CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Businesses around the world exist for purposes which range from provision of goods
and services for the sustenance of human race. This makes businesses to have remained
pivotal to the development of any nation’s economy especially in the areas of employment
generation, source of income to individual and government, among others. However, many of
these businesses in different parts of the world have failed due to many challenges
confronting their operations. One of the reasons is no doubt the poor attitude of business
owners to business activities. Although there are different business owners with different
attitudes towards business activities, each attitude positive or negative has implications on the
business as a whole and other stakeholders (employees, customers, among others) and
activities such as financial management.

Cases of business failure have been recorded in many developing countries. Poland in
Europe but still a developing country has also recorded increase in business failure.
According to Lobos and Szewczyk (2012), out of 275.3 thousand economic entities that
commenced their business activity in 2009, 77% were active until at least the end of 2010. In
Africa, South Africa account of SMEs failure rate was between 70% and 80% as reported by
Adeniran and Johnston (2011) while Adcorp (2012) claimed that around 440,000 small
businesses have closed in the last five years in South Africa.

Like in other developing countries, businesses in Nigeria have been challenged by

numerous hiccups which made many of them to have failed. Manufacturers Association of
Nigeria (MAN) in 2016 reported that 272 member businesses closed down in Nigeria. This
figure does not capture non-members businesses of MAN especially those are small and
medium businesses. What comes to mind is the hostility of business environment, however
not all the closure of businesses can be attributed to hostile environment; many were as a
result of other factors such as business owner attitude.

However, there are variations in the business owners’ attitudes towards other
stakeholders in business such as employees and customers and issues such as risk taking,

1
financial management, among others. To start with, a crucial factor in business continuity has
to do with entrepreneurial attitude of business owners which is closely associated with risk
taking is at low ebb so also are the business owners attitude to employees and customers.
Aside the above, the attitude of business owners to financial management have also been of
interest to many stakeholders of business. It is therefore imperative to investigate business
owners’ attitude as a determinate of business survival.

1.2 STATEMENT OF THE PROBLEM

Business likelihood of survival or non-survival has been one of the contentious issues
in the business parlance with different perspective on factors that can determine the chances
of survival. It is obvious that not all business start-ups were successfully managed to survive
into the future as increased rate of business death in this part of the world has been of great
concerns to business analyst and other stakeholders such as government, employees, among
others. As noted by several authors, many businesses failed at start up and another significant
fails before or by the first year of their operation while majority shut down before their
second year (Aremu & Adeyemi, 2011). Studies have focused on a number of issues such as
hostile business environment, government policies, and employees’ poor attitude among
others. However one of the notable factors that have been neglected is the attitude of business
owners’. Most of the business owners in Nigeria often sees their businesses as private affairs
and not accountable to anyone. This attitude has affected the continuity of many businesses in
this regard. Such attitude reflects in their attitude towards their employees, customers,
financial management, entrepreneurial mindset and risk taking (Fatoki, 2014; Okafor, 2012;
Phaladi & Thwala, 2008). Poor financial management of business owners reflect instances of
money meant for businesses being diverted to personal use of business owners are rampant in
this part of the world. Also, unfriendly attitude towards customer have been reported by some
studies as well. It is against this backdrop that this study examines business owners’ attitude
on business survival among some selected SMEs in Ilorin metropolis, Kwara State.

1.3 RESEARCH QUESTIONS

i. What is the effect of business owners’ risk-taking attitude on business survival?

ii. To what extent would business owners’ attitude towards employees affect business
survival?

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 iii. How would entrepreneurial attitude of business owners contribute to business
survival?

iv. What is the relationship between business owners financial management attitude and
business survival?

v. To what extent would business owners’ attitude towards customers determine

business survival?

1.4 OBJECTIVES OF THE STUDY

The broad objective is to examine the effect of business owners’ attitude on business
survival. Specifically, the sought to:

i. Assess whether positive or negative risk taking attitude of business owners affect
business survival;

ii. Investigate the effect of business owners attitude towards employees on business
survival;

iii. Examine the relationship between entrepreneurial attitude of business owners and
business survival;

iv. Investigate the relationship between business owners’ financial management attitude
and business survival; and

v. Find out if business owners’ attitude towards customers determines business survival.

1.5 STATEMENT OF HYPOTHESES

The following hypotheses were projected for in the study:

Hypotheses I

H0: Business owners’ risk-taking attitude will not lead to business survival

3
 Hypotheses II

H0: Business owners’ attitude towards employees does not have effect on business survival

Hypotheses III

H0: There is no significant relationship between entrepreneurial attitude of business owners

and business survival

Hypotheses IV

H0: There is no significant relationship between business owners’ financial management

attitude and business survival

Hypotheses V

H0: Business owners’ attitude towards customers does not determines business survival

1.6 SIGNIFICANCE OF THE STUDY

Business survival is imperative for societal growth and development as this will go a
long way to determine the well being of individuals and continued existence of the nation.
Based on the rate of small and medium sized enterprise frequent death, this study has exposed
one of the factors responsible for this that is owners’ attitude. This study has therefore
contributed significantly to how to turn around the frequent rate of business failure
occurrence especially the SMEs in this part of the world. In this regard, the research has
enriched the existing literature on business survival especially within SMEs by providing
ground with which appropriate business owners’ attitude that should be positive towards
other business stakeholders to enjoy business continuity.

