BAKERIES

Related to Ban 40% 12 Not related to ban

10

60%

Source: Field Survey

8

Figure 4.6.2: DISTRIBUTION OF REASONS FOR DEMISE 6

Fund

Raw Materials

Labour

Sales

Production

63

Source: Field Survey

Hi:

The ban on wheat importation caused the demise of a significant number of bakeries.

1.

Applicable formular is the chi-square test formula given by X2 = (0-e)2 2 Where O = observed frequencies e = expected frequencies

2.

From the observed frequencies in table 4.6.1 expected frequencies were computed using the formula.

64

(row total) (Column total) Overall total The computed values are given in table 4.6.2 below 3. 4. Chosen level of significance = 0.05 Degree of freedom for 2 x 6 contingency table as ( k- 1)

(r 1) Where K = number of columns r = number of rows ( 5 1 ( 2-1) = 4 5. Critical value for 4 degrees of freedom at 0.05 level of significance. X2 0.05 = 9.488

Table 4.6.2: REASONS FOR DEMISE Reasons Finance Raw Materials Labour Sales Production Total Ban related 6 (7) 11(8) 3 (7) 9 (7) 4 (5) 33 (34) Not Ban related 5 (4) 2 (5) 9 (5) 2 (4) 5 (4) 23(22) % of Total 11 13 12 11 9 56

65

Test Statistics X2 (0-e)2 e = (6-7)2 x (5-7)2 x (11-8)2 x (2-5)2 x (3 7)2 x (9-5)2 7 7 8 5 7 5 X (9-7)2 x (2-4)2 x (4-5)2 x (5-4)2 7 4 5 4 = = .14 x .57 x 1.13 x 1.8 x 2.28 x 3.2 x .57 x 1 x 0.2 x 0.25 11.4 X2 is greater than the critical value

Decision: Calculated

(11.14 > 9.488) therefore, we reject NULL hypothesis and accept the alternative that bakeries folded because of ban on wheat importation.

CHAPTER FIVE FINDINGS, CONCLUSION AND RECOMMENDATIONS This chapter is a summary of the findings and conclusions arrived at by the researcher and the

recommendations on Survival Strategies of Small Scale Bakeries. 5.1 SUMMARY OF FINDINGS

66

The operations in the bakery industry were classified into three: Production shift, method and volume. The study showed that 94% of respondents changed the number of shifts they operated before the ban. Only 12% changed their production methods in terms of mechanization, while 76% changed their production volume. The test statistic showed that there were significant changes in operations between 19 and 19 ( section 2 of the production pages 43 50)

The study revealed that bakers device many marketing strategies to survive the ban. They are in the form of new distribution strategies, products diversification and new selling prices. Table 4.3.1 showed that 59% of bakers made changes in distribution channels. 85% in product rant and 100% of respondents adjusted their selling prices. The test statistic showed that the ban on whet importation resulted in significant new marketing strategies (section 3 pages 47 52).

Section 4 shows that the bakers made new financial arrangement following the ban on wheat importation.

67

79% made changes in amount of funds invested and 65% made changes in source of funds. The calculated average percentage change was 72%. However, when the findings were subjected to the statistical test it showed a Ivo change situation.

The analysis showed that the source of raw materials changed by 94%, while 71% of bakers changed the composition of the raw materials used in baking. (section 5 pages 57 61)

The reasons for the demise of bakeries were classified into those related and those not related to the ban. The analysis of data showed that 60% of the bakeries forced out of business attributed their demise to the ban on wheat importation, while 40% were reasons not

connected to the ban (see table 4.6.1). In section 6, a statistical test of significance showed that a good number of bakeries folded because of ban on wheat importation. 5.2 CONCLUSION

68

In the light of the findings above, the researcher was able to deduce the following conclusions about the study.

The findings that significant changes were made in operation methods led us to conclude that these changes were survival strategies adopted by the bakers to survive the ban on wheat importation. Bakers cut the number of shifts, and reduced production volume following materials. scarcity of wheat flour and other raw

The bakers who continued to operate after the ban on wheat importation in 1986, as the analysis showed, adopted new marketing strategies such as product diversification, reduced distribution outlets and

increasing product prices. The data analysis showed that significant changes were not made in financial arrangement. Bakers sources of funds remained predominantly from personal and family sources as banks did not play a significant role as financiers.

69

Most of the bankers did not change the amount invested. The strategy they adopted was to scale down production.

The bakers adopted some survival strategies to survive the difficulties of sourcing raw materials. There was significant change is source of supply of raw materials and in the composition of the raw of materials, many bakers now buy their wheat flour from the black market, instead of from millers. Many also use

composite flour to bake.

