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COMPARATIVE STUDY OF THE PERFORMANCE OF PUBLIC AND PRIVATE SECTORS ENTERPRISES IN NIGERIA.







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COMPARATIVE STUDY OF THE PERFORMANCE OF PUBLIC AND PRIVATE SECTORS ENTERPRISES IN NIGERIA.



ABSTRACT
A comparative study of performance of public and private sectors enterprises in Nigeria (a study of selected companies in University of Port Harcourt) was carried out to improve on their performance. 5 research questions and 4 hypotheses were formulated; out which 10 (5 public sector and 5 private sector) well-structured questions were derived personal interview was conducted to gather primary data from both public and private sector enterprise in University of Port Harcourt. Arithmetic mean, frequency counts, financial ratio analysis and the test statistics were used to analyze the data, the following findings are obtained (1) private sectors performs better than public sector firm (in terms of profitability growth and social responsibility) private sectors firms are more efficient in terms management and resource control than public sector and private sector firms. (1) Management of both enterprises should be based on political will, and not of self-aggrandizement (2) adequate control mechanism should be put in place to control waste resources.


TABLE OF CONTENTS
Title Page                                                                                 i
Certification                                                                             ii
Dedication                                                                               iii
Acknowledgment                                                                     iv
Abstract                                                                                   v
Table of Contents                                                                     vi
CHAPTER ONE: INTRODUCTION
1.1   Background of the study                                                  1
1.2   Statement of the problem                                                3
1.3   Purpose of the study                                                                4
1.4   Research questions                                                          5
1.5   Hypotheses                                                                      6
1.6   Significance of the study                                                  6
1.7   Scope of the study                                                           7
1.8   Operational definitions of terms                                      8
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1   Introduction                                                                     10
2.2   The nature of public and private sector enterprises         10
2.3   Comparison of public and commercial enterprises          16
2.4.1 Performance evaluation                                                  19
2.4.2 Profitability                                                                     30
2.5   Business growth                                                              32
2.6   Reward of participation in business                                34
2.7   Inter-firm comparison                                              35
2.8   Summary and conclusion                                                36
CHAPTER THREE: RESEARCH METHODOLOGY
3.1   Research methodology                                             37
3.2   Research design                                                       37
3.3   Instrument for data collection                                  38
3.4   Validate of instrument                                             38
3.5   Reliability of data                                                     39
3.6   Data analysis procedure                                          39
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF FINDINGS
4.1   Data presentation                                                    40
4.2   Analysis based on personal interview                      41
4.3   Discussion of findings                                             58
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION
RECOMMENDATIONS
5.1   Summary of findings                                                       61
5.2   Conclusion                                                              61
5.3   Recommendations                                                   61
References
Appendix-1questionnaire



CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY
The studies of public enterprises are sometimes called state enterprises. They are established by act of parliament constitutionally in a democratic setting, or by character to oversee it operations in a proprietary form (Okeke, 1994) in a mixed economy such as Nigeria. Public enterprises are involved in economic activities undertaken by the state. They form what we normally refer as the public sector.
Although some of the state owned or public enterprises are operated on commercial basis, the intention behind their establishment is for benefit of the members of the public.
They are usually established to maximize although in some cases they are expected to at least break even in the same vein. Private sector enterprises otherwise called “commercial sector’ are sole proprietors, the partnership and all other privately owned companies or unregistered which run business with the principal objective of making profits to the best and interest of the owners whose capital is used in the operations (Okeke, 1994) although the operator of commercial enterprises is also overseen by the legislature this type of over sight is regulatory.
Aluko, et al, (1998) posited that goal setting is generally intended to guarantee some minimum level of performance the only way to ensure that effort are being geared towards goals is to evaluate performance periodically and relate our measurement to the goals set. Performance measurement is therefore fundamental to the success of goal.
Setting because it provides. Feedback about current performance, area of deficiency identified, and the level of discrepancy between actual and desired performance an effective performance measurement system is an asset to any organization research for measurement organization performance/effective are (1) productivity output (2) goal attainment (3) profitability (4) moral/turnover absenteeism (5) employee satisfaction (6) employee performance (Gbadamosi, 1998).
        Comparison of selected firms in both public and private sector/enterprise in Rivers State very often when predicting future performance a very good indicator proves to be the project the past performance, the ability to analyze past in terms of economic performance and project the same future, is then, a skill required by the researcher to proof comparatively the relationship (in terms of performance) that exist between these two sectors. Many problems may be overcome through the assistance of inter firm companies more usually attention is focus on any weakness, which may exist some of these special problem may be the following (1) is profit adequate (2) how efficient is their marking outfit (3) how efficient is production.
1.2   STATEMENT OF THE PROBLEM
 A lot of criticisms are against public enterprise or corporation. It is somehow believed that public enterprise or corporation performance poorly hence there is much prejudice to its existence decree 25 of 5th July, 1988 (Privatization and commercial of enterprises wholly or partly owned by the federal military government (now the federal republic of Nigeria in which commercial enterprises shall operate as profit making commercial venture and without subventions from the government federal or state government. Privatization on the other hand means the relinquishment of part or all of the equity of private enterprises in Nigeria in high.
Most commercial venture in Nigeria fall than succeeding as observed by Soludo (2005) hence the need for banks. Consolidation etc some of the problems associated with commercial venture may be attributed to poor performance in regards to finance marketing, production, personnel and research development. Some scholars argued that the public sector is performed more creditable than private sector. They claim private sectors profits maximization objective is inimical to economic growth the private enterprises lack the technical, managerial and financial skills to run the economy, while other schools of thought strongly opposed the existence of public enterprises as having political interference, inefficiency, bureaucratic control, and control, lack of service of responsibility, improper management and sluggish response to change.