Aside the above, the study have made business owners’ and potential business
owners’ to appreciate the place of attitude in business continuity. The study re-echoed the
need for business owners to note that all the stakeholders are very vital for business survival.
This was buttressed in the findings and recommendations of the study which established that
positive attitude of business owners’ is germane to the continuity of the business.

4
 Similarly, the study is of immense importance to the country, managers of businesses,
researchers, and students who might be interested in exploring further studies in this area.
Against this backdrop, it can be concluded that this research is of value to business
management field of study with reference to small and medium businesses.

1.7 SCOPE OF THE STUDY

The study focused on business owners’ attitude and business survival. Business
owners’ attitude was measured with business owners’ attitude towards risk-taking, customers,
entrepreneurial, employees and financial management while business survival was measured
with chances of business continuity for a reasonable period of time. The study also focused
on small businesses because majority of Nigerians are mostly small business owners and
because of its importance to the development of any economy.

In order to have a sincere feedback on the attitude of business owners, employees of

the businesses were considered as the appropriate respondents for the study. Emphasis was
placed on employees that have worked in businesses that have either crashed and they are
now elsewhere or are currently experiencing challenges due to business owners’ attitude.

1.8 DEFINITION OF TERMS

Attitude: This is a person’s perspective towards a specified target and way of saying and
doing things.

Business: This is any legitimate economic human activities engaged in by men or women to
satisfy the need of other and at the same make profit therein.

Business Owner: Individual or group of individuals that started a business and manage it.

Business Owner Attitude: This represents the beliefs, thought and knowledge of business
owners about a trend in business which could be positive or negative.

Business Survival: This is the life span of business after formation in relation to its
profitability upon existence. It is the ability of business to exist over a long period of time.

Customer: An individual that patronizes a business venture to buy products and services.

5
Employee: This is an individual engaged to render service in exchange of wages and salaries
in an organization.

Entrepreneurial: This is an act of creating something new in terms of product, service, and
process or improved on product, service or process of getting things done.

Risk-taking: This is the ability to face uncertainty associated with a future outcome or event.

1.9 HISTORICAL BACKGROUND OF SMALL AND MEDIUM ENTERPRISES

IN ILORIN METROPOLIS, KWARA STATE

Kwara State is one of the 36 States in Nigeria located in North Central geopolitical
zone with 2.7million people. It was created in 1967 and made up of 16 local government
areas with fertile land, good climate and peaceful environment. According to the Survey
report on MSMEs of Nigeria (2012), 428,111 MSMEs exist in Kwara State with 427,668
Micro enterprises, 415 Small Enterprises and 28 Medium Enterprises.

Ilorin metropolis is made up of three local government areas in the State namely,
Ilorin east, Ilorin south and Ilorin west. The three local governments are economically viable
geographical area with different types of businesses especially the small and medium
enterprises.

In explaining the contribution of MSMEs in employment generation, Adeyemi and

Badmus (2001) opined that if MSMEs sector is well funded, it will reduce the rate of
unemployment in Nigeria. According to them, a developed MSMEs sector creates more jobs
than large companies who are often capital intensive and require fewer hands. The Nigerian
Government seems to be aware of this and that was why at all levels effort is geared towards
how to create enabling and friendly environment in which MSMEs would flourish (Survey of
MSMEs in Nigeria, 2012). Various programmes, institutions and effort have been put in
place to assist MSMEs in order to develop them for the capacity to generate employment
(Jimodu, 1998; Kayode, 2001; Hassan, 2003). The survey report on the MSMEs in Nigeria
(2012) estimated the employees of MSMEs at thirty-two million, four hundred and fourteen
thousand eight hundred and eighty-four (32, 414, 884) and put the MSMEs in Kwara State at
four hundred and twenty eight thousand one hundred and eleven (428,111). In spite of these

6
encouraging estimates, the State is still reported to be one of the States in the country with
high rate of unemployment (Daily Independent, 2014).

Although the Kwara State government claim to have done well in employment
generation through her different programmes like the State Economic Empowerment and
Development Strategy (KWSEEDS), LEAH Charity Foundation (LCF), SME fund, Quick
Win, to mention few coupled with the ones extended by the Federal Government of Nigeria
like, The Nigeria Bank for commence and industry (NBCI), National Directorate of
Employment (NDE), The Youth Empowerment Scheme (YES), National Economic
Reconstruction Fund (NERFUND), Small and Medium Scale Enterprises Development
Agency of Nigeria (SMEDAN), Small and Medium Industries Equity Investment Scheme
(SMIEIS), Youth Enterprise with Innovation in Nigeria (YOUWin), etc.

