CHAPTER THREE

METHODOLOGY

3.1 INTRODUCTION

This chapter describes the method and procedures that was used for the study. The
procedures are discussed under the following sub-headings: research design, population of
the study, sampling procedure and sample size, research instrument, validity and reliability of
research instrument, data collection procedure, and method of data analysis.

3.2 RESEARCH DESIGN

The research design is exploratory survey. It involves the collection of data in order to
answer questions concerning the current status of the problem (Gay, 2005). This has
presented facts concerning the nature and status of a situation, as it exists at the time of the
study. It is also concerned with relationships and practices that exist, beliefs and processes
that are ongoing, effects that are being felt, or trends that are developing. In addition, this
approach tries to explore present situation, events or systems based on the impressions
or reactions of the respondents of the research (Creswell, 2009). The major tool used
in collecting data in this type of research is the questionnaire, since this study intends
to find out the relationship between business owners attitude and business survival.

3.3 POPULATION OF THE STUDY

Sekaran (2005) defines a population as the entire group of people, events or things of
interest that the researcher wishes to investigate, while according to Cooper and Shindler
(2006) a population is the total collection of elements about which you wish to make some
inference. The target population is the population to which a researcher wants to generalize
the results of study (Mugenda & Mugenda, 2003). The population of this study is made up of
all the employees of SMEs in Ilorin metropolis, Kwara State. It is an infinite population due
to the unstructured SMEs in the State as majority of them is not registered with the
government.

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3.4 SAMPLING DESIGN

Sampling is the selection of respondents who represent the target population in the
study (Mugenda & Mugenda, 2003). Convenience sampling was used to select samples for
the study by visiting the accessible SMEs in the metropolis. In all, one hundred (100)
employees of SMEs were expected to participate in the survey across the metropolis to
represent the infinite population.

3.5 RESEARCH INSTRUMENT

Questionnaire was the instrument used for data collection in this research. The
instrument was divided into six (6) sections (Sections A - F). Section A which captured
respondent’s demographic characteristics was measured with appropriate variables. The
independent construct in this study is ‘business owners’ attitude’ which were captured in
relation to the dependent variable ‘business survival’ as captured under sections B – F was
measured using a 5-point scale of Likert (Strongly agree, agree, undecided, disagree and
strongly disagree) to determine either the effect or correlations with responses to the survey.
A response was chosen by the respondent for each question, from a scale of 5 (strongly
agree) through to 1 (strongly disagree). This method of gauging the respondent’s views on a
subject created a solid support for the study

3.6 VALIDITY AND RELIABILITY OF RESEARCH INSTRUMENT

3.6.1 VALIDITY OF RESEARCH INSTRUMENT

Validity is often considered to be the single most important attribute of a measuring

instrument (Cooper and Schindler, 2006), as an instrument should measure what it is
supposed to measure. For instance, kilometer is an invalid measure of height. According to
Malhotra (1999), validity is the extent to which differences in observed scale scores reflect
true differences among subjects on the characteristic being measured, rather than systematic
or random errors. Perfect validity requires that there be no measurement error.

There are different ways in which validity can be assessed; content validity; criterion
validity; nomological validity; construct validity; convergent validity; and discriminant
validity. This study adopts construct validity because it will establish fact especially for this
type of study (social research). Construct validity addresses the question of what construct or

2
characteristic the scale is measuring. It seeks to answer theoretical questions of why a scale
works and what deductions can be made concerning the theory of the basic scale. Therefore
for this study, sufficient proof of content and criterion-related validity was established on the
basis of the literature review.

3.6.2 RELIABILITY OF RESEARCH INSTRUMENT

Collis and Hussey (2003) define reliability of measuring instrument when the research
results emanating from these instruments can be repeated. It is the degree to which measures
are free from error and therefore yield consistent results (Zikmund, 2000). Cronbach's alpha
is the most widely used measure of the reliability of instruments in the social sciences. It
indicates the extent to which a set of test items can be treated as measuring a single latent
variable (Malhotra, 1999). It is expressed in terms of a reliability coefficient. Although there
is no prescribed standard, a scale that renders a reliability coefficient of above 0.70, is usually
regarded as a reliable instrument (Nunnally and Bernstein, 1994).

A reliability coefficient of 0.80 means that 80 percent of the variance in observed

scores (the actual scores obtained on the measure) is due to the variance in the true scores
(the true amount of the trait possessed by the respondent). In other words, the score obtained
from the measuring instrument is an 80 percent true reflection of the underlying trait
measured.

3.7 DATA COLLECTION PROCEDURE

The following measure instruments were adopted to ensure adequate validity and
reliability of data collected for the purpose of this study. The use of questionnaire guide to
obtain initial data from the management of the organization was applied.

