1

CHAPTER ONE
INTRODUCTION
1.1 THE PROBLEM AND ITS SETTING
Every industry operates within two sets of constraints.
Internal

constraints

are

those

problems

within

the

organization and over which the enterprise has reasonable

amount of control. Personnel problem, capacity utilization
and the techniques or process of production are some of
such factors.
External factors could pose formidable problems to an
enterprise. The problems are made more severe by the fact
that these problems are caused by factors outside the
competence of a given enterprise to control. Examples of
such factors are government regulation, traditional or
cultural values etc.
The bakery industry in Nigeria has been a victim of
externally imposed constraint. Hitherto, bakers depended on
local millers who produced their vital raw materials, flour
from imported wheat. Government banned the importation
of wheat and wheat product in 1986, thereby, sending shock

waves to this very well established and expanding industry.

Wheat products has started to consume an unacceptable
amount of the nations foreign exchange as the table 1.1.1
below clearly demonstrates, as well as figure 1.1.1 in page 3.
Table 1.1.1 Foreign Exchange Spent on Wheat and
Food Import 1981 1985
Import

1981

1982

1983

1984

1985

N,000

N,000

N,000

N,000

N,000

Total food 1,820,2151,642,2451,296,714843,246

946,567

Wheat

327,870

159,422

C/o of total

79,629

9%

5%

255,717

243,067

20%

29%

35%`
Source: Federal Office of Statistics, Lagos
Given the above circumstances, there was a clear need
for government action to check the outflow of the nations
declining foreign exchange earnings through what important.
Besides, it can also be argued that there were suitable
local substitutes of wheat flour for bread baking; rice,
cassava, maize and sorghum have been mentioned as such

suitable substitutes. To some people these substitutes were

at least as good as wheat as it

FIGURE 1.1.1
FOREIGN EXCHANGE SPENT ON WHEAT AND FOOD
IMPORT
1981 2000000
1985
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000

1981

1982

1983
YEAR

1984

1985

Source: Federal Office of Statistics, Lagos

was suggested that local bakers rejecting them were doing
so our of ignorance, or out of a slavish preference for
imported products or whether one accepts the above
arguments or not, what has become clear is that the effect
of the ban on the importation of wheat was swift devastating
on the bakery industry.
In Enugu Urban alone, some famous baking houses
closed up. Nigerline bakery, St Georges Bakery, many
bakeries and Mothers Pride Bakery all shut down between
the middle of 1986 and the end of 1987. As at the time of
starting this project, not every

Bakery has resumed

operations.
A far more reaching effect on this ban on the industry
as a whole is that it has quite clearly changes the eating
habits of many Nigerians.

Ubiquitous bread on the breakfast table has vanished

and the frequent sight of peoples snacking on bread in the
afternoon has also disappeared.
The primary demand for bread products in this country
has certainly contracted since then.

1.2 STATEMENT OF THE PROBLEM

Such is the background for this study. Most baking
houses are small scale business who face the task of
devising survival strategies to deal with major changes in
government policy that threaten their very existence.
Our focus is on suitable survival strategies for the
banking industry given their operating circumstances since
1986. We are interested in finding out how those who are
still in business dealt with the new condition in which they
found themselves. In particular, we will be looking at the
organizational changes, financial management strategies,
and other operating techniques that they had to adopt in
order to survive.

As for the baking houses that closed down, we shall

explore whether there were forces other that the ban on
imported wheat that engendered their demise. The study will
cover a broad section of the bakeries in Enugu urban. See
Appendix A.

1.3 OBJECTIVES OF THE STUDY

In general, the study hopes to take a close look at the
baking houses in Enuguu urban since 1986. Specifically it is
intended to find out the following:
(a)

What changes have those who continue to operate

made in their structure and method of operation in
order to cope with the ban?

(b)

What new financial arrangement have they made

following rising production cost resulting from the ban?

(c)

Have they coped with the sourcing of raw materials?

(d)

What new challenges they now face three years after

the ban or import flour?

For completeness, it is also necessary to examine the

cases of those baking houses that were found to have closed
down as a result of the ban. Although there may be problems
obtaining information from some of these outfits, whose
operating records may no longer be available, an effort
would be made to access the general operating state of such
baking houses before the ban. This should enable one
determine whether such baking houses were already having
serious operating difficulties before the ban or whether their
extinction is to be blamed on the ban.
1.4 SIGNIFICANCE OF THE STUDY
This study should be of considerable interest to policy
makers in government, to the bakers and distributors of
bread products and consumers and to the public at large.
The study hopefully, will give government some documented
information on the effect of the major policy changes
introduced

in

1986.