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 CHAPTER TWO

LITERATURE REVIEW

8
 CHAPTER THREE

METHODOLOGY

3.1 INTRODUCTION

This chapter describes the method and procedures that was used for the study. The
procedures are discussed under the following sub-headings: research design, population of
the study, sampling procedure and sample size, research instrument, validity and reliability of
research instrument, data collection procedure, and method of data analysis.

3.2 RESEARCH DESIGN

The research design is exploratory survey. It involves the collection of data in order to
answer questions concerning the current status of the problem (Gay, 2005). This has
presented facts concerning the nature and status of a situation, as it exists at the time of the
study. It is also concerned with relationships and practices that exist, beliefs and processes
that are ongoing, effects that are being felt, or trends that are developing. In addition, this
approach tries to explore present situation, events or systems based on the impressions
or reactions of the respondents of the research (Creswell, 2009). The major tool used
in collecting data in this type of research is the questionnaire, since this study intends
to find out the relationship between business owners attitude and business survival.

3.3 POPULATION OF THE STUDY

The target population is the population to which a researcher wants to generalize the
results of study (Mugenda & Mugenda, 2003). The population of this study it's made up of all
the employees of SMEs in Ilorin metropolis, Kwara State. It is an infinite population due to
the unstructured SMEs in the State as majority of them is not registered with the government.

3.4 SAMPLING DESIGN

Sampling is the selection of respondents who represent the target population in the
study according to B. G, Ibrahim (2004) define sampling as early representative of the
population. This occur when a member in the sampling unit fewer that the aggregated drawn

9
from a population and examine in details and subsequent generalization made about the
population from which is drawn.

In all, one hundred (100) employees of SMEs were expected to participate in the
survey across the metropolis to represent the infinite population.

3.5 RESEARCH INSTRUMENT

Questionnaire was the instrument used for data collection in this research. The
instrument was divided into six (6) sections (Sections A - F). Section A which captured
respondent’s demographic characteristics was measured with appropriate variables. The
independent construct in this study is ‘business owners’ attitude’ which were captured in
relation to the dependent variable ‘business survival’ as captured under sections B – F was
measured using a 5-point scale of Likert (Strongly agree, agree, undecided, disagree and
strongly disagree) to determine either the effect or correlations with responses to the survey.
A response was chosen by the respondent for each question, from a scale of 5 (strongly
agree) through to 1 (strongly disagree). This method of gauging the respondent’s views on a
subject created a solid support for the study

3.6 DATA COLLECTION PROCEDURE

The following measure instruments were adopted to ensure adequate validity and
reliability of data collected for the purpose of this study. The use of questionnaire guide to
obtain initial data from the management of the organization was applied.

3.7 METHODS OF DATA ANALYSIS

The research questions and hypotheses formulated for the study guided the process of
Data analysis. The options selected was Likert 5- Scale (Strongly agree, agree, undecided,
disagree and strongly disagree) stated on the instrument were graded and the frequency table
and percentage were used to present them. The hypotheses were analyzed with Regression
and Pearson Product Moment Correlation Coefficient (r-test).

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 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

This chapter presents data, analyze data and interpret the data collected through
questionnaire from the employees of SMEs in Ilorin metropolis, Kwara State, Nigeria.
Results from data collected were presented in frequencies and cumulative percentages in
summarized tables while the hypotheses were tested for with appropriate statistical methods.
The chapter covers the questionnaire response rate, demographic data of respondents, data
analysis of items on the questionnaire.

4.2 Response Rate

Table 4.1: Summary of Questionnaire Completed and Analysed from Respondents

S/N Selected SMEs Questionnaire Completed Copies of

Distributed Questionnaire Questionnaire

Used

1 Small Business 50 49 42

2 Medium Business 50 43 37

Total 100 92 79

Source: Researcher’s Analysis, 2021.

Table 4.1 shows that out of the one hundred (100) questionnaires distributed to the employees
of SMEs for the study, only ninety-two (92) were returned while only seventy-nine (79) were
found usable for the analysis. The major reason for the inability of the researcher to retrieve
all the distributed questionnaires was due to lack of interest of employees to participate in the
study.

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Table 4.3.1: Demographic Characteristics of the Respondents

Items Frequency Percentage (%)

Gender Female 15 19

Male 64 81

Total 79 100.0

Age group 20 - 34 years 19 24.1

35 – 49 years 10 12.7

50 – 64 years 32 40.5

65 years above 18 22.7

Total 79 100.0

Marital Status Single 52 65.8

Married 27 34.2

Divorced 0 0.0

Total 79 100.0

Qualification O’Level 19 24.1

ND/NCE 10 12.7

HND/BSc. 32 40.5

Masters/Others 18 22.7

Total 79 100.0

Work Experience Less than 1year 15 19.0

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 1-5 years 36 45.6

6 – 10 years 28 35.4

Total 79 100.0

Source: Field Survey 2021.