3.8 METHODS OF DATA ANALYSIS

The research questions and hypotheses formulated for the study guided the process of
Data analysis. The options selected was Likert 5- Scale (Strongly agree, agree, undecided,
disagree and strongly disagree) stated on the instrument were graded and the frequency table
and percentage were used to present them. The hypotheses were analyzed with Regression
and Pearson Product Moment Correlation Coefficient (r-test).

3
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

This chapter presents data, analyze data and interpret the data collected through
questionnaire from the employees of SMEs in Ilorin metropolis, Kwara State, Nigeria.
Results from data collected were presented in frequencies and cumulative percentages in
summarized tables while the hypotheses were tested for with appropriate statistical methods.
The chapter covers the questionnaire response rate, demographic data of respondents, data
analysis of items on the questionnaire.

4.2 Response Rate

Table 4.1: Summary of Questionnaire Completed and Analysed from Respondents

S/N Selected SMEs Questionnaire Completed Copies of

Distributed Questionnaire Questionnaire

Used

1 Small Business 50 49 42

2 Medium Business 50 43 37

Total 100 92 79

Source: Researcher’s Analysis, 2020.

Table 4.1 shows that out of the one hundred (100) questionnaires distributed to the employees
of SMEs for the study, only ninety-two (92) were returned while only seventy-nine (79) were
found usable for the analysis. The major reason for the inability of the researcher to retrieve
all the distributed questionnaires was due to lack of interest of employees to participate in the
study.

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4.3 DEMOGRAPHIC CHARACTERISTICS OF THE RESPONDENTS

The study considered demographic data of the respondents to provide characteristics of the
respondents. This was the gender, age group, marital status, highest educational qualification,
and years of working in SMEs.

4.3.1 Gender of Respondents

The gender of the respondents was categorized into either male or female.

Table 4.2: Distribution of the Respondents by Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 64 81.0 81.0 81.0

Female 15 19.0 19.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

The table on the distribution of respondents by gender shows that sixty-four of the
respondents (81.0%) were male while fifteen of the respondents (19%) were female. This
implies that there were more male employees of SMEs than females that were involved in
this survey.

5
4.3.2 Age Group of Respondents

The age group of the respondents was also studied as part of the demographic data and was
categorized into: 20 – 34 years, 35 – 49 years, 50 - 64 years, 65 year above.

Table 4.3: Distribution of the Respondents by Age Group

Frequency Percent Valid Percent Cumulative

Percent

20 - 34 years 19 24.1 24.1 24.1

35 – 49 years 10 12.7 12.7 36.8

Valid 50 – 64 years 32 40.5 40.5 77.3

65 years above 18 22.7 22.7 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

For the age group of employees involved in the study, nineteen of the respondents (24.1%)
were between 20 and 34 years, ten of the respondents (12.7%) were between 35-49 years,
thirty-two of the respondents (40.5%) were between 50-64 years while eighteen of the
respondents (22.7%) were 65 years above. This shows that all the possible age groups were
represented.

6
4.3.3 Marital Status

Marital status of respondents was classified along single, married and divorced:

Table 4.4: Distribution of the Respondents by Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 52 65.8 65.8 65.8

Married 27 34.2 34.2 100.0

Divoced 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On the marital status of the respondents, fifty-two of the respondents (65.8%) were single;
twenty-seven of the respondents (34.2%) were married while none of the respondents was
divorced. It can be deduced that majority of the respondents were single while reasonable
numbers were married.

7
4.3.4 Highest Educational Qualification of Respondents

Highest educational qualifications of respondents at the time of this survey was studied and
categorized as follows:

Table 4.5: Distribution of the Respondents by highest educational qualifications

Frequency Percent Valid Percent Cumulative

Percent

O’Level 19 24.1 24.1 24.1

ND/NCE 10 12.7 12.7 36.8

Valid HND/BSc. 32 40.5 40.5 77.3

Masters/Others 18 22.7 22.7 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

The respondents’ highest educational qualification shows that nineteen respondents

(24.1%) were O’Level certificate holders, ten respondents (12.7%) holds either National
Diploma or NCE, thirty-two respondents (40.5%) were Higher National Diploma or Bachelor
of Science degree holders, while eighteen of the respondents (22.7%) has Masters Degree and
others.

8
4.4.5 Respondents Years of working in SMEs

Years in the service of SMEs was surveyed and categorized as follows:

Table 4.6: Distribution of the Respondents by Years in the Employment of SMEs

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 1year 15 19.0 19.0 19.0

1-5 years 36 45.6 45.6 64.6

6 – 10 years 28 35.4 35.4 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Respondents’ years in the employment of SMEs shows that fifteen respondents (19%)
have been engaged for less than 1 year, thirty-six of the respondents (45.6%) have been in the
employment of SMEs for between 1-5 years while twenty-eight of the respondents (35.4%)
have been in the employment of SMEs for between 6-10 years or more. This feedback on the
years in the employment of SMEs is very relevant to this study because of the issues under
study.

