CHAPTER TWO

LITERATURE REVIEW
2.0 ATTITUDE
An attitude describe person’s enduring favourable or unfavourable Cognitive
evaluations, feelings and action tendencies to ward some object or idea, people have attitudes
regarding almost everything such as religion, polities, cloth music and food.
A person’s attitude settle into a may require difficult adjustment in many others.

2.1 BUSINESS ATTITUDE

A business attitude reflects felling beliefs and values the attitude you project in your
encounters with people throughout the business day can determine the degree of success of
those encounter when you approach people employees, cust owners venders with respect for
their differences and for their values, you build a foundation for a future positive business
relationship.

2.1.1 ATTITUDE FORMATION

An attitude is a general and lasting positive or negative opinion or feeling about some
person, object or issues. Attitude formation occurs through either direct experience or the
persuasion of others or the media. Attitudes have three foundations: affect or emotion
behaviour and cognition. In addition, idence suggests that attitudes may develop out of
psychological needs (motivational foundations) social interactions (social foundations) and
genetics (biological foundations) although. This last notion is new and controversial.

2.1.2 ATTITUDE CHANGES

Attitude are general evaluations of objects ideas, and people one encounters
throughout. Ones life (e.g capital punishment is bad) Attitudes are important because they
can guide thought behaviours and feelings attitude changes occurs anytime an attitude is
modified. Thus changes occurs when a person goes from being positive to negative, from
slightly positive to very positive, or from having no attitude to having one. Because of the
functional values of attitudes. The process that changes them have been a major the
throughout the history of social psychology.
2.1.3 THEORIES OF ATTITUDE
According to Bruvold (1980), an attitude may be defined as a positive or negative
affective reaction toward a denotable abstract or concrete object or proposition. Zinbardo
(1998), claimed that attitude could be explained ass learned judgments about the actions they
are appropriate towards certain types of peoples or issues.
Attitudes are relatively stable but they could be modified. According to Keqan
Haveman and Segal (1994) as individual grows up, acquire strongly beliefs and feelings or
attitudes towards members of various ethnic groups, foreigners, rich people, poor people,
mates females, issues, government policy e.t.c individual develop strong attitudes towards
political parties, national security and all other issues and institutions in the society.
Attitudes tend to influence us throughout life. People very much in favour of things
towards which we have positive attitude and very much against things of attitude arises from
attempts to account for observed regularities in the behavior of individual persons. The
quality of ones attitude is judged from the observable, evaluative responses that are made.
While one might consult one’s inner experiences as evidence of one’s own attitudes. An
attitude concerns something that really matters to us. Hence it is for more resistant to change
than an opinion. According to Kegan, Haveman and Segal (1994) Since attitude are so
enduring and can be powerful forces in determining behaviour, they have been a key topic in
social psychology. Investigators have devoted considerable study to know how people
acquire them (attitudes) cling to them, but sometimes changes them and when under what
circumstances, and to what the individual will do (Omotosho, 2003) this view is supported by
(mc connel 1980) who posited that attitude has been a subject of great interest to social
psychologist. For a long time. As a social psychologist himself mc connel had an extensive
discussion on the concept of attitude.

