Start-up Leadership Challenges in Nigeria

CHAPTER ONE INTRODUCTION

1.1 Research problem

The purpose of this qualitative study is to explore leadership strategies employed by retail start-ups owners in Nigeria and challenges they might have face within the first 5 years of their business. This problem is worthy of up to date research, because certain Nigerian start-up business owners lack leadership strategies and strategies to last their initial 5 years. Earlier findings by other researchers, explained why small businesses continue to be the driver of development in economy as Nigeria (Okon & Edet, 2016). It is vital to note that, successful start-ups would assist in reducing the unemployment in the country. It will also increase the Nation economy and offer many opportunities to offer for workers and the business owners.

1.2 The organisational context

It is argued that, creating a new start-up is not hard, but leading a business and becoming the chief executive officer from the founder is not easy (Freeman and Siegfried 2015). Furthermore, due to this factor not up to 1 in 25 new start-ups will raise to have more than 50 employees (Freeman and Siegfried 2015). In order to start up a business, the founders or upper management are required to have a clear vision for the firm to appeal to others to understand their business in order to get the essential resources and attract workers to develop the new enterprise (Baum, Locke, & Kirkpatrick, 1998). Start-up retail business entrepreneurs’ failure and success can be due to the strategies, applied to maintain the firm. In some businesses, the entrepreneurs do not have the strategy to accomplish profitability within the first five years after founding (Potts 2018). According to the previous study on small businesses, it has been acknowledged there is a tendency of failing in the initial five years of start-up in Nigeria (Adebisi & Amissah, 2013). The reason behind this failure might be due to the many form of challenges, which obstruct the sustainability of the business such as the leadership, managerial and marketing skills that will offer a competitive advantage (Buowari 2015). Leadership strategy helps to achieve success and reduces business failure regardless of the size or age of the business (Buchan, 2011). To be a good leader, one must be able to lead his or her self which require to accurately understand your competences in both weaknesses and in strengths and what one is able to achieve is a blend of skills, motivation, and traits and this are all co-dependent (Lindow, 2014). The capability to create and lead effectively is what the entrepreneur leaders require to do individually and assist others to the same effectively. Majority of the start-up businesses produce unsatisfactory product and result in suffering from poor productivity due to lack of diligent leadership strategy, ultimately collapsing after spending huge amount of resources. It is anticipated that, the leaders should lead their subordinate successfully in predicament irrespective of whether the problem was avoidable or not, because a lot of small business owners quit as soon as the first predicament strikes. Lindow (2014) argued that, challenges get more problematic to survive as start-ups start to grow, and the concern makes several entrepreneurs block their businesses to maturing.

Start-ups and small enterprises frequently face the challenge of raising money, because they do not have “creditworthiness” and a lot do not have the three category of lending capacity, capital and character (Ho, Huang, Lin, & Yen, 2016). For this classification of business owners, the proximate sources of acquiring finances are mostly personal funds like soft loan, savings, assistances and contributions from family and friends, and bootstrapping (Akinso 2018). Personal funding involves “bootstrapping”, which includes raising fund through ingenuity, creativity, and contributions through keeping away from outside funding (Grichnik, Brinckmann, Singh, & Manigart, 2014). In the history of start-ups any of the sources of individual finance fit right within the initial strategy borrowing, however these sources might not meet the financial needs of the small business or start-up, so owner start to consider finance through equity and debt (Akinso 2018). It has been estimated in 2015 that one in ten start-ups survive, although there is lack of data on the survival rate within the African nation start-up businesses. The data provided by the Nigerian bank Stanbic IBTC estimated above 80% of start-ups in the country will fail within the first five years (Adepoju 2018). For the reason, Start-ups chances of failing are greater than prospering, the majority of small business owners that failed in the developed economy’s managed to share their experience, so that the other future founders will learn from the errors (Adepoju 2018). In order to understand the issues, faced by start-up businesses, the rationale is presented in this paper, followed by the aim and objectives, needed to accomplish the research. Furthermore, the literature review will talk about leadership, and challenges faced by the start-up businesses. The methods, plans, resource requirement, risk assessment and ethics of the research will also be discussed. Finally, conclusion of the research will be drawn.

1.3 Aim and objectives

Aim

The aim of the research is to understand the effect of leadership in the start-up retail businesses in Nigeria and describe the challenges that they face within the initial stages of the business.

Objectives

To critically evaluate the leadership strategies applied by start-up retail businesses in Nigeria.

To analyse the collected data with the aim of identifying the impact of leadership and challenges to the retail businesses in Nigeria

To critically examine the leadership strategies of start-ups businesses by using interview

To provide appropriate recommendations which will enable the success of leadership in start-up businesses in Nigeria

1.4 Rationale of the study

Based on the results found by previous researchers there have been contributions that start-up or small businesses make to the developing or developed economies (Okpara, 2011). Small businesses overwhelm the commercial sector of the Nigerian economy by providing a big proportion of work and supporting poverty mitigation (Shehu et al., 2013). However, in the country, up to 80% of the start-up businesses collapse in the first five years of establishment (Adebisi & Gbegi, 2013). The goal of this research is to extend the research in the subject of start-ups leadership and challenges and how to sustain them in Nigeria. The study will potentially be valuable to start-ups because small business owners might look at the strategies that influenced the survival of start-ups above five years. When businesses sustain, there will be less uncertainty and market failures, hence raising the possibility of business growth and survival.

1.5 Structure of the Thesis

This dissertation is separated into five chapters. The first Chapter 1, Introduction, which discusses the significance of the issue and justifies the rationale of the research.

1.6 conclusion

This chapter discussed the background information of the study, present the aim and objectives of this thesis, define the rational of the research and finally present the structure of the thesis.

CHAPTER TWO LITRATURE REVIEW

2.0 Introduction

This chapter will discuss the relevant literature to the research topic, the concept of leadership and its importance in start-up businesses. It will also consider the inherent challenges, which are faced by start-ups. And the concept of entrepreneurship.