9
4.4 DATA PRESENTATION AND ANALYSIS OF RESEARCH QUESTIONS

4.4.1 Business diversification

The respondents were asked to indicate whether the business have diversified activities in the
past

Table 4.7: Distribution of responses on business diversification

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 32 40.5 40.5 40.5

Agreed 47 59.5 59.5 100.0

Undecided 0 0.0 0.0 100.0

Valid
Disagreed 0 0.0 0.0 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On whether business diversification have been experienced by employees, thirty-two

respondents (40.5%) strongly agreed with the statement and forty-seven respondents (59.5%)

agreed with the same view while none of the respondents strongly disagreed, disagreed nor

undecided with the view. It can be inferred that employees of SMEs have experienced

business diversification.

10
4.4.2 Changes in business mode of operations

The respondents were asked to indicate whether there were changes in business mode
of operations before.

Table 4.8: Distribution of responses on changes in business mode of operations

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 39 49.4 49.4 49.4

Agreed 31 39.2 39.2 88.6

Undecided 7 8.9 8.9 97.5

Valid
Disagreed 1 1.3 1.3 98.8

Strongly Disagree 1 1.3 1.3 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.8 thirty-nine (49.4%) strongly agree that changes have occurred in their
mode of operations, thirty-one respondents (39.2%) also agree with this, seven respondents
(8.9%) were undecided, two respondents (1.3%) disagreed and strongly agreed with this
view respectively. This confirms that changes have occurred in business mode of operations
in SMEs.

11
4.4.3 Business transformation of activities

The respondents were asked to indicate whether the business has transformed her activities in
the past

Table 4. 9: Distribution of responses on business transformation of activities

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 42 53.2 53.2 53.2

Agreed 35 44.3 44.3 97.5

Undecided 2 2.5 2.5 100.0

Valid
Disagreed 0 0.0 0.0 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Based on table 4.9, forty-two respondents (53.2%) strongly agreed that transformation
has been witnessed in their business activities, thirty-five respondents (44.3%) agreed with
this while two respondents (2.5%) were undecided on this view. On the contrary, none of the
respondents either disagree or strongly disagree with the view. With the majority view (97.5),
it can be deduced that SMEs have experienced transformation of business activities. This
might have been imposed by operating environment.

12
4.4.4 Existence of new product/service in the business

The respondents were asked to indicate whether a new product/service exist in the business.

Table 4.10: Distribution of responses on existence of new product/service

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 39 49.4 49.4 49.4

Agreed 31 39.2 39.2 88.6

Undecided 7 8.9 8.9 97.5

Valid
Disagreed 1 1.3 1.3 98.8

Strongly Disagree 1 1.3 1.3 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.10 thirty-nine (49.4%) strongly agree that they have seen new product
and services in their SMEs, thirty-one respondents (39.2%) also agree with this, seven
respondents (8.9%) were undecided, two respondents (1.3%) disagreed and strongly agreed
with this view respectively. This confirms that SMEs have been introducing new products
and services. This might have been attributed to entrepreneurial mindset of business owner
or reality around.

13
4.4.5 Employer communicates openly and honestly

The respondents were asked about whether their employer communicates openly and clearly.

Table 4. 11: Distribution of responses on whether employer communicates openly and

clearly.

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 35 44.3 44.3 44.3

Agreed 41 51.9 51.9 96.2

Undecided 2 2.5 2.5 98.7

Valid
Disagreed 1 1.3 1.3 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.11, thirty-five respondents (44.3%) strongly agreed that their employer
communicate openly and fairly, forty-one respondents (51.9%) also agreed with this view
while only two respondents (2.5%) were undecided on this view. On the contrary, only one
respondent (1.3%) and none of the respondents disagree and strongly disagreed respectively
on the view. It is inferred that SMEs owners communicate openly and fairly with their
employees.

14
4.4.6 Fair treatment

The respondents were asked to indicate whether their employer treat them fairly.

Table 4.12: Distribution of responses on whether employer treat them fairly

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 17 21.4 21.4 21.4

Agreed 33 41.8 41.8 63.2

Undecided 4 5.1 5.1 68.3

Valid
Disagreed 18 22.8 22.8 91.1

Strongly Disagree 7 8.9 8.9 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Based on data presented in table 4.12, seventeen respondents (21.4%) strongly agreed
while thirty-three respondents (41.8%) agreed with the view that they have enjoyed fair
treatment from their respective employers. Four respondents (5.1%) were undecided while
eighteen respondents (22.8%) disagreed and seven respondents (8.9%) strongly disagreed
respectively. Considering the spread of the respondents, it is overt that SMEs owners treat
their employees fairly.

