IDENTIFICATION OF ACCOUNTING, MANAGEMENT AND MARKETING SKILLS

NEEDED BY BUSINESS EDUCATION GRADUATES FOR EFFECTIVE OPERATION

OF SMALL AND MEDIUM SCALE BUSINESSES IN OGUN STATE

ABEL MOJISOLA

MATRIC NO: 20155101008

A RESEARCH PROPOSAL PRESENTED IN THE

DEPARTMENT OF BUSINESS EDUCATION
COLLEGE OF VOCATIONAL AND TECHNICAL EDUCATION
TAI SOLARIN UNIVERSITY OF EDUCATION, IJAGUN, IJEBU ODE

SUPERVISOR

DR. ADEMILUYI

APRIL, 2017
 CHAPTER ONE

INTRODUCTION

Background to the study

Business education is part of the total program of education in Nigeria which prepares

individuals for specialized occupation in business field, and provides general knowledge about

business enterprise. Esene (2012) corroborates this by saying that business education is the

education for and about enterprise or training in business skills. According to Okoli (2010),

business education provides the knowledge, skills, understanding and attitudes needed to

perform effectively in the business world. Obi & Otamiri (2010) notes that a well trained

business educator can effectively be engaged in proprietorship of private enterprise. It could be

seen from the foregoing that the discipline places great emphasis on producing entrepreneurs

who will have the capacity of creating businesses for themselves and employ others in order to

justify the philosophical foundation of the discipline as ‘education for self-reliance’.

The focus of business education programme is often the acquisition of accounting and

marketing skills for effective and sustainable management of business enterprise. This fact is

supported by Azuka, Nwosu, Kanu and Agomou (2006) who posits that business education is a

specialized aspect of education which imparts knowledge and skills in bookkeeping and

accounting, marketing, business management, office management and secretarial administration.

The success or otherwise of a business education program especially at higher education level

could be adjudged based on the level of teaching and business management skills acquired by its

beneficiaries: the undergraduates and graduates. One of the main courses in business education

is business management and entrepreneurship which aim at training students in small and
medium scale business management by offering content to develop their management,

accounting and marketing skills for successful operation of business.

A business is defined as the production of goods or provision of services for the purpose

of profit making while business enterprise is an organization where goods are produced and sold

or services rendered for satisfaction of people’s need. Businesses can be classified in various

ways using different parameters. Some of the known parameters used in classifying businesses

include: their sizes, their nature and modes of operation, their locations and areas of coverage,

their asset bases, as well as their capital bases. These attributes have resulted in businesses being

classified as small, medium and large scale. In Germany, a Small and Medium Scale Enterprise

has a limit of two hundred and fifty (250) employees, in Belgium it is limited to one hundred

(100) employees while in Nigeria it is limited to three hundred (300) employees.

Small and medium scale enterprise is an enterprise that has asset base (excluding lands)

of between five million – five hundred million and labour force of between eleven and three

hundred. SME’s are independent firms which employ fewer numbers of employees. This

numbers varies across countries and the most frequent upper limit of employees is two hundred

and fifty (250). Similarly, Small and Medium Industries Enterprises Investment Scheme (2005)

defines SME as any enterprises with a maximum asset base of N200 million excluding land and

working capital and with a number of staff employed not less than ten (10) or more than three

hundred (300). Nigeria council of Industries (2003) defines small and medium scale enterprise as

an enterprise with an asset base ranging between N1.5 Million and N200 Million Naira including

working capital but excluding cost of land but must have a workforce of eleven to three hundred

workers. There seems to be no universally agreed definition of SMEs and the reason is that, no

single definition can capture all the dimensions of Small and Medium Enterprises (Nwosu,
Osuagwu, Abaenewe, Ndugbu & Sani 2016). From the foregoing, it can be deduced that SMEs

are enterprises that have the capacity to employ at most three hundred employees and at least ten

employees and has been proven to be the bedrock of any economy. The brain behind every

successful small and medium scale enterprise is entrepreneurship which in the words of

Olagunju (2004) is an undertaking where one is involved in the task of creating and managing an

enterprise for personal, social or developmental. One of the common features of SMEs is that

they are either sole proprietorship or partnership and have centralized management structure

(Udechukwu, 2003). In most cases, the operational and administrative management of SMEs are

in the hands of one or two persons usually the owner(s) manager(s) who are also responsible for

making the major decision of the enterprise. Ekwe and Abuka (2014) confirm that SMEs are

more commonly involved in trading, provision of services and craft-production activities.

SMEs have been fully recognized by governments and development experts as the main

engine of economic growth and a major factor in promoting private sector development and

partnership. The development of the SME sector therefore represents an essential element in the

growth strategy of most economies and holds particular significance in the case of Nigeria. Ekwe

and Abuka (2014) stress that Small and Medium scale Enterprises (SMEs) make up a vital part

of our business systems today and employ more people than the government and large

enterprises. In Nigeria, the small and medium enterprises provide the most important vehicle for

both the government and large scale enterprises to thrive. According to Mukaila (2011) small

and medium scale enterprises contribute to improved living standards, bring about substantial

local capital formation, achieve high level of productivity, and the creation of jobs at relatively

low capital cost, especially in the fast growing service sector. SMEs not only contribute

significantly to improved living standards, employment generation and poverty reduction but
they also bring about substantial domestic or local capital formation and achieve high levels of

productivity and capability. Similarly, Mukaila (2011) stresses that SMEs in Nigeria contribute

significantly to the national economy and growth by the volume of employment they provide to

the citizenry. They are also recognized as the principal means for achieving equitable and

sustainable industrial diversification, growth and dispersal (Nwosu et al, 2016). Belal (2013)

observes that SMEs are vehicles for the reduction of income disparities and developing a pool of

skilled or semi-skilled workers as a basis for the future industrial expansion; improves forward

and backward linkages between economically, socially and geographically diverse sectors of the

economy. The management structure and independence of small and medium scale enterprises

(SMEs) put the entrepreneur in the most critical position in running of the enterprises. Therefore

the success and failure of the business depend largely on the competence of the entrepreneur.

Nzelobe in Mmudi (2011) explains that the technical requirements of getting out a product or

rendering a service as well as accounting for transactions should be understood in considerable

details by entrepreneurs before embarking on business enterprise. Lankard (2003) stresses that

entrepreneurial skills must be nurtured through proper education so that it can be directed to

responsible and enriching small business endeavour that will benefit the individual and the

communities in which entrepreneurs live. Salami (2003) observes that there has been high

mortality rate of SMEs in the country due to lack of managerial, marketing and accounting skills

and competencies required by small and medium scale entrepreneurs. Inadequate managerial

skills and competencies have resulted into reluctance of banks to extend credit facilities to SMEs

entrepreneurs who resulted in poor funding and closure of most SMEs in the country (Egbon,

2004).
 Effective management of business organization especially SMEs require skills and

competencies for successful operation. A skill is the ability which can be developed, not

necessarily inborn and which is manifested in performance not merely in potential. Skill is an

established habit or attitude for performing a task in an acceptable way. According to Etonyeaku,

Kanu, Ezeji and Chukwuma (2014) a skill is the ability to use one’s knowledge effectively and

readily in performing an act or habit of doing a particular task competently. According to

Dictionary of Business (2010) a skill is the sufficient ability of fitness that one needs to achieve

certain goal or complete a project. Ayeduso (2004) pointed out that there are three areas of skills

that are necessary for doing managerial work. These are: technical skill, human skill, and

conceptual skill and these skills are necessary for successful management. Technical skills are

those specialized knowledge and ability required of entrepreneurs to perform the primary task

inherent in a particular supervisory position. Skills acquired in any of the area of business related

programme vis-à-vis business education promote training for enterprising as well as equip

graduates with requisite skills to establish and run small businesses of their own (Akpotowoh &

Amahi, 2006). Nwokocha (2004) notes that the aim/goal of business education is the production

of manpower, which possesses the requisite knowledge, skill and attitude for harnessing other

resources and bringing them together into a cooperative relationship yielding the goods and

services demanded by the society for the satisfaction of their wants and needs. Some of the skills

needed for effective management of SMEs by business education graduates are accounting skills,

management skills and marketing skills.

Accounting is the systematic recording of financial transactions. It is a service activity, the

function of which are identifying, measuring, recording and communicating quantitative

information, primarily financial in nature, about economic entities. Ezeani (2008) sees
accounting as the process of expressing the economic activities of everyday life in money terms,

so that we may estimate the costs of creating goods and services, make decisions about

production on the basis of these estimates, compare the actual costs as they occur with the

estimate originally made, and adjust the output and prices of goods and services accordingly.

Accounting provides information to a wide range of interest groups and ultimately shows how a

business has been managed for a period- whether successfully managed or otherwise. It also

provides information regarding the financial position of the firm (Michael and Chigozie, 2014)

Accounting skills are regarded as an area of study needed to equip recipients with knowledge,

skills and attitude necessary for efficient financial calculation required for occupational

competence, and economic activities of an organization which are measured, recorded and

communicated to interest parties for analysis and interpretation (Salome, 2012). This is rooted on

the need to keep the records of business transactions. According to Osuala (2009) the knowledge

of fundamental accounting skills is very imperative for sustainable business. The non-possession

of these fundamental accounting skills by small scale enterprises, therefore, constitutes an

inhibition to the survival chnances of the business. Therefore, every SME operator should strive

to acquire and possess these fundamental skills. Furthermore, according to Onoh (2011)

fundamental accounting skills are those competencies in basic accounting required by a person to

function competently and successfully in the process of carrying out one’s function of recording

daily business transaction. Dakur, Bable & Tuamyil (2015) report that accounting skills include:

booking, purchasing and supply, bargaining, determining labour cost, simple budgeting, keeping

of accurate receipts, sales records skills in keeping reliable records, sourcing for market outlets,

work in progress records, credit purchases, invoice, cheque payments; keeping customers records
and goods inventory. Others are skills in good credit facility practices, operating the cash

payment receipts, cash sales, prudent financial and working capital management.

Management is the art of getting things done through people. It is the process of harnessing

the diverse organizational resources towards achieving set goal. Igberaharha (2013) posits that

management involves good planning, organizing, directing and controlling of workers and

materials to effectively and efficiently meet set objectives of an enterprise (Griffin, 2002).

Similarly, Etuk (2002) sees management as the process of directing, administering or running a

business. It is essentially directing human efforts and energies and coordinating the whole as a

team, and giving vital leadership. Osuala in Igberaharha (2013) defines management as the

organizing planning and controlling the total business activities and the leading of people so that

the use of material, men and equipment results in the efficient achievement of planned

objectives. Management skills include: ability to plan, organize and manage small scale business

skills, ability to maintain business ethics, ability to interpret market information, ability to

develop skills for effective supervision and coordination and ability to apply integrating skills.

