Business Inventory Skills Required of Workers in the Face of Fuel Subsidy Removal for Effective Management of Small Scale Businesses Asaba

Business Inventory Skills Required of Workers in the Face of Fuel Subsidy Removal for Effective Management of Small Scale Businesses Asaba

ABSTRACT

This study examined business inventory management skills required of workers in the face of fuel subsidy removal for effective management of small scale businesses in Asaba. Three research questions guided the study. A review of related literature was done under conceptual framework and related empirical studies. A descriptive survey design was adopted for the study. The population of the study comprised of all the six hundred (600) small-scale business owners in Asaba, Delta State while the sample of the study was sixty (60) small-scale business owners in Asaba, Delta State drawn through simple random sampling technique. The instrument used for data collection is a structured questionnaire, which was structured by the researcher and face validated by two experts, one in Business Education and one in Educational Measurement and Evaluation Departments of Federal College of Education (T) Asaba. Sixty (60) copies of the validated instrument were administered to the small scale business owners by the researcher with the help of 2 research assistants and 56 were retrieved and analyzed using mean statistics. The study found that business inventory management skill required of workers in the fuel subsidy removal for effective management of small scale businesses in Asaba are sales report, physical relocation and database count. Based on the findings, it was recommended that business organizations should organize seminars and workshops to educate workers on the business inventory skills they require to effectively manage their businesses and small scale businesses should ensure that competent persons are employed to handle sales report inventories for effectively manage their businesses

CHAPTER ONE

INTRODUCTION

Background to the Study

The success of every business depends on different kinds of skills applied in running. This is because every business has its strategies for growth and expansion. Limited skills or inability to utilize different kinds of skills in running small scale businesses can lead to business failure owing to the fact that the recent removal of fuel subsidy tends to affect every body. But with the use of business inventory skills, small scale business can be able to cope with the challenges that characterized fuel subsidy removal.

Inventory refers to the act of counting or listing items. As an accounting term, inventory refers to all stock in the various production stages and is a current asset. By keeping stock, both retailers and manufacturers can continue to sell or build items (Roy, 2019). Inventory is a major asset for most companies/Businesses. However, while inventory is an asset on the balance sheet, too much inventory can become a practical liability. Inventory is the accounting of items, component parts and raw materials a company uses in production, or sells (Roy, 2019). Business owners practice inventory management in order to ensure that there is enough stock on-hand and to identify when there’s a shortage. Inventory management is the process of monitoring and controlling inventory level and ensuring adequate replenishment in order to meet customer demand. Determining the appropriate inventory level is crucial since inventory ties up money and affects performance (Obed, 2019). Having too much inventory reduces the working capital and impacts the company’s liquidity. On the contrary, having too little inventory leads to stock outs and missed sales which leads to less profit. It becomes clear that management attention should be focused on keeping inventory level somewhere in between, striving for increased customer satisfaction and minimum stock outs while keeping inventory costs as low as possible. According to Breuer (2016), inventory includes all types of stocks. For effective working capital management, inventory needs to be managed effectively. Agara (2017), defined inventory (stock) as the physical units of goods that a business trades on or manufactures for sale. For effective management of inventory, the level of inventory should be such that the total cost of ordering and holding inventory is the least.

          On the other hand, a small scale business is a business that is not large, in terms of its size, scope of operation, financial involvement and the workforce involved. A small scale enterprise is said to be a firm that is independently owned and operated and which is not dominant in its field of operation. In general, we should recognize that a small scale business must have few employees, limited capital investment and small scale operation (Nicholas, 2018). A small scale enterprise is one that is independently owned and operated, and in which the owner is the sole decision maker and the overall boss (Onuoha, 2018). In general, a small scale enterprise is a business in which its owner influences the entire decision-making process and the business has relatively small market share and low capital requirement for its operation. Onuoha added that small scale enterprise has also been described as a small business in which the manager personally performs all the functions of management. Other authors see small scale enterprise as a manufacturing establishment employing less than ten (10) workers and having capital base not exceeding N2 Million Naira. The American small business Act of 1953 also advanced its own definition. The act defined a small scale enterprise as a business which is independently owned and operated and is not dominant in its field of operation. Small scale businesses are those businesses in which manufacturing, providing services, productions are done on a small scale or micro scale. Small scale businesses play an important role in social and economic development of Nigeria (Fabayo, 2019). These businesses do a one-time investment in machinery, plants, and businesses which could be on an ownership basis, hire purchase or lease basis. The small business sector is recognized as an integral component of economic development and a crucial element in the effort to lift countries out of poverty.  Small- Scale businesses are driving force for economic growth, job creation, and poverty reduction in developing countries. They have been the means through which accelerated economic growth and rapid industrialization have been achieved. Furthermore, small scale business has been recognized as a feeder service to large- scale businesses.