15
4.4.7 Consideration of decision effect on employees

The respondents were asked to indicate whether whenever business owner takes decision,
S/he consider the effect on employees.

Table 4. 13: Distribution of responses for consideration of decision effect on employees

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 47 59.5 59.5 59.5

Agreed 32 40.5 40.5 100.0

Undecided 0 0.0 0.0 100.0

Valid
Disagreed 0 0.0 0.0 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Table 4.13 shows that thirty-two respondents (40.5%) and forty-seven respondents
(59.5%) agreed and strongly agree respectively on the fact that their employers considers the
effect of decision on them before taking such decisions. It is overt that SMEs owners are
mindful of the implications on their employees.

16
4.4.8. Employer trust

The respondents were asked to indicate whether they have enjoyed tremendous trust from
their employer.

Table 4. 14: Distribution of responses for employer trust

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 16 20.3 20.3 20.3

Agreed 55 69.6 69.6 89.9

Undecided 6 7.6 7.6 97.5

Valid
Disagreed 2 2.5 2.5 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.14, fifty-five respondents (69.6%) and sixteen respondents (20.3%)
agreed and strongly agreed respectively that they have always enjoy their employer trust and
six respondents (7.6%) were undecided on this. On the contrary, none of the respondents
strongly disagreed and two respondents (2.5%) disagreed. It is obvious from this feedback
that trust exists between SMEs owners and their employees. This is unavoidable for business
survival.

17
4.4.9 Business Challenging

The respondents were asked about whether business is challenging

Table 4. 15: Distribution of responses for business challenging

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 35 44.3 44.3 44.3

Agreed 41 51.9 51.9 96.2

Undecided 2 2.5 2.5 98.7

Valid
Disagreed 1 1.3 1.3 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.15, thirty-five respondents (44.3%) strongly agreed that their business is
challenging, forty-one respondents (51.9%) also agreed with this view while only two
respondents (2.5%) were undecided on this view. On the contrary, only one respondent
(1.3%) and none of the respondents disagree and strongly disagreed respectively on the view.
It is inferred that SME businesses are very challenging and will require creativity to survive.

18
4.4.10 Business owner encourages employees’ creativity

The respondents were asked to indicate whether business owner encourages creativity.

Table 4. 16: Distribution of responses on employees creativity

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 36 45.6 45.6 45.6

Agreed 8 10.1 10.1 55.7

Undecided 0 0.0 0.0 55.7

Valid
Disagreed 6 7.6 7.6 63.3

Strongly Disagree 29 36.7 36.7 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On employee creativity, thirty-six respondents (45.6%) strongly agreed that their

employers encourage their creativity, eight respondents (10.1%) also agreed with this view
while none of the respondent was undecided. On the contrary, six respondents (7.6%)
disagreed and twenty-nine respondents (36.7%) strongly disagree with this view.

19
4.4.11 Employer always looking for a new way of doing things in the business

The respondents were asked to indicate whether employer is always looking for a new
way of doing things in the business

Table 4. 17: Distribution of responses on whether employer desire new ways of doing
things in business

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 52 65.8 65.8 65.8

Agreed 21 26.6 26.6 92.4

Undecided 3 3.8 3.8 96.2

Valid
Disagreed 1 1.3 1.3 97.5

Strongly Disagree 2 2.5 2.5 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Table 4.17 revealed that twenty-one respondents (26.6%) and fifty-two respondents
(65.8%) agreed and strongly agree respectively on employers looking for better ways to do
things in the business. Three respondents (3.8%) were undecided while two respondents
(2.5%) strongly disagreed and one respondent disagreed with the issue respectively. From the
feedback, it is obvious that SMEs owners’ desire business improvement perhaps as a way to
survive in business.

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4.4.12 Business owner is an entrepreneur

The respondents were asked to indicate whether their business owner is an entrepreneur.

Table 4. 18: Distribution of responses on whether their business owner is an

entrepreneur

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 37 46.8 46.8 46.8

Agreed 32 40.5 40.5 87.3

Undecided 3 3.8 3.8 91.1

Valid
Disagreed 5 6.3 6.3 97.4

Strongly Disagree 2 2.5 2.5 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Table 4.18 shows that thirty-two respondents (40.5%) and thirty-seven respondents
(46.8%) agreed and strongly agreed respectively on their business owner to be an
entrepreneur while three respondents (3.8%) were undecided. On the contrary, two
respondents (2.5%) strongly disagreed while five respondents (6.3%) and three respondents
(3.8%) disagreed with this view. With these positions, it can be concluded that Surveyed
SMEs can into existence as an offshoot of entrepreneurial act of business owners.