Management skills are prerequisite for effective job performance in organizations amongst

employers and employee’s vis-à-vis business education graduates (Igberaharha, 2013).

Management skills are competencies obtained to enhance the process of directing, administering

or running a business organization. It is essentially directing human efforts and energies and

coordinating the whole as a team and giving vital leadership (Roy, 2009). However, management

skills needed for effective job performance consist of various components which include:

planning; organizing; directing and controlling among others.

Marketing skills is one of the essential skills upon which the very success or failure of a

business especially SMEs depends. Marketing skills is another important and essential skill
which determines the success or failure of a business. Marketing is a common phenomenon but it

is a very complex and elusive subject matter. The activities of marketing are so diverse that it is

difficult to say exactly what marketing is. Osuala in Dakur, Bable and Tuamyil (2015) explains

that marketing as the process by which the productive potentials of the company is used to

satisfy individual and social needs of all kinds. Kayode (2007) sees marketing as human activity

directed at determining consumer need for economic goods and services and the satisfaction of

those need through the conception, promotion exchange and physical distribution of such goods

and services. The primary objective of marketing activities is to maximize sales volume for

which there must be proper record and adequate account, hence the need for accounting skills.

Modern marketing emerged as the concept that business exists to create and serve customers and

at the same time achieving the firms profit objective (Ezeani, Ifeonyemalu & Ezemoyil, 2012).

Marketing authorities generally agrees that business organizations exist to serve markets for

which they engage in production and distribution of goods and services (Ezeani et al 2012).

Ademiluyi (2007) also identifies the following marketing skills and competencies, which are

required for effective management and operation by small scale business operators:

Salesmanship, Negotiation; Sales promotion; Stock record keeping; Pricing; Advertising

channels; Advertising media; Consumer behaviour appreciation and Transportation

Business education graduates are expected by the virtue of training received; to acquire

these skills (accounting skills, management and marketing skills) which are entrepreneurial in

nature for effective running of business enterprise especially SMEs. The extents to which

business education graduates possess these skills determine their performance in SME

management. Therefore, it became imperative to identify relevant accounting, management and

marketing skills needed by business education graduates for effective operation of Small and

Medium Scale Businesses in Ogun State.

Statement of the Problem

The various skills embedded in business education need to be explored and learnt by

prospective graduates for them to succeed in management of their own businesses or to enhance

their performances on paid job. It takes special skills to perform maximally in any job especially

in management of small and medium scale enterprise. Despite the efforts of the Nigerian

government to promote and develop SMEs through monetary, fiscal and industrial policy

measures, many graduates still have little or no interest in establishing small and medium

business. This may be due lack of requisite skills and competencies for running business. This

scenario has made most graduates including business education graduates to focus mainly on

paid job even in the face of unemployment and current parlous economic situation of the

country. Instead of establishing their own businesses, they prefer to run from offices to offices;

ministries to ministries looking for jobs that are scarce or not in existence. Even the few who

establish and run their own businesses are operating without the requisite skills and

competencies needed to effectively operate the business; a situation that leads to failure instead

of success. Most of the time, SMEs failure does not result from dearth of capital and other vital

resources to run the business but from lack of requisite skills needed to effectively manage the

business. It is only through the acquisition of the right entrepreneurial skills such as accounting

and marketing skills that business education graduates can successfully establish and manage

SMEs and contribute their quota to the industrial development of the country. Furthermore,

while some business education graduates cannot even identify the skills needed for effective

management of SMEs, some others do not possess the skills at all. Therefore, this study is seeks
to identify accounting, management and marketing skills needed by business education graduates

for effective operation of SMEs in Ogun State.

1.3 Purposes of the Study

The general objective of this study is to identify accounting, management and marketing

skills needed by business education graduates for effective operation of small and medium scale

enterprises in Ogun State. Specifically the study seeks to Identify the:

1. Accounting skills needed by business education graduates for effective management of

small and medium businesses in Ogun State

2. Management skills needed by business education graduates for effective management of

small and medium businesses in Ogun State

3. Marketing skills needed by business education graduates for effective management of

small and medium businesses in Ogun State

1.4 Research Questions

The following research questions were framed in line with specific purposes and will be

answered in this study:

1. What are the accounting skills needed by business education graduates for effective

management of small and medium businesses in Ogun State?

2. What are management skills needed by business education graduates for effective

management of small and medium businesses in Ogun State?

3. What are marketing skills needed by business education graduates for effective

management of small and medium businesses in Ogun State?

1.5 Research Hypotheses

The following null hypotheses were formulated in line with the specific purposes and

research questions and will be tested at 0.05 level of significance:

Ho1: There is no significant difference between the mean ratings small and medium capital

entrepreneurs on accounting skills needed by business education graduates for effective

management of SMEs in Ogun State.

Ho2: There is no significant difference between the mean ratings of small and medium capital

entrepreneurs on management skills needed by business education graduates for effective

management of SMEs in Ogun State.

Ho3: There is no significant difference between the mean ratings of small and medium capital

entrepreneurs on marketing skills needed by business education graduates for effective

management of SMEs in Ogun State.

1.6 Significance of the Study

The study will be of immense benefit to business educators and students, management of

tertiary institution and curriculum planners, owners of SMEs/entrepreneurs and Managers of

SMEs.

The study will be useful to business educators across the country because it will reveal to

them the various skills they need to impart to business students during implementation business

education curriculum. The information provided in the study will be useful to them in developing

subject contents that will cover skill areas for business and SMEs management; make students

self reliant and also ensure quality assurance of business education graduates. Also, the study

will reveal to business education students, those accounting and marketing skills needed for

effective management of their own business especially SMEs. This will enable them to
concentrate on the acquisition of those skills and knowledge which will help in developing the

spirit of self-employment and job creation rather than roaming the street looking for pay jobs.

The findings of this study should be useful to management of tertiary institutions and

curriculum planners because it will provides information on skills needed by entrepreneurs for

effective management of business and identify the importance of these skills to the survival of

SMEs. This will help them in modifying business and entrepreneurship education curriculum

such that it will cover accounting and marketing skills as well as other entrepreneurial skills

needed for effective management of SME.

The study would serve the need of entrepreneur/owners and managers of SMEs by

revealing the accounting and marketing skills needed for progress in their business career. This

will enable them to fill their skill gap by going for training or embarking on research to acquire

the relevant skills identify in this study.

Finally, the study would also be beneficial to students of tertiary institutions irrespective

of their areas of specialization because it will reveal to them the need to acquire and possess

accounting and marketing skills for promoting entrepreneurship in Nigeria. It concentrates on the

acquisition of relevant entrepreneurial knowledge and skills especially accounting and marketing

skills which will assist in boosting their interest towards self business establishment.

1.7 Scope of the Study

This study will be conducted in Ogun State, South West Nigeria to identify accounting

and marketing skills needed by business education graduates for effective management of small

and medium scale enterprise in Ogun state. The study will only cover the following areas:

identification of accounting and marketing skills needed for effective SMEs management;
identification of accounting and marketing practices that improve SMEs and identification of

way by which accounting and marketing skills are critical to the survival of SMEs. However, the

study will not examine other skills and personal qualities needed by business education graduates

for effective management of SMEs. The study will use final year students and business education

teacher as the population. Specifically, Business education teachers and final year students of

Olabisi Onabanjo University (OOU) and that of Tai Solarin University of Eduaction (TASUED)

will be used for the study because business education is only offered as a course in these two

Universities in Ogun State.

 CHAPTER TWO

REVIEW OF RELATED LITERATURE

This chapter focuses on the review of related literature to the study. The review would be

done and presented under the following headings and sub-headings:

2.1 Conceptual Review

2.1.1 Concept of business education

2.1.2 Area of specialization in business education

2.1.3 Business education and promotion of entrepreneurship

2.1.4 Small and medium scale enterprises

2.1.5 Problems of Small and Medium scale enterprises

2.1.6 Accounting skills for effective management of SMEs

2.1.7 Marketing skills for effective management of SMEs

2.1.8 Management skills for effective management of SMEs

2.2 Theoretical Framework

2.2.1 Discovery theory

2.2.2 Motor skill acquisition theory

2.3 Related Empirical Studies

2.4 Summary of Reviewed Literature

2.1 Conceptual Review

2.1.1 Concept of Business Education

Business education is an integral part of the total program of education in Nigeria. Like

any other education program, business education can be found in secondary school, technical
colleges and colleges of education, polytechnic and universities. Business education is a program

of study aimed at equipping students with requisite knowledge and skills for and about business

for useful living in the society. Azuka (2000) defined business education as a program of studies

which aims at creating awareness in business occupation; prepare people to become better

consumer of goods and services and prepare business teacher. Business education is a program

of instruction which consist of two parts; vocational business education and general business

education (Osuala, 2009). Lomax in Azuka, Nwosu, Kanu and Agomou (2006) refers to business

education as that field of education which deals with business experience both for specialized

occupational uses and for general use. Business education is that part of education process which

concerns itself with vocational preparation for a career in teaching business and also with

business knowledge and information important for every citizen and consumer in order to better

understand the world of business and economy. In all the definitions stated above, the focal point

is business education trains an individual for teaching business subjects at all levels of education;

provide knowledge and information about business for useful living and operation in the

business world and build in youths the skills and competencies needed to take-up an office

career. Okoli (2010) corroborated that Business Education is an important part of the general

education which emphasizes on skills and competencies acquisition for use in offices and

business related occupations. Similarly, Nwanewezi (2010) describes Business Education as

encompassing education for office occupations, business teaching, business administration and

economic understanding. In all, Abdulkadir (2011) noted that one remarkable characteristic of

business education program is that, its products can function independently as self-employed and

employers of labor. Azuka (2000) stressed that business education is a program of studies, which

aims at creating awareness in business occupations; preparing youths for work in business
occupation; preparing people to become better citizens and consumers of goods services and

preparing business teachers. In the views of Ezenwafor and Ndinechi (2004) business education

is a subset of general education intended to equip recipients with requisite technological and

entrepreneurship skills for paid or self employment and effective citizenship. Azuka, Nwosu,

Kanu and Agomuo (2006) observed that business education is a training program that is aimed at

equipping recipients with practical skills, attitudes, concepts and knowledge to actively engage in

office occupations and/or manage businesses effectively as well as accomplish set objectives.