2.1 The Concept of Leadership

The concept of leadership has been defined in several ways; however, the most accepted description is the course of influencing others, to help and support concerning the attainment of a specific goals and objective (Chemers, 1997; (Sveningsson, Alvehus & Alvesson, 2012)). Leadership is a way of persuading individuals to comprehend and accept on what has to be accomplished and how it will be carried out efficiently, and the method of assisting others to attain a common goal (Yukl, 2002). From the leadership strategy, literature and higher-level theory, leadership is crucial to developing a strategy, applying and achieving (Boal and Hooijberg, 2001). Further, Hambrick and Mason (1984) explained that, the outcome of organisations and performance level are partly foreseen by the leadership strategy and contextual features. The significance of leadership strategy has been emphasised by Burgess and Steenkamp (2006) as a promotional strategy application in any business, but even more in growing markets. Leadership actions of business owners are the success factor of their start-ups, this has been and also plays an important part in individuals’ performance within their team which define the performance of a project (Nixon et, al. 2012). The role of leadership is vital in shaping different achievement factors that concern venture performance (Anantatmula, 2010). Leadership style and capabilities matters in project performance because of the leader’s important position in planning, coordination, conflict solving, and other crucial issues and it is the main success factor to a leader’s business performance (Brion et al. 2012). The result of performance has straight connection to the project leader leadership roles and obligations within the team and investors (Brion et al 2012). Arham, Boucher, and Muenjohn (2013) discovered that, leadership abilities still lack in developing countries however, entrepreneurs who displayed efficient leadership expertise influence their start-up success. Academics critically argues about the major impact and significance of leaders. Some of the researchers claim that their importance is extensive, and many of articles, books, and leadership courses supported this assertion (Newark 2018). Nevertheless, others argue that, the leaders barely matter. The claim is unclear whether leaders matters as much or not, because on one side, leaders are usually recognised with the capability to strongly control and affect, major organisational results.

So, when the organisations prosper, the leaders are praised for their anticipation and competences, in the same way when they fail, leaders are held liable and critiqued. On the other side there is a wide range of research on the organisations that leaders encounter situations that really restrain their capacity to influence a firm outcome, such as (A) social trends, unexpected and uncontrollable shifts in technology, and other environmental conditions (B) a high base rate of failure for new ventures (C) the tendency of some human beings to not always do exactly what a leader wants, asks, or expects. (D)bureaucracy, regulations, resource dependencies, and norms that constrain what leaders and their organizations can do (Newark 2018)

2.2 Leadership within start-up businesses

On a typical level, the extensive literature on leadership concentrate on the capacity of leaders to impact a set of subordinates and underlines the relation between three main features which are the leader, the landscape and the followers, (Gupta, MacMillan & Surie, 2004). Although the thought of context has frequently been proposed, it has regularly remained disregarded (Zäch & Baldegger, 2014). The perspective of start-ups has rarely been topic of experiential research, as indicated in the regular study on leadership by Zäch & Baldegger (2014). Small businesses function in a distinctive setting that is categorised as insufficiency of financial capital, hierarchical authority and human resources (Zäch & Baldegger, 2014). In the early stages of start-up establishment process, the leaders of the firm lead the business beneath a situation that can be considered as “weak” instead of “strong”. The strong conditions are those that are reasonably even expectations concerning proper performance (Mischel, 1977). In this condition some behaviour is encouraged by standard expectancies and enticement arrangements that help acquiring those behaviours (Ensley et al 2006). Weak situations do not offer strong encouragement, help, or standard prospects for what establishes right behaviour (Mischel, 1977). Furthermore, it has been indicated that, weak condition people’s attitude is more often associated to business outcomes than in strong conditions (Mullins & Cummings, 1999). Hence, leadership strategy of the management is more likely to have more impacts on the business performance in start-ups than in bigger firms. Formulating start-up is specifically essential circumstance in which to assess the impact of leadership strategy (Ensley et al 2006). The abilities needed to operate a start-up business are distinctive from the abilities required to manage an established business (Stevenson and Jarillo 1990). Furthermore, to be an entrepreneur, an individual’s need different capability (Roodt, 2005). Leadership strategy can be utilised in the start-up point to lead a person in communicating with possible stakeholders, business associates and workers. However, leadership strategy is normally seen to be included, if there are employee working for the entrepreneur (Ulvenblad 2008). Therefore, leadership can increase the rate of success and decrease the failure rate irrespective of the size or age of the organisation. (Buchan, 2011). The basis and growth of start-ups is certainly linked with leadership; due to this fact, leadership as continually being part of the circle of doings of founders or CEOs, which represent a vital aspect for effective enterprise development (Cogliser and Brigham, 2004). Within the literature, the line in-between entrepreneurship and leadership is titled entrepreneurial leadership. This can be described as the position that CEOs or founders take in the start-up to cope with the uncertainty in the environment and build the flexibility required to focus on (Gupta et al., 2004).

According to Zaech and Baldegger (2017), the entrepreneurial leadership define the leadership conduct of the founder within a particular context, which is the start-up situation. This has been linked with earlier study made by Peterson et al (2009) on start-ups. Therefore, Zaech and Baldegger (2017) reasoned particularly for the small business that have not much structure, routines, processes, leadership behaviour of the leader takes a vital part, that they have to develop a concept to encourage and motivate employees logically and direct them to accomplish the business aim. These features are concealed in the full range of leadership created by Bass (1995), that is part of the much-recognised leadership theories (Westerlaken and Woods, 2013). The model explains the relation among the leader and subordinates, which it differentiated concerning three types of leadership, which are the transactional, transformational and laissez-faire leadership. Transactional leadership concerns on average activities and efficiency and transformational leadership is seen as the most active and efficient type of leadership, while laissez-faire is defined as the minimum effective and inactive leadership conduct (Bass, 1995). In order to start up a business, the founders or upper management are required to have a clear vision for the firm to appeal to others to understand their business in order to get the essential resources and attract workers to develop the new enterprise (Baum, Locke, & Kirkpatrick, 1998). Additional, start-ups leaders require to plan the early aims and reward arrangements for their employees (Williamson, 2000). In the context of creating new business the founders must lead because there is lack of basic processes in operating or any structure to turn to when crating a start-up (Bryant, 2004). “This line of reasoning is also supported by Hambrick and colleague's work on managerial discretion, which considers the “latitude of action” top management has over their behaviour” (from ensley et al 2006). The groups with the most discretion or autonomy are believed to have most possible impact on the performance of their business (Hambrick & Abrahamson, 1995; Hambrick & Finkelstein, 1987). Fundamentally by classification, the leaders of new start-ups have significantly more responsibility and fewer formalities to face than of more established larger organizations. In addition, Kets de Vries & Miller (1984, 1986) showed how the distinct features and conduct of founders can be engraved into the firm culture, which turn out to be established and hard to subsequent adjust (Schein, 1997). Furthermore, this view is similar with Hambrick and Mason's (1984) concept of upper echelons, which suggests that businesses are seen as an image of their leaders. Different types of study seem to agree with this argument that the behaviour of the top management team and the founders of start-ups is possible to have undeviating and great impact on the growth and extensive sustainability of the start-up. From Michael D. Ensley a,1, Keith M. Hmieleski b,2, Craig L. Pearce c,⁎ 2006 Not up to half of individuals who start a business get to the position where they really have a paying customer, yet after finding the real customer almost half shut down and give up within the first five years. No more than one in four companies remain in business for more than five years (Lindow 2014). Nearly, all the small business owners with businesses, which have sustained five years, have achieved gaining sufficient profit to stay in business, however a small number of these founders ever develop their company to the position of self-sustaining. “By self-sustaining, I mean that the enterprise meets two criteria” (Lindow 2014). 1- the business can function with or without the founder working in the company 2- it has the ability to secure the new customers with creative products or services, meaning loss of customer through aging and change in the market can be substituted by others buying new product or service. Having a self-sustaining business is having a valuable solid asset, because a company that is not self- sustaining will collapse which is the reality of most founded profitable firms. “It is estimated that less than 2 percent of all entrepreneurs get to the point where their enterprise has created tangible value and is self-sustaining” (Lindow 2014 pp 6). Leading a start-up right from the stage of conception to the position of producing self-sustenance and value is much more difficult than starting a new company. If a business owner wants to accomplish financial success, see their idea achieve the full potential and want to experience the satisfaction of making a real difference to the world, then aim to be an entrepreneurial leader (Lindow 2014)