The bakers who folded up in the face of the ban on wheat importation were those who could not adopt the survival strategies. Many of them could not get the basic raw material-wheat flour.

5.3 RECOMMENDATION In view of the findings and their conclusions, we make the following recommendations as survival strategies for small scale bakeries.

70

Bakers adopted the strategy of cutting the number of shifts and reducing production volume in order to survive the ban on wheat importation. These are short term survival strategies, which have the negative effect of worsening the unemployment problem of the nation. For this reason, a more constructive survival strategy will be to increase production volume by making increased use of composite flour developed by our research institutes.

The new strategies to diversify their product range by bakers is a national answer to declining volume. There is a need for product standardization among bakers nationwide to reduce the confusion among the

consuming public. The National Association of Master Bakers and Confectioneries should select those product from the range that can be standardized and mount an enlightenment campaign. The aim of the campaign will be to educate and assure the consumers of products value and safety.

71

Small firms cannot go into advertising on their own therefore the association by this recommendation should do it for all the members.

Among small firms generally, finance has been and continues to be a source of problem. Perhaps, with the establishment of the proposed National Small Scale Industries Economic Corporation (NSSIC), Fund and the National the

Reconstruction

(NERFUND),

financing of this sector would have been taken care of. This shall include small scale bakers.

Small businesses must not always continue to look up to government to do everything for them. The

association of Master Bakers and Confectioners should liaise with the researchers at the Federal Institute of Industrial Research Oshodi (FIRRO) and other such bodies to organize workshops for the bakers on the use of composite flour. In this way, we can evolve some bakery products that are unique, to and consumed, in Nigeria.

72

The average baker should be more adaptive and innovative. They to should learn avail more themselves about new of the

opportunities

bakery

technology by attending conferences and seminars on bakery. These are potent survival strategies in the face of harsh economic conditions.

BIBLIOGRAPHY Abiola M.K.O. (1988) Role of Small Scale Industries Business Times, Lagos, Concord Press Limited. Akalonu, Canice, Scale Business Guardian Financial Weekly, Lagos. Guardian Newspaper Limited. Akwaeze G.C. (1989) Managing Agro-Allied and Small Scale Industries Alhaji S.O., Oguntoye A.O. & Afonja Y.A. (1976) Small Scale Lack of Marketing Skills Hinder Small

73

Industries in Western Nigeria Ile-Ife Industrial Research Unit, Obafemi Awolowo University, Ife. Anambra State of Nigeria Fund for Small Scale Industries Credit Scheme (1986) Ministry of Commerce and Industry, Enugu. Annual Abstract of Statistics (1986) Federal Office of Statistics, Lagos. Ansoff A. Ogor (1968) Corporate Strategy London:

McGrawhill. Association of Master Bakers and Confectioners: (1989) Membership Register, Enugu Branch,. Bosewell Jonathan, (1972) The Rise and Decline and Small Firms London: George Allen and Urwin Ltd. 1972 Central Bank of Nigeria Credit Policy Guideline: (1986) Monetary policy Circular, .

74

Chandler Alfred O. Jr.(1962) Strategy and Structure The M.I.T. Press, Cambridge Mass U.S.A. Customs and Excise (Miscellaneous Provision) Decree No. 32. Official Gazette No. 26, Vol. 71, Ministry of Information, Lagos. Eluke, T. (1989) Small Business Management

(Unpublished Lecture Notes) Anambra State University of Technology, Enugu, . Federal Republic of Nigeria: (1980.)Industrial Policy

Guidelines: Federal Ministry of Industries. Lagos Ifedi, Victor Guardian Financial Weekly, . Lagos: Guardian News Papers Limited. Ikeano, Vicky Ngozi (1985) ECA Gives Recipe on Composite Flour (1989) Imperatives of Corporate Survival

75

Programme Business Times Limited

Lagos: Daily Times

Ikeano, Vicky Ngozi (1989) Farmers make 200% profit on wheat sales Business Times , Lagos: daily Times Limited. Ituama Ben (1989) How does the Environment Affect Marketing? Guardian Financial Weekly. Newspapers Limited. Iwuju, C.E. & Okoroafor, A.E. (1979) Small Scale Industry and Employment generation in Human Resources and African Development by Ukandi G. Damachi and Victor Diejemah Prosper publisher. New York. Johnson, Jerry (1979) Lecture notes) Aston university England. Learned, P.E. (1969) Richard Irwin Business Policy Text and Cases Business Policy (Unpublished Lagos: Guardian