Business education therefore prepares youths for vocations and also furnishes them with relevant

information concerning their lives both as citizens and as individuals (Azuka, Nwosu, Kanu and

Agomou, 2006). It is a program of study that aimed at training students with requisite knowledge

and skills in business so as to take-up a business endeavor or teaches business subjects in school.

Business education is a more specialized aspect of education aimed at preparing youths for job in

bookkeeping and accounting occupation, marketing occupation and secretarial (office)

occupation. Business education emphasizes different skills especially in the areas of technology

and entrepreneurship for survival and success in the ever changing and dynamic society (Osuala,

2004). Aliyu (2006) describes business education as the education for the acquisition and

development of skills and competencies, attitudes and attributes which are necessary for

efficiency of the economic system. It is a form of vocational education according to Idialu (2007)

that is directed towards developing the learner to become productive in teaching, paid

employment and self-employment. Tema (2007) postulated that this type of vocational

education prepares learners for gainful employment and sustainable livelihood. Amoor and

Udoh (2008) noted that business education plays a significant role in the economic development

by providing knowledge and skills to the learners thereby enabling them to adequately impart
knowledge into others, and handle sophisticated office technologies and information systems. It

is a form of vocational education that is directed towards developing the learner to become

productive in teaching, paid employment and self-employment (Idialu in Amoor, 2010). It is the

intellectual and vocational preparation of people for earning a living in the contemporary

industrial and business environment. Business education encompasses education for office

occupations, business teaching, business administration and economic understanding. One can as

well agree that business education is the instruction given in tertiary institutions to prepare

students for jobs in teaching, industries, administration and entrepreneurship. To this end, if

general education is seen as a means of adjustment of the individual to his environment, then

business education should simply be seen as a means of adjustment of the individual to his

business environment. In Nigerian higher education system, business education is offered in the

faculties of education of universities and colleges of education to afford its recipients acquire

teaching skills in teaching business subjects, necessary competencies in professional education,

functional general education for life, skills to undertake entrepreneurial activities and as well

manage self business (Ndinechi, 2001).

Business education is concerned with the impartation of business orientation and knowledge

for personal and national development. It involves teaching students the fundamentals, concepts,

theories and processes of business. To this end, the tenet of business education embraces basic

education for teaching career, entrepreneurship, business understanding, office environment and

vocational practices. For education to really serve as a veritable tool for socioeconomic growth

and development as well as for the actualization of these lofty objectives of business education in

tandem, educational institutions and its systems must function optimally in relation to its set

standards. It therefore becomes imperative for a systematic quality assurance in the

administration, teaching and learning of Business Education in Nigeria. According to Aliyu

(2006) and Njuku (2006) business education is education aimed at the acquisition and

development of suitable skills, competencies, knowledge, attitude and values which are

necessary for entrepreneur development with emphasis on information and communication

technology skills. Kwacha (2007) and Etonyeaku (2009) affirmed that business education has a

formidable force that will equip individuals with appropriate skills, knowledge, abilities and

competencies that will enable them to be self employed and self relevance which lead to suitable

economic development. Business education is a part (specialized education) of the aggregation

of formal and informal education with deliberate intention of teachers to inform students about

economic and business concepts and skills that might be of use in later life that is, it is concerned

with certain organized efforts of schools to equip students with economic business concepts as a

vehicle for better understanding and analysis of the world in which they live. Again, Business

Education is defined as the education for and about business given to students in formal school

setting to equip them with skills and competence which will make them become effective and

efficient producers and intelligent consumers. Business education is viewed from different

perceptions. Some perceive business education as business subjects taught at secondary school

level such as principles of account, commerce, office procedure, typewriting and shorthand.

Others view it as the type of education that one receives in order to enter into the world of work

that is to gain employment. This is usually given at any level of education from the secondary

school level, post-secondary and tertiary level. It is a business program offered at post-secondary

school level with the following subjects such as business law, office administration, marketing,

finance, secretarial administration, education, etc. The different perceptions given above have
one thing in common. Business education consist of subjects offered at different levels connotes

education that prepares one for a useful living.

In other words, education about business prepares students to function intelligently as

consumers and citizens in a business economy. Amoor (2010) notes that business education

plays a significant role in the economic development by providing knowledge and skills to the

learners, thereby, enabling them to adequately impart knowledge into others, and handle

sophisticated office technologies and information systems.

Scope and Objective of Business Education

Business education can be departmentalized into General Business Education or

Education about Business and Vocational Business Education or Education for Business (Osuala,

2009; Azuka, Nwosu, Kanu and Agomuo, 2006).

General Business Education is an aspect of Business Education that provides basic

business knowledge and information needed by citizens in the society to make them better

consumers of goods and services and for better understanding of the business world and

economy at large.

Vocational business education is a more specialized aspect of business education aimed

at preparing for careers in bookkeeping and accounting education, office or secretarial education;

and marketing or distributive education. Both general business education and vocational business

education make up the business education curriculum.

The goal of business education is primarily to produce competent, skillful and dynamic

business teachers, office administrators and businessmen and women that will effectively

compete in the world of work. Business education prepares beneficiaries for gainful employment
and sustainable livelihood. It is generally seen as education for and about business. Business

education for business is that aspect of vocational education which provides instruction and

preparation for office occupations such as secretary, shorthand-typist or stenographer,

bookkeeper, data processor, word processor, computer analyst and accountant. On the other

hand, education about business provides knowledge and understanding of the economic,

financial, marketing, accounting, management system and other branches of business endeavor.

The goal of business education is primarily to produce competent, skillful and dynamic business

teachers, office administrators and businessmen and women that will effectively compete in the

world of work. It has as its primary aim, the preparation of people for roles in enterprises such

roles could be as employee, entrepreneur and employer or simply as self-employed. A well

trained business educator can successfully be engaged into the following areas:

 Teaching profession from secondary to university level depending on qualification

 Business enterprise – as a promoter, manager, marketer, account clerk, secretary, word

processor, sales representative, broker etc.

 Proprietorship of private schools – primary, secondary, tertiary, computer training

institute and so on.

Business education is programme under faculty of education which implies that its

objectives should be in line with the objectives set for faculty of education. NUC (2012) stated in

the its benchmark for academic programs in Nigerian universities that Business Education

programmes provide high caliber professionals in the teaching marketing, accounting,

management, Secretarial and other business areas.

The philosophy for Bachelor of science (B.Sc. (Ed.) in Business Education aims at a

complete development of the individual student teachers to make them effective business
teachers, and high caliber professionals in business establishments. Based on the above

philosophy the following objectives shall be achieved: Business education shall be to assist the

education sector by producing a committed and efficient breed of business education teachers for

the junior and senior sections of the Nigerian Secondary Schools; It is aimed at producing the

manpower endowed with analytical and critical knowledge of the major factors in contemporary

business world to influence the development of a virile economy; It is to provide a course of

instruction and all necessary facilities and exposure for the pursuit and acquisition of learning

and knowledge for services to humanity and shall also provide adequate educational foundation

for interested graduates to pursue higher degree in business education or other relevant areas in

education.

Role of Business Education

Business education is course that help in so many ways. Osuala, (2009) stated that business

education which includes education for office occupation, distributive and marketing occupation,

business teaching, business administration and economic understanding performs the following

additional roles:

1. It educates individuals for and about business.

2. It provides a continuous program of planned learning experience designed to equip

individual to fulfill these: Production and distribution of goods and services as workers;

use the result of production as consumers and make judicious socioeconomic decision as

citizens.

3. It provides career information that helps students relate their interest, needs and abilities

to occupation opportunity in business.

 4. It provides educational opportunity for students preparing for career in the field of

business and other field.

Azuka, Nwosu, Kanu and Agomuo (2006) stated that business education make the following

unique contributions

1. It provides for good citizenship through preparation to become intelligent and productive

wage-earners.

2. It promotes an understanding of our economic system through developing a better

understanding of free enterprise and the world of business.

3. It helps learners make their post-secondary school plans for either employment or

advance training courses which relate to the labour market.

4. It encourages initiative and creativeness through utilization of personal, employable

competitive in rewarding job satisfaction.

5. It prepares learners for vocational future through occupational training experiences.

2.1.2 Area of Specialization in Business Education

Business education is a more specialized aspect of education aimed at preparing youths

for job in bookkeeping and accounting occupation, marketing occupation and secretarial (office)

occupation. Based on the above, the main areas of specialization of business education program

are explained below:

Accounting education skills

Bookkeeping and accounting education is an aspect of business education that equip

individual with the knowledge, skills and competencies needed to function effectively as

accounting officers of all organization or/and as accounting teacher at secondary schools or

tertiary institutions. Accounting aspect of business education prepare beneficiaries for a job

within a wide range of business career such as pay-roll clerks, purchasing clerks, audit clerk,

book-keeping, cashier and business teachers who undertake the teaching of accounting to other

learners. According to Osuala (2009) accounting is the process by which data relating to the

economics activities of an organization are measured, recorded and communicated to interested

parties for analysis and interpretation. He pointed out that accounting had its root on the need to

keep the records of business transaction and that the chief reasons for keeping accounts are the

need of the trader to know much he owes, how much he owns, how much profit has been made

and what his financial position is at a given time. Udo (2006) defines accounting as the process

of identifying, measuring, sorting and communicating financial information to permit informed

judgments and decisions by users of the information. He added that the role of accounting

activities in the operation of business enterprise entails recording, classifying and summarizing

the enterprise monetary transaction and interpreting the result for both the internal and external

end users of such information. Accounting education aspect of business education enables

students to acquire the following skills which could be use for teaching or self business financial

management:

1. Auditing and investigation skills

2. Cost accounting skills

3. Financial accounting skills

4. Management accounting skills

5. Taxation management skills

On the personal uses of accounting to students, Udo (2006) opined it helps:

1. To develop in the students the ability and desire to keep records for personal use.
 2. To develop in the students the ability to interpret and analyze business papers and records

in the capacity of a final consumer.

3. To give the students preliminary training for the advanced study of accounting.

4. To develop in students an understanding of some of the problems and characteristics of a

business enterprise.

5. To train the students with knowledge of records keeping necessary to carry out a small

business.

6. To train the students to become book-keepers, cashiers or accountants in the business

enterprises or in their self-established business ventures.

The above listed skills and competencies assist the students to live and contribute

meaningfully to sustainable development in Nigeria through effective management of Small and

medium scale enterprises.