2.3 Challenges faced by start-ups

As observed by Sarasvathy (2004), the investigation factors that decide start-up performance in terms of progress, worth and survival have been the main area of entrepreneurship study for the past numerous years. Most of the new businesses never cross the line of the true financing, which might be the reason why the people discuss more about the drawbacks in- between the idea stage and the financing stage, than the issues faced on the other side of financing (Fielden, Davidson and Makin, 2000). A lot of challenges can affect a start-up even after raising finance, this can include raising more money, being real about how the job changes, timing to exit (Frantz 2017). Raising money is a major issue that is affecting the growth of start-ups in Nigeria. From the finding made by Terungwa (2012), most of small business finances come from an informal source instead of formal sources. The banks are unwilling to give credit to small businesses due to credit risks, the threat connected to start-ups businesses make them not wanting the official sources of funds whose policies are more structured. The start-ups have continuously remained a vital part of the business environment, but they are always related to the risk of failure to grow. A study by Hulsing (2009) suggested that, the start-up CEO’S required new leadership abilities if the company concentrate to long term steadiness. There are lot of acknowledged reasons, why the new ventures collapse such as new market, new supply channels, inexperienced leaders and new technologies. However, the undeniable aspect is the leadership strategy of the start-up head (Swiercz and lydon 2002). Start-up founders face a lot of challenges in leading their businesses through the phase of creating idea, examining for feasible business model, making a strong team, achieving customers purchase and overall building a successful business. According to Freeman and Siegfried (2015), the most important challenges are “developing idea, achieving optimal persistence and executing through chaos”. In the case of developing market, the main challenges faced by start-up in Nigeria are lack of management skills, financial support, training, insufficient records, infrastructure and corruption (Okpara and Wynn 2007). Furthermore, a later research also finds parallel challenges including demand for product and service, poor management, poor infrastructure and lack of financial support (Okpara and Kabongo, 2009).

Lecher & Gudmundsson (2014) argued that, the competitive aggressiveness and taking risk have unfavourable relationships where cost-based leadership strategies are important. The challenges and risks that start-up and small businesses owners meet in Nigeria are “functions of the environment of interconnected activities and systems relationships” (Akinso 2018 pp 33). The way small businesses owners incorporate source of finance, education, infrastructural provision and experience is amongst the aspects that impact growth positively (Shibia and Barako 2017). The business environment in Nigeria is not mainly responsive to the survival of small businesses, and how businesses handle the stakeholders in their company province regarding sustainable business procedures are vital to the sustenance of the business (Svensson et al., 2016). In Nigeria, the challenges and risks that the start-up owners frequently face include non-financial and financial restrictions that are competent of risking the survival and growth of small businesses (Akinso 2018). According to Karadag (2015), Small businesses drive the growth of economy in either developed or developing countries, because it adds substantially to the Gross domestic product. Nevertheless, they face serious challenges like weak financial management which is part of the major problems and is liable for failures among developing businesses (Karadag, 2015). In addition to this, start-up businesses face the challenge of not having enough workers to maintain some development and employing plans (Cross, 2015). The founders of the start-up require to put the structure in place from the beginning of the enterprise and therefore create complaint procedures that are required in terms of competition. There are challenges and possibilities concerning start-up businesses in Nigeria, the issues are poor leadership skill and strategy, multiple taxation, and insufficient finances which prove the concerns articulated by Agwu and Emeti, (2014). The government need to be more concerned about small and medium businesses by formulating soft loans accessible and assurance of long-term loan from financial institutions. Additionally, the government should provide structure, give tax incentives and build facility to these classification of business owners (Agwu and Emeti 2014). It is therefore clear from the literature that, start-ups mostly retail, face many external and internal challenges such as lack of good managerial skills, increasing competition and changing of the consumer behaviour. Nevertheless, there are opportunities accessible, involving provision of flexibility relative to larger firms, goods and services, financing from social network, development of entrepreneur skills and self-assurance (Willemse, 2011). The three key enablers for small business success summarised by the Department of Business Innovation and Skills (2013) are the external environment including the market, internal capacity and capability to growth vision of the business owners regarding growth (Jere et al 2015). Leadership strategy is one factor which build the survival of businesses, the achievement of managing start-up businesses is more on internal issues and policies than external influence and market resilience (karanja et al. 2013). Muchiri & McMurray (2015) also discovered the conduct of leaders of start-ups affect the overall entrepreneurship operation and direction and performance of the business. Moreover, business owners with managerial skills, experience, and hire managers with distinctive intelligence are more successful (Staniewski, 2016). Likewise, the small businesses with quality leadership and management competences have the substantial benefit of good financial performance above companies which do not have qualified management (O'Neill, Sohal, and Teng 2016)

2.3.1 The use of Information communication Technology in Start-Up Businesses

The intellectual ability, charisma, and motivational ability of a leader can push start-up businesses to lessen challenges which are features of transactional and transformational leadership style (Obiwuru et al., 2011). Socioeconomic circumstances in Nigeria is one of the greatest challenges for which the small businesses growth faces in the county, where crime and poverty are on the rise (Remi, Adegoke, & Oppola, 2010). Additionally, lack of understanding and use of technology, poor strategic planning, lack of leadership strategy, abilities in keeping records, poor and outrageous power supply is faced by start-up owners (Shehu et al., 2013). The use of information communication technology (ICT) in the business environment changes the way company’s function in the 21st century. It allows different functions such as communication, marketing, customer relation management, human resource management, business resource management and supply chain management (Baltzan, 2012). Likewise, Information Communication Technology assist the start-up businesses to reduce costs, encourage customer relationship, and improve general effectiveness (Irefin, Abdulazeez, & Tijjani, 2012). Hence, it remains one of the vital means of smaller business attainment. Even though it is important to adopt ICT in small businesses, power outages and high cost present challenges in the adoption process of ICT by start-ups in Nigeria (Irefin et al. found 2012). Fadahunsi (2012) argued an academic research intended to explain the framework of small business development emphasize small companies with larger resources and competence in technology mature more than those with no advance technology. The internet is a powerful platform for start-up businesses to use in competing with the bigger companies and a place to efficiently offer products to consumers. (Levenburg, Schwarz, & Motwani, 2015). Although, the internet is important to these businesses’ growth, the implementation of the internet is slow because of lack of leadership and managerial skill (Hashim 2015). A review by Hashim (2015) suggested that, the Nigerian government should assist small business in ICT to increase the amount of people using the internet to grow their start-ups. The use of electronic marketing by the start-up leaders affects the business positively on pre-sales and after sales and the efficiency of performance and marketing (Eid and El gohary 2013). Similarly, the research of Nobre and Silva (2014) discovered that, the social media platforms improve the communication between small firms and consumers increase brand recognition and also resolved Facebook is crucial to the facilitation of brand awareness between start-ups and customers in assisting and making people aware of their product. Social media advertising offers a good opportunity for promoting small business internationally and provides acceptable cost opportunities to compete with larger companies (Dahnil et al. 2014). Kossai and Piget (2014) mentioned that, there is positive relation between the level of adopting ICT in start-ups and their performance level. The small businesses require to manage ICT effectively to increase productivity, performance to grow and compete in the business environment of the 21st century (Ashrafi et al 2014).