Gender: The table 4.3.1 above shows that sixty-four of the respondents (81.0%) were male
while fifteen of the respondents (19%) were female. This implies that there were more male
employees of SMEs than females that were involved in this survey.

Age Group of Respondents: The table 4.3.1 above shows that Ninety of the respondent
(24.1%) were between age 20-24years while 10 for the respondent (40.5%) were between 50-
64years while eighteen of the respondent (22.7%) were above 65years.

Marital Status: the table 4.3.1 above shows that fifty-two of the respondents (65.8%) were
single; twenty-seven of the respondents (34.2%) were married while none of the respondents
was divorced. It can be deduced that majority of the respondents were single while
reasonable numbers were married.

Highest Educational Qualification of Respondents: the table 4.3.1 above shows that
nineteen respondents (24.1%) were O’Level certificate holders, ten respondents (12.7%)
holds either National Diploma or NCE, thirty-two respondents (40.5%) were Higher National
Diploma or Bachelor of Science degree holders, while eighteen of the respondents (22.7%)
has Masters Degree and others.

Respondents Years of working in SMEs: the table 4.3.1 shows that fifteen respondents
(19%) have been engaged for less than 1 year, thirty-six of the respondents (45.6%) have
been in the employment of SMEs for between 1-5 years while twenty-eight of the
respondents (35.4%) have been in the employment of SMEs for between 6-10 years or more.
This feedback on the years in the employment of SMEs is very relevant to this study because
of the issues under study.

4.4 DATA PRESENTATION AND ANALYSIS OF RESEARCH QUESTIONS

Table 4.4.1: Distribution of Response on Business Diversification

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 Options Frequency Percent

Strongly Agreed 32 40.5

Agreed 47 59.5

Undecided 0 0.0

Disagreed 0 0.0

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

On whether business diversification have been experienced by employees, thirty-two

respondents (40.5%) strongly agreed with the statement and forty-seven respondents (59.5%)

agreed with the same view while none of the respondents strongly disagreed, disagreed nor

undecided with the view. It can be inferred that employees of SMEs have experienced

business diversification.

Table 4.4.2: Distribution of responses on preparation of respondent to extreme event of

risk

14
 Options Frequency Percent

Strongly Agreed 39 49.4

Agreed 31 39.2

Undecided 7 8.9

Disagreed 1 1.3

Strongly Disagree 1 1.3

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.2: thirty-nine (49.4%) strongly agree that changes have occurred in
their mode of operations, thirty-one respondents (39.2%) also agree with this, seven
respondents (8.9%) were undecided, two respondents (1.3%) disagreed and strongly agreed
with this view respectively. This is confirms that Business owner prepare respondent to
extreme event of risk in SMEs.

Table 4.4.3: Distribution of responses on business owner refresh its assessment of the
risk

15
 Options Frequency Percent

Strongly Agreed 42 53.2

Agreed 35 44.3

Undecided 2 2.5

Disagreed 0 0.0

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

Based on table 4.4.3, forty-two respondents (53.2%) strongly agreed that transformation has
been witnessed in their business activities, thirty-five respondents (44.3%) agreed with this
while two respondents (2.5%) were undecided on this view. On the contrary, none of the
respondents either disagree or strongly disagree with the view. With the majority view (97.5),
it can be deduced that SMEs have experienced business owner refresh its assessment of the
risk.

Table 4.4.4: Distribution of response on how business owners treat risk.

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 Options Frequency Percent

Strongly Agreed 39 49.4

Agreed 31 39.2

Undecided 7 8.9

Disagreed 1 1.3

Strongly Disagree 1 1.3

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.4: thirty-nine (49.4%) strongly agree that they have seen new product
and services in their SMEs, thirty-one respondents (39.2%) also agree with this, seven
respondents (8.9%) were undecided, two respondents (1.3%) disagreed and strongly agreed
with this view respectively. This confirms on how Business owners treat risk reactively
rather than proactively.

Table 4.4.5: Distribution of responses on whether employer communicates openly and

honestly.

17
 Options Frequency Percentage (%)

Strongly Agreed 35 44.3

Agreed 41 51.9

Undecided 2 2.5

Disagreed 1 1.3

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.5, thirty-five respondents (44.3%) strongly agreed that their employer
communicate openly and fairly, forty-one respondents (51.9%) also agreed with this view
while only two respondents (2.5%) were undecided on this view. On the contrary, only one
respondent (1.3%) and none of the respondents disagree and strongly disagreed respectively
on the view. It is inferred that SMEs owners communicate openly and fairly with their
employees.