The

information

should

enable

government to establish what new measures need to be

taken as well as provide some basis of determining in

advance, the likely consequences of similar measures in

future.
Bakers should use the study to understand fully the
impact of the changes on their industry. The study will
highlight how they have fared; the successful ones will see
what it was that enabled them weather the consequences of
the ban on wheat importation. Those who failed to do and
indeed why they have ceased to be in business. In the end,
the industry will be better placed to cope better with similar
situations in the future.
The researchers understanding on the challenges and
the survival strategies of small scale industries will be
greatly impacted.
The bread consumers, through this work, shall gain first
hand information of the difficulties the bakers go through to
provide them with the bread they love to eat. They will
better appreciate the need to pay a little more for this
product.
The general reader will equally find the work a useful
contribution to knowledge.
1.5 HYPOTHESIS
In this study, the following hypothesis have been
formulated:

1.

The ban on wheat importation did not cause any

significant changes in the methods of operation of
bakeries.

2.

New challenges faced by bakers are not as a result of

ban on importation of wheat and its products.

3.

The sources of raw materials for bakeries remained

unchanged after the ban on wheat importation.

4.

New financial arrangement are made by bakers are not

as a result of the increase in costs of wheat flour.

5.

The ban on wheat importation did not cause the demise

of a significant number of bakeries.

1.6 SCOPE OF THE STUDY

The emphasis of this study is on small scale bakeries in
Enugu Urban. The study intends specifically to investigate
the impact of ban on wheat importation on bakeries and the
strategies adopted by them to survive.
1.7 LIMITATION OF THE STUDY

10

This study was constrained by many factors among

which were time, funds, and the unco-operative attitude of
some respondents.
The researcher found the study very time demanding in
data collection and production. Often the researcher is
rebuked for being absent from work in process of carrying
out the study. Owing to the pressure of work, more intensive
and extensive investigation could not be carried out.
Some respondents were unwilling to complete the
questionnaire, some others completed their own reluctantly.
The study turned out to be very expensive on purchase
of materials, field work and production.

REFERENCES
1.

Annual Abstract of Statistics, Federal Office of Statistics,

Lagos 1986, PP 148 and 152.

2.

Ikeane Vicky Ngozi ECA Gives recipe on composite

flour programme. Daily Times of Nigeria Limited, Lagos.

11

CHAPTER TWO
2.0 REVIEW OF LITERATURE
This chapter is review of some literature considered
relevant to the study.
2.1 DEFINITION OF SMALL SCALE INDUSTRIES
Various definitions of Small Scale industries (SSI) exist
experts agree that a universally best definition may not be

12

possible because definitions are relative to the environment

and functions intended.
The United Nations Economic Commission to Asia and
Far east defined a Small Scale Industry as one operated
mainly with hard labour usually not exceeding 50 workers, if
no motive power is used, or 20 workers if motive power is
used. in Indonesia, an industry is considered small if it
employed less than 10 full time workers and does not use
motive power. The Indonesian definition does not exclude
household and cottage industries.
The centre of management sciences in Delft University,
the Netherland, for instance, classifies handicrafts and
cottage industries as establishment employing less than 10
persons. To them small scale industries are firms employing
10-99 person in which manager personally performs all the
management

functions

without

taking

part

in

actual

production.
In Nigeria, many definition exist for small scale
industries. The industrial research unit of Obafemi Awolowo
University, Ife, defines a small scale industry as one whose

13

total assets in capital, equipment, plant and working capital

are less than N250,000 and employing less than 50 full timer
workers. In Enugu state, the ministry of finance and
Economic Development, defines Small scale industries and
industries employing not more than 10 person. The Federal
Ministry of Industries amended its 1970 definition of SSI as
industries with capitalization of N150,000 or less.
The Central Bank of Nigeria recognizes small scale
industries as ventures with annual sales turnover of not
more N500,000. For the purpose of this work, the CBN
definition shall be adopted because of its lack of complexity.
2.2 BAKERY
It is defined as a bake house. It is a house or place used
for baking bread, cake etc.