2.4 The concept of Entrepreneurship

There are several definitions of entrepreneur, most individuals, define an entrepreneur as a person that leads and owns a business. Nonetheless, professional’s use a variety of elements in their reference and definition of entrepreneur (Julien, 1998). In due course almost, every researcher has a distinctive definition, based on the precise entrepreneurs or entrepreneurial group reviewed (Filion 2011). Figure 1 below shows the main elements that define an entrepreneur. Hence, entrepreneur’s definition should at least contain these six elements: “An entrepreneur is an actor who innovates by recognizing opportunities; he or she makes moderately risky decisions that leads into actions requiring the efficient use of resources and contributing an added value” (Filion 2011 p.8). The observation from Filion (2011) showed that, the entrepreneurs are individuals that are involved in activities that have been created by themselves. These are activities that were outlined due to the recognition of an opportunity. In general, entrepreneurs start, develop and implement their plans trying to use minimum amount of resources, to make profit and surpluses, which can be invested back to the business to attain continuous development. An entrepreneur motivation is to introduce or innovate something different while lessening the risks. The concept Entrepreneurship is originated from the French word entreprenerd that means to understand. Entrepreneurship is the process of making, understanding, identifying and seizing business opportunity regardless of it risk (Timmons, 1994). Entrepreneurship concerns utilising opportunities, because new venture start through that (Engelhoff, 2005). Onuoha (2007) argued that, the entrepreneurship is the process of creating a new company or fortifying established company, mainly new businesses to identify opportunities. Furthermore, entrepreneurship is one if the economic growth drivers in current economy, it encourages the public and gives more opportunity to use local raw materials to assist the economy Okonjo-Iweala (2005). Entrepreneurship is perceived as an efficient way not only for reducing poverty, under-development and unemployment in the developing economy, it is also a strategy for fast economic growth in developing countries as well as developed countries (Harper, 1991; Hamilton, 2000).

Studies have been carried out in Nigeria based on the influence of entrepreneurship development on the issue of high rate of unemployment, slow economic growth and high level of poverty (Thaddeus, 2012; AdAbimbola and Agboola, 2011; Salami, 2013 Oyelola et al., 2013). In Nigeria it is generally seen that entrepreneurship development is the key to employment generation, extermination of poverty, and fast economic growth, hence different governments in Nigeria for over thirty years have created programmes and policies intended to develop entrepreneurship through the growth of small and medium enterprise (Idam 2014). Despite the efforts the rate of unemployment rate goes higher each year from 13% in 2000 to 24% in 2011 with the unemployment of youth at 50% (Risenetworks, 2013). It could be that, all the strategies and approach are inconsistence which cause the rapid failure of entrepreneurship in Nigeria. Resource-based theory of entrepreneurship has been proposed by Alvarez and Busenitz (2001), which mention access to resources is a vital determinant of opportunity-based entrepreneur. According to Alvarez and Busenitz (2001), resources involve the opportunity seeking behaviour, the capability of identifying opportunity and the procedure of organising and merging the necessary resources for productivity. “The relationship between financial resources and entrepreneurship development has however become controversial in recent times” (Idam 2014 p.2). some empirical evidence within the literature indicate there is positive relationship between entrepreneurship and personal funds due to financial restrictions (Fonseca, Michaud & Sopraseuth, 2007; Lopez-Garcia & Pissaride, 2001). However, other researchers disagree in which they found no substantial relation concerning individual finance and tendency to be an entrepreneur, mainly in developed countries (Hurst & Lusardi, 2004). Idam (2014) discovered that, it is clear that the irrelevant relation between entrepreneurship and financial resources is related to developed countries such as United states and Denmark, where are no declared credit restrictions. For developing nations such as Nigeria, where there are lots of financial restraint, especially to growing and potential entrepreneurs, a positive relation lives between entrepreneurial process and financial resources (Central Bank of Nigeria, 2011). Within the entrepreneurial literature, the entrepreneurs are usually defined as small business owners. The government in various countries, as well as Nigeria equally treat small business as entrepreneurial (Idam 2014).

2.5 Conclusion

This chapter critically with the reviewed the concept of leadership, leadership in start-up business, challenges faced by start-up owners and the use of Information communication Technology in Start-Up Businesses. The chapter concluded by reviewing the concept of entrepreneur and in relation to Nigerian start -up.

CHAPTER THREE METHODOLOGY

This chapter will present and explain the methods to be applied in this study. In particular outline the research methods, research strategy, research approach, the research process, method of data collection, selection of samples, type of data analysis, project limitation, and ethical consideration. The research methodology is the procedure of gathering information or data that allow to make effective business decision (Yin, 2014)

3.1 Research paradigm

There is various type of paradigms when performing a study which the researcher can allocate to the philosophy layer of the Research Onion shown in Figure 2 below. Philosophy is described as the use of intangible opinion and ideas that assist form research by leading assumption and the research together (Saunders, Lewis, Thornhill 2009). Interpretivism is one of the core research paradigms, frequently applied by researchers, which lead action through values and beliefs (Wimmer and Dominick 2013; Kuhn 2012). This paradigm is associated with how the researcher identifies the facts and helps the perception to research in distinguishing approaches and methods to use (Creswell 2012). Paradigm can help in decision making process; hence it is vital for the researcher to comprehend it and know which view they choose (Wimmer and Dominick 2013; Creswell 2012; Edwards 2012).

3.2.1 Interpretivism

Interpretivists philosophy is considered to be constructed socially and it has a more subjective view (Creswell, 2003). This philosophy develops the sense from people opinions, attitude, and experiences which enable the researcher to justify and define as well as understanding with methods such as interview. The interviews are preferred by interpretivist for depth, analysis, definition and strong fact for justification (Lofland and Lofland 1996). From the characteristics of Interpretivism shown in figure 3 below, the researcher is recognised as an in interpretivist. Therefore, this study adopted the qualitative (interpretivism) approach because it is considered to be suitable in which it is based on people experience of a specific context. This research aims at gathering knowledge and information about the phenomena and make recommendations that will enable policy makers and start-up business owners to make sound judgments.