The small scale businesses have the potentiality to reduce the rate of unemployment in Nigeria and thus to contribute to the Gross Domestic Product (GDP) and economic growth of the nation (Oshagbemi, 2018). The industrialized nations which have attained technological advancement today owe their present position to the establishment of small scale businesses in the past. The small scale businesses served as pivot for technological take off and self-reliance. In the commercial world, there are numerous kinds of business undertakings. This varies from private enterprises to public corporations. A small scale enterprise is defined as a business which is independent, small in size and often localized. Most small scale businesses are operated by private individuals or group of individuals (Onuoha, 2018). Due to the positive contribution of small scale businesses to the economic development of the nation, there is the increased need for the government to be seriously involved in the support and encouragement of the small scale ventures to enable them realize their full potentials to the benefit of the whole nation.

Fuel subsidy on the other hand is any measure that keeps prices consumers pay for a good or product below market levels for consumers or for producers above market level (Dickson, 2019). Subsidies take different forms. Some subsidies have a direct impact on price. These include grants, tax reductions and exemptions or price controls. Others affect prices or costs indirectly, such as regulations that skew the market in favour of a particular fuel, government-sponsored technology, or research and development. Organization for Economic Co-operation and Development cited in Akpanuko and Ayandele (2018), defines a subsidy as the result of a government action that confers an advantage on consumers or producers, in order to supplement their income or lower their costs. While Majekodunmi (2017), defined subsidy as any measure that keeps prices consumers pay for good or product below market levels for consumers or for producers above market price. Subsidy means benefit given by the government to individuals or businesses whether in form of cash, tax reduction or by reducing the cost of goods and services. The purpose of subsidy is to help individuals and businesses purchase/acquire essential goods and services that they may not be able to afford, under normal condition. Put differently, fuel subsidy is a form of price manipulation whereby the government fixes the pump price of fuel for sale to consumers and pays the retailer the difference between the actual market price and the regulated or official price per litre (Iyobhebhe, 2018, Nwafor, Ogujiuba and Asogwa (2016). The country produces about 2.4 million barrels of crude oil a day, but this is exported abroad. Due to the heavy corruption and many years of neglect, the local refineries are not functional. As a consequence, the country imports over 70% of the petrol used in the country. Empirical evidence shows that Nigeria is the largest producer of crude in Africa, despite this positive development, successive Nigerian governments have been unable to use the oil wealth to significantly reduce poverty, provide basic social and economic services for her citizens’ need (Ering & Akpan, 2018).

The 2023 removal of the fuel subsidy in Nigeria marks a pivotal moment in the nation’s economic, social, and environmental trajectory. The subsidy removal, while driven by the intent to align with global trends of fossil fuel subsidy reduction and enhance fiscal sustainability (Ude, 2023), presents a host of challenges. Foremost among these challenges is the potential exacerbation of socio-economic inequality, given that subsidy removal can lead to increased fuel prices and a subsequent rise in the cost of living. This predicament echoes the concern raised by Ude (2023), emphasizing that while subsidy elimination might hold long-term benefits, it can strain the financial resources of households, particularly those already marginalized. The structural underpinnings of Nigeria’s economy introduce additional layers of complexity. The existing state of the country’s refineries, coupled with a dependency on imported oil, elevates the risk of escalated fuel prices. The delicate balance between encouraging domestic refining capacities and managing consumer costs warrants a detailed examination, considering that the subsidy removal could amplify the challenges posed by an underperforming domestic refining sector. Moreover, the subsidy removal’s impact on public services and infrastructure requires thorough investigation. The anticipated redirection of funds from subsidies to public goods such as healthcare, education, and infrastructure holds the potential for positive transformation. However, the effective utilization of these funds and their equitable distribution must be closely scrutinized. Ensuring that the removal leads to tangible improvements in these areas without causing unintended negative consequences becomes a central concern. For small scale business to strive in the face of fuel subsidy removal, they need business inventory skills such as inventory sales report skills, physical relocation skills and inventory database skills.