21
4.4.13 Business owner is different from the business

The respondents were asked to indicate whether the business owner is different from the
business.

Table 4.19: Distribution of responses on business owner different from business

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 32 40.5 40.5 40.5

Agreed 47 59.5 59.5 100.0

Undecided 0 0.0 0.0 100.0

Valid
Disagreed 0 0.0 0.0 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On whether business owner is different from business, thirty-two respondents (40.5%)

strongly agreed with the statement and forty-seven respondents (59.5%) agreed with the same
view while none of the respondents strongly disagreed, disagreed nor undecided with the
view. It can be inferred that surveyed SMEs perceived their business owner to be different
from the business.

22
4.4.14: Spending part of the business income on family issues

The respondents were asked to indicate whether their employer spends part of the business

income on family issues

Table 4.20: Distribution of responses on whether employer spend part of the business
income on family issues

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 17 21.4 21.4 21.4

Agreed 33 41.8 41.8 63.2

Undecided 4 5.1 5.1 68.3

Valid
Disagreed 18 22.8 22.8 91.1

Strongly Disagree 7 8.9 8.9 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Based on data presented in table 4.20, seventeen respondents (21.4%) strongly agreed
while thirty-three respondents (41.8%) agreed with the view that on SMEs owner spending
part of the business on family. Four respondents (5.1%) were undecided while eighteen
respondents (22.8%) disagreed and seven respondents (8.9%) strongly disagreed respectively.
Considering the spread of the respondents, it is overt that SMEs owners’ spend money in
business for famility activities. This contradicts the earlier position of the respondents which
claimed that SMEs owner are different from the business. Such distinction is exclude
financial probity but may be in other areas.

23
4.4.15. Business owner fond of collecting cash from sales without repayment

The respondents were asked to indicate whether the business owner was fond of collecting
cash from sales without repayment.

Table 4. 21: Distribution of responses for business owner fond of collecting cash for
personal use

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 16 20.3 20.3 20.3

Agreed 55 69.6 69.6 89.9

Undecided 6 7.6 7.6 97.5

Valid
Disagreed 2 2.5 2.5 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.21, fifty-five respondents (69.6%) and sixteen respondents (20.3%)
agreed and strongly agreed respectively with business owner fond of collecting money from
business without repayment and six respondents (7.6%) were undecided on this. On the
contrary, none of the respondents strongly disagreed and two respondents (2.5%) disagreed.
It is obvious that there is still no different between business owner and the business. This is
poor financial management.

24
4.4.16 Business is out of stock and there is no money to restock

The respondents were asked to indicate whether the business is out of stock and there is no
money to restock.

Table 4. 22: Distribution of responses on whether the business is out of stock and there
was no money to restock

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 36 45.6 45.6 45.6

Agreed 8 10.1 10.1 55.7

Undecided 0 0.0 0.0 55.7

Valid
Disagreed 6 7.6 7.6 63.3

Strongly Disagree 29 36.7 36.7 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On out of stock, thirty-six respondents (45.6%) strongly agreed that they have been
out of stock due to cash crunch, eight respondents (10.1%) also agreed with this view while
none of the respondent was undecided. On the contrary, six respondents (7.6%) disagreed and
twenty-nine respondents (36.7%) strongly disagree with this view. This implied that partly
financial indiscipline of SMEs owners’ is partly responsible for such experience and other
factors outside it.

25
4.4.17 Customers are top priority

The respondents were asked to indicate whether customers are top priority.

Table 4. 23: Distribution of responses on whether customers are top priority

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 37 46.8 46.8 46.8

Agreed 32 40.5 40.5 87.3

Undecided 3 3.8 3.8 91.1

Valid
Disagreed 5 6.3 6.3 97.4

Strongly Disagree 2 2.5 2.5 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Table 4.23 shows that thirty-two respondents (40.5%) and thirty-seven respondents
(46.8%) agreed and strongly agreed respectively on customers as top priority of their business
while three respondents (3.8%) were undecided. On the contrary, two respondents (2.5%)
strongly disagreed while five respondents (6.3%) and three respondents (3.8%) disagreed
with this view. With these positions, it can be concluded that customers are top issues in
SMEs.

26
4.4.18 Increase in customers over the years

The respondents were asked to indicate whether the business have recorded increased
customers over the years.