3.3 Research approach

Inductive and deductive approach can be used by the researcher in order to ascertain the truth an derive conclusion of the research (Tracy 2013). An Inductive approach was chosen for this study because it let the researcher to gather opinions and observation to make overviews. This allows the researcher to develop a descriptive drawing of the subject being researched (Tavakoli 2013). Applying an inductive approach permits for open ended empirical structure required to achieve a general opinion of these existing phenomenon (Tracy 2012). The research is focused on the experience and opinions of small business leaders and owners that sustain their businesses longer than five years. Using this approach will allow the researcher to understand the perception of the people experiences in this particular context, supporting the researcher to reach an informed conclusion (Krauss 2005; Anderson 2004). Exploring the research philosophies, paradigms and approaches help the researcher to recognise and validate the researcher position and the approach to apply in collecting data for the study subject. The next section will discuss the research methods that will be used to gather data for this study.

3.4 Research methods

Research methods are the set of means, which helps in gathering quality information. In any type of investigation, the researcher talks to participant or counts stuffs which are the qualitative and the quantitative research methods (MacDonald, Headlam, and CLES, 2008). For this research, a qualitative research technique is chosen in order to gain an understanding of the fundamental purposes and incentives for actions. A qualitative method is chosen, because the research topic suggested an investigative study, which will give understandings in the experience and opinions of a set of actions and processes in a social situation. A qualitative study normally starts with the how and what questions to understand and explain the reasons of a phenomena (Bryman, 2015). The quantitative method or mixed method is not chosen, as the suitable method because an examining differences and relationship is required between several variables. Furthermore, in the quantitative approach numerical data and statistical analysis is applied and the same analysis is part of the mixed method (Ivankova, 2014; Loh et al., 2015; Matusiak, 2017). A qualitative approach is suitable for this research, because the interview is for businesses, that sustain the first five years of business performance. It should however be emphasised that the information to be used in this research will be obtained from two sources – secondary (inform of literature review) and primary (inform of the data). These two sources are explained in detail below.

3.5 Data collection methods

3.5.1 Secondary data

Secondary research is the background information gathered for research by the researcher to gain an insight of existing literature within the topic of study. A secondary research is used to understand the main literature before carrying on to the main primary data collection. This will give the researcher advantage of getting easy and qualified data through peer reviewed articles from the Robert Gordon university sources and other online sources (Hox and Boeije 2005). Gathering and arranging this data helps in clarifying the aims and objectives for this study by presenting key results from earlier research. Hence this offers relevant and strong structure of reference for the primary data (Kent, 2007). Secondary data is gathered to provide introduction to the key issues provide answers to the research objectives. Nevertheless, books, journals articles, website, are used in this study or critical analysis.

3.5.2 Primary data

These are information, collected by the researcher through the course of the research for specific issue at hand making use of the best method, that is fit for the research problem (Hox and Boeije 2005). This research uses the method of interviews to give the chances of gaining data and understanding of the perception and experience of the participants on a particular issue. This is done through a semi-structured interview by designing the question before the time to help on navigating the way of interview without shaping the response of the participant. A main question with numerous semi-structured and open-ended questions will guide the research. A semi-structured interview is where the interview is neither regulated nor formless it contains the feature of both methods. This method is more regulated than the unstructured method of interview, although it has more flexibility than the structured approach. The way questions are possibly expressed differs on the individual that performs the interview (Turner 2010). The depth of a semi-structure interview is that it allows the researcher to make sure that the same amount of information is collected from each interviewee. The researcher leads the conversation in this type of interview; however, flexibility is more important (Turner 2010). This method of interview allows the researchers to ask some questions that have not been thought of in the first place and request an answer from the participants. The interview is audio taped with the consent of the participant and later on transcribed to support the analysis and confirm accurateness. The interview is taken by the Nigerian start-up businesses that have sustain five years of starting; this is done through an established network. To achieve a good size of data, 10 businesses where interviewed. It was critical to perform the interviews on individual basis, to make it more comfortable for interviewees in order to participate without any restriction or self-consciousness, however, responses could still have been improved to appear more ethically right, as the interview is being recorded. In this research, the senior level managers are interviewed. The reason for this is believed that, they have adequate experience and knowledge, they are authority in their chosen profession. Additionally, it is vital to query the level of reliability, dependability of the information collected if the transcript and result correspond to the primary purposes? (Farrelly, 2013)

3.6 Data sampling/ techniques

Similar to quantitative research, qualitative research also considers how to gather sample. The consistency of the responses is attained from the sample size and the sample of the research (Newman 2011). Nevertheless, the qualitative method data sample size is normally lesser than quantitative method because qualitative research data gathering, and analysis are mainly “resource-intensive” and the sample are chosen on purpose rather than randomly derived from a sample frame or population (Starr 2012). Sampling on purpose or judgemental sampling is a sampling method, where the sample is created based on the researchers ruling that the chosen respondents fulfils particular criteria (Fogelman 2002). In order to answer research questions, it is uncertain a researcher would be able to gather data in all cases; hence sample need to be selected. The population is the entire set of cases from which sample is drawn. As time and resources are limited to analyse the whole population, therefore sampling technique is applied to lower the number of cases (Taherdoost 2016). The participant where selected using the criteria of being active owners of start-up businesses and are adults. The businesses that were selected are in business for more than five years, and it is focused on retail businesses in Nigeria. All interviewees have the essential skills, experience, and educational background to answer the questions that will uncover the leadership strategies used for success. Participant that where not known where identified which help when analysing the data and clarified valuable strategies, in addition known start-up owners where identified which help in contacting them. This study used a snowball technique, this is a technique which finds the research participant. One participant recommends for further participant and the size of the participant grow through that (Vogt 1999). Snowball technique is applied often to perform qualitative study, mainly through interviews. This is beneficial, because it identifies suitable participant in the subject area to provide accurate proficient opinion of the respondent’s experience (Bryman 2012). The snowball technique was chosen because referrals ease the process of finding participant for the researcher and comes from a trustworthy source. This allow the researcher to get participant with the experience and knowledge of small business to enable depth and accurate comprehension of the subject studied (Tracy 2012). Participant code, role in business and years of business experience are shown below in table 1.