Inventory sales report skills refer to the abilities and competencies required to effectively generate, analyze, and interpret reports related to a company’s inventory and sales data (Olaniyi, 2020). These skills are valuable for professionals working in various roles such as inventory management, supply chain management, sales analysis, and business intelligence. It can be seen the ability to collect and analyze data from various sources, including sales transactions, inventory levels, and historical records, to identify trends, patterns, and insights. Proficiency in using software tools such as Microsoft Excel, Google Sheets, or specialized inventory and sales reporting software to create and customize reports. Skill in presenting data using charts, graphs, and visual representations to make complex information more accessible and understandable. A strong understanding of inventory management principles, including reorder points, safety stock, and inventory turnover, to create meaningful inventory reports. Knowledge of sales metrics, such as revenue, sales growth, and customer segmentation, to assess the performance of sales activities. The ability to use historical sales and inventory data to predict future demand and sales trends, aiding in planning and decision-making. Ensuring the accuracy and consistency of data by conducting data validation and cleaning procedures, as well as monitoring for data entry errors. It also entails effective communication skills to convey the findings and insights from inventory and sales reports to relevant stakeholders, such as managers, executives, and team members. Prioritizing tasks and managing time efficiently, especially when dealing with large volumes of data and multiple reporting deadlines. The capacity to identify and address inventory and sales-related issues, whether it’s overstocking, understocking, or slow-moving items, by analyzing data and proposing solutions. Familiarity with database systems, SQL, and data querying techniques to extract and manipulate data for reporting purposes. Understanding the broader business context and how inventory and sales performance impacts the company’s profitability, market positioning, and strategic goals. Staying updated on industry trends, reporting software advancements, and best practices in inventory and sales analysis. Professionals with strong inventory sales report skills play a crucial role in helping organizations make informed decisions, optimize their inventory management processes, and improve their sales strategies.

Similarly, physical relocation of inventory skills” typically refers to the abilities and knowledge required to effectively move and manage inventory within a physical space, such as a warehouse or storage facility (Olaniyi, 2020). These skills are essential for individuals who work in roles related to inventory management, logistics, or supply chain management. Physical relocation also involves safely and efficiently moving inventory items using equipment such as forklifts, pallet jacks, hand trucks, and conveyor systems. Understanding how to organize and optimize the layout of a warehouse or storage area to facilitate the smooth flow of inventory, minimize travel distances, and ensure efficient storage. It could also mean using inventory management systems and software to track the location and quantities of items within the facility. Adhering to safety guidelines and protocols to ensure the well-being of employees and the protection of inventory (Disckson, 2019). Efficiently retrieving items from storage, preparing them for shipment, and packing them securely to avoid damage during transportation. Monitoring inventory levels and restocking when necessary to maintain adequate supply levels. Effective communication with team members and supervisors is essential for coordinating inventory relocation activities. Being able to troubleshoot issues that may arise during inventory relocation, such as inventory discrepancies, damaged goods, or equipment malfunctions. Maintaining a well-organized inventory system, which includes labeling, categorizing, and arranging items logically for easy retrieval. These skills are crucial for individuals working in logistics, warehouse management, and any role that involves handling and moving inventory. Effectively managing inventory and its physical relocation can significantly impact a company’s overall efficiency, customer satisfaction, and bottom line.

On the other hand, inventory database skills refer to the knowledge and abilities required to effectively manage and work with databases that store information about a company’s or organization’s inventory (Ronald, 2021). These skills are important for businesses, especially those involved in manufacturing, retail, logistics, and supply chain management, as they rely heavily on accurate inventory data to operate efficiently. It involves proficiency in using database management systems like MySQL, PostgreSQL, Oracle, Microsoft SQL Server, or NoSQL databases to store and retrieve inventory data. Inventory database requires understanding how to design the database schema and data structures to accurately represent inventory items, categories, quantities, locations, and other relevant attributes. The ability to accurately and efficiently enter and update inventory data in the database, including adding new items, adjusting quantities, and marking items as sold or removed, the skills in creating and executing database queries to extract information from the inventory database, generate reports, and analyze data for decision-making, understanding the principles of database normalization to eliminate data redundancy and maintain data integrity within the inventory database. Knowledge of best practices for securing the inventory database to protect sensitive information and prevent unauthorized access. Knowing how to implement regular data backup procedures and recovery processes to prevent data loss in case of system failures or disasters. Familiarity with inventory management software applications and their integration with the database to streamline operations. Knowledge of technologies used for inventory tracking and how to integrate them with the database for real-time inventory updates. Inventory database skills are valuable for professionals in roles such as inventory managers, supply chain analysts, database administrators, and business analysts who deal with inventory-related data. These skills contribute to better inventory accuracy, cost control, and overall operational efficiency.

Considering the importance of inventory management, hence the need to ascertain the Business Inventory management Skills Required of Workers in the Face of Fuel Subsidy Removal for Effective Management of Small Scale Businesses in Asaba.

Statement of the Problem 

The importance of business inventory management skills cannot be underestimated in business education students because business education students are seen as the bedrock of every organization and they are to possess the required business inventory management skills within an organization they found themselves after graduation. The acquisition of this business inventory management skills by business education students is also important to them because with the knowledge, they can establish a small scale business for themselves while in school and after graduation. Despite the importance of these business inventory management skills to business education students, some students failed to avail themselves from acquiring these skills which made them not to effectively manage a small scale business after graduation.

However, despite the significant role of business inventory skill, its acquisition and effective utilization in the management of small scale industries remains a question begging for answers this is because of the rate at which businesses are failing in Asaba due to the sudden fuel subsidy removal.