Distributive/Marketing Educational

Marketing and distributive education is a vocational aspect of business education aims at

preparing students for job in the field of marketing either as worker or teacher. The word

“distribution” has much to do with exchange of goods and services and as such refers to the

various hands and agencies through which commodities pass from the manufacturers to the final

consumers (Udo, 2012). The curriculum objectives here states that distributive education was

designed to give students an overview of the world of business and to enable them develop a

better understanding of the individual’s relationship with business and the place of business in a

developing economy (Ekpenyong, 2005). The general objectives of education here in at the

senior secondary school level are to:

 1. Enable the students to have a broader understandings of the importance of commercial

activities,

2. Enable the student to cultivate the right attitude to commercial activities,

3. Provide useful general notions and commercial skills necessary for those who will

immediately enter into the world of work,

4. Provide commercial knowledge for personal use and for further education,

5. Develop the habit of the wise use of the services offered by commercial institutions (Udo,

2012).

The above objectives lay emphasis on commercial activities, skills and knowledge (Udo,

2012). Therefore commerce was designed to equip the students with the marketable knowledge

and skills inherent in commercial education and in the context of the study commercial activities

are more, are likely to be seen as performed by women rather than men (Udo, 2012). According

to Udo (2012) distributive education is a program of vocational instruction in marketing,

merchandising and related management, which is designed to meet the needs of persons who

have entered or preparing to enter distributive occupation. The American Marketing Association

(1998) defines marketing as the performance of business activities that direct the flow of goods

and services from the producers to consumers or users. Udo et al (2005) defined marketing as

getting the right goods and services to the right people at the right place and at the right time, at

the right price, with the right communication and promotion. Marketing is also defined as the

performance of business activities that direct the flow of goods and services from the producer to

consumer or user in order to satisfy customers. However, a market is a process of exchange

between individuals or organizations which is concluded on the mutual benefit and satisfaction

of their parties. According to Osuala (2009) marketing is considered from a broad based context
to mean a total system of interacting business activities designed to plan, price, promote and

distribute want-satisfying products and services to present and potential consumers. He added

that the main responsibility of any marketing manager is to see that the marketing functions are

performed is such a way that the firm makes a profit. According to him, the marketing manager

will need to perform the functions of planning, organizing, staffing, directing and controlling.

Osuala went on to state that the general objective of distributive education is to prepare students

for gainful employment in distribution and marketing. This aspect of business education enables

an individual to acquire skills and competencies needed for entrepreneurial marketing practices

and teaching marketing as school subject. Therefore, the objectives of marketing education

should meet the educational need of the nation as well as social, vocational and personal needs of

the business students.

Office Technology and Management

Office or secretarial education is an aspect of business education that provide training for

individual who desire to become an office worker or administrators and those who which to

teach secretarial subject in secondary and tertiary institutions. To achieve this general purpose of

office or secretarial education, courses like typewriting, office equipment shorthand,

stenographic and word processing was offered in tertiary institution. It is a branch of business

education that is majorly designed to train those who desire to become a professional secretary or

office manager. According to Ekpenyong (2005) a secretary is defined as an executive assistant

who possesses a mastery of office skills and who demonstrates the ability to assume

responsibility without direct supervision. He/she can exercise initiative and good judgment in

decision making. The definition given above describes and scope of special class of secretaries
who by virtue of their training, experience and scope responsibility have become assistance to

their bosses. Ekpenyong (2005) secretarial work as involving the following activities:

 General office work- relieving executives and other company officials of minor executive

and clerical duties.

 Taking down dictation from the boss using shorthand or stenotype machines.

 Transcribing dictation or the recorded information reproduced on a transcribing machine.

 Making appointment for the executive and reminding him or her of them, that is, the

appointments.

 Interviewing people coming into the office, and directing to other workers those who do

not need to see the chief executive.

 Handling personal and important mails, writing routine correspondence on his/her own

initiatives.

 Making and answering telephone calls

 Supervising other clerical workers.

 Keeping personnel records f event in the offices.

According to Ekpenyong (2005) the secretarial profession is remarkable for its appeal to

men and women who have obtained post secondary education. This is so because the secretary

often works with important people and the remuneration is always very attractive. However, the

secretarial profession provides a challenging job after graduation from institutions of higher

learning because of changes in business technology. The present day secretaries are exposed to

the use of information and communication technology (ICT) in their day-to-day training and

working lives. According to Lucey (2007) information technology is the acquisition, processing,
storage and dissemination of vocal, pictorial, textual and numerical information by a micro

electronics-based combination of computing and telecommunication. Therefore, office education

aspect of business education enables an individual to acquire office operation skills and

competencies that can be applied for self business management, service rendering or teaching

secretarial subjects either at secondary or tertiary level.

2.1.3 Business education and promotion of entrepreneurship in Nigeria

As established above, Business education is an education for and about business.

Entrepreneurship also focuses on identification and utilization of business opportunities, setting

up and properly running an enterprise small, medium or large. Based on these, the following are

the ways through which Business education can promote entrepreneurship in Nigeria:

Identification of viable business opportunities

Business education equips the recipients with skills that would enable them to identify

viable investment opportunities in their societies. Through this, they would be able to see

opportunities where others see chaos. It would also equip them with skills that would make it

possible for them to use the SWOT (strengths, weaknesses, opportunity and threats) analysis to

function well as entrepreneurs. With this background in mind, it could be observed that Business

education could promote entrepreneurship by prompting people to strive toward the utilization of

the identified opportunities through taking calculative risks.

Skills for financial management

Accounting education is an integral part of Business education. It is thus, a potent tool for

promoting financial prudence and business success. According to Adamu (2009), the inability of

some small and medium-scale entrepreneurs to keep financial records negatively affect the

growth of their businesses, ability to secure loans from financial institutions and determination of
cost and profit. The knowledge of Business education would therefore help toward proper

keeping of financial records. It would also guide the entrepreneurs in cost analysis, inventory

control and profit determination.

Inculcation of proper marketing skills

Inculcation of marketing skills is among the focus of Business education. According to

Gidado (2011), marketers conduct surveys leading to the identification of people’s needs and

wants and develop products that would meet those needs and wants. This implies that Business

education could promote entrepreneurship through making entrepreneurs to properly perform

their entrepreneurial functions. This is because the knowledge of marketing would prompt them

to make good use of the four-ps of marketing namely; product, price, place and promotion. It is

expected that this would lead to the development of sound product idea which would be

translated into an acceptable product in the market. Similarly, if it is a business of trading, an

understanding of the product mix will make an entrepreneur to procure products that will be

appealing to the customers. Finally, acquisition and utilization of the right marketing skills will

promote entrepreneurship by leading to proper and acceptable pricing of the product, making it

available at the right place and time as well as using the right promotional technique(s) to

stimulate customers to buy the product.

Acquisition of business management Skills

Management is crucial to the success of any entrepreneurial effort. As deduced from

Aruwa (2006), managerial incompetence of some Nigerian entrepreneurs is among the problems

of entrepreneurship in Nigeria. Business education can therefore help in ameliorating this

problem and thus a tool for promoting entrepreneurship. This is because attaining proficient

skills in economics and management is among the aims of Business education. The acquisition
of requisite management skills would make both current and potential entrepreneurs to

successfully manage their ventures through the processes of planning, organizing, directing and

controlling the available human and material resources. Similarly, their knowledge of economics

is expected to make them to be rational and also ensure proper allocation and utilization of the

available resources.

Avoidance of business failure

It is desire of every entrepreneur to ensure that his business survives as a going-concern.

But some business ventures do not last long. According to Gana (2001), once a business ceases

to be in operation, it is said to have failed. Based on the nature of Business education, it has the

potentials of helping entrepreneurs to avoid business failure. This owes to the fact that it equips

its recipients with skills for identifying the symptoms of business failure. Some of these

symptoms include; declining sales, deteriorating working capital, declining and high debt ratio.

With this information in mind, the entrepreneurs stand the chance of avoiding the failure of their

businesses.

2.1.4 Concept of Small and Medium Scale Enterprises

According to Central Bank of Nigeria (2005), small and medium scale enterprise is an

enterprise that has asset base (excluding lands) of between 5million- 500million and labour force

of between 11 and 300. SME’s are independent firms which employ fewer numbers of

employees. This numbers varies across countries and most frequent upper limit of employees is

250. Similarly, Small and Medium Industries Enterprises Investment Scheme (2005) defines

SME as any enterprises with a maximum asset base of N200 million excluding land and working

capital and with a number of staff employed not less than 10 or more than 300. Nigeria council

of Industries (2003) defines small and medium scale enterprise as an enterprise with an asset
base ranging between N1.5 Million and N200 Million Naira including working capital but

excluding cost of land but must have a workforce of eleven to three hundred workers. There

seems to be no universally agreed definition of SMEs and the reason is that, no single definition

can capture all the dimensions of Small and Medium Enterprises (Nwosu, Osuagwu, Abaenewe,

Ndugbu & Sani 2016). From the foregoing, it can be deduced that SMEs are enterprises that have

the capacity to employ at most 300 employees and at least 10 employees and has been proven to

be the bedrock of any economy. The brain behind every successful small and medium scale

enterprise is entrepreneurship which in the words of Olagunju (2004) is an undertaken where one

is involved in the task of creating and managing an enterprise for personal, social or

developmental. One of the common features of SMEs is that they are either sole proprietorship

or partnership and have centralized management structure (Udechukwu, 2003). In most cases,

the operational and administrative management of SMEs are in the hands of one or two person

usually the owner(s) manager(s) who are also responsible for making the major decision of the

enterprise. Ekwe and Abuka (2014) corroborated that SMEs are more commonly involved in

trading, provision of services and craft-production activities.

However, there is no unified definition of SME as the definition(s) rather depends on the

nature of industry/industrial capacity, level of development of the country and this varies

overtime. The difference amongst industries could be ascribed to different capital requirements

of each business. However, the basic definitional parameters remain the same. They include

number of employees, asset base, turnover and financial strength among others. In most

developed market economies such as the United States of America (USA), U. K. and Canada the

definition criterion adopted a mixture of annual turnover and employment levels. The European

States traditionally have their own definition of what constitutes SMEs. For instance, the
traditional definition in Germany limits Small and Medium Scale Enterprises to two hundred

and fifty (250) employees while in Belgium it is limited to one hundred (100) employees.

Recently, the European Union (EU) has standardize the concept by categorizing enterprises with

less than ten (10) employees as “micro” and those with fewer than fifty (50) employees as

„small‟ while those with fewer than two hundred and fifty (250) employee as “medium”. In the

USA, any business with fewer than one hundred (100) employees is classified as “small” while

medium scale business refers to a business with fewer than five hundred (500) employees.