3.7 Method of Data analysis

According to Jorgensen (1989), data analysis is a procedure, which the data gathered is assembled and reconstructed in a meaningful and comprehensive way. This study followed certain procedures in analysing the data acquired from interviews. The processes involve interpreting and organising the information to gain a meaning regarding the research questions. Some of the researchers stated the term analysis appears to be inappropriate in regard to qualitative data, nevertheless, however the intricacy is in the process some analysis should be conducted even if it is recording, storing and sorting the information (Irvine and Gaffikin 2006). Moreover, there are different processes and principles for analysing data. Collection, interpretation, and organisation of data crate analysis in qualitative research (Tesch 2013). “The organisation, selection, interpretation and presentation of data are used to build a theoretical rendition of reality” (Irvine and Gaffikin 2006, p.13). This study utilised content analysis, one of the most often applied method of data analysis. Content analysis is one of the frequently used methods in qualitative research (Hsieh and Shannon 2005), it categorises the written material, decreasing it to more manageable and relevant information, in addition this technique uses set of processes to make effective conclusions (Weber 1990). Content analysis can either be used in qualitative or quantitative data in an inductive or deductive way Elo and Kyngas (2008). Analysing interview can be done with the help of computer programs or manually, different software such as word processers and databases, qualitative analysis program can ease the process (Irvine and Gaffikin 2006). The use of NVivo allows the researcher to question the data at some point, therefore increasing the diligence of the analysis processes by authenticating or not authenticating some of the investigator’s intuitions about the data (Welsh 2002). Nevertheless, as the data gathered in this research is not large, and time limitation, it is not essential to use any of the data analysis programs. The data was first transcribed by the researcher then reflected, coded from research findings, decreasing the data, generating themes and lastly interpreting and concluding the analysis. The businesses where coded as B01, B02, B03, B04, B05, B06, B07, B08, B09, B010.

3.8 Limitations of the Study

The researcher has the limitation of not being able to accumulate all evidence concerning the success of start-up businesses from the interviewees. This study is also limited by time and resources. The researcher could not force strategies that are not shared by the participant. To reduce the biases when collecting info, the schedule of the interview where respected and the use of silent and quite atmosphere approaches where utilised. If researcher’s proficiency is connected before collecting information, it will reduce bias and allow research quality (Zenobia, Chan, Fung, and Chien 2013). The research was limited to Nigeria, also limiting the study to retail industry start-up businesses. Further, lack enough time limit this study. The last limitation was interviewing only participants who were owners in retail start -up businesses from Nigeria who succeeded for more than five years of business.

3.9 Ethics

The research will follow the three basic research ethics that involve human subjects, i.e., (1) justice (2) the principle of respect of persons, and, (3) beneficence (Wester, 2011). The participants are well informed, before the start of the interview with an overview of the research and the reason of the study to allow involvement in the research as recommended by yin (2014). The participants are also explained of their legal right to reject from the research at any time before, after or during the interview, and had the legal ability to affirm of being mentally and emotionally stable and over the age of 18. However, Qu & Dumay, (2011) explained that, the successful completion of any research is determined by complying with the ethical research principles. When collecting data, analysing data and storing data the highest care should be taken by the researcher to protect the right and privacy of the participants (yin 2014). In addition, the participants and the businesses are be assured of confidentiality of information by tagging with numbers and letters. These terms were in connection with the ethical strategies on ethical research suggestions (Ferreira et al., 2015). The respondents are assured that, their identity will not be disclosed at any time. The information gathered will be saved electronically on a password protected file. No one will see the raw data, apart from the researcher.

3.10 Justification for the study

One of the major justifications to this study is that, it is a requirement for the award of BA Hon, in Robert Gordon University. Another justification is that, developing nation is faced enamours challenges in the start-up business. In addition, literature suggested that further studies in relation to leadership of start-up business is required hence this study. The researcher also intent to venture in to small business after the completion of the degree, therefore reason for this research. In the same vein, this research is justifiable because it will assist the prospecting start-up what to expect while venturing into small business. Notwithstanding, the main justification for adopting interview method in this research, it believed that it will provide an in-depth insight into why start-up business fails in developing economies. Similarly, the interview approach will be helpful in getting one on one information from experience start-up owners. It will also give an opportunity for asking further clarification from the respondents. It is similarly believed that, one of the perfect approaches in this study that is limited with time and small number of participants.

3.11 Conclusion

This chapter presents and discusses the methods applied to this study. The research methods, data collection method, data sampling, method of data analysis, limitations of the study and ethical consideration have been outlined in more details.

CHAPTER FOUR ANALYSIS

4.0 Introduction

The aim of this chapter is to analyse the data collected from the primary source to give a clear understanding of the research being studied. It is important to evaluate the finding gathered from a data collected to allow the researcher to uncover a meaning regarding certain opinions and experience. According to Bogden and Bilken (1982, p. 145) data analysis is described as: “The process of systematically searching and arranging the interview transcripts, field-notes, and other materials that you accumulate to increase your understanding of them and to enable you to present what you have discovered to others”. The focus of the research is to find out the strategies, applied by the start-up businesses to survive their functions for more than five years. The evidence from the analysis could aid start-up owners in creating strategies for encouraging great business management procedures to lessen failure in small business. Information from the participants of this research may divulge the function of owners in developing success strategies for their businesses.

4.1 Findings of The Study

Six main themes have been developed after analysing the data collected from the interviewees as information for start-up business owners to use in developing a successful leadership strategy that will sustain function for more than five years. It was clearly based on the research finding one strategy is not sufficient for start-up owners to sustain business processes longer than five years, this concurs with David (2015) general system of theory which needs different factors of scheme to work together as a whole to maintain operation. The 6 main themes were acknowledged in the research as information to develop success strategies by start-up business owners. These include:

Acquiring Additional Financing

Infrastructure

Strategies for business profitability, Developing Scripted Strategic and business Plan, Cutting Cost, and Financial Discipline

Educational, Professional Trainings, Experience of Managers and skills.

Trust and morality within small business

Utilization of e-Payment and e-Commerce Platforms in Small Businesses

4.2 Analysis of results

4.2.1 Financing

This theme validated that, no one from the interviewees had access to government support and bank loan at the initial stage of their businesses. All the participants depended on family and friend and personal fund to finance their businesses, although the study indicated that start-up owners need sufficient capital and support from financial consultants to help in the long-term survival of the business. These findings corresponded with the assumption of Boateng and Abdulrahman (2013) that mention personal saving and credit supplies are the obvious source of finance to the small businesses. All the participants admit the importance of professional business consultants, however complained about the cost attached to that, therefore none of the businesses make use of consultants at the initial years. B01, B03, B04, B05 and B07 denounce the excessive finance cost and the difficulty in the application process for financial institutions. All the participant agreed that, unreliable government guidelines caused a major risk and challenges. Furthermore, the study showed start-up owners shunned from financial institution loans due to the high cost rate and difficulty in the application procedures. The following respondents (B02, B03 and B010) stated that, part of the challenges faced by start-up businesses in Nigeria are the access of funds, high interest rate, from financial institution which result affecting the accounts and performance of the business. This issue is the main factor that resulted in the high rate of small businesses failure particularly, in developing economies such as Nigeria (Obokoh and Asaolu 2012). This is an area requiring further research to discover why small businesses in Nigeria avoided financial institutions loans despite the impact it played in their successes. This assertion is in line with Osoba (1987) in which argued that, financial capacity is one of the main factors that enable small business growth in developing nations. In other remarks by Aremu and Adeyemi (2011) stated that small business failed before five years of their existence possibly because of inadequate financing. In disagreement other scholars believed that, absence of attention, lack of sufficient market study, too much concentration particularly advertisement, lack of experience, poor infrastructure, inadequate electricity, lack of records, poor leadership strategy, absence of succession strategy, incapacity to employ right personnel, difficulty in differentiating between profit and revenue, inability to distinguish personal income and family income, are the major factors that affect the growth and development of small businesses (Basil,2005). In another narrative financial limitation and lack of skills acquisition hinders performance of small business (Osotimehin, Jegede, Akinlabi, and Olajide, 2012). Baumback, (1983) supported this assertion that, the major challenges encounters by small business are external in nature.