Table 4. 24: Distribution of responses on whether customers have increased over the
years

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 52 65.8 65.8 65.8

Agreed 21 26.6 26.6 92.4

Undecided 3 3.8 3.8 96.2

Valid
Disagreed 1 1.3 1.3 97.5

Strongly Disagree 2 2.5 2.5 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

Table 4.24 revealed that twenty-one respondents (26.6%) and fifty-two respondents
(65.8%) agreed and strongly agree respectively on customers increase over the years. Three
respondents (3.8%) were undecided while two respondents (2.5%) strongly disagreed and one
respondent disagreed with the issue respectively. From the feedback, it is obvious that
customers of the sampled SMEs have increased over the years.

27
4.4.19 Customers have stopped patronizing due to owners behavior

The respondents were asked to indicate whether many customers have stopped patronizing us
because of owner’s behaviour.

Table 4.25: Distribution of responses on customers patronage and owners behaviour

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 1 1.3 1.3 1.3

Agreed 1 1.3 1.3 2.6

Undecided 7 8.9 8.9 11.5

Valid
Disagreed 31 39.2 39.2 50.7

Strongly Disagree 39 49.4 49.4 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

From table 4.25 thirty-nine (49.4%) strongly disagree that many customers have
stopped patronage because of owners behavior, thirty-one respondents (39.2%) also disagree
with this, seven respondents (8.9%) were undecided, two respondents (1.3%) agreed and
strongly agreed with this view respectively. This confirms that if patronage has dropped it
must have been due to other issues and not owners behavior.

28
4.4.20 Majority of customers have kept patronizing based on owners personality

The respondents were asked to indicate whether majority of our customers have kept
patronizing based on owners personality

Table 4.26: Distribution of responses on patronage and owners personality

Frequency Percent Valid Percent Cumulative

Percent

Strongly Agreed 32 40.5 40.5 40.5

Agreed 47 59.5 59.5 100.0

Undecided 0 0.0 0.0 100.0

Valid
Disagreed 0 0.0 0.0 100.0

Strongly Disagree 0 0.0 0.0 100.0

Total 79 100.0 100.0

Source: Field Survey, 2021.

On whether customers have kept patronizing based on owners personality, thirty-two

respondents (40.5%) strongly agreed with the statement and forty-seven respondents (59.5%)
agreed with the same view while none of the respondents strongly disagreed, disagreed nor
undecided with the view. It can be inferred that customers have kept patronizing the business
due to owner personality.

29
4.5 Test of Hypotheses

Hypothesis 1: H0: Business owners’ negative risk-taking attitude will lead to business
survival

Hi: Business owners’ positive risk-taking attitude will lead to business

survival

Table 4.5.1 Perception of respondents on whether negative risk taking of business

owners’ or positive risk taking attitude of business owner lead to business survival

Sum of Squares df Mean Square F Sig.

Positive risk
456.21 66 10.22 6.11 .000
taking

Negative risk
121.10 10 52.01
taking

Total 78492.33 76

The result as presented in Table 4.27 showed that positive risk taking attitude of
business owners would lead to business survival than negative risk taking attitude of business
owners. This implied that the null hypothesis is rejected while the alternate is accepted that is
business owners’ positive risk-taking attitude will lead to business survival.

Hypothesis 2: H0: Business owners’ attitude towards employees does not have effect on
business survival

30
 Hi: Business owners’ attitude towards employees has effect on business
survival

Table 4.28: Presents the result of effect of business owners’ attitude towards employees
on business survival

Unstandardized Standardized T Sig

Coefficient Coefficient

B Std Error Beta

Constant .385 .100 3.870 .000

Business owners .513 .111 .601 4.443 .000

attitude towards
employees

Predictors: (Constant) Business owners’ attitude towards employees

Dependent Variable: Business survival

The results in Table 4.28 show that business owners’ attitude towards employees had
a statistically significant effect on business survival. This is shown in the standardized
regression coefficient (β) value of business owners’ attitude towards employee which was
β=.601 which was highly statistically significant (p-value=.000). The null hypothesis that
business owners’ attitude towards employees does not have effect on business survival does
not hold. Therefore, the alternate hypothesis which states that business owners’ attitude
towards employees have effect on business survival is here by accepted.

Hypothesis 3: H0: There is no significant relationship between entrepreneurial attitude of

business owners and business survival

Hi: There is a significant relationship between entrepreneurial attitude of

business owners and business survival

Table 4.29: Presents the result of the relationship between entrepreneurial attitude of
business owners and business survival

31
Table 4.29 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .622(a) .565 .371 .5122

a. Predictor: (Constant), Entrepreneurial attitude of business owners

This result demonstrates that there is a strong relationship between entrepreneurial

attitude of business owners and business survival and thus, support alternate hypothesis H3
which proposed that there is a significant relationship between entrepreneurial attitude of
business owners and business survival.