1.3   PURPOSE OF THE STUDY
The study is a set out to ascertain the performance of public and private sector enterprises in a bid to know comparatively.
1.     Whether public sector enterprises performance profitability or visa vis more than private sector enterprises.
2.     To identify how efficient is the management of both enterprises (private driven and private sector enterprises.
3.     To ascertain the factors responsible for productivity/output increase of both enterprises (public and private sector).
4.     To assess the performance evaluation procedure of both enterprises (public and private sector).
5.     To ascertain the possible collapse of both enterprise (public and private sector).
1.4   RESEARCH QUESTIONS
The problem under investigate is centered on the following questions:
1.     Is there any significant different in the performance in terms of profitability between the public and private sector enterprises?
2.    Does the performance of management in terms of efficiency have any significant difference in public and private sector enterprises?
3.    How do public sector and private sector perceive production efficiency?
4.     What measure is put in a place to evaluate the performance of the public and private sector enterprises?
5.     Is there any possible collapse of either the public sector of private sector enterprises?
1.5   HYPOTHESES
H01: There is no significant difference between the performances of public sector. Enterprises and the private sector enterprises in Nigeria.
H02: Public sector enterprises do not perform profitability than the private sector enterprises.
H03: There is possibility of collapse in the private sector enterprise.
1.6   SIGNIFICANCE OF THE STUDY
This study is significantly important to both business organization and studies beneficial in determining are factors responsible for high performance in terms of goal attainment (profitability market share, customers, satisfaction etc). identifying the weakness through performance evaluation not only will boost workers morally for greater productivity but will also strengthen the private sector in their business plans, policy formulation and implementation, the government which constitute mainly the public sector will ascertain the factor responsible for the performance of her enterprises. This will add formulation of better policy and implementation to guide against losses on her commercial enterprises.
1.7   SCOPE OF THE STUDY
This study shall be comparative study of performance of the public and private sector enterprises in Rivers State. Past performance of serious enterprises shall be analyzed from available records (financial statement) to determine their relationship in terms of performance. One public sector enterprises and one private sector enterprises shall be selected and evaluated accordingly.
One of the major limitations that this study intends to face is lack of relevant published research data conducted amongst public sector enterprise in Nigeria. This will reduce the body of theoretical framework of this study.
The attitude of respondent will pose problems. The reason is some respondent may conceal some vital information on the proud that they are confidential. Bu the researcher tends to overcome this limitation by ensuring that the respondents are made to understand that information supplied by them shall be held in strict confidence.
This study intends to expand is scope by conducting a survey on all public sector enterprises in reverse state, but financial constraints and logistical problems will limit the extension of the study to other sector undesirable and uneconomical. In spite of the above limitations the researcher will try to minimize basis so that the objective of the study will be achieved.
1.8   OPERATIONAL DEFINITIONS OF TERMS
Public Sector: Public enterprises are sometimes called state enterprises, they are established by act of parliament (constitutionally in a democratic settings) or character, to oversee its operations proprietary form in a mixed economy such as Niger Public enterprise are involved in economy activities undertaking by the state.  They form what we normally refer to as public sector.
Private Sector: Private sector enterprises (otherwise called commercial sector) are sole proprietors, the partnership and all other private if owned companies and firms which are principal objectives of making profit to the benefit and interest of the owners whose capital is used in operations.
Enterprises: Any corporation board, company or parasternal established by or under any enactment of the federal government or any of its department, ministries or agencies may use or equity interest and shall include partnership, joint venture or may form of business arrangement or organization.


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