Table 4.4.6: Distribution of responses on whether employer treat them fairly

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 Options Frequency Percentage (%)

Strongly Agreed 17 21.4

Agreed 33 41.8

Undecided 4 5.1

Disagreed 18 22.8

Strongly Disagree 7 8.9

Total 79 100.0

Source: Field Survey, 2021.

Based on data presented in table 4.4.6, seventeen respondents (21.4%) strongly agreed
while thirty-three respondents (41.8%) agreed with the view that they have enjoyed fair
treatment from their respective employers. Four respondents (5.1%) were undecided while
eighteen respondents (22.8%) disagreed and seven respondents (8.9%) strongly disagreed
respectively. Considering the spread of the respondents, it is overt that SMEs owners treat
their employees fairly.

Table 4.4.7: Distribution of responses for consideration of decision effect on employees

19
 Options Frequency Percentage (%)

Strongly Agreed 47 59.5

Agreed 32 40.5

Undecided 0 0.0

Disagreed 0 0.0

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

Table 4.4.7, shows that thirty-two respondents (40.5%) and forty-seven respondents
(59.5%) agreed and strongly agree respectively on the fact that their employers considers the
effect of decision on them before taking such decisions. It is overt that SMEs owners are
mindful of the implications on their employees.

Table 4.4.8.: Distribution of responses for employee trust

20
 Options Frequency Percentage (%)

Strongly Agreed 16 20.3

Agreed 55 69.6

Undecided 6 7.6

Disagreed 2 2.5

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.8, fifty-five respondents (69.6%) and sixteen respondents (20.3%)
agreed and strongly agreed respectively that they have always enjoy their employer trust and
six respondents (7.6%) were undecided on this. On the contrary, none of the respondents
strongly disagreed and two respondents (2.5%) disagreed. It is obvious from this feedback
that trust exists between SMEs owners and their employees. This is unavoidable for business
survival.

Table 4.4.9: Distribution of responses for business owners encourage employees to be

creative.

21
 Options Frequency Percentage (%)

Strongly Agreed 35 44.3

Agreed 41 51.9

Undecided 2 2.5

Disagreed 1 1.3

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.9, thirty-five respondents (44.3%) strongly agreed that their business is
challenging, forty-one respondents (51.9%) also agreed with this view while only two
respondents (2.5%) were undecided on this view. On the contrary, only one respondent
(1.3%) and none of the respondents disagree and strongly disagreed respectively on the view.
It is inferred that SME business owners encourage employees to be creative.

Table 4.4.10: Distribution of responses on new way of doing things

22
 Options Frequency Percentage (%)

Strongly Agreed 36 45.6

Agreed 8 10.1

Undecided 0 0.0

Disagreed 6 7.6

Strongly Disagree 29 36.7

Total 79 100.0

Source: Field Survey, 2021.

On employee creativity, thirty-six respondents (45.6%) strongly agreed that their

employers encourage their creativity, eight respondents (10.1%) also agreed with this view
while none of the respondent was undecided. On the contrary, six respondents (7.6%)
disagreed and twenty-nine respondents (36.7%) strongly disagree with this view.

Table 4.4.11: Distribution of responses on whether their business owner is an

entrepreneur

23
 Options Frequency Percentage (%)

Strongly Agreed 37 46.8

Agreed 32 40.5

Undecided 3 3.8

Disagreed 5 6.3

Strongly Disagree 2 2.5

Total 79 100.0

Source: Field Survey, 2021.

Table 4.4.11 shows that thirty-two respondents (40.5%) and thirty-seven respondents
(46.8%) agreed and strongly agreed respectively on their business owner to be an
entrepreneur while three respondents (3.8%) were undecided. On the contrary, two
respondents (2.5%) strongly disagreed while five respondents (6.3%) and three respondents
(3.8%) disagreed with this view. With these positions, it can be concluded that Surveyed
SMEs can into existence as an offshoot of entrepreneurial act of business owners.

Table 4.4.12: Distribution of responses on business owner perform quality control test.

24
 Options Frequency Percentage (%)

Strongly Agreed 32 40.5

Agreed 47 59.5

Undecided 0 0.0

Disagreed 0 0.0

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

On whether business owner is different from business, thirty-two respondents (40.5%)

strongly agreed with the statement and forty-seven respondents (59.5%) agreed with the
same view while none of the respondents strongly disagreed, disagreed nor undecided with
the view. It can be inferred that surveyed SMEs perceived their business owner perform
quality control test.

Table 4.4.13: Distribution of responses for business owner develop a solid plan

25
 Options Frequency Percentage (%)

Strongly Agreed 16 20.3

Agreed 55 69.6

Undecided 6 7.6

Disagreed 2 2.5

Strongly Disagree 0 0.0

Total 79 100.0

Source: Field Survey, 2021.