2.1.4 A REVIEW OF BUSINESS OWNERSHIP IN NIGERIA

A business entity is responsible for using its economic resources to produce goods or
services to customers for profit. There are different types of companies and business
structures in Nigeria.
First it is a note of worth to state that under Nigeria Law, it is only the corporate
affairs commission, an agency of the Federal Government that engages in company
registration.
BUSINESS ORGANIZATION IN NIGERIA Come in different forms of ownership and
these include:
Sole Proprietorship: One Person, who bears the risk and faces unlimited liabilities of the
business, usually owns this type of business organization. It is easy to set up and this form of
business is usually adopted by small business entities. This is usually the cheapest and most
used form of business organization. All decisions of the business are carried out but the
owner who is responsible for all profits and loss of the business. This form of business should
be considered where one intends to work alone and have complete control of the business.
A sole proprietorship is usually registered as a business name with the corporate
affairs commission. And Nigerian residents can only register it.
Partnership: This form of business is owned by two or more persons who contribute
resource together to create a business entity. The partners bear the risk and liabilities of the
company equally. They also divide the profit of the business among them selves.
A partnership can be divided into limited and general partnership. In a general
partnership, all profit and loss are shared equally among the partners, while in a limited
partnership, only one partners has control of the operations of the business while the others
person (s) contributes money to receive only part of profits.
A partnership is also registered as a business name with the corporate affairs
commission.
Companies: A company is a form of business organization that has a separate legal
personality from its owners. An example of a corporation is a joint-stock company. It
provides limited liability to its investors with its legal rights to own a company. It is a legal
entry that can sure be sued can own properties, and pay tax. A corporation may be a form of
private limited liability company or public limited liability company (PLC).
TYPES OF COMPANIES IN NIGERIA
A Company Limited by Shares: This is a company where the liability of a member to
contribute to the company’s assist in the event of liquidation or winding up is limited to the
amount unpaid by its shares. A company limited by shares can be private limited or a public
limited liability company it is a corporate structure where member of the company cannot be
personally liable for company debt or liabilities. According to Nigeria Law, it must be
registered with the Corporate Affairs Commissions (CAC). It requires that the articles of
the company must be filled also with the CAC. It consists of a maximum of 50 members for a
priva company and an unlimited number of members for a public company.
 A limited company by shares separates the business assets of the company from the
personal assets of its company from the personal assets of its company from the personal
assets of its owners. It states in its memorandum to be a private or public company.
2.1.5 COMPANY LIMITED BY GUARANTEE
This is usually a non-profit organization. It is a form of business organization whose
objectives are to promote educational, religious, sport, or charitable purposes. Its hall not be
incorporated with the object of carrying on a business for the purpose of making profits for
distribution for its members any money that is earned in thee organization cannot be
distributed to members or trustees of the organization rather it is usually kept to pay for
expenses or programs.
When register in a company limited by guarantee, it shall not be registered with a
share capital.
2.1.6 UNLIMITED COMPANY
With this types of company, the liability of a member is unlimited and shall be liable
to the full amount of the company’s debt. An unlimited liability company is not the best or
advisable form of enterprise. There are only a few unlimited liability company in Nigeria is
the Mobil producing Nigeria Unlimited liability companies in Nigeria is the Mobil Producing
Nigeria Unlimited.
2.1.7 REVIEW OF BUSINESS SURVIVAL
Business is any legitimate organized human activities engaged in by men or women to
satisfy the need of other and at the same make profit there in. Business is defined as any
economic activity or entry that engaged in industry, agri-business and services whether single
proprietorship, partnership or corporate venture. From the definitions it is obvious that one of
the leading objectives of business is to survives.
Business Survival has been conceptualized in different context with reference to the
objectives of setting up the business. Dunne, Roberts and Samuelson (1989) made. Use plant
– level panel data from the census of manufactures to analysis entry and exit from four digit
slc industries at the establishment and multi-plant firm levels between the five years
intervenes of the census to defines business survival. However, business survival appears
positively related to the length of time that a business has been operating and achieving the
essence of its existence (Akinbode Usman & Jatto, 2017).
Akinbode, Oginni and Omoleye (2012) defined business survival as the ability of a
firm to continuously be in operation despite various challenges by implication, the inability of
business to survive implied any of or a combination of the following: expenses tend to exceed
the incomes. Over possibility of bankruptcy and can lead to eventual closure of the business
(Engel Brecht, 2005: Pretorius 2006 Seshadri 2001) this deprecation of business survival is