2.3 QUALITIES OF SUCCESSFUL ENTREPRENEUR

A set of character traits has been identified by some
authorities and organizations as being unique and constant
among successful entrepreneur. One such proponent, Dr.
Johnny Eluka, identified some characteristics of success

14

owner/manager

among

which

are,

great

sense

of

independence, a strong sense of enterprise, and domination

as much by personal and family considerations as by
professional choice.
The small business career services equally identified
the following characteristics as being peculiar for successful
entrepreneurship.
1.

Total commitment of the project.

2.

Not starting a project they do not intend to finish

3.

Willingness to take risks

4.

Physical energy

5.

Choosing business associates for talents rather than on

grounds of friendship.

6.

The tendency to regard monetary reward as measures

of success rather than as end on itself.

7.

A successful entrepreneur is a realist, who knows the

limit of his abilities.
The National Directorate of Employment (NDE), a

government agency, set up to generate employment and

encourage

entrepreneurship,

sees

potential

successful

15

entrepreneurs as he who possess some psychological traits

which are either latent and could be aroused by training. The
entrepreneur has to be an originator of profitable business
ideas. The entrepreneur must possess the ability to gain
command of the opportunities and combine resources in a
new way that will be profitable. He/she must be prepared to
risk personal energy and financial resources to achieve
unpredictable results. How accurate one can, even with the
most

sophisticated

apparatus

predict

successful

entrepreneurship traits shall remain a matter of conjecture

and personal opinion.
2.4 OBSTACLES TO THE RAPID GROWTH OF SMALL
SCALE INDUSTRIES.
Small scale industries face a lot of problems that retard
their rapid growth. Bosewall described the small scale
industrial sector as a two-edged sword on one hand a source
of vitality and renewal, on the other a spectacle of
inefficiency and decay.

16

Aluta categorized the factors that constitute obstacles

to

these

industries

into

four-managerial,

technical,

commercial and financial.

The management problems arise from the inability of
the manager/owner to manage. Most promoters of small
scale

ventures

are

not

schooled in

modern

business

practices.
At the same time, they are unable or reluctant to
employ personnel capable of articulating their management
policies. Ovuorie itemized the problems as:
i.

Inability to understand operating environment

ii.

Inability to define business goals

iii.

Lack of improper record keeping.

The technical problems of small scale industries arise

from their inability to acquire modern production equipment

and

the

low

level

of

technical

knowledge

among

entrepreneurs and the small size of the market. Iwuji and

Okoroafor asserted that the technical obstacles are caused
by low technical know-how which limits their ability to

17

initiate product variation in design and quality according to

changes in demand.
Abiola noted that another technical problem facing
small scale industries is the irregular supply of raw materials,
and since foreign exchange inadequacy will remain with us
for some long time, he advised entrepreneurs to venture into
industries with large independence on locally sourced inputs.
Akwaeze grouped the technical problems of Small Scale
industries into two: One is the procurement of raw materials
and their standardization, storage and preservation. The
other is the choice of appropriate technology- perhaps the
greatest obstacle faced by small scale businesses is the
commercial problem. In the words of Akalonu.
Marketing is the foundation of all successful
business activities. Every enterprise must accept
the over-riding need to satisfy the requirement of
its market if it is to achieve satisfactory return on
investment.
Aluko saw the commercial problem as the limited
possibilities of market expansion and the absence of steady

18

and guaranteed market. He further stated that small scale

industries have little or no capacity for quiet adaptation to
changing tastes and fashion. They have no means of
assessing trends in the conditions of the market and forecast
changes in customer tastes changes.
Ones customers tastes changes away from their
products or service, they face a crisis. In addition, they
hardly, if ever advertise their products or conduct at form of
sales promotion. While the financial problems of small scale
industries are the inability of the operators to ensure
investment

capital.

Banking

establishment

insist

on

collaterals beyond the capacity of small business operators.

Ovuorie in his contribution noted that:
Small businesses have little access to
loanable funds. Lending institutions
conspicuously look down on the
small scale operators.
The

financial

problems

are

derived

from

the

entrepreneurs limited access to loan funds, the liquidity of

his operating capital and the poor management of his credit

19

(Aluko). The limited managerial ability combine with poor

technical and commercial techniques to aggravate the risk of
lending money to small scale industries. In turn the shortage
of business capital further aggravate the technical and
commercial problems.
2.5 HOW

GOVERNMENT

PROMOTE

SMALL

BUSINESSES
Such are the obstacles of the growth of small scale
industries that the government adopted certain policy
measures

to

encourage

small

businesses

to

national

economic development stated that small enterprises create

employment on a large scale and therefore make the
possibility of equal distribution of national income more
realistic. In 1958, the government of Eastern Nigeria invited
the International Labour Organization (ILO) to undertake a
study of small scale shore industry in the region, with a view
to identifying the problems and recommend ways and means
of offering them assistance (Otiteh). The same government
made a request to the United States Agency for International