From table 4.4.13, fifty-five respondents (69.6%) and sixteen respondents (20.3%)
agreed and strongly agreed respectively with business owner develop a solid plan and six
respondents (7.6%) were undecided on this. On the contrary, none of the respondents strongly
disagreed and two respondents (2.5%) disagreed. It is obvious that there is still no different
between business owner develop a solid plan.

Table 4.4.14: Distribution of responses on whether the business owner spend valuable
time dealing with taxes.

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 Frequency Percent

Strongly Agreed 36 45.6

Agreed 8 10.1

Undecided 0 0.0

Disagreed 6 7.6

Strongly Disagree 29 36.7

Total 79 100.0

Source: Field Survey, 2021.

On out of stock, thirty-six respondents (45.6%) strongly agreed that they have been
out of stock due to cash crunch, eight respondents (10.1%) also agreed with this view while
none of the respondent was undecided. On the contrary, six respondents (7.6%) disagreed and
twenty-nine respondents (36.7%) strongly disagree with this view. This implied that partly
business owner spend valuable time dealing with taxes.

Table 4.4.15: Distribution of responses on whether employer spend part of the business
income on family issues

27
 Options Frequency Percentage (%)

Strongly Agreed 17 21.4

Agreed 33 41.8

Undecided 4 5.1

Disagreed 18 22.8

Strongly Disagree 7 8.9

Total 79 100.0

Source: Field Survey, 2021.

Based on data presented in table 4.20, seventeen respondents (21.4%) strongly agreed
while thirty-three respondents (41.8%) agreed with the view that on SMEs owner spending
part of the business on family. Four respondents (5.1%) were undecided while eighteen
respondents (22.8%) disagreed and seven respondents (8.9%) strongly disagreed respectively.
Considering the spread of the respondents, it is overt that SMEs owners’ spend money in
business for famility activities. This contradicts the earlier position of the respondents which
claimed that SMEs owner are different from the business. Such distinction is exclude
financial probity but may be in other areas.

Table 4.4.16: Distribution of Response on whether business owner issure their business

28
 Options Frequency Percentage (%)

Strongly Agreed 37 46.8

Agreed 32 40.5

Undecided 3 3.8

Disagreed 5 6.3

Strongly Disagree 2 2.5

Total 79 100.0

Source: Field Survey, 2021.

Table 4.4.16 shows that thirty-two respondents (40.5%) and thirty-seven respondents (46.8%)
agreed and strongly agreed respectively on customers as top priority of their business while
three respondents (3.8%) were undecided. On the contrary, two respondents (2.5%) strongly
disagreed while five respondents (6.3%) and three respondents (3.8%) disagreed with this
view. With these positions, it can be concluded that business owner insured their business in
SMEs.

4.5 Test of Hypotheses

Hypothesis I: H0: Business owners’ negative risk-taking attitude will lead to business
survival

Hi: Business owners’ positive risk-taking attitude will lead to business

survival

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Table 4.5.1 Perception of respondents on whether negative risk taking of business
owners’ or positive risk taking attitude of business owner lead to business survival

Sum of Squares df Mean Square F Sig.

Positive risk
456.21 66 10.22 6.11 .000
taking

Negative risk
121.10 10 52.01
taking

Total 78492.33 76

The result as presented in Table 4.27 showed that positive risk taking attitude of
business owners would lead to business survival than negative risk taking attitude of business
owners. This implied that the null hypothesis is rejected while the alternate is accepted that is
business owners’ positive risk-taking attitude will lead to business survival.

Hypothesis II: H0: Business owners’ attitude towards employees does not have effect on
business survival

Hi: Business owners’ attitude towards employees has effect on business

survival

Table 4.5.2: Presents the result of effect of business owners’ attitude towards employees
on business survival

Unstandardized Standardized T Sig

Coefficient Coefficient

B Std Error Beta

Constant .385 .100 3.870 .000

Business owners .513 .111 .601 4.443 .000

attitude towards
employees

Predictors: (Constant) Business owners’ attitude towards employees

30
Dependent Variable: Business survival

The results in Table 4.28 show that business owners’ attitude towards employees had
a statistically significant effect on business survival. This is shown in the standardized
regression coefficient (β) value of business owners’ attitude towards employee which was
β=.601 which was highly statistically significant (p-value=.000). The null hypothesis that
business owners’ attitude towards employees does not have effect on business survival does
not hold. Therefore, the alternate hypothesis which states that business owners’ attitude
towards employees have effect on business survival is here by accepted.