4.2.2 Infrastructure

Access to consistent power supply is the most important in the small to medium enterprise business operation (Bagshaw, 2014). Regrettably, all the respondent testifies about the lack of good power supply and all depend on generator to power and run their businesses. B08, stated “the lack of power supply almost stops me from running my business because the location I run my business, lack of power is critical”. This theme indicated that start-up businesses cannot survive without sufficient infrastructure attended with appropriate skills. All the participant complained about the cost implication to the level of the business and market they are in. According to Agwu and Emeti (2014), the unpredictable power cut throughout all the sectors of the economy have affected households and businesses in an unfavourable way. The interviewees thought the government has not work good enough to provide infrastructure to small businesses. In addition, B02, BO3, B07 and B09 proposed the government intervention is required by providing infrastructure such as electricity, industrial pack, good road network, water to support the SMEs. It is discovered that, all the 10 respondents have another source of power to alleviate the insufficient power supply. Respondent BO10 said “I have 2 generators for my business to keep up with the power cut. All the participants mentioned that, steady power supply is still the main driving force for start-ups and infrastructure such as roads, water and power are vital for their success. Steady power supply is a key requirement alongside with and access to water and good roads. The small businesses can succeed like the advanced nation of the Europe, West and far East only when necessary help is given. Small businesses form the majority of venture is such countries due to the kind of support their government give through infrastructure and other type of assistance (Oluseyi, Solomon and Adekunle, 2013).

4.2.3 Strategies for business profitability

The owners of the businesses used strategic business plan, such as satisfactory account records and product of practical feasibility studies. Participant B02, BO5, B09 and B010 asserted that they supervised and revised their plans once in six months to monitor the achievement based on their plans. Similarly, respondent B06 regularly revised business plan every quarter, however, not necessarily make changes but to make sure all the functions are going according to plan. In addition, B07 revisit the business plan whenever it is needed, nevertheless it is also done at the end of each year. All the respondents maintained the provision of good quality products and ensured they employ the right staff with no excess. Nevertheless, respondent B08 mentioned “This business made sure one book of accounting is maintained to ease the process and we also try to sell below the market price as long as reasonable profit margin is made”. To increase the profitability of the business, respondents B03 and B04 did not depend on a single product rather they diversify. It was agreed by all the participant with the fact of separating personal and business finance and they implemented that into their businesses to improve the efficiency of cash flow. In the same vein, all the participants revealed cutting excessive expenses allow them to maintain their small businesses profitability and operation. According to Shields and Shelleman (2013), small businesses employ cost management strategies such as employee hours and cutting inventory purchases. Once owner of a business intrudes with the finance of the business, it can be problematic to acquire external finance which makes development difficult and can cause subsequent business failure (Ogbo & Nwachukwu, 2012). It is suggested from the findings of the study that; the financial discipline of owners and managers is a strategy to maintain business operation and profitability for more than five years. Honig and Hopp (2016) mentioned that, the small businesses that start with a plan are likely to successfully establish new business. The research revealed start-up owners change their original plans to adapt to customers’ needs, as Blank (2013) mentioned that, the new venture owners might revise their initial plans because a lot of the consumers may not like the earlier product qualities and features. The Start-up owners can use flexibility in improving management, organisation and marketing strategies to maintain their competitive advantage (Gunasekaran et al.2011). The findings above recommend that, the start-up businesses require written business strategic plan to continue operation for more than five years. Operating planning is vital to the success of companies (Mohamed et al., 2014).

4.2.4 Education and Training

All the business owners are university graduate, that start their businesses due to unemployment in the country. Respondents B03 and B05 had employees with college certificate and degree certificate within their management team. B07 and B010 had all the employees with degree certificate which contributed to the quality of their management and the survival of their businesses. In similar vein, it was discovered that, all the participant had a mixture of secondary school certificate and degree certificate employees. Notwithstanding, respondents B06, B07 and B09 attended training and certification courses provided by the management. However, the participants B01 and B02 offered internal training for employees. Similarly, B04 and B08 took online courses and training. The findings showed that, the business owners and managers with educational qualification and skills help in sustaining the small business operations. The respondents had managements members with training and graduate education, this fact remain to have influence on profitability and efficiency (Wen-Long, Wen Guu, and Chiang, 2014). The important of education and training shows that human resource and training development is required to create an astounding staff and workplace. This concurred with the argument of Mengel and Wouters (2015) that mentioned managers with quality educational background can create and implement financial plan for start-ups to encourage performance. Likewise, the education, skills and experience of small businesses managers and owners help them develop strategies that lead to the success of start-up businesses (Lussier and Corman 2015). Furthermore, courses in start-up businesses processes help in developing skills and identification of the growth opportunities (Wen-Long, Wen Guu, and Chiang 2014). Hence, it is evident that, educational background, skills, and professional qualification in small business administration will help the owners to sustain business for more than five years.

4.2.5 Trust and morality

Trust is an absolute crucial element; this is one of the most important things, that start-up business owners do in attracting and retaining their employees for the success of their businesses. The participant mentioned the importance of being honest, transparent and open. Respondent B03 stated the employees most to have trust in the leader’s ability and leaders’ character. Similarly, the participant B04 mentioned that, it is important to build trust within the management team of a small business to succeed because people can rely on their leader. In addition, all the participants are honest with their workers in good and bad times and about everything. “A business leader is required to build company culture based on trust and morality by adhering to promises and doing the work needed to be done” (B010). When your employees trust your abilities then the culture of respect will be created automatically within the company- (B09). The findings suggested that, though it has not been stated in the entrepreneurial leadership literature, building trust is the main enabler to teamwork. According to Matzler and Renzl (2006), interpersonal trust determines work satisfaction, higher performance outcome, positive workplace manners and improved organisational loyalty. This align with B05 that stated, “without employee being satisfied it is impossible to keep them motivated and without employee motivation it is not possible to get higher rate of production for the sustenance of your business”. A genuine leader includes being moral/ethical and transparent (Luthans & Avolio 2003), in addition to this, the followers will not respect a leader that has been perceived as unauthentic (Goffee and Jones 2013).