76

Inc. Homewood III, Macdonald, Dictionary Ward R. Chambers Limited, Edinburgh. Ministry of Development and Company Affairs (1969) Small Scale Industries in India, Delhi, India Nwanna O.C. (1981) Introduction to Educational Research Ibadan: Heineman Limited. Obawla, O.B.A. (1989) An Appraisal of Small Enterprise Development Policies and Scheme (III) Business Times Daily Times Limited, Lagos. Ogedengbe, Biola (1990) On the wheat Ban Daily Times of Nigeria Ltd, Lagos. Okeke, Kanu (1988) Wheat Production and the Task Force Business times. Daily Times Lagos. of Nigeria Limited, Development Division, New A.M. (1972) Chamber Twentieth Century

77

Okoh, Julius (1989) To curb failure to small business Guardian Financial Weekly Guardian Newspaper, Lagos. Okorie N.N. (1992) Nigeria Economy Oduduwa Business Journal. Oshubuji, Okufola (1986) Ensuring the Survival of Small Scale Industries Guardian Financial Weekly, Lagos: Guardian Newspaper Limited. Otiteh, C.C.E. (1977) Industrial Development Centre Concept (Unpublished Centre, Owerri. Ovuorie, Jack Mit (1990) Coping with Small Size Business Business Times. Daily Times Limited, Lagos. Sawage, C.I. & Small, J.R.(1975) Introduction to Managerial Economics. London: Hutchinson and Company Limited. Report), Industrial Development Small Scale Business Impact on the

78

Stapanek, J.E. (1955.) Industrial Development in Indonesia U.N.O. Technical Assistance Programme.

Sum, Kumer R. (1976) A Manual of Sampling Technique London: Heineman Limited. The National Directorate of Employment (1989)

Entrepreneurship Development Members NDE. The Observer (1980) Small Business Career Services The Observer Newspaper London. United Nations 1958/59 Economic Survey of Asia and Far East UN: Bangkok. Veen, Van Tan J. The Netherlands Communications Vol. 1 Research Programme for Youth Corps

79

Institute

for

Management

Sciences

(RVB)

University of Delfi. Uchegbu, Michael APPENDIX A A. (1989) The Need for Business Strategy Guardian Financial Weekly Guardian Newspaper Limited.
To Nike

Ugboaja, P.C. (1987)Ekulu Trans Discussion on Educational Institutions

9th Mile

Memorandum Presented on the Programme of the Abakpa Directorate of Foods, Roads and Rural Infrastructure, Orlu Resources
Asata Consultative Committee. Emene

Persons

Ugorji, Moses (1989) Understanding Society as Business Strategy

Ogbete Uwani Business Concord Press Nigeria, Lagos. t ou
y La w Yamene, Y. (1964) Statistics: An Introductory Analysis, 3rd Ne

Edition

Awkunanaw

New York: Harper and Row Publishers, 1964.

To Port-Harcourt

SKETCH MAP OF ENUGU

Source: Town Planning Authority, Enugu

80

APPENDIX B LIST OF FUNCTIONAL BAKERIES S/N NAME OF ESTABLISHMENT PHYSICAL 1 2 3 4 5 6 7 8 Edible bakery Industry Chukwudi bakery Goodname Special bread Kates Bread Industries Chinwe Bread industry Chidi Bread Industry St. George Ent. Top Bakery Industry AND MAILING

ADDRESS 1 Edible Street Abakpa 46 Obinagu Road Abakpa 12 ogwuago Abakpa Nike 6 Presidential Road 1 Obosi Street Asata 16 Ilukwe Street New Layout 34 Nwabueze Street, Ugbene 50 Mbosi Street, Ugbene

81

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Tea Time Bread Industry Chidi Bread Industry Silver bread industry Marys Bread Industry Chinedu Bread Industry Ezenwa Modern Bakery Benlos Bakery Industry Nnagozie Bakery Onyeze Bread Industry Pax Bread Industry Helens Bakery Chiomas Bakery Echems Bakery Chessy Bakery Premier Bakery Anaeliaku Bakery Rose Bakery Uncle Jones Bakery Onwudiwe Bakery Queens Bakery States Bakery Chibueze Bakery industry New Society Bakery Patcy Bakery Mothers Pride Bakery De Pesto Bakery

3 Agula St. Abakpa Nike 7 Okwunnanam Street 38 Onyiuke Oye Emene Market 24 Nkwubo Street. Emene Garriki Awkunanaw 2 Uga Street. Emene 18 Obinagu Road Abakpa Robinson St. Uwani 38 Eze Street, Uwani Independence Layout Agbani Road Awkunanaw Thinkers Corner Emene 1 Aguleri St. Ind. Layout 50 Kenenth Rd. Awkunanaw Abakaliki Road Emene Independence Layout 66 Owerri Road Asata 2 Brodrick Street 73 Owerri Road, asata 14 Umunara Street 121 Railway Rd. Emene St. Judes Street Emene Abakaliki Road, Emene 3 Bank Street Emene Ozalla St. Achara Layout.