Hypothesis III: H0: There is no significant relationship between entrepreneurial attitude of

business owners and business survival

Hi: There is a significant relationship between entrepreneurial attitude of

business owners and business survival

Table 4.5.3: Presents the result of the relationship between entrepreneurial attitude of
business owners and business survival

Table 4.5.3 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .622(a) .565 .371 .5122

a. Predictor: (Constant), Entrepreneurial attitude of business owners

This result demonstrates that there is a strong relationship between entrepreneurial

attitude of business owners and business survival and thus, support alternate hypothesis H3
which proposed that there is a significant relationship between entrepreneurial attitude of
business owners and business survival.

Hypothesis IV: H0: There is no significant relationship between business owners’ financial
management attitude and business survival

31
 Hi: There is a significant relationship between business owners’ financial
management attitude and business survival

Table 4.5.4: Presents the result of the relationship between business owners’ financial
management attitude and business survival.

Table 4.5.4 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .701(a) .451 .353 .6375

a. Predictor: (Constant), Business owners’ financial management attitude

This result demonstrates that there is a strong relationship between business owners’
financial management attitude and business survival and thus, support alternate hypothesis H4
which states that there is a significant relationship between business owners’ financial
management attitude and business survival.

Hypothesis V: H0: Business owners’ attitude towards customers does not determines
business survival

Hi: Business owners’ attitude towards customers determines business survival

Table 4.5.5: Presents the result between business owners’ attitude towards customers
and business survival

Table 4.5.5 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .656(a) .434 .441 .5147

a. Predictors: (Constant), Business owners’ attitude towards customers

32
 This result shows that business owners attitude towards contribute to business
survival and thus, supports alternate hypothesis (H5). The interpretation of this finding is that
business owners’ attitude towards customers determines business survival. Therefore,
business owners need to be mindful of their relationship with customers. The relationship
must be cordial and positive

4.6 Discussion of Findings

The results of the analysis have been successfully tested empirically

relationship between business owners attitude and business survival. The first result revealed
that positive risk taking attitude of business owners’ will lead to business survival while on
the contrary, the negative risk taking attitude of business owners’ will not. However, it is
obvious that some of the owners were not involved in the management of the businesses. The
concept of business owner-manager is re-echoed here. This finding was support the position
of Fatoki (2014) which pointed out the attitude of entrepreneurs towards risk taking as
determinant of business survival. Similarly, the study established that business owners’
attitude towards employees have effect on business survival. This view support the claim of
Waggoner (2013) that poor attitude of employer towards employees would lead to business
failure as well as that of Vickers, James, Smallbone, and Baldock (2005) which argued that
paternalistic attitude of business owners towards employees will go a long way to sustain
business.

Furthermore, the finding of the study shows that there was a significant relationship
between entrepreneurial attitude of business owners and business survival. This corroborate
the findings of Bird and Schjoedt (2009) and Kuratko, Ireland, Covin and Hornsby (2005)
which established that entrepreneurial attitude of business owners contribute to the survival
of businesses especially the SMEs.
Another finding shows that business owners’ financial management attitudes
significantly contribute to business survival. This was the position of Abanis, Arthur and
Derick (2013) when they reported that the unbecoming attitude of business owners to
financial management contributes immensely to business failure.
Conclusively, it was further established that business owners’ attitude towards
customers determines business survival. This position agrees with the findings of Fatoki

33
(2014) which established that poor attitudes of business owners towards customers were
identified as one of the causes of the failure of new small and medium enterprises.

34
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 SUMMARY

The study has examined the effect of business owners’ attitude on business survival
using SMEs in Ilorin metropolis as study area. To achieve the objective of the study, the
study focused on employees of the SMEs in the area who work with the business owners to
assess their attitudinal behavior on selected areas that affect business operations such as risk
taking, entrepreneurial act, financial management, relationship with employees and
customers.

Finding from the study revealed that attitude of business owners is significant in
determining the continuity or otherwise of business. Positive risk taking ability of business
was found to be very important to business survival as well as the entrepreneurial attitude of
the business owner. Similarly, financial management probity was found imperative to the
continuity of the business. Also, cordial relationship with both employees and customers
were found to be of high preference to business that wants to survive the test of time.

The study concluded that business owners’ need to be mindful of their attitude to all
the stakeholders to survive the ever competitive business environment.

5.2 CONCLUSIONS

Positive attitude of business owners to different business stakeholders will go a long

way in sustaining business survival. Results of the study have shown the extent to which the
issues examined can influence business survival or non-survival. Precisely, all the five
proxies of business owners attitude considered in the study have relationship with business
chances of survival. Therefore, positive entrepreneurial attitude(s) is/are required to drive
business especially where competition and uncertainties are high. Business owners should be
sensitive to the interest of other stakeholders in business while they might be the owner of the
business; the other stakeholders play very important roles in the survival of the business.
They are partners in progress and should be accorded due regards in the affairs of the
business.