In Nigeria, the Small and Medium Industries Enterprises Investment Scheme (SMI EIS, 2005)

defines SME as any enterprises with a maximum asset base of N200 million excluding land and

working capital and with a number of staff employed not less than 10 or more than 300. The

Centre for Industrial Research and Development (CIRD) in Mmudi (2011) defines a small-scale

enterprise as an enterprise with working capital base not exceedingN250, 000 and employing on

full time basis, 50 workers or less. The Nigerian Bank for Commerce and Industry (NBCI)

defines small-scale business as one with total capital not exceeding N750, 000 (excluding cost of

land but including working capital). The Federal Ministry of Industry’s guidelines to NBCI

defined a small scale enterprise as one with a total cost not exceeding N500, 000 (exceeding cost

of land but including working capital). Having harmonizing these definitions, it can be deduced

that SMEs are enterprises that have the capacity to employ at most 500 employees and at least 10

employees and has been proven to be the bedrock of any economy. The brain behind every

successful small and medium scale enterprise is entrepreneurship which in the words of

Olagunju (2004) is an undertaken where one is involved in the task of creating and managing an

enterprise for a purpose. The purpose may be personal, social or developmental. Despite

differences in definition, SMEs possesses similar characteristics. First is that they are generally
sole proprietorship in nature and in some cases partnership though they could be registered as

limited liability companies. Secondly, they are prone to discontinuity or have high rate of

business mortality probably due to reasons of low capital, inadequate market information, lack of

appropriate technology, close relationship between proprietor’s private fund and company’s fund

(Ogunleye, 2004). Thirdly, SME operates labour-intensive technology that requires more human

capital per unit of production. And finally, they suffer from inadequate collateral securities that

hinder them from attracting financial capital or loan facilities for expansion.

Importance of Small and Medium Scale Enterprises

Meanwhile, SMEs have been fully recognized by governments and development experts

as the main engine of economic growth and a major factor in promoting private sector

development and partnership. The development of the SME sector therefore represents an

essential element in the growth strategy of most economies and holds particular significance in

the case of Nigeria. Ekwe and Abuka (2014) noted that Small and Medium scale Enterprise

(SMEs) make up a vital part of our business systems today and employs more people than the

government and large enterprises. In Nigeria, the small and medium enterprises provide the most

important vehicle for both the government and large scale enterprises to thrive. According to

Mukaila (2011) small and medium scale enterprise contribute to improved living standards, bring

about substantial local capital formation, achieve high level of productivity, and the creation of

jobs at relatively low capital cost, especially in the fast growing service sector. SMEs not only

contribute significantly to improved living standards, employment generation and poverty

reduction but they also bring about substantial domestic or local capital formation and achieve

high levels of productivity and capability. Similarly, Mukaila (2011) stressed that SMEs in

Nigeria contribute significantly to the national economy and growth by the volume of
employment they provide to the citizenry. They are also recognized as the principal means for

achieving equitable and sustainable industrial diversification, growth and dispersal (Nwosu et al,

2016). Belal (2013) observes that SMEs are vehicles for the reduction of income disparities thus

developing a pool of skilled or semi-skilled workers as a basis for the future industrial expansion,

improve forward and backward linkages between economically, socially and geographically

diverse sectors of the economy.. The management structure and independence of small and

medium scale enterprises (SMEs) put the entrepreneur in the most critical position in running of

the enterprises. Therefore the success and failure of the business depend largely on the

competence of the entrepreneur. Nzelobe in Ekwe and Abuka (2014) explain that the technical

requirements of getting out a product or rendering a service as well as accounting for

transactions should be understood in considerable details by entrepreneurs before embarking on

business enterprise. Lankard (2003) stressed that entrepreneurial skills must be nurtured through

proper education so that it can be directed to responsible and enriching small business endeavour

that will benefit the individual and the communities in which entrepreneurs live. Salami (2003)

observed that there has been high mortality rate of SMEs in the country due to lack of

managerial, marketing and accounting skills and competencies required by small and medium

scale entrepreneurs. Inadequate managerial skills and competencies has resulted into reluctance

of banks to extend credit facilities to SMEs entrepreneurs which resulted in poor funding and

closure of most SMEs in the country (Egbon, 2004).

2.1.5 Roles of Small and Medium Enterprises in Economic Development

The role of SMEs in developing countries including Nigeria has been established. Such

industries contribute immensely to economic development of a country in the following areas:

Capacity Building
 SMEs provide a platform for training of indigenous entrepreneurs, which drives the

wealth creation process at all levels. It has even been established that SMEs is a nursery of

entrepreneurship where individual creativity and innovation are the driving force. Therefore,

they may be as the university where vast majority of entrepreneur receives training.

Employment Generation

SMEs have the capacity to generate employment as their mode of operations is more

labour intensive. Their labour intensive nature is much higher than that of large enterprises. It

has also been observed that more jobs per unit of investment capital and per unit energy

consumed are created worldwide by SMEs than large scale enterprises (Venkatarman, 1984).

They have therefore helped in solving the problem of unemployment in many countries.

Promoting Growth

In like manner, SMEs by its nature are such that they are involved in primary and

secondary economic activities that depend heavily on locally sourced materials. As such they

achieve high value added operations which is a key role in the growth and development of any

economy.

Industrial Dispersal

SMEs could easily be located in rural areas because they can survive on rudimentary

industrial infrastructure consequently they serve as major facilitators for industrial dispersal and

rural development and thus have the capacity to stem rural-urban conjuration.

Backward and Forward Linkages

Most SMEs output serves as intermediate or semi-processed goods of large scale firms.

By this, they generate mutual industrial linkages between local producers of raw materials and

large industrial concerns.

Technological/Industrial Development

SMEs have short-term gestation period and high potentials for quick yield on investment.

They provide promising alternatives for countries that desire the fast option of industrial

development. This is possible in most cases because the technology in use is less complex and

can be handled and manipulated by the entrepreneurs.

Technological Skill Acquisition

Small-scale industries provide opportunities for the development of local skills and

technology acquisition through adaptation. The “Aba made good syndrome” a concept adopted

by the part of Nigeria is a clear manifestation of such technological acquisition and this gives

impetus to rapid development in the economy (Odubanjo, 2000).

Poverty Alleviation

SMEs play a vital role in reducing poverty and inequality among citizenry. This is not

unconnected to the affordable and relatively low capital requirement for its establishment. It also

engages both skilled and unskilled workforce thereby creating a means of livelihood. This is an

important role in any economic development process.

2.1.6 Problems of SMES Development in Nigeria

Small and Medium Scale Enterprises (SMEs) are veritable tool of economic development

to a developing economy. Unfortunately, this development is limited by some constraints

highlight below:

Inadequate Access to Finance Capital

Majority of them have limited access to foreign exchange as well as institutional credits

This has adversely affected SMEs scale of operations and many countries have adopted policies

aimed at ameliorating their financial conditions such as liberalization of the financial markets,
the establishment of lending institutions and at times the formulation of policy measures that

compel financial institutions to allocate a certain percentage of their lending portfolio to SMEs.

Because majority of SMEs are predominantly sole proprietorship, banks view them with lots of

caution and as such these policies have not been implemented to the letter. Furthermore, the

death of the owner results in discontinuity of their operations as there are usually no succession

plans in place. This raises the risk of financing such establishments.

Inadequate Infrastructural Base

The availability of infrastructural facilities in most developing countries are grossly

inadequate. This includes epileptic power supply, lack of adequate water supply, poor state of

road network and unreliable telecommunication facilities among others.

Inadequate Information Base

SMEs are characterized with poor record keeping thus they lack necessary information

required for planning and management purposes. This usually affects the realization of the

objectives of the sector.

Low Entrepreneurial Skills

The success of SMEs is usually in jeopardy as most entrepreneurs lack the required

entrepreneurial skills (such as accounting, marketing, ICT skill) and management expertise to

survive. They lack good exposure to management theories/training/practices. Worst still, they do

not keep abreast with modern day techniques in managing business.

Poor Policy Implementation

The federal government has formulated good policies in the past but implementation and

control has always been the problem. As such SMEs hardly thrives in Nigeria.
Skills needed for effective management of small and medium scale enterprises

Skill is an established habit or attitude for performing a task in an acceptable way.

According to Etonyeaku, Kanu, Ezeji and Chukwuma (2014) skill is the ability to use one’s

knowledge effectively and readily in performing an act or habit of doing a particular task

competently. In the Dictionary of Business (2010), skill is the sufficient ability of fitness that one

needs to achieve certain goal or complete a project. Kanu (2008) pointed out that skills are

required by individual to perform effectively in their chosen career. Jones and Sin (2003)

emphasize that students must be prepared to be life long learners with a focus on developing

attributes and skills over a lifetime of professional, social and cultural experience.

Among the skills needed by business education graduates for effective management of

small and medium scale enterprise are: accounting, marketing, management and technical skills.

For the purpose of this study, accounting, marketing and management skills are examined.

Therefore, business education graduate are expected to possess accounting, marketing and

management skills for successful management of small and medium scale enterprises.

2.1.7 Accounting skills needed for SMEs management

Accounting is the systematic recording of financial transactions. It is a service activity,

the function of which is identifying, measuring, recording and communicating quantitative

information, primarily financial in nature, about economic entities. Osuala (1995) is of the view

that there is a correlation between inadequate record and the business organizations of which this

constitute a major problem. Ezeani (2008) sees accounting as the process of expressing the

economic activities of everyday life in money terms, so that we may estimate the costs of

creating goods and services, make decisions about production on the basis of these estimates,
compare the actual costs as they occur with the estimate originally made, and adjust the output

and prices of goods and services accordingly. Ezeani (2008) sees accounting as a set of themes,

concepts or (ideas) and techniques by which financial data are processed into meaningful

information for reporting, planning, controlling and decision-making purposes; or situation

according to him may create some difficulties for the entrepreneur, as he may not come to full

appreciation of the meaningful relationship between financial activities and results. He however,

further advised that the entrepreneur should make effort to acquire knowledge/basic

competencies of financial accounting as success can only come to his/her business through such

efforts.

In every business establishment, be it government establishment, parastatals, private

companies, banks and other financial institutions, the importance of accounting cannot be

overemphasized. Accounting education is regarded as an area of study needed to equip the

youths with knowledge, skills and attitude necessary for efficient financial calculation required

for occupational competence, and economic activities of an organization are measured, recorded

and communicated to interest parties for analysis and interpretation. This is rooted on the need to

keep the records of business transactions. The role of accounting activities in the operation of

business enterprise are recording financial data, analyzing financial data, preparation of

accounting statements and communicating financial information to employers (Ezeani, 2008).