anchored on the owner’s right attitude of business inputs, however, many business owners do
not have the right attitude to achieve and sustain business where in order to drive business
owners of business to stand the test of time profitably.
Businesses as such they perform so many operations tasks and management functions
themselves (Kristen 2013) studies of Arendt and Brettel (2010) identified attitudes as
determinant of managers behaviour.
Business survival strategies for tough economic times:
1. Schedule Weekly Budget Meetings
The assumption is that you have a budget you may be surprised at how many
small business either (a) don’t spend the time to develop a proper budget or (b) don’t
have a regular budget review process. Use the meeting to challenge managers and
supervisors to find ways to reduce expenses in their respective department (and
reward them) have the managers call invia conference calls if you have satellite.
Offices in various parts of the country or globally. Make sure they are
prepared with arguments to justify the budgets of them various departments and plans
on how to out costs.
2. Set Up a Profit Committee / Task Force
This should be employee driven, challenge them to contribute ideas but more
importantly reward them for good ideas that actually get implemented.
3. Revamp your Performance Reviews
Are the employee (especially senior managers) objectives aligned with
company goals (i.e increase sales, reduce expenses, improve customer service) are the
goals more than simply rhetoric or “Feel Good” words? Simply put, are the objectives
specific enough and can you really “MEASURE” the progress ?
4. Review your “TURNOVER” Ratios
Profits are quickly eaten up by idle inventory a late-paying customs.
Incorporate these items as a part of your budget review presses work closely with
your venders to reduces case packs or get simply get rid of items that don’t sell. Offer
to settle with your late – paying customers or arrange for installment payment on
outstanding receivables. Getting something is better than nothing in tough economic
times.
5. Rely on the Leverage you have with you Vender
 Partnerships should be more than just talk negotiate better terms i.e try to
increase days to pay for your invoices. Even taking an extra 5 days per mouth on a
base of business valued at 1 million annually can earn your business extra interest of
over 300 after taxes.
6. Changes your Payroll Cycle
If you are no a weekly payroll cycle, consider moving to bi-weekly. If you are
paying bi-weekly, consider moving to semi – mouthy (15 th and 30th) perfoma cost –
benefit analysis to make sure this makes sense for your business.
7. Get on the “green” Bandwagon Early
Become more energy efficient who knows you may even qualify for tax
breaks. Get employees leave conferences rooms. Installing sensors for room or area
used infrequently may be so melting to think about. Turn off computers and unplug
office equipment at the end of each day. According to the government ENERGY
STAR progress am 40% of the electricity that home electrons use is consumed while
the produces are turned off. I would imagine the applies to office equipment as well.
8. Meet with your Banker
Set up a meeting right away. Not only will you be building a critical
relationship (one that too mangers neglies) but asks them for ideas. They have the
benefit of seeing what works (or dosen’t) for other business so feel free advice discuss
things like putting extra cash in money market accounts. CD’S e.t.c. See if you can
move your operating accounts to an internet earned may not be “earth shattering”, it is
skill money earned with out doing anything different if there can limit on the amount
of checks that can be written in such an account analyze the fees that the bank may
charges vs the interest that can be earned pay bills electronically and offer direct
deposit for your employees to reduce any check writing fees. Also are you carrying
too high balance of a balance in your checking account: work with your accountant
and look at your cash flow to see if some of that idle money can be earning interest
elsewhere.
9. Trim your Travel Budget (if you still have one)
Telephone and / or video conference will save your tons of cash. Also. Are the
seminars and conferences you attend every year really paying off? may be attending
2. Instead of 4 will reap the same benefits. 10. Renegotiate Contracts Brings in
service providers (Telephone, Soft-ware, e.t.c) and consultants to discuss current
 contract and reduce fees look at your leases (office equipment, rent e.t.c) Also are you
taking fill Advantage of any hidden deals and / or discounts ? Have you been.
2.1.8 SURVIVAL STRATEGIES FOR BUSINESS DURING COVID -19
LOCKDOWN
During such testing times, startup entrepreneurs will have to adapt to a new set of
rules and be mindful of the following aspects to alleviate risks and to survive the slow down
caused by the impact of Covid – 19.
2.1.9 TRACKING EXPENSES AGAINST THE REVENUE STATUS
During this contagion, it is of utmost importance. For business to conduct a proper
assessment of their Fixed and variable expenses as well as the actual revenues. This
assessment will give a can picture of where a company stands financially and help the
entrepreneurs in planning ahead in the current disconcerted market. This strategy can be
implemented even when the pandemic effect settles.
2.2 CHECKING THE FEASIBILITY OF THE BUSINESS MODEL
Considering the market is changing every week (and for the worse) it is imperative to
reconsider the business model and reassess where as your business stands as per your
assumption concerning the revenue and cost. This is also a crucial time to track current
financial metrics and cash flow. Be mindful of what your runway is business needs to
evaluate the impact on new sales, collections credit cycles and potential bad debts.