82

APPENDIX C LIST OF EXTINCT BAKERIES S/N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NAMES Uchenna Bread Industry Star Light Bakery Liberty Bread Industry Ezeora Standard Bakery Ibezimako Bakery Industry Merrys Bakery Industry Chuka Bread Industry Original Popular Bakery Chidedum Bread Industry Echezona Bread Industry High Life Bread Industry Obinwanne Bakery Industry Uzochukwu Bread Industry Favour City Bakery Emefor Bread Industry Okechukwu Bakery Universal Bread Industry Sunrise Bakery Industry All Star Bakery Industry Eden Bread Industry Elders Bread Industry Holy Rosary Bread Industry Nwakas Bakery Industry Nwabueze Bakery Obiamaeze Freedom Bakery Industry Anyanwu Bakery Uchenna Bakery Industry Kennys Cottage Bakery Chimezie Bakery

83

30 31 32 33 34 35

Gold Bread Industry Universal Bread Industry Eugh Bakery Tessy Bakery One Society Bakery Niger Line Bakery

APPENDIX D BAKERIES DESCRIPTIVE QUESTIONNAIRE (BDQ) Dear Sir/Madam I am a student of Caritas University Amorji- Nike, Enugu. I am conducting a study with the Survival Strategies for Small Scale Bakeries in Enugu. Please, complete the following questions to the best of your ability. Be assured that information given shall be

84

treated as strictly confidential and shall be used only and purely for academic exercise. Thanks for your co-operation.

Yours faithfully,

Onyegasi Blessing Ire

1.

Personal Data a. b. c. d. Business Name Age Sex Academic Qualification in the appropriate box

Please, thick

85

2.

How many shift duties were you operating before the ban of wheat importation? a. b. c. One Two Three

3.

How many shift duties are you now operating after the ban of wheat importation? a. b. c. One Two Three

4.

Which of the following describes your production methods before the ban on wheat importation? a. b. c. Used machines for everything Used both machine and manual Used only manual

5.

After the ban on wheat importation, what production method are you using? a. b. c. Use machines for everything Use both machines and manual Use only manual

86

6.

What method of distribution were you using before the ban on wheat importation? a. b. c. Direct to consumers Direct to retailers/wholesalers A mixture of a and b above since

7.

What distribution method have you been using the ban on wheat importation? a. b. c. Direct to consume Direct to Middlemen A mixture of a and b above

8.

What was the total invested capital in your bakery before the ban on wheat importation? a. b. c. Under N40,000 N40,000 N80,000 Above N80,000

9.

Which was the major source of financing for your business after the ban on wheat importation? a. Personal money plus borrowing from friends and

relatives b. Borrowing from financial institution

87

c.

Commodity credit

10. What was the total invested capital in your bakery since the ban on wheat importation? a. b. c. Under N40,000 N40,000 N80,000 Above N80,000

11. Which was the major source of financing for your business after the ban on wheat importation? a. Personal money plus borrowing from friends and

relatives b. c. Borrowing from financial institution Commodity credit

12. Which of the following was your usual source of raw materials before the ban on wheat importation? a. b. c. Open Market Flour Mills Direct The black market

13. Which of the following was your usual source of raw materials before the ban on wheat importation? a. Open Market

88

b. c.

Flour Mills Direct The black market

14. Before the ban on wheat importation, have you used any other flour apart from wheat flour? a. b. c. Never Sometimes Always

15. Now after the ban on wheat importation, are you making use of any other flour apart from wheat flour? a. b. c. Never Sometimes Always

16. How has the ban on wheat importation affected the volume of your production? a. b. c. Reduce volume No change in volume Increase volume

17. Before the ban on wheat importation would you have described yourself as a. b. c. A bread baker only Bread baker and Confectioner Confectioner

89

18. After the ban on wheat importation, would you now describe yourself as a. b. c. A bread baker only Bread baker and Confectioner Confectioner

16. How has the ban on wheat importation affected your selling price? a. b. c. Increase selling price No change Reduced selling price APPENDIX E INTERVIEW GUIDE: QUESTIONS Addressed to farmers of now extinct bakeries 1. 2. 3. What year sis you start your bakery? What year did you stop production? What was your major reason why you stopped

production? 4. Are there any other minor reasons? Name them a. .

90

b . c. . d . 5. What problems did you encounter, typical as a baker a. . b . c. . d .

91

6.

Would you come back to bakery if your major problem is removed?......................................................................... .