Osuala (2009) believed that book keepers are employed in various business and industries

including government agencies. The author stressed that book-keepers perform the following

duties, make entries in ledger accounts, use the telephone, make journal entries, use the adding

and calculating machine, examining and/or sort business papers, prepare operating and/or

financial statements, prepare trial balance, type bills, invoices and statements, balance cash daily,
keep inventory records, prepare cheques, reports and payrolls etc. The success in accounting

occupations requires the following personal traits: accuracy and neatness, confidentiality,

attention to details, mathematical ability, skill in using mechanical calculators, organizational

and analytical abilities, as well as ability to work under pressure.

Adamu (2009) notes that the syllabus for accounting education to be taught in the

university is: financial accounting, auditing, cost accounting, taxation, business law, data

processing, advanced financial accounting, advanced costing, financial management, managerial

economies and management accounting etc. Apart from the training accounting graduates of

business teacher education programmes got in teaching methodology and practice, they are as

well versed in some major accounting courses such as taxation, costing, accounting, business

law, business management, data processing, auditing, business communication, financial

accounting, bank courses – money and banking, principles of economics etc. knowledge

acquired from the above listed courses will enable these graduates to secure employment in

various sectors of the economy, both in private and public organization. From the curse

enumerated above, graduates of business teacher education programmes have got the entry

qualification for acquiring accounting jobs. Agbogu in Micheal and Chigozie (2014) believed

that opportunities exist for accounting graduates of business teacher education programmes for

self-employment as well as employment in certain areas and allied professions. The author

further explained that they (the graduates) could set up accounting firms and render such services

as consultancy, auditing and preparing accurate business records for taxation for private and

public enterprises. These graduates could also run accounting schools and prepare students for

accounting and allied examination as a part-time jobs. The above mentioned qualifications,

courses, competencies and duties performed by these graduates, offer high status jobs/fields of
opportunities acting as book-keepers (manual and machine), being accounting officers, serving

as bank officers and tellers, working as data entry computer officers, serving as billing officers,

being accountants (tax, cost, system analysis), acting as loan counselors, serving as auditors

(internal and external), credit controllers, working as programmers and system analyst.

Accounting is the systematic recording of financial transactions. It is a service activity, the

function of which is identifying, measuring, recording and communicating quantitative

information, primarily financial in nature. About economic entities, Ezeani (2008) sees

accounting as the process of expressing the economic activities of everyday life in money terms,

so that we may estimate the costs of creating goods and services, make decisions about

production on the basis of these estimates, compare the actual costs as they occur with the

estimate originally made, and adjust the output and prices of goods and services accordingly.

Ezeani (2008) sees accounting as a set of themes, concepts or ideas and techniques by which

financial data are processes into meaningful information for reporting, planning, controlling and

decision making purposes; situation according to him may create some difficulties for the

entrepreneur, as he may not come to full appreciation of the meaningful relationship between

financial activities and results. The author however, advised that the entrepreneur should make

effort to acquire knowledge/basic competences of financial accounting as success can only come

to his/her business through such efforts.

Davidson (1982) as cited in Akintola (2001) stated that accounting provides information

for three broad purposes or uses, thus:

2 Managing decision making

3 Managing planning, controlling and internal performance evaluation.

4 Financial reporting and external performance evaluation

The Nigeria Small Business Practitioners Association (NSPA) enumerated the objectives of

accounting information and statement to include the following:

 To provide information useful for making decisions

 To yield an accurate and true picture of operating results

 To supply information useful in judging management’s ability to utilize enterprise goals

 To provide information useful to investors and evaluating potential cash flows to them in

 terms of amount, timing and related uncertainty

 To provide users with information for predicting, comparing and evaluating enterprise

 earning power

 To permit prompt filling of report and tax collecting agencies and

 To reveal all possible employee frauds, wastes, theft and record keeping errors.

Having basic accounting knowledge or skills does not necessary imply that the proprietor

(entrepreneur) should be able to appreciate the contributions that accounting information offers

in solving both financial problems that may arise from financial statements. He should be able to

keep and maintain records of receipts and payments (cash book), income and expenditure and a

balance sheet for the business. The need of modern business makes its essential for all managers

(entrepreneurs) to have a sound appreciation of the financial implications for their plans and

actions. They went further to explain that in the competitive world, the key factors are costs,

prices, turnover and profits. These are factors which no manager can ignore. Therefore, it is very

important that every entrepreneur possess the basic or fundamental knowledge of accounting.

They should be able to appreciate and interpret simple accounting statements. This will help in

reducing the rate at which small-scale business go into liquidation. Akpotowoh and Amahi
(2006) identified some of the accounting and financial skills required by entrepreneur in business

related areas for successful operation of a business enterprise to include:

 Knowledge of accounts

 Knowledge of costing

 Ability to interpret financial statement

 Ability to acquire the skill of preparing financial statements

 Ability to understand payroll and various deductions

 Ability to know gross and net profit

 Ability to know sources of funds

 Ability to know how to obtain loans

 A knowledge of federal, state and local government levies, taxes and regulations

 Acknowledge of factors involved in decision to grant loan by financial houses.

 Other accounting skills required

 Ability to process accounts receivable and accounts payable

 Ability to process inventories

 Ability to prepare ledgers and extract the trial balance

 Ability to prepare daily cash reports

 Ability to prepare bank reconciliation statements

 Ability to keep sales and purchases records

 Ability to keep debtors ledgers

 Ability to prepare final accounts, profit and loss accounts and the balance sheet

 Ability to calculate depreciation

  Ability to avoid unplanned expenditures and to prepare simple budget.

2.1.8 Marketing Skills needed for SMEs management

Marketing skills is another important and essential skill which depends on the very

success or failure of a business. Marketing is a common phenomenon but it is a very complex

and elusive subject matter. The activities of marketing are so diverse that it is difficult to say

exactly what marketing is. Osuala (2009) defined marketing as the process by which the

productive potentials of the company is used to satisfy individual and social needs of all kinds.

Ezeani (2008) sees marketing as consisting of all profitable human activities undertaken by the

firm towards the creation of goods and services. Argument among Nigerian traders is that

successful entrepreneurship in trading occupation simply depends on talent and luck”. They

believe that programmed training in marketing skilled is irrelevant for success in trading

activities. This view is rooted in ignorance because education and training can promote

individual initiative and marketing competencies. Sales and marketing skills will enable one to

make such vital business decisions as “getting the price right” which is an important factors in

retail marketing. Stanton (2002) stated that sales and marketing skills will keep the entrepreneur

informed, knowledgeable and confident as to determine the most efficient method of physical

distribution of goods and services. Ezeani (2008) identified important sales and marketing skills,

which the entrepreneur should posses to include:

 Knowledge of seasonal fluctuation of goods;

 Ability to determine the extent to which products will sell;

 Familiarity with various aspects of sales and salesmanship

 Ability to budget and forecast;

 Ability to determine current trends in sales of products

  Ability to determine what customers need and shortage of such goods;

 Knowledge of advertising;

 Ability to determine and interpret factors which indicate extent of and strength of

competition; and

 Ability to determine availability of goods/raw materials for product and shortage of

finished goods.

Uche (2006) opined that the acquisition of marketing skills offers the entrepreneur the unique

strategy for succeeding in business. The entrepreneur is able to offer the right product to his

targeted customers. He is able to cost and determine his product price and which will be

acceptable to the customers, based on their perception of the value and a cost that allows for

profit making. Business related graduates require these marketing skills in order to enable them

identify their potential customers; persuade them to buy their product or services.

Ademiluyi (2007) also identified the following marketing skills and competencies, which

are needed for effective entrepreneurship by business related graduates:

 Salesmanship;

 Negotiation

 Sales record keeping;

 Sales promotion;

 Stock record keeping

 Pricing

 Advertising channels;

 Advertising media;

 Consumer behaviour appreciation; and

 Transportation

Marketing authorities generally agrees that business organization exists to serve markets for

which they engage in production and distribution of goods and services. Modern marketing

emerged as the concept that business exists to create and serve customers and at the same time

achieving the firms profit objective (Dajur, Bakle and Tuamyil, 2015). Entrepreneur in business

related areas should therefore organize their resources to concentrate on achieving success and as

well utilize basic marketing skill to achieve profit maximization goal.

2.1.9 Management Skills needed for SMEs management

Management is the art of getting things done through people. It is the process of harnessing

the diverse resources (materials finance, people and time) in a manner as to achieve what the

organization set to achieve. It equally involves good planning, organizing, directing and

controlling of workers and materials to effectively and efficiently meet set objectives of an

enterprise (Griffin, 2002). Etuk (2002) sees management as the process of directing,

administering or running a business. It is essentially directing human efforts and energies and

coordinating the whole as a team, and giving vital leadership. Osuala in Igberaharha (2013)

defined management as the organizing planning and controlling the total business activities and

the leading of people so that the use of material, men and equipment results in the efficient

achievement of planned objectives. It is therefore the process of achieving an organization’s goal

through the coordinated performance of five specific functions which Osuala referred to as the

classic management function:

 Planning or devising both short-range and long-range plans for the organization and setting

goals to help achieve the plans.

 Organizing or deciding how to use resources such as people and materials.

 Staffing, or hiring and training workers.

 Directing, or guiding employees perform their work in a way that supports the organization’s

goals.

 Controlling or motivating the organization’s progress towards reaching its goal.

Management incompetence as been regarded as one of he specific reasons for business

failure since managers do not have what it simply takes to run a small business. He emphasized

that management skills of small business can be learning as mangers are not born but made. He

further maintained that the valuable skills of management can be learnt through trial and error,

but most of the errors can be eliminated by education. Akinola (2001) also pointed out that one

of the problems facing entrepreneurs is lack of managerial skills and experience and thus,

suggested that entrepreneurs should have good training in the art of management. The

entrepreneurs especially those in business related areas require managerial skills because they

also play the role of managers since they are responsible for the attainment of their

organizational goals and objectives. According to him, these skills are conceptual and technical

skills. Conceptual skills are those skills required to relate parts of the company’s work to the

whole. Technical skills are those required for turning out the actual products or services of the

firm and are needed for performing specific activities within the organization. Management skills

are required by business related graduates in starting, developing and managing an enterprise. It

also includes skills in decision making control and negotiation, essential in creating and growing

a new business venture. Anyakoha in Igberahahar (2013) identified some important management

skills required by the entrepreneur-business education graduates to successfully establish, run

and manage a business enterprise to include the ability to:

1. Set appropriate businesses goal

 2. Plan effectively for goal attainment;

3. Organize resources (human and materials) for goal attainment;

4. Implement plans for goal attainment

5. Evaluate all activities/operations on the process of goal attainment

6. Make appropriate use of feedback.

Other management skills required for success in entrepreneurship also include the ability to or

having knowledge of:

1. Making long and short term planning;

2. Purchase goods, tools and equipment;

3. Factors involved in overhead control;

4. Inventory control and turnover

5. Acquisition of management and supervisory skills

6. Manage time and meet job schedules;

7. Need for employees growth and development;

8. Identify opportunities and generate ides suitable to the opportunities; and

9. Confidence to make a decision and act upon it

Therefore, management skills is essentially required by entrepreneurs-business related

graduates in order that they can effectively achieve their business goals through coordinated

efforts of planning, organizing, staffing, directing and controlling.

