Former Dean, Faculty of Management Sciences of the Rivers State University (RSU), Nkpolu-Oroworukwo, Port Harcourt, Prof Adolphus Joseph Toby, has said that lack of adherence to business management rules is a major challenge bedeviling small and medium enterprises in Nigeria.
Speaking with The Tide in Port Harcourt yesterday on the attitude of some entrepreneurs, Toby decried their attitude, especially those in small and medium categories who did not conform to known management fundamentals.
He explained that businessmen’s interest should be that they do not play by the rules which is observed in their ability to adequately manage loans obtained for the growth of such businesses.
According to him, most of these entrepremeurs diverted loans meant for their businesses for social events allowing the business to collapse. There should be business feasibility study before venturing into any kind of business.
Toby, a Professor of Corporate Finance in the institution, said the problem of businesses in Nigeria was due to lack of application of basic management principles, noting that no business could grow without patronage from customers.
He, however, said that it has become necessary for anybody venturing into small and medium entreprses to first get the feasibility of such business properly studied to make blissful business.
On customers-business-owners relationship, he said that customers must be treated with show of friendship, respect, care and tolerance, pointing out that credit sales ruined businesses in Nigeria.
Toby, therefore, insisted that proper planning must be done before opting for any kind of business, which he said, must be followed through effective management fundamentals to enable the business grow.