2.2.1 SURVIVAL STRATEGIES FOR SMES DURING AND AFTER COVID – 19 IN

NIGERIA
SMES need to consider digitalization, this is part of the new normal; digital marketing
through social media is like marketing product and social media is like marketing product and
services without a boarder. SMES need to examine their expense lines to cut costs. This can
involve cutting lines to cut costs. This can involve cutting down on rent by taking smaller
office space. Sharing office space, staff reduction and investing in solar energy instead of
using generators. SMES can also consider their staff working on alternative days, working
from home usage of contract staff, leave for idle staff temporary pay cuts revision of variable
pay scheme, staff rotation of variable pay scheme, staff rotation, salary restructuring, hazard
pay for front line staff that cannot work from, home (KPMG, 2020). SME owner is need to
motivate and galvanize their staff to achieve the maximum possible.
SME owners need to think outside the box and come up with innovations that can
elevate their business; also, it is an opportunity for owners and staff as SMES to educate
themselves. Concerning their areas of business, there are a lot of webinar that relate to
various sectors of the economy during this period. SME owners can also collaborate in the
areas of information technology, research and development. SME owners can become hybrid
entrepreneurs by investing in order forms of business to boost their income. Business owners
can take advantage of various government initiatives like loans rescheduling, various
palliative measure, and loans at low-interest rate made available by the government e.g ₦50b
loan packages made available to individuals and SMES.
2.2.2 REVIEW OF BUSINESS OWNERS ATTITUDE (INDEPENDENT
VARIABLE)
According to Ajzen (1980) attitude is the degree or extent to which an individual like
or dislike something. It is the predisposition to respond in a general favorable or unfavorable
manner with respect to the object of the attitude. Attitude may be defined as a learned
disposition to behave in a consistently favorable or unfavorable way with respect to a given
object. (Schirff Man and Kanuk 2015). Tesser and Schware (2001) describe. Attitude as
mental or natural. State of readiness organized through someone experience. Exerting a direct
or dynamic influence on the individual response to all objects and situations to which it is
related: According to Suleiman (2013) attitude is all about individual way of thinking, acting
and behaving. Attitude can be good (positive) or bed (negative) and this is formed through
adapting the practices of colleagues.
Therefore, attitude is a mind set or a tendency to act in a particular way dide to both
both an individual experience and temperament. Typically, when we refer to a person’s
attitude, we are trying to explain his or her behaviour. Attitudes are complex combinations of
things such as personality, beliefs, values behaviours and motivations. Attitude helps us to
defines how we see situations as well as how we behave towards the situation (Pickens, 2005)
Basically, an attitude includes three components: an effect (a feeling), cognition (a though or
belief) and behaviour (an action) if provides us with internal. Cognitions or beliefs and
thoughts about people and objects. Although the feeling and belief. Components of attitudes
are internal to a person. It can view through individual resulting behaviour these attitude
among business owners manifest in the following areas. Risk taking, entrepreneurial,
financial management, relationship with employees and customers among others.
In the area of risk management, ma of the business owners are often afraid of taking
risk. But before exploring this, what is risk? Risk is defined as the uncertainty associated with
a future outcome or event (Banks 2004) it is therefore the ability of individual to undergo
what the possible outcome is certain. Individual have different tendencies to risk taking. This
means that some individual will have either positive or negative attitude to risk. Douglas and
shefned (2000). Classified the type of risk a long this dimension. They suggested that
“positive attitude towards risk” means a relatively high tolerance for additional risk borne (a
relatively low degree of risk a version).
Another area is the entrepreneurship. This is described as the process of initiating
something new that will add value to people. Entrepreneurs are people who introduce new
combinations of factors of production notably labour and capital. Therefore it can be deduced
from the literature that entrepreneurs are clearly self-reliant people and their amibition is
undoubtedly to create a business of their own. Attempt to describe who an entrepreneur is