It is against this background that this study is carried out to Business Inventory management Skills Required of Workers in the Face of Fuel Subsidy Removal for Effective Management of Small Scale Businesses in Asaba.

Purpose of the Study 

The broad purpose of this study is to examine the Business Inventory management Skills Required of Workers in the Face of Fuel Subsidy Removal for Effective Management of Small Scale Businesses in Asaba.  Specifically, the study seek to:

1. Determine inventory sales report skills required of workers in the face of fuel subsidy removal for effective management of small scale business.
2. Examine physical relocation of inventory skills required of workers in the face of fuel subsidy removal for effective management of small scale business.
3. To find out inventory database counts skills required of workers in the face of fuel subsidy removal for effective management of small scale business.

Research Questions

In order to attain the objectives of this study, the following research  questions were formulated for the study:

1. What are the inventories sales report skills required of workers in the face of fuel subsidy removal for effective management of small scale business?
2. What is the physical relocation of inventory skills required of workers in the face of fuel subsidy removal for effective management of small scale business?
3. What is the inventory database counts required of workers in the face of fuel subsidy removal for effective management of small scale business?

Significance of the Study 

This study could be of immense benefit to business education students, small scale business owners/entrepreneurs, curriculum planners, society at large and other researchers.

For students, the study could help them gain insights into how economic and policy changes affect businesses in practice, helping them understand the importance of staying informed about current events and their potential impact on business operations. The study can shed light on the specific skills and strategies required to manage inventory effectively during times of increased fuel costs. Students can learn about inventory management, demand forecasting, and cost optimization, which are essential skills for business students and aspiring entrepreneurs. It can help students develop a deeper understanding of macroeconomic factors and their implications on the microeconomic level. They can learn how government policies, such as fuel subsidy removal, can lead to price increases and how businesses need to adapt to these changes. The study may identify new business opportunities that arise due to the fuel subsidy removal. This could inspire entrepreneurial students to explore ventures related to energy efficiency, transportation alternatives, or innovative inventory management solutions.

For small scale businesses, the study would help them adapt to these changes by optimizing their inventory management practices, reducing waste, and finding cost-effective ways to handle inventory. Understanding which skills are essential for managing inventory efficiently in a post-subsidy removal environment can lead to cost savings, which is crucial for the sustainability of small businesses. By having the right inventory management skills, small businesses can enhance customer satisfaction and loyalty, even during times of economic change. Small businesses that can adapt and thrive in a changing economic landscape have a competitive advantage over those that struggle to manage their inventory effectively. The study can identify the skills that give businesses this edge and help them stay ahead of the competition. The study can highlight how effective inventory management can positively impact cash flow, enabling small businesses to invest in growth and expansion. Understanding the skills required for inventory management in a changing regulatory environment is crucial.

For researchers, such a study can provide valuable insights into the specific skills and knowledge that workers in small-scale businesses need when faced with economic changes like fuel subsidy removal. This information can be directly applied to the development of training programs and curricula aimed at preparing individuals for employment or entrepreneurship in these circumstances. Researchers can help quantify the potential economic impact of such skills and guide policymakers in creating programs to support these businesses during challenging times. Educational researchers can use the findings of this study to design and enhance educational programs, courses, and training materials that cater to the specific needs of workers and entrepreneurs in small-scale businesses. This can lead to more relevant and effective educational content. Researchers can make recommendations based on their findings, contributing to informed policymaking. Educational researchers can assess whether the current educational system adequately prepares individuals for the challenges posed by the removal of fuel subsidies. If gaps are identified, they can work on aligning educational content with real-world needs.

For the field of Business Education, this study addresses a current and practical issue – the removal of fuel subsidies. As fuel prices directly impact transportation and operational costs for businesses, understanding the skills required to manage inventory effectively in such an environment is critical. The findings of this study can inform the development or modification of business education curricula. Business schools and vocational training programs can use this information to update their course content to ensure that graduates are equipped with the necessary skills to navigate the challenges posed by changes in external economic factors. The study can help identify gaps in the skillset of workers in small-scale businesses when it comes to managing inventory during times of economic change. This information can be used to tailor training and development programs to address these gaps. This study can help educators teach business owners and employees how to adapt and thrive in dynamic economic environments. The findings may also have policy implications.

Scope of the Study

This study is focused on Business inventory management skills required of workers in the face of fuel subsidy removal for effective management of small scale Businesses in Asaba. The variables of interest are inventory sales report skills, physical relocation of inventory skills and inventory database counts. The respondents of the study are small scale business owners in Asaba, Delta State.

Pages:  78

Category: Project

Format:  Word & PDF        

Chapters: 1-5

Material contains Table of Content, Abstract and References.