AN ANALYSIS OF THE NIGERIAN MANAGERS AND INVESTORS: THE SIMILARITIES AND DIFFERENCES
1.1 BACKGROUND TO THE STUDY
Economic development of any nation can only be achieved by incorporating their local investment with the use of foreign skills, technologies, experts and management. For this to be successful, the manager and investors must contribute their best of services. Sometimes, the investor act as the manager and their roles can also be separated (Kim & Seo, 2003). In Nigeria, recession is ravaging the economy; entrepreneurship appears to be the only solution towards economic diversification. The need for Nigerian government to follow this trend came to be very important considering the various efforts of the government to bring investors into the country.
Nigeria as a country has been regarded to be Giant of Africa due to her leading roles in the continent but the country remains to be poor and underdeveloped. The inability of the country to develop economically necessitates the need to invite the efficacies foreign investment inflow into the country. But it was quite unfortunate that African countries in general had not been be to attract much attention of investors due to the struggling economies of the region, as well as lack of proper management in host countries. Developing countries including Nigeria have not managed investment to its maximum due to the hostile investment climate (Asiedu, 2002). No matter how important an investor is, the role of the manager cannot be overemphasized.
A manager is a person who manages or is in charge of something. Managers can control departments in companies, or guide the people who work for them. Managers must often make decisions about things. According to Fayol (2008), a French management theorist, managers must be able to do planning, organizing, leading, coordinating and controlling. A business manager is a person who drives the work of others in order to run a major business efficiently and make a large profit. A manager should have working knowledge of the following areas, and may be a specialist in one or more: sales, marketing and public relations; research, operations analysis, data processing, mathematics, statistics and economics; production; finance; accounting, auditing, taxes and budgeting; purchasing; and personnel. Other technical areas in which a business manager may have expertise are law, science, and computer programming.
In many businesses in Nigeria, the role of business manager may grow out of a small business owner's desire to shed some of the multiple roles mentioned above in order to focus on specific aspects of company expansion or market penetration. The business manager for a time may share duties with the investor, as the investor gains trust in the business manager. Ideally, the business manager and the investor work synergistically to ensure that the business of running a successful business is attended to. This can often be a process of the investor relinquishing the functions for which there is a comparative disadvantage for his or her continued involvement (Barro, 2009).
It is true that having a specialization in a particular field such as the above-mentioned (sales, marketing, public relations, finance, etc.), a manager will be able to perform his or her work more efficiently but, despite all the academic qualities that a business manager should have, a business manager should also develop personal qualities that will be helpful in performing his or her work in a more efficient manner. An investor allocates capital with the expectation of a future financial return (Lin, 2015). Types of investments include: equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, futures, forwards, etc. This definition makes no distinction between those in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns a stock is a shareholder (Blanchard, 1982).
The main motive of the investor is the assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term "speculation" implies that a business or investment risk can be analyzed and measured, and its distinction from the term "investment" is one of degree of risk. It differs from gambling, which is based on random outcomes. Investors can include stock traders but with this distinguishing characteristic: investors are owners of a company which entails responsibilities
1.2 STATEMENT OF THE PROBLEM
This study is analyzing the similarities and differences between Nigerian managers and investors. The role of managers and investor s has been considered very important to the success of a business. The researcher is examining their various roles within the Nigeria context. Also, a business manager should be willing to accept constructive criticism from the investors, develop social skills, be organized, be honest, be able to take good decisions and develop intimate relationships with his or her subordinate staffs. Also, business managers should be good listeners and listen to the needs of the other employees and customers. This will increase the profit of the investor. In Nigeria for instances, the term investor is associated with a means of getting rich quickly. Historically, the road to successful investment is founded on preparation, with various short-term goals that help smooth the journey to the ultimate and determined financial achievement. From the foregoing, it will be very necessary to provide an analysis of the similarities and differences between managers and investors within the Nigerian context.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the similarities between the Nigerian managers and investors.
- To examine the differences between the Nigerian managers and investors.
- To identify the roles of Nigerian managers and investors in ensuring business success.
1.4 RESEARCH QUESTIONS
- What are the similarities between the Nigerian managers and investors?
- What are the differences between the Nigerian managers and investors?
- What are the roles of Nigerian managers and investors in ensuring business success?
HO: There are no significant differences in the roles of managers and investors in Nigeria
HA: There are significant differences in the roles of managers and investors in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
- The findings from this study will reveal in an analytic manner the similarities and differences in the roles of investors and managers in Nigeria.
- This research will be a contribution to the body of literature in the area of the analysis of the similarities and differences between Nigerian managers and investors, thereby constituting the empirical literature for future research in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study is limited to the analysis of the similarities and differences between Nigerian managers and investors.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.