bought in the issue of identifying what the characteristics are as Carson, Cromie, Mc Gowan
and Hill (1995) admitted that this will distinguish entrepreneur from other groups in society
studies have shown that entrepreneur who succeed posses not only a creative and innovative
flair but must also posses the right attitude. A critical look at all discussed attributes of a
successful entrepreneur shows that such attributes are positive in nature and afflicted to
entrepreneurs behaviour. Also, the above review shows that not all business owners are
actually entrepreneur except for these who posses those highlighted attributes.
Also, the literature has solution that customer relationship is important to this
discourse. This concept has been conceptualized in may ways such as developing relationship
(Loyalty) maintaining relationships (interaction) and creating relationships (attracting)
(Lzquierdo, Cillian & Gutierrez 2005) Businesses exist to satisfy needs of customers O, thus,
customers relationship is pivotal and is one of the Critical input of business survival.
Business owner most relate properly with customers to earn their loyalty and continued
patronage (Mentzer 2001) positive attitude is what the business owner required to earn long
term relationships with their customers (Bhutta, Rana & Asad, 2007) Aside this, in order to
remain in business profitably, min and mentzer (2014) suggested that close and good
customer relationship is relevant.
Similarly, employees are among business most important resources and it has been
acknowledgment as most valuable Xesha, Iwu, Slabbert and Netuna (2014) Selmier and
Travis (2013) Bhattacharya Sem and Korschum (2012). Lastly, financial management
involves taking expenses according to the financial resources of the business therefore.
Financial management attitude of business owner implied practice of business owners in the
areas of cash management; expenses in business literature suggests that appropriate attitude
towards financial management practice will result into business success.
2.2.3 ETHICAL ATTITUDE IN BUSINESS
An attitude is a favourable or unfavourable of evaluation of behaviour attitudes are
generally positive or negative views of a person about the place, thing or event; tasks, and
environment. A positive attitude brings optimistic and constructive changes to life and
enables us to deal with daily life affairs in a cool and calm manner (Sims & Gegez, 2004).
Attitude towards business ethics is a subjective assessment of the business ethics of an
individual based on their propositions of ethical and moral philosophies (Preble & Reichel,
1988, Franq 2015).
The attitude of a person is intertwined closed with their behaviour and dealings in the
organization therefore the attitudes of entrepreneurs must have a great impact. In the
organization Amakobe (2017) states that business are expeated to be various people to
understand ethical principles and apply them firstly in setting the missions and goals, then in
their execution of the tasks (Alzda, 2015).
2.2.4 ETHICAL ATTITUDE: IMPACT OF INDIVIDUAL CHARACTERISTICS
It has been always widely debated that social-demographic variable influence the
relationship between ethical attitudes and decisions made in the business, However, the
earlier studies had no consensus findings regarding gender, education and years in business.
In the context of ethics, the widely investigated socio-demographic variable is gender
(Rizvi et al 2021). In the case of respondents gender, their link to attitudes towards ethics
does not follow the same patterns. Some resulted in no relationship between gender and their
attitudes towards ethics does not follow the same pattern. Some result in no relationship in no
relationship between gender and their attitudes towards eithics (Jonson, Mc Guire & Cooper
2016), while some observed that association between gender and ethical attitudes is situation
specific (Borkowsi & Ugras 1998) pham et al (2015) found that there was no difference in
ethical attitudes based on gender. Many studies observed that woman showed more ethical
attitudes in comparison to their counterparts (Rizvi et al 2012 Peterson et al 2010) Similarly,
some claimed that men were more willing to be involved in unethical activities (Wahn 2003)
Subsequently, male employees had semi ficantly positive attitudes for damage of unethical
tone at the top (Lasakova & Remisova 2019).
Plenty of literature has discussed the issue of the influence of experience years on
ethicality, however there is no consensus yet. Forte (2004) found no association between
tenure, ethical reasoning ability and management level.
Nevertheless, Valentine and Godkin (2000) and Rittenburg (2007), Eweje and
