THE IMPACT OF GLOBALIZATION ON THE MANAGEMENT OF BUSINESS IN THE RURAL COMMUNITIES OF NIGERIA

This is against the background of the need for entrepreneurship development propelled by the interdependence of the world economies. The problem of the study is therefore to determine the impact of globalization on management of business in rural Communities of Nigeria. The objective of the study is to determine the impact of globalization on the growth of rural businesses. To this end, data were gathered from both primary and secondary sources. The primary sources comprised of descriptive survey method, while the secondary sources were text books, journals and publications.

The main instrument used in collecting data was questionnaire. The data were then presented in a table as frequency distribution. The technique of frequency and percentage were applied in analyzing the data, and the following were the major findings of the study. The study revealed that globalization impacts on small and medium enterprises in the areas of production technology, provision of raw materials, marketing, international financial assistance and scale of output. Globalization also affects the performance of small & medium enterprise through the provision of modern production technique, foreign raw material and financial assistance. Similarly the study revealed that globalization influences growth, and enhances management skills of the SME’s. Some of the recommendations made by the researcher are that trade should be liberalized and trade barriers removed to allow free global business and national economies unification. The conclusion drawn is that globalization impact positively on small and medium enterprises performance, through technological and economic innovation.

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Globalization refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political and ecological spheres. Globalization is an umbrella term and is perhaps best understood as a unitary process inclusive of many sub- processes (such as enhanced economic interdependence, increased cultural influence, rapid advances of information, technology and novel governance and geopolitical challenges) that are increasingly binding people and the biosphere more

tightly into one global system.

In economics, globalization is the convergence of prices, products, wages, rates of interest and profits towards developed country norms. Globalization of the economy depends on the  role of human migration, international trade, movement of capital and integration of financial markets.

The international monetary funds notes the growing economic interdependence of countries world wide through increasing volume and variety of cross border transactions, free international capital flows and more rapid and widespread diffusion of technology.

Some view it as a “Process by which the experience of everyday life is becoming standardized around the world”. While some scholars and observers of globalization stress convergence of patterns of production and consumption and a  resulting homogenization of culture. Others stress that globalization has the potential to take many diverse forms.

Generally, the economists view globalization rather positively. They see globalization as  free  “the  force of competition that  help to  channel the energies of people and the resources of countries into activities that are likely to  be  more  productive. In  a  competitive  global  market,  different

countries will specialize in the products they can produce best

1.2 STATEMENT OF PROBLEM

Globalization has made significant impact on businesses in the rural areas, but there are some limitations. First trade restriction and restructure of fiscal policies make it difficult for rural business management to have free and unrestricted access to the global market.

This usually affects outsourcing of raw materials and sale of products outside the national boarders. Second, the global economic meltdown adversely affected financial assistance for rural businesses from international agencies

Third, lack of access to international credit facilities makes it difficult for rural business operators to acquire foreign technology needed for rapid entrepreneurship development.

Fourth, many rural business cannot adapt foreign technologies to their pattern of  local production because of lack of technological know-how. Finally,  differences in  political ideologies still exist  in  the  international

political sphere. This has its adverse implication for rural business development in opposing nations. The problem of this study is therefore to determine the impact of globalization on management of businesses in rural communities of Nigeria

1.3 OBJECTIVE OF THE STUDY

The major aim of the study is to determine the impact of globalization on the management of business in rural communities. Thus, the specific objectives of the study are;

1   To find out how globalization influence financial assistance for the management of business in rural communities

2   To find out the impact of globalization on acquisition of modern technology for rural businesses

3   To  find  out  the  effect  of  globalization on  the  output  of  rural businesses

4   To determine the impact of globalization on the product market of businesses in the rural communities

5   To determine the impact of globalization on the growth of rural

businesses

1.4 RESEARCH QUESTIONS

(1)     How   does   globalization   influence   financial   assistance   for business in rural communities?

(2)     What   is   the   impact   of   globalization   on   acquisition   of modem technology for businesses in rural communities?

(3)     What is the effect of globalization on the output of business in rural areas?

(4)     What  is  the  effect  of  globalization  on  the  product  market for business in rural areas?

(5)     What   is   the   impact   of   globalization   on   the   growth   of business in the rural areas?

1.5 HYPOTHESES

The following hypotheses are postulated for this study;

1         HO; globalization does not facilitates financial assistance from international financial agencies for business in rural communities.

HI;    Globalization    facilitates    financial    assistance    from

international    financial    agencies    for    business    in    rural communities.

2         HI; Globalization does, not enhance the product market for rural business.

HI;  Globalization  enhances  the  product  market  for  rural business

3         HO;  Globalization  does  not  promote  the  growth  of  rural business.

HI; Globalization promotes the growth of rural business.

1.6     SIGNIFICANCE OF THE STUDY

The significance of this study emanates from the following; (1)    Government:

The government will benefit from the findings of this study. This is because it will reveal how government polices affect the liberalization of the Nigerian economy and how this study will therefore show the imperative of free economy for rural business development in Nigeria. Besides, the study will   show   the   need   for   the   government   to   obtain   more   financial and technical aids from international bodies for rural business development

in Nigeria.

(2) Entrepreneurs:

Nigeria entrepreneurs will also find this study very useful. This is because it will provide them information on how to take advantage of the opportunities offered by globalization to enhance the managerial and technical applications for rural business management.

(3) Management Institutions:

The  various  institutions for  managerial studies will also  find  this study useful. This is because it will show them the need to introduce aspects of globalization that affects entrepreneurship development in their syllabus. Impacting  such  knowledge  in  their  area  will  augur  well  for   rural business development in Nigeria.

(4)   Student:

Student who will carry out studies on related field will also find the study useful. This will serve as a reference material to them

1.7 SCOPE OF THE STUDY

This study focuses on the impact of globalization on rural business management in Enugu State and given the vast areas involved in the study the scope is limited to only small and medium scale business in Nkanu land.

1.8 LIMITATIONS OF THE STUDY

The following are the limitations of this study;

1.       Uncooperative   attitude   of   some   entrepreneurs   approached   for information. Their refusal to complete the questionnaires or to be orally interviewed adversely affected the volume of data collected for the study

2.       Inadequate finance

This made the researcher to restrict the study to some towns in Nkanu land since he could not afford the cost of covering the entire Enugu State in the study. 3.       Time Constraint: This forced the researcher to concentrate his focus on the readily available entrepreneurs.

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