Hypothesis 4: H0: There is no significant relationship between business owners’ financial

management attitude and business survival

Hi: There is a significant relationship between business owners’ financial

management attitude and business survival

Table 4.30: Presents the result of the relationship between business owners’ financial
management attitude and business survival.

Table 4.30 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .701(a) .451 .353 .6375

a. Predictor: (Constant), Business owners’ financial management attitude

This result demonstrates that there is a strong relationship between business owners’
financial management attitude and business survival and thus, support alternate hypothesis H4
which states that there is a significant relationship between business owners’ financial
management attitude and business survival.

32
Hypothesis 5: H0: Business owners’ attitude towards customers does not determines
business survival

Hi: Business owners’ attitude towards customers determines business survival

Table 4.31: Presents the result between business owners’ attitude towards customers
and business survival

Table 4.31 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .656(a) .434 .441 .5147

a. Predictors: (Constant), Business owners’ attitude towards customers

This result shows that business owners attitude towards contribute to business
survival and thus, supports alternate hypothesis (H5). The interpretation of this finding is that
business owners’ attitude towards customers determines business survival. Therefore,
business owners need to be mindful of their relationship with customers. The relationship
must be cordial and positive

4.6 Discussion of Findings

The results of the analysis have been successfully tested empirically

relationship between business owners attitude and business survival. The first result revealed
that positive risk taking attitude of business owners’ will lead to business survival while on
the contrary, the negative risk taking attitude of business owners’ will not. However, it is
obvious that some of the owners were not involved in the management of the businesses. The
concept of business owner-manager is re-echoed here. This finding was support the position

33
of Fatoki (2014) which pointed out the attitude of entrepreneurs towards risk taking as
determinant of business survival. Similarly, the study established that business owners’
attitude towards employees have effect on business survival. This view support the claim of
Waggoner (2013) that poor attitude of employer towards employees would lead to business
failure as well as that of Vickers, James, Smallbone, and Baldock (2005) which argued that
paternalistic attitude of business owners towards employees will go a long way to sustain
business.

Furthermore, the finding of the study shows that there was a significant relationship
between entrepreneurial attitude of business owners and business survival. This corroborate
the findings of Bird and Schjoedt (2009) and Kuratko, Ireland, Covin and Hornsby (2005)
which established that entrepreneurial attitude of business owners contribute to the survival
of businesses especially the SMEs.
Another finding shows that business owners’ financial management attitudes
significantly contribute to business survival. This was the position of Abanis, Arthur and
Derick (2013) when they reported that the unbecoming attitude of business owners to
financial management contributes immensely to business failure.
Conclusively, it was further established that business owners’ attitude towards
customers determines business survival. This position agrees with the findings of Fatoki
(2014) which established that poor attitudes of business owners towards customers were
identified as one of the causes of the failure of new small and medium enterprises.

34
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 SUMMARY

The study has examined the effect of business owners’ attitude on business survival
using SMEs in Ilorin metropolis as study area. To achieve the objective of the study, the
study focused on employees of the SMEs in the area who work with the business owners to
assess their attitudinal behavior on selected areas that affect business operations such as risk
taking, entrepreneurial act, financial management, relationship with employees and
customers.

Finding from the study revealed that attitude of business owners is significant in
determining the continuity or otherwise of business. Positive risk taking ability of business
was found to be very important to business survival as well as the entrepreneurial attitude of
the business owner. Similarly, financial management probity was found imperative to the
continuity of the business. Also, cordial relationship with both employees and customers
were found to be of high preference to business that wants to survive the test of time.

The study concluded that business owners’ need to be mindful of their attitude to all
the stakeholders to survive the ever competitive business environment.

5.2 CONCLUSIONS

Positive attitude of business owners to different business stakeholders will go a long

way in sustaining business survival. Results of the study have shown the extent to which the
issues examined can influence business survival or non-survival. Precisely, all the five
proxies of business owners attitude considered in the study have relationship with business
chances of survival. Therefore, positive entrepreneurial attitude(s) is/are required to drive
business especially where competition and uncertainties are high. Business owners should be
sensitive to the interest of other stakeholders in business while they might be the owner of the
business; the other stakeholders play very important roles in the survival of the business.
They are partners in progress and should be accorded due regards in the affairs of the
business.

35
5.3 LIMITATIONS OF THE STUDY

In spite of the clear definition of the scope of the study, the study still has some
limitation. First, this study adopted survey research design which collected data from the
employees of SMEs in Ilorin metropolis, Kwara State. This poses a few challenges to the
generalizability of the findings. The sample used is definitely not fully the representative of
the population SMEs in the State. Therefore, caution is given on the adoption of the result
outside the context of study.