Brunton (2010) and Taylor (2013) found that longer the years of experience, increased the
ethical judgment. On the other hand Pennino (2002) Showed that the long tenure of managers
was likely to depend on principled reasoning.
2.2.5 BUSINESS DECISIONS AND INFLUENCE OF ETHICAL ATTITUDES
Some example of common dilemmas in business situations are not informing
customers that the price of a product is supposed to reduce soon, advertising only the
advantages and not discussing short comings (Keller- Krawczk & Douro 2010) Such realities
lead to contradiction and question in the content of the ethicality of business. However, in the
eyes of a business, if the firm considers the interests of one party the other party’s interest
cannot be supported. Following ethics can negatively affects either of the groups (Vickers
2005)
Different business situations affect businessman to behave in particular way, thereore
Illustration, Vignettes, Case studies Documentaries and narratives relating to business are the
sources of knowledge regarding the external attitude and its impact on business decisions
(duoch et al 2018).
Several studies have used those ato rementioned instruments to understand business
problems and how these people are going to act and react. I real would situations (oluoch et al
2018).
On the contrary, Dickel and Graciess (2018) raised issues relating to artificialism
regarding the description of the business vignette. However, pan and Sparks (2021)
contended that business situations as vignettes are more generalized for entrepreneurs
samples than other groups of respondents like students. This study provides some vignettes
based on real – life ethical Situations confronted by businesses. Further, it has analyzed how
trades are going to tackle these prescribed vignettes.
2.2.6 RELATIONSHIP BETWEEN BUSINESS OWNER ATTITUDE (BOA) AND
BUSINESS SURVIVAL (BS)
Studies such as Lego here l, Callot Gallopel and peters (2004) have identified risk
taking attitude of business owners as variables of study in another related study conducted by
Fatoki (2014) poor attitude of business owners towards customers was identified as one of the
causes of the failure of new small and medium enterprises in south Africa. In the same vein,
entrepreneurial attitude of business owners has been issues of discourse (Bird & Schivedt
2009) the survival of business especially the SMES can be attributed to this factor (Kuratlao,
Ireland Covin, & Iforns by 2005).
Stevenson and Gumpert (1991) described entrepreneurial attitude as the act of
individual that pays attention on opportunities instead that resources which occurs in either
small, medium or big business organization. Studies of lnyang and Enuoh (2009) have argued
on the business owners entrepreneurial competency is relevant to business performance. In
another twist a number of studies have discusses around financial management precedes and
business (Ishak, Omar & Ahmed 2012 Orobla Warren & John 2013 Abanis, Arthur & Derick
2013) it was established that financial management practices go along in determining the
prosperity of business enterprise.
According to peel (1996) and padachi (2006) Financial Management practices most
particularly working capital management has a strongly effects on the firms profitability. This
unbecoming attitude of business owners to financial management contract immensely to
business survival (Abanis, Arthur and Derick 2013).
Ishak, Omar and Ahmed (2012) argument that financial management which is
required for the sustainability and growth of business remains one of the biggest problems
confronting several small businesses as poor financial management practice has been
financial management practice has been identified as one of the reasons for small business
failures (Mc Mahon and Holmes 1991).
In another clue, the importance of corded relationship between business owner and
employees cannot be overemphasized (Kar, Sharma & Borah 2011) However in Spite of this
acknowledgement benefits many business owners have poor attitude towards their employees
forgetting that if there is unhealthy relationship between them and their employee, such
employees will be unhappy and very likely tobe unproductive (Waggoner 2013) Vickers,
James, Smallbore and Baldock (2005) argued that paternalistic attitude of business owners
towards employees will go a long way to sustain business through this paternalistic approach
employees sense of business ownership is always enhanced and the often guarantees business
survival. For instance, Didonet, Simons, Diaz-Villavicencu and Palmer (2012) pointed out
that business have better skilled in human resource management.
Figure 2.1: Hypothesized Scheme of Relationship
Between BOA and BS