35
5.3 LIMITATIONS OF THE STUDY

In spite of the clear definition of the scope of the study, the study still has some
limitation. First, this study adopted survey research design which collected data from the
employees of SMEs in Ilorin metropolis, Kwara State. This poses a few challenges to the
generalizability of the findings. The sample used is definitely not fully the representative of
the population SMEs in the State. Therefore, caution is given on the adoption of the result
outside the context of study.

Secondly, the feedback was based on the opinion of employees alone. For a
behavioural study, the perception of respondents might be subjective. Therefore, some
respondents might have rated their business owners wrongly. Consequently, business survival
or otherwise as experienced and judged by employees might be wrong.

5.4 RECOMMENDATIONS

Based on the findings from the study, the following recommendations were outlined:

I. Business owners’ must appreciate that risk taking is inevitable in business however
they must take reasonable risk because this is the only way through which their
business could stand the test of time.

II. It is also required of business owners to continuously seek ways through which their
services and products would be improved. Also, they must continuously review their
work processes to eliminate wastages.

III. Owners’ of business must promote cordial relationship with their employees as their
first customers. Employees’ happiness will go a long way in promoting business
survival. Business owners are therefore advised to have positive attitude towards their
employees.

IV. Friendly relationship with customers is also what business owners must appreciate.
This can only be achieved through positive attitude towards the customers at all times
without exception.

36
 V. Business owners must always be prudent and sincere with their financial engagement
with the business. They must separate personal spending from business spending.

5.5 SUGGESTIONS FOR FURTHER STUDIES

i. The study has been carried out among employees of SMEs businesses in Ilorin
metropolis of Kwara State, Southwest, Nigeria.
ii. One of the observed areas that can be improved upon for further study is increasing
the number of participants in the study.
iii. A larger survey can be carried out involving all Local government in the State or in
other geopolitical zones (Southsouth, Southeast, Northcentral, Northwest and
Northeast) of the country to observe any disparity in the attitude of business owners as
it affect business survival.

37
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 APPENDIX I

Department of Business Administration

Federal Polytechnic Offa,

P.M.B 420

Offa

Kwara State

22nd February, 2020.

Dear Respondent,
REQUEST FOR THE COMPLETION OF RESEARCH QUESTIONNAIRE
I am a final year student of department of Business Administration Federal
Polytechnic Offa, am conducting a research on “Effect of Business Owners Attitude on
Business Survival” case study of small and medium enterprise in Ilorin metropolis Kwara
state. However, the purpose of the study is to fulfill the requirement for the award of Higher
National Diploma (HND) in business administration.
Attached here is a set of question for your response, kindly help me by completing
this questionnaire. all information given shall be treated confidentially and shall be used for
the purpose of this research works.
Thanks for your anticipated corporation

Yours Faithfully

Bello Morufat Aderonke

BA/HND/F18/4926

42
 APPENDIX II

QUESTIONNAIRE

Section A: Respondents Personal Data

Instruction: Please tick as applicable to you.

Gender: Male ( ) Female ( )

Age group (in years): 20 – 34 ( ) 35 – 49 ( ) 50- 64 ( ) 65 above ( )

Marital Status: Single ( ) Married ( ) Divorced ( )

Highest Educational Qualification: O’Level ( ) ND/NCE ( ) 1 st Degree ( ) Masters ( )
Others ( )

Years of Working Experience: Less than 1 year ( ) 1 – 5 years ( ) 6 - 10 years ( ) 11

years and above ( )

Instruction for Sections B - F: Please, tick (√) the statement that best describes your view
using the scale below: 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree, 1 =
Strongly Disagree

Section B: Business owners’ risk-taking attitude and business survival

S/N Items Scale

1 2 3 4 5
1 The business have diversified activities in the past
2 The business has changed mode of operations before
3 The business has transformed her activities in the past
4 I know of a new product/service in the business

43
Section C: Business owners’ attitude towards employees and business survival

S/ Items Scale
N 1 2 3 4 5
1 My employer communicates openly and honestly
2 Business owner treats employees fairly
3 Whenever business owner takes decision, S/he consider
the effect on employees
4 I have enjoy tremendous trust from my employer

Section D: Entrepreneurial attitude of business owners’ and business survival

S/ Items Scale
N 1 2 3 4 5
1 The business is challenging
2 Business owner encourages employees to be creative
3 My employer is always looking for a new way of doing
things in the business
4 The business owner is an entrepreneur

Section E: Business owners’ financial management attitude and business survival

S/ Items Scale
N 1 2 3 4 5
1 The business owner is different from the business
2 My employer spend part of the business income on
family issues
3 The business owner is fond of collecting cash from
sales without repayment
4 The business is out of stock and there is no money to
restock

44
Section F: Business owners’ attitude towards customers and business survival

S/N Items Scale

1 2 3 4 5
1 Our customers are top priority
2 The business have recorded increased customers over
the years
3 Many customers have stopped patronizing us because
of owners behaviour
4 Majority of our customers have kept patronizing based
on owners personality
`

45