1.1 Background to the Study
Even though demand and supply are the basic factors in business and that determine the flow and tone of a business proposal, some other factors can hinder the execution of a particular business, at a particular time and at a particular place. It is demand and supply that makes a business possible but it is profit and profit maximization that determines the feasibility of a business and the will for going into it.
Businesses that are into production and those in the service industry have different demands. One of such that cover both and is almost always determining a business success is electricity which is a very big issue in the country and this increases the cost of doing business at an alarming rate.
The consequence is that foreign investors are very much discouraged from investing both in the already set up businesses and introducing their businesses into the economy. Some that find their way often sell and clear out their brands. Other times the question of corruption which is also bedeviling the country also affects the economy which affects the cost of doing business and also the stability of the currency also bears upon all these.
What the above line of thought on the issue reveals is that the location of a business with all its politics and the nature of the market can greatly bear upon the viability of a business.
1.2 Statement of the Problem
If the research effort which has gone into this work is anything to depend on, a comparative analysis of the cost of doing business in Nigeria and Ghana has not been studied with the objective of seeing the factors that affect the cost of doing business in each seeing that both are economically similar with almost same level of business organism. This is the issue at the heart of the present research work.
1.3 Research Questions
The following questions guide the objectives and aims of this research work namely:
1.3.1 what are the factors that determine the average cost of doing business in Nigeria as at mid 2017
1.3.2 What are the factors that bear upon the cost of doing business in the Ghanaian markets at the same period.
1.3.3 What economic implications does it have on both countries.
1.3.4 How has these factors influenced the relationship between both countries in terms of more or less cultural interactions and relations.
1.4 Objectives of the Study
The present research work on the cost of doing business in both Nigeria and Ghana is propelled by its aim to:
- Identify the factors that bear upon the cost of doing business in Nigeria and Ghana.
- Describe the deep rootedness of these factors in the over all system of politics, economy and habits of each of the people and how they correlate with the cultural background of the people.
- Analyze both market’s cost of doing business and compare them with each other with the aim of pointing out their uniqueness
1.5 Significance of the Study
The present research work will significantly shed light on the intricacies of both economics and their drive. Also help potential and prospective investors get a quick but clearer view of the cost of doing business in both Nigeria and Ghana in order to inform their business proposals and planning.
More so, the study will be of even more and tremendous help to the economic planning teams and committee of Nigeria in helping recognizing the loopholes to be worked on in order to attract long lasting investors.
1.6 Research Hypothesis
The assumption upon this research work is built is that a comparative study of the cost of doing business in both Nigeria and Ghana will reveal one of the major factors that shape the economy especially that of Nigeria generally.
1.7 Scope of the Study
The study will be a comparative study which means that it will always look at each of the issues in each country in relation to the other. But that’s as far as the structure of the research goes. The scope will aim at fully grasping and studying each economy. However, to better achieve the objectives of the research, the study will pay more attention to that of the Nigerian market in its reading since the significance of the research is mostly aimed at bettering the Nigerian economy.
1.8 Limitations of the Study
Time and space have been the major limiting factor of this research work.
1.9 Definition of Terms
Cost of Doing Business
This refers to both financial and other resources that has to go into a particular business in a particular location in order to keep such a business afloat.