Independent Variable Dependent Variable

Business Owner

Risk Taking Attitude

H1

Attitude Towards H2
Employees
Business Survival
(BS)

H3

Entrepreneurial
Attitude H4

H5

Financial
Management

Attitude Towards
Customers
2.3 THEORETICAL FRAMEWORK
2.3.1 THEORY OF REASONED ACTION (TRA)
A Theory that is found relevant to issues in discourse is the theory of reasoned Action
(TRA) proposed by Ajzen and Fishbein (1980). This theory is highly germane to
understanding the relationship between individual attitudes and behaviours such as that of
business owners towards others stakeholders. In business the theory assumed that individuals
are usually quite rational in reacting to people and issues that are people consider the
implications of their actual behaviors before they decide to engage or not engage in a given
behaviour , it was based on this assumption that Ajzen and Fishbein (1980) developed this
theory could predict and understand behaviour and attitude.
Business owners attitude toward business operations and activities is determine by
his/her believe that the behaviour will be positive or negative (Ajen 2001: Armit age &
Conner 2001). In this context, business owners attitude could be positive or negative and
would determine the continuity of business or otherwise.
2.3.2 THE THEORY OF PLANNED BEHAVIOUR
The TRA assumes that the behaviours under investigation is under volitional control
that is, that people believe that they can execute the behaviour whenever they are willing to
do so. Gradually, the TRA was used more often for the study of behaviours for which control
was a variable factor for that purpose. The TRA was complemented by a component that was
named Preserved Behavioral Control. This concept represents the extent to which people
believe they are able to perform the behaviour because they have adequate capabilities and or
opportunities or are lacking in these it is very easy to see that this factor can substantially
improve the generality of application of the model because there are many behaviours that
need specific skills or external facilities for example, recycling is virtually impossible if no
collection system is available and abandoning private cars is often impractical, at the least,
when public transportation functions poorly.
The successor of the TRA that incorporates volitional control is the Theory of
Planned Behaviour (TPB). Similar to attitude and subjective norm, the joint effects of two
sub concepts determines beneloral control. The first sub concept ----------- of So-called
control beliefs, that is the estimated likelihood that each of a number of specific factors will
facilitate or impede execution of the behaviour. An example might be the following control
belief “I can go to my offices by bus given the distance from the bus stop to my home”. The
second factor is called perceived power, that is a judgment of the degree of facilitation or
impediment that each. Specific control belief represents. An example might be the following
“The distance from the bus stop to my home makes it very easy / very difficult to go to my
office by bus. The formula combining the two sub concepts of likelihood of control are
perceived power is identical to that of the attitude and subjective norm concepts”.
P B C = ΣC×P
Both the TRA and the TPB have been used repeatedly for investigation specific
environmental behaviors such as changing travel mode, water conservation, recycling, and
green consumerism in general, the models have proven to be useful in understanding the
behaviour; with important contributions of perceived behavioral control.
2.3.3 THE TRA (THEORY OF REASONED ACTION MODEL)
The TRA model was proposed in 1975 by fishbein and Azjen (F is 75) it focuses on
the construction of a system of observation of two groups of variables which are:
 Attitude defined as a positive or negative feeling in relation to the achiever ment of an
objective.
 Subjective norms, which are the very representations of the individuals perception in
relation to the ability of reaching those goals with the product.
These authors have emphasized the importance of intention more than the reality of
usage. Actually people who buy some do it in relation to what they feel like doing and
not really because of an actual need relation to the model the belong to. In the context of
it, this approach does not work.
2.3.4 THEORY OF REASONED ACTION (INDIVIDUAL INTERVENTION)
The theory of Reasoned Action (TRA) suggests that a person’s behavior is determine
red by their intention is, in turn, a function of their attitude toward the behavior and
subjective norms (Fishbein & Ajzen, 1975). The best predictor of behaviour is intention or