2.2 Theoretical framework

The theoretical framework for this study centered on the theory of motor skill acquisition

and discovery theory.

2.2.1 The Discovery Theory

The theoretical work of discovery theory started with the work of Kirzner in 1973. It was

later expanded by shane and Venkataraman in 2000 and 2003. Theory which is typically called

individual/opportunity nexus view focuses on the existence, discovery and exploitation of

opportunities and the influence of individual and opportunities. The theory state that

opportunities are derived from the attribute of the market within which an entrepreneur is

contemplating action. Thus if an entrepreneur understand the structure of the industry or market,

he or she will be able to anticipate the kind of opportunities that exist. Also, that

entrepreneurship requires differences in people and these differences manifest themselves in the

ability to recognize opportunities. Individual in this theory are alert to existing opportunities. the

also state that risk bearing is a necessary part of the entrepreneurial process.

This theory is related to the present study because it laid much emphasis on the

recognition and discovery of opportunities which is the core motive of entrepreneurship and

business creation. The implication of this theory is that prospective graduates’ entrepreneur

should be able to discover new opportunities, establish self business enterprise and used the

acquired skills to effectively manage the business.

2.2.2 Motor-Skill Acquisition Theory

Bryan and Harter (1899) were the first researchers to study skill acquisition. Other

theorists that work on motor skill acquisition include Snoddy (1926), Henry and Rogger (1960),

fitts (1964), Adams (1971) as well as Schneider and Shiffrin (1971). Motor-skill acquisition

theory states that the most notable thing that happens when people practice is to demonstrate

proficiency in performance due to acquisition of relevant skills. The theory proposed that the
three stages in the learning of skill are: cognitive stage, association stage and autonomous stage.

During the cognition stage, the biggest challenges of the learners is to understand what is to be

performed while the biggest challenges for the teacher is conveying to the learner what is to be

done. The association stage begins once the learners select a movement strategy and actually

performs the task. The autonomous phase appears after extensive training and it is characterized

by a skill being performed automatically and requiring less intentional capacity to complete the

skill. According to the theorists, verbal information in form of instruction is one of the important

factors to pay attention to in learning and performance of skills.

This theory is related to the present study in that it explains the stages involves in

practical skill acquisition which is the main variable of the study. The theory also stressed the

need for students to understand the procedure and skills required in performing a task and the

need for teacher to effectively convey the needed skills and knowledge needed to perform a task.

The implication here is that business education should promote acquisition of entrepreneurial

skills (accounting, marketing, and management and ICT skills) for effective and successful

management of small and medium scale enterprises.

2.3 Related Empirical Studies

Igberaharha (2013) conducted a study to assess the accounting and management skills

needed for effective job performance among business education graduates in Delta State,

Nigeria. Two research questions were posed and two null hypotheses were postulated for the

study. The researcher adopted a descriptive survey research design for the study and the

population/sample of this study consisted of 255 respondents which were made up of 88 business

education lecturers in five tertiary institutions and 167 business education graduates duly

registered with the alumni association of these institutions. Hence, no sampling was done. A 5-
point likert scale questionnaire which consist of 12 items tagged “Accounting and Management

skills for Effective Job Performance Questionnaire (AMSEJPQ)” was used to collect data for the

study. Mean was used to answer the research questions while t-test statistics was used to analyze

the null hypotheses formulated at 0.05 level of significance. The findings revealed that both

business educators and business education graduates had similar response to the items, affirming

that accounting and management skills are highly needed by Business Education graduates for

effective job performance in Delta State. This study is similar to the present study in the area

skills. The gap is that the reviewed study assesses accounting and management skills in relation

to effective job performance while the present study assessed accounting and marketing skills for

effective management of small and medium scale enterprises.

Nwosu, Osuagwu, Abaenewe, Ndugbu, and Sani (2015) examine the challenges and

prospect of Small and Medium Scale Enterprises in national economic development. The study

also investigated the performance of the Small and Medium Enterprises sub sector of the

Nigerian economy, its challenges and prospects for National Economic Development. Analysis

was undertaken using the statistical package for social sciences (SPSS). Findings indicate that

SMEs have performed below expectation in the development of Nigeria economy due to a

combination of factors. This is slightly related to the present work in the aspect of SME while it

differs in scope because it does not examine skills needed for effective management of SMEs

Ogundele, Akingbade, Saka, Elegunde and Aliu (2013) examine the Marketing Practice

of Small and Medium Enterprises (SMEs) from the perspective of a Developing Country. The

study among other things establishes the extent to which marketing practice of SMEs in Nigeria

conforms to marketing principles and functions. The Nigeria marketing environment presents

features that are quite different from the developed economies and even quite different from
other developing countries. The study found that several combinations of marketing practice are

being employed by small business operators to gain differential advantage. These include

product development, product innovation, process improvement, trademark, trade name, patent,

quality, package, colour, design, conditions of sales, drumming, dancing among others. This

study is related to the present work in the aspect of marketing and SMEs but differs in scope

because the present work focuses on accounting and marketing skills required for effective

management of SMEs while the reviewed study examine marketing practices of SMEs in

Nigeria.

Nwaigburu and Eneogwe, (2013) Impact of Accounting Skills on Entrepreneurship

Education for Self-Reliance and Sustainable Development: A Study of Selected Small Scale

Business in Owerri Municipal Imo State. The study found that accounting skill was found to be

contributory to entrepreneurial performance and as such entrepreneurs are advised to embark on

capacity building in accounting skill in the area of financial management and record keeping. It

was concluded that entrepreneurs with basic accounting knowledge and entrepreneurial skills

stand better chances of becoming self- reliant and attaining business success. This study is

related to the present study in the aspect of accounting skills but differs in the aspect of

marketing skills for effective management of SMEs in Nigeria.

Okoro (2014) assessed the accounting competencies possessed by postgraduate university

business education students to handle entrepreneurship business challenges in Nigeria. One

research question and five hypotheses guided the study. Descriptive survey design was adopted

for the study. The population, also used as the sample, consisted of 388 Business Education

graduates who are currently running their postgraduate programme in universities in the south-

east and south-south geopolitical zones in Nigeria. The questionnaire was adequately validated
by experts in Business Education and measurement and evaluation. The internal consistency of

the instrument was determined using Cronbach alpha which has a reliability coefficient of 0.94.

The mean and standard deviation were used to answer the research questions while Z-test was

used to test the hypotheses at 0.05 level of significance. The result revealed that Business

Education graduates are competent in ability to plan for small or medium scale businesses,

ability to source funds for the running of a small scale business among others. However, they are

not competent in preparation of tax codes and setting up of a currency. This study is similar to

the present study in the aspect of accounting skills and competencies for handling

entrepreneurship business including SMEs but does not include marketing skills which is part of

the scope of this study.

Ekwe & Abuka (2013) assessed the accounting skills needed for sustainable development

of small and medium scale enterprises in Taraba State of Nigeria. The study aims to ascertain the

fundamental accounting skills needed by SMEs in the State and to determine the benefits

accruable to the firms who acquire these skills. The study adopted the descriptive research design

approach and data were generated from professionals and operators/owners of SMEs in the state

through a thirty point structured questionnaire. The data analysis was conducted by means of the

means scores and standard deviation of the respondents. The hypotheses were tested using the t-

test statistics. It was found that most of the owners and operators of SMEs in the state do not

know the accounting skills required to enhance the economic status of their businesses. They

however agreed that the skills will enhance their business acumen and improve their profit

margin. Also it was discovered that the accounting skills needed by small and medium scale

enterprises do not differ significantly with the skills required by large enterprises. The study

concluded that the acquisition of fundamental accounting skills by owners of small and medium
scale enterprises is of utmost importance given the numerous contributions that are inherently

accruable to owners and operators of SMEs especially in developing nations. This study is

similar to the present study in the aspect of accounting skills for successful operation of SMEs

but differs in scope because the present work include marketing skills for effective management

of SMEs.

Umeji and Obi (2015) conducted a study to determine the cost accounting needs of small

business operators. Specifically, the study determine: the record-keeping, inventory control and

price determination skills needs of small business operators in Anambra State. Three research

questions and two null hypotheses were used to attain this purpose. A descriptive survey research

design was adopted in the study which involved 280 registered small business operators in the

state. Due to the manageable size of the population, all the 280 registered small business

operators were surveyed. Data collected from 269 respondents were analyzed with the use of

descriptive mean and correlated t-test. The study found that record-keeping, inventory control

and price determination skills were perceived to be very important by the operators, but the

levels of possession were still below expectation. Based on these findings, the study

recommended that a training program be mounted for small business operators in the state on

record-keeping and inventory control skills needed for business operation. This study is similar

to the present work in the aspect of accounting skills needs of small business operators but

differs from the present study because it only examine cost accounting skills and it does not

examine marketing skills.

Dajur, Bakle and Tuamyil (2015) examined the entrepreneurial skills required by small

scale business operators for successful management and operation of small scale business

enterprise in Nigeria. Specifically the study examined the management skills, marketing skills
and accounting skills required by small scale business operators for successful operation of small

scale business enterprises. The population and sample of the study consisted of 77 respondents.

A 4-point Likert rating scale made up of 32 structure questionnaire items was used in generating

data for the study. Data collected were analyzed using statistical mean. The findings revealed

that small scale business operators require management, marketing and accounting skills for

successful operation. It was concluded that entrepreneurship education is a major place for the

skill acquisition and recommended among others that there should be periodic organization of

workshops and seminar by government for owners of small scale business enterprises and proper

provision and funding of skills acquisition centre for effective training of entrepreneurs. This

study is related to the present study because it examines both accounting and marketing skills for

successful management and operation of small scale business enterprise.