Secondly, the feedback was based on the opinion of employees alone. For a
behavioural study, the perception of respondents might be subjective. Therefore, some
respondents might have rated their business owners wrongly. Consequently, business survival
or otherwise as experienced and judged by employees might be wrong.

5.4 RECOMMENDATIONS

Based on the findings from the study, the following recommendations were outlined:

I. Business owners’ must appreciate that risk taking is inevitable in business however
they must take reasonable risk because this is the only way through which their
business could stand the test of time.

II. It is also required of business owners to continuously seek ways through which their
services and products would be improved. Also, they must continuously review their
work processes to eliminate wastages.

III. Owners’ of business must promote cordial relationship with their employees as their
first customers. Employees’ happiness will go a long way in promoting business
survival. Business owners are therefore advised to have positive attitude towards their
employees.

IV. Friendly relationship with customers is also what business owners must appreciate.
This can only be achieved through positive attitude towards the customers at all times
without exception.

36
 V. Business owners must always be prudent and sincere with their financial engagement
with the business. They must separate personal spending from business spending.

5.5 SUGGESTIONS FOR FURTHER STUDIES

i. The study has been carried out among employees of SMEs businesses in Ilorin
metropolis of Kwara State, Southwest, Nigeria.
ii. One of the observed areas that can be improved upon for further study is increasing
the number of participants in the study.
iii. A larger survey can be carried out involving all Local government in the State or in
other geopolitical zones (Southsouth, Southeast, Northcentral, Northwest and
Northeast) of the country to observe any disparity in the attitude of business owners as
it affect business survival.

37
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 APPENDIX I

Department of Business Administration

Federal Polytechnic Offa,

P.M.B 420

Offa

Kwara State

22nd February, 2021.

Dear Respondent,
REQUEST FOR THE COMPLETION OF RESEARCH QUESTIONNAIRE
I am a final year student of department of Business Administration Federal
Polytechnic Offa, am conducting a research on “Effect of Business Owners Attitude on
Business Survival” case study of small and medium enterprise in Ilorin metropolis Kwara
state. However, the purpose of the study is to fulfill the requirement for the award of Higher
National Diploma (HND) in business administration.
Attached here is a set of question for your response, kindly help me by completing
this questionnaire. all information given shall be treated confidentially and shall be used for
the purpose of this research works.
Thanks for your anticipated corporation

Yours Faithfully

42
 APPENDIX II

QUESTIONNAIRE

Section A: Respondents Personal Data

Instruction: Please tick as applicable to you.

Gender: Male ( ) Female ( )

Age group (in years): 20 – 34 ( ) 35 – 49 ( ) 50- 64 ( ) 65 above ( )

Marital Status: Single ( ) Married ( ) Divorced ( )

Highest Educational Qualification: O’Level ( ) ND/NCE ( ) 1 st Degree ( ) Masters ( )
Others ( )

Years of Working Experience: Less than 1 year ( ) 1 – 5 years ( ) 6 - 10 years ( ) 11

years and above ( )

Instruction for Sections B - F: Please, tick (√) the statement that best describes your view
using the scale below: 5= Strongly Agree, 4= Agree, 3= Undecided, 2= Disagree, 1 =
Strongly Disagree

Section B: Business owners’ risk-taking attitude and business survival

S/N Items Scale

1 2 3 4 5
1 The business have diversified activities in the past
2 The business has changed mode of operations before
3 The business has transformed her activities in the past
4 I know of a new product/service in the business

43
Section C: Business owners’ attitude towards employees and business survival

S/ Items Scale
N 1 2 3 4 5
1 My employer communicates openly and honestly
2 Business owner treats employees fairly
3 Whenever business owner takes decision, S/he consider
the effect on employees
4 I have enjoy tremendous trust from my employer

Section D: Entrepreneurial attitude of business owners’ and business survival

S/ Items Scale
N 1 2 3 4 5
1 The business is challenging
2 Business owner encourages employees to be creative
3 My employer is always looking for a new way of doing
things in the business
4 The business owner is an entrepreneur

Section E: Business owners’ financial management attitude and business survival

S/ Items Scale
N 1 2 3 4 5
1 The business owner is different from the business
2 My employer spend part of the business income on
family issues
3 The business owner is fond of collecting cash from
sales without repayment
4 The business is out of stock and there is no money to
restock

44
Section F: Business owners’ attitude towards customers and business survival

S/N Items Scale

1 2 3 4 5
1 Our customers are top priority
2 The business have recorded increased customers over
the years
3 Many customers have stopped patronizing us because
of owners behaviour
4 Majority of our customers have kept patronizing based
on owners personality
`

45