instrumentality is determined by three things: their attitude towards the specific behavior,
their subjective norms, and their Perceived Behavioral Control. The more favorable the
attitude and the subjective norms and the greater the perceived control, the strong the
person’s intention to perform the behavior.
2.3.5 THE THEORY OF REASONED ACTION AND THE THEORY OF PLANNED
BEHAVIOURS
The theory of reasoned action (TRA; Ajzen and Fishbein 1980) developed out of
social-psychological research on attitudes and the attitudes behaviour relationship. The model
assumes that model assumes that most behaviors of social relevance (including health
behaviours) are under volitional control, and that a person’s intention to perform a behaviour
is both the immediate determinant and the single best predictor of that behaviour: intention in
turn is held to be a function of two basic determinants; attitude towards the behaviour (the
person’s overall evaluation of performing the behavior) and subjective norm the perceived
expectations of important others with regard to the individual performing the behaviour in
question) Generality Speaking, people will have strong intentions to perform a given action
if they evaluate it positively and if they believe that important others thinks they should
perform it. The relative importance of the two factors may vary across behaviours and
populations.
Although not shown in the TRA also specifies the determinants of attitude and
subjective norm. Attitude is held to reflect the person’s salient behavioural beliefs concerning
the possible personal consequences of the action for example a person who believes that
performing a given behavior will lead to mostly positive personal consequences will hold a
favourable attitude towards the behavior specifically, attitude is head to be a function of the
sum of the person’s salient behavioral beliefs concerning the outcome of the action each
weighted by their evaluation of that outcome. An indirect,belief based, measure of attitude
can be created by multiplying each behavioral belief by its corresponding outcome evaluation
and then summing outcomes in a similar way subjective norm is a function of the person;s
beliefs that specific individuals or group think he or she should or should not perform the
behavior, A person who believes that most significant referends think he or she should
perform the behavior will perceive social pressure to do so.
2.4 EMPIRICAL REVIEW
In a recent survey of the relationship between personality tracts and business success,
Rauch and Frese (2013) conclude that the effect of risk taking in entrepreneurial success is
rather small, and that this trait does not necessarily increase the success probability Bhunia
(2014) examined relationship between default behaviours of SMES and the credit factors
their owners. Identifying and measuring credit risk of SMES should be different from that at
large firms, for SMES apply to be influenced by their owners more directly and significantly.
So that a more approve private and effective way of credit management of SMES could be
applied in practice, this study could be applied in practice, this study implement an empirical
study of logistic regression analysis with repeat sampling data after segregating the owners
characteristics data into variables of basic aspects, credit capacity aspects and credit will
aspects. The result reveal that variables reflected credit. Capacity aspects share more
significant relationship with the SMES credit default behaviour. This indicates that “credit
will” Variables and “personal credit history have the closet relationship with enterprises”
default probability and the proportion of overdue loans. These are the extreme significant
variables which are valuable indicators in default risk estimated model.
Zoysa and Iferath (2016) examined the relationships among owner /manager with
business performance at different stages of business growth when owner/ manager of SMES
are more entrepreneurial minded in the introductory and decline stages of growth, their
performance tends to be higher and the same is true for the growth and maturity stages when
they are more administrative minded. This suggests that owner managers need to become
more entrepreneurial oriented in their strategies and actions in order to achieve better
performance in the introductory and decline stages.
In a study conducted by Xesha, Iwu-slabbert and Nduna (2014) on employer –
employee relationship on business growth it was that business owners shared a positive
notion that relationships play an important role towards their business growth the study
highlighted the critical role played by positive employer – employee relationships towards
business success.