Olabiyi, Akanni & Ajibade (2015) conducted a study to determine the managerial skills

and competences required by trainees in vocational training centre to enable them establish small

and medium scale enterprises in Lagos State using a Survey research design. Two research

questions and two hypotheses, tested at .05% level of significance, guided the study. The

respondents for the study consisted of 122 respondents (made up of 85 entrepreneurs and 37

managers of microfinance bank). Mean and standard deviation were used to answer the research

questions, while t-test statistics was employed to test the hypotheses. The findings revealed

among others that business organisation depends on how well its management is able to plan and ensure

constructive coordination management, exhibit an attitude that supports and welcome changes in business

structure; it was recommended that National Board for Technical Education (NBTE) should

consider a review of the curriculum and include the managerial skills identified by the study in

curriculum of vocational training centre.

 Mazzarol, Reboud and Clark (2015) examined the financial management practices in

small to medium enterprises (SMEs) from a study of 289 small business owner-managers across

30 industry sectors in Australia and Singapore. The data was collected using a case study survey

by MBA students and analyzed via three stages. The findings show that SMEs have largely

informal and ad-hoc financial management practices. Differences by size and financial literacy

levels were found. As the firm grows in size and complexity the owner-manager is required to

adopt more sophisticated and systematic approaches to financial management. Also, those SMEs

with higher financial literacy have greater capacity to monitor and control the financial

performance of their businesses. Challenges for SMEs negotiating with more powerful players

were also identified and approaches to address this issue briefly discussed. This study is slightly

related to the present work in the area of financial management but differs in scope. The present

study is wider in scope than the reviewed one because it focuses on both accounting skills and

marketing skills.

Mmudi (2011) examine the gap in management accounting skills required by venture

capital providers and those possessed by small and medium enterprises in the craft industry. The

study found that one of the major reasons why SMEs fail to secure loans is a lack of management

accounting skills. This lack of management accounting skills is due to a lack costing of mentors,

training and business education. The study identified a number of management accounting skills

which most of the venture capital providers consider when they evaluate applications for loans

and they include budgeting, cash flow management and product. This study is related to the

present work in the aspect of skills required to secure venture capital by SMEs operators but

differs in scope and subject focus.

2.4 Appraisal of Literature Review

 The review of literature was done on conceptual review, theoretical framework and

related empirical studies. The conceptual review was carried out on business education, small

and medium scale enterprises, accounting and marketing skills needed for effective management

of SMEs. The review showed that business education is an aspect of general education that

equipped learner with necessary skills and knowledge needed for employment in business field

and management of self employment. It is a programme of study that train students in small and

medium business management for them to be job creator instead of job seekers. It was also

discovered through conceptual review that small and medium scale enterprises contribute

immensely to economic development by creating jobs for youths and generate revenue for both

individuals and government. Theoretical review showed that discovery Theory and motor-skill

acquisition theory are related to the study because they focus on recognition and discovery of

business opportunities which is the main purpose of entrepreneurship and management of

business as well as effective learning of practical skill as key driving forces of small and medium

business success. Empirical review indicated that various studies conducted identify general

entrepreneurial skills required by business graduates for successful business operation (Ezeani,

Ifeonyemetalu and Ezemonyih, 2012; Igberaharha, 2013; Etonyeaku, Kanu, Ezeji and

Chuckuma, 2014 and Dajur, Bakle & Tuamyil, 2015). Some other studies examine only

accounting skills for entrepreneurship while other examine marketing or management skills for

job performance (Umeji & Obi, 2015; Ekwe & Abuka, 2013; Okoro, 2013 and Nwaigburu &

Eneogwe, 2013). Also, it was discovered that most of the work on skills needed for SMEs

management were opinion write-up which lack empirical backing. To the knowledge of

researcher, no study identifies both accounting and marketing skills for effective management of

SMEs. Based on this, it is important to empirically identify both accounting and marketing skills
needed by business education graduates for effective management of SMEs. The gap to be filled

by this study is the combination of accounting and marketing skills needed for SMEs

management and to empirically identify them through data collection and analysis.
 CHAPTER THREE

RESEARCH METHODS

This chapter presents the procedure to be employed in carrying out the study. The

procedure is presented under following headings: research design, population of the study,

sample and sampling techniques, research instrument, validity of the instrument, reliability of the

instrument, method of data collection and method of data analysis.

3.1 Research Design

The study will employ a descriptive survey design to identify the accounting,

management and marketing skills needed business education graduates for effective operation of

small and medium scale enterprises in Ogun State. Olaitan (2003) states that survey research

design is appropriate when the entire population or representative sample is being studied by

collecting data through the use of questionnaire. The design is considered appropriate because

the researcher intends to administer questionnaire on the target population.

3.2 Population of the study

The population of the study comprises of 1250 owners and managers of small and

medium scale enterprises registered with Ogun State chamber of commerce and industry.

3.3 Sample size and Sampling Techniques

The sample of this study will be 125 owners and managers of SMEs in Ogun State.

Multi-stage sampling method will be adopted. The above sample size constitutes 10% which is

conformity with the view of Uzoagulu (2011) that 10% of population up to 1000 should be

sample for a study. Purposeful sampling technique will be used in selecting three major cities

while simple random sampling method will be used to select owners and managers for the study.
3.4 Research Instrument

A structured questionnaire titled “Accounting, Management and Marketing Skills for SMEs

Questionnaire” (AMMASSQ) will be used for data collection. The questionnaire is structured in

line with the specific purposes and it will be divided into two sections (1 and 2). Section one

will seek personal information of the respondents while section two will elicit information

relating to each of the purposes of the study. Section two is divided into three parts (A-C). part A

will seek information on accounting skills needed for effective operation of small and medium

scale businesses; part B will seek information on management skills needed for effective

operation of small and medium scale businesses while part C will elicit information on marketing

skills needed for effective operation of small and medium scale businesses. All items in the

questionnaire were provided with four response options coded on a four point rating scale as

shown below:

Response options and rating scale for research question 1 and 2

Response Options Rating Scale

Highly Needed (HN) 4

Needed (N) 3

Slightly needed (SN) 2

Not needed (NN) 1

3.5 Validity of the Instrument

The Questionnaires (AMMASSQ) will be validated by three experts in the department of

business education, college of vocational and Technical education, Tai Solarin University of

Education. Validates will be requested to scrutinize all items in the questionnaire in terms of

relevance to the purpose, correctness of statements and conformity with standard test format. The
comments, suggestions and corrections made by validates will be effected and use to produce

final draft of the instrument.

3.6 Reliability of the Instrument

The Questionnaire will be administered on a pilot test to 40 respondents comprising of 35

students and 5 lecturers of business education in University of Lagos. This constitutes 10% of the

total sample which is in line with Ball and Gall’s view in Uzoagulu (2011) that 10 percent of a

sample should be used for reliability. The internal consistency of the instrument will be

determined using Cronbach alpha reliability techniques and the coefficient value will determine

how reliable the instrument is.

3.7 Method of Data Collection

The research instrument will be administered to the respondents with the help of three

research assistants; each ones to handle a city purposely selected for the study. The research

assistants will be supplied relevant information on the location the selected organizations to

enable him administer the instrument to the target subject. Each of them will return the

completed copy of questionnaire to the researcher for data analysis.

3.8 Method of Data Analysis

The returned copies of questionnaire will be analyzed using mean ratings and standard

deviation to answer the research questions and t-test statistics to test the research hypotheses

formulated for the study at 0.05 level of significance. Since SPSS software package will be used

for the analysis, decision on rejection and acceptance of the null hypotheses will be done using

the computed significance.

 Any hypothesis with a computed significant value greater than the alpha significance of

0.05 will be accepted and any hypothesis with a computed significance less than the alpha

significance of 0.05 will be rejected.

Decision on the research questions items will be based on the boundary limits of rating

scale as shown below.

Response Options Rating Scale boundary limit

HN 4 3.50 – 4.49

N 3 2.50 – 3.49

SN 2 1.50 – 2.49

NN 1 0.50 – 1.49

Any research question with grand mean of 2.50 and above will be considered needed

while those with grand mean rating of 2.49 below will be considered not needed.
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 APPENDIX A

QUESTIONNAIRE ON

ACCOUNTING, MANAGEMENT AND MARKETING SKILLS NEEDED BY BUSINESS

EDUCATION GRADUATES FOR EFFECTIVE OPERATION OF SMALL AND MEDIUM
SCALE BUSINESSES

PART ONE: DEMOGRAPHIC DATA

STATUS: Owner Manager

GENDER: Male Female

CAPITAL BASE: Less than 100 Million More than 100 million

NUMBER OF EMPLOYEE: Between 11-100 Between 101-300

PART TWO: RESPONDENTS OPINION

INSTRUCTION: Please indicate your opinion by ticking one of the response options provided. See the
meaning of each option below:

(HN) - Highly Needed

(N) - Needed
(SN) - Slightly Needed
(NN) - Not Needed

SECTION A: ACCOUNTING SKILLS NEEDED FOR EFFECTIVE SMEs OPERATION

S/ Accounting Skills HN N SN NN

1 Ability to prepare ledgers and extract trial balance

2 Ability to keep debtors and creditors books

3 Ability to prepare daily cash account of the business

4 Ability to prepare business final account

5 Ability to apply double entry principle

6 Ability to interpret business performance using ratios

7 Ability to apply cost accounting

8 Ability to prepare budget for the business

9 Ability to calculate depreciation for fixed assets

10 Ability to calculates employees wages and deductions

11 Ability to prepare bank reconciliation statement

SECTION B: MANAGEMENT SKILLS NEEDED FOR EFFECTIVE SMEs OPERATION

S/N MANAGEMENT SKILLS H N SN NN

1 Ability to plan by setting goal and means of accomplishing them

2 Ability to implement plans for goal attainment

3 Ability to organize resources

4 Ability to identify and maintain business ethics

5 Ability to supervise subordinate for effective job performance

6 Ability to direct worker towards goal accomplishment

7 Ability to measure performance in line with standard

8 Ability to take corrective measure against deviation from procedure

9 Ability to train worker s

10 Ability to bring innovation and creativity into the business

SECTION C: MARKETING SKILLS NEEDED FOR EFFECTIVE SMEs OPERATION

S/ Marketing Skills HN N SN NN

1 Ability to adopt sales promotion techniques

2 Ability to adopt personal selling for product promotion

3 Ability to identify and utilize appropriate advertising media

4 Ability to adopt customers relation services

5 Ability to locate viable market for product

6 Ability to identify customers needs

7 Ability to negotiate and bargain effectively

8 Ability to fix affordable price for product

9 Ability to select suitable distribution channels

10 Ability to establish product feedback mechanism

11 Ability to use special offer persuade customers

12 Ability to promote product using public relation