4.2.6 Adoption of e-commerce

The findings discovered that all the participants had some form of social media platform in which they advertise their businesses, serve customers and run the business in general. For example, respondent BO6 had Facebook, Instagram and Tweeter account that they update very frequently, and mention “nowadays every business needs a social media platform because it helps in promoting brand and increase customer awareness”. The research of Nobre & Silva (2014) discovered that, the social media platforms improve the communication between small firms and consumers increase brand recognition and also resolved Facebook is crucial to the facilitation of brand awareness between start-ups and customers in assisting and making people aware about their product. Further, respondent BO4, BO6 and BO9 used e-payment to accept payments from customers and pay for their orders, this lessen the operating cost related to travel. The findings of Chitura et al. (2015) recommends the utilisation of e-services in developing countries enhance the level of implementing e-commerce by start-ups. The result recommends that, the small businesses should employ the use of e-payment in their businesses to decrease operating cost as a run-up to adoption and implementation of e-commerce for customers. Social media advertising offers a good opportunity for promoting small business internationally and provides acceptable cost opportunities to compete with larger companies (Dahnil et al., 2014). The study showed most of the participant does not utilise e-commerce to offer their products however used it to purchase products. As asserted by respondents B01, B02 and B05 are planning to adopt e-commerce to offer products to customers regardless of the cost of implementation. Rahayua and Day, (2015) recommend that, the start-up owners should acquire abilities and funds needed for adopting e-commerce to survive in today business environment.

4.3 Conclusion

This chapter analyses the data collected from the respondents. It was also categories the data according to themes, in which each team was analysed in line with the participant responses. The themes include response to financing, infrastructure, strategies for business profitability, education and training, trust and morality and adoption to e-commerce.

CHAPTER FIVE SUMMARY AND CONCLUSION

5.1 Introduction

This chapter is the last and it aims to concludes the study. The chapter is structured as follows: section 5.2 summarises/ conclusion the research, section 5.3 summarise the findings, section 5.4 gives recommendation and limitation for this study. The chapter concludes in section.

5.2 Summary and Conclusion

Chapter one introduces the research background and problem which is to explore the leadership strategies and challenges that retail start-ups owners in Nigerian use to sustain the first 5 years. The rational of research has been outlined in addition to the aim and objective and finally the structure of the dissertation. Chapter two discuss the concept of leadership and its importance in start-up businesses. It also considers the inherent challenges that are faced by start-ups in general and in particular to Nigeria. This study discusses many of the challenges that start-up businesses and owners face in Nigeria within the initial five years of establishment, this justifies the reasons why small businesses failed rapidly within the first five years. This study also discusses the use of Information communication Technology in Start-Up Businesses. The chapter likewise review the subject of entrepreneurship and how entrepreneurship is in Nigeria. Chapter three presents and discusses the methods applied to this study. The research methods, data collection method, data sampling, method of data analysis, limitations of the study and ethical consideration have been outlined in more details. Chapter four aims to analyse the data collected from the primary source to give a clear understanding of the research being studied. It is important to analyse the finding gathered from a data collected to allow the researcher to uncover a meaning regarding certain opinions and experience. The focus of the research was to find out the strategies applied by start-up businesses to survive functions for more than five years. The evidence from the analysis could aid start-up owners in creating strategies for encouraging great business management procedures to lessen failure in small business. Implementation of the discovered strategies from the research might cause social change due to best business practice which will have effect on lessening the failure of start-ups in Nigeria. Chapter five summaries and concludes the dissertation as well as giving recommendation for further study.

5.3 Summary of the findings

The reason of this qualitative research was to study the strategies start-up businesses use for the sustenance of their businesses for more than five years. Small businesses help the issue of unemployment in the economy in providing work for business owners and employees, contributes to other companies, government, and for other issues (Eniola & Ektebang, 2014). Start-ups continue to be the drivers of growth in an economy such as Nigeria (Okon & Edet, 2016). For a business to be successful, it is not necessary to have previous ownership and experience, however substantial education, training and practical skills is required for management team. The findings of the research show, for the small businesses to survive in the first five years phase, they need motivation and reliability with good concept. The respondent had decent management skills, kept records, financial literate and showed effective and sound management knowledge. The information saturation was achieved using interview data. The recommendation for future research and action were from the finding of the study. Leadership is the feature that will create the main vision and gather all the required resources to achieve that vision. Hence recruiting and retaining HR (Human resource is crucial. The results presented information on different factors of start-up businesses to managers and owners to apply and build strategies which will retain function for more than five years. Findings from the research recommend small business owners should adopt and utilise the e-commerce, because it is vital to the sustenance of a business in today’s business environment. Trust is an absolute crucial element; this is one of the most important things that start-up business owners do in attracting and retaining their employees for the success of their businesses. The findings showed business owners and managers with educational qualification and skills helped in sustaining small business operations. According to Matzler and Renzl (2006), interpersonal trust determines work satisfaction, higher performance outcome, positive workplace manners and improved organisational loyalty. The owners of the businesses used strategic business plan, such as satisfactory account records and product of practical feasibility studies. Honig and Hopp (2016) mentioned that, the small businesses, which start with a plan, are likely to successfully establish new business.

5.3.1 Recommendation and limitation

It is recommended that, the Nigerian small business leaders and owners to consider the findings and the result of the study. This research had limited resources and time to cover more geographical areas and greater participant size. Hence further research concerning strategies to sustain small businesses in Nigeria is recommended to include a larger sample and geographical area. Presently small businesses in Nigeria conquer an important place in the country’s economy, particularly in the parts of poverty reduction, wealth creation, women and youth empowerment industrial growth, innovation and cooperative development. It has, consequently, happen to be necessary for all stakeholders and government to converge attention to the development and growth of small businesses. By improving and increasing such activities like seminar, interactive sessions, work shop and training conferences, it is liable to see a considerable decline in the cases of business breakdown among start-up businesses in Nigeria. Such efforts can only change to successful entrepreneurial activities on larger scale throughout Nigeria. It is arguably that, there are many problems as well as prospect in ration to small businesses in Nigeria. The investigation identified poor support by government, lack of financing, absence of infrastructure as the main factors affecting small business in Nigeria (Agwu and Emeti 2014). It is the recommendation of this thesis that, government should provide enabling environment, easier access to finance. Further, financial institutions should soften their criterion to providing funds to small businesses. The study also recommends that, the start-up owners should engage in education and training. Furthermore, it is recommended that, successful companies should open their doors for the start-up owners by engaging in town hall meetings and seminars for interaction.

5.4 Conclusion

This chapter summaries the thesis and gives recommendation to start-up owners, governments and suggested further investigation by the academic environment.