20

Development

(USAID)

to

study

the

local

small

scale

industries.
The study was intended to collect information on small
industries, identify obstacles to foster growth. The result was
the tulby Report 1960 on Development of Small Industries
in Eastern Nigeria.
The
Industrial

report,

recommended

Development

Centre

the
(IDC)

establishment
as

an

of

agency

responsible for full scale assistance for rapid development of

small scale industries (Otiteh). In 1971, the Federal Ministry
of Industries took over the IDC and adopted it for the entire
nation. In pursuit of the recommendations of the tulby
report, the Enugu state government promulgated the edict
establishing the Funds for Small Scale Industries (FUSSI). The
objectives of FUSSI included the provision of soft loans for
the establishment and operation of small scale industries.
Writing

on

the

plan

for

SSI

development,

the

development commissioner in India (1967) stated that

assistance to SSI have to concentrate on measures to
improve the quality and competitiveness of the products of

21

the industries. These imply that the managers and their staff
must be assisted to improve on a continuous basis their
technique of production and utilization of more modern
machines and equipment. These will help to up-grade the
technical skills and increase productivity in the industries
which should include the provision of industrial extension
services, credit facilities for fixed and working capital,
provision of factory sites in industrial estates, government
patronage in the purchase of their products and supply of
machines on hire purchase terms etc. In response to the cry
of finances by small scale industries, the Central Bank of
Nigeria (CBN) directed the commercial banks to lend a
minimum of 16% of their aggregate loans and advances to
SSI

(Oshunbuji).

According

to

Obaula,

number

of

government initiatives at promoting the growth of the small

scale industries since 1986 includes, the National Economic
Reconstruction Fund (NERFUND), the CBN managed small
and medium enterprises loan facilities, the Nigerian Bank for
Commerce and Industries (NBCI), self-employment

(NDE)

approach. He noted, however, that these measure were

22

inadequate because the complementary services that must

be sold with the credit of facilities for small project financing
are lacking. The capacity, often taken for granted the lacking
or limited. Hence, close monitoring and guidance may be a
necessary part of the package. Reiterating the problems of
raw

materials

to

SSI.

Akwaeze,

recommended

that

government should assist small scale industries to procure

raw materials.
2.6 STRATEGY: CONCEPT AND ADAPTATION TO SMALL
SCALE BUSINESSES.
Strategy is the selection of goals, the planning and
allocation of resources, for attaining goals. Learned, defined
strategy as:
The Pattern of objectives, purpose or goals
or major policies and plans for achieving goals,
stated in such a way as to define what businesses
the company is on or to be in and the kind of
company it is.
Ansofi, would rather look at strategic decision process,
which he sees as the corporate decision of defining what

23

business the company is or likely to be in and its objectives.

Strategy, to Chandler is the determination of the basic longterm goals and objectives of an enterprise and the adoption
of course of action and allocation of resources necessary for
carrying out these goals. Uchegbu states that corporate
strategy requires rational thinking as well as systematic and
orderly approaches as methods.
The businesses has to select what product it can
produce or deliver best, and what set of customers and
customers needs it can serve best. Decision will be taken on
scale of production methods, organizational structure and
employment of appropriate personnel.
He further observed that a strategy may be unwritten
and for a small scale enterprise, contained in the heads of
the entrepreneurs.
Jiallma Ban argued that whether in small business or
big business the task of enterprise management requires the
systematic approach and discipline fostered by business
strategy. He further remarked that firms operating in a

24

turbulent environment (such as Nigeria) has three tasks for it

to succeed, namely:
a.

Systematic

scorning

of

environment,

by

the

threats

and

organization.
b.

Identification

of

the

environmental

opportunities by the firm, and

c.

Making

intelligent

adaptation

to

the

changing

environment by the company.

Ifedi quoted excerpts from symposium papers on
Survival

strategies

in

business

in

Depressed

Economy: Implication for Manager decision as follows:

Only through strategic planning mechanism can
companies convert problem into opportunities and
give the firm a fighting chance of survival.
Industries must strive to achieve a comparative
advantage through high quality products
Introduction of overall cost efficient production,
maintain diversification and production derive as
well as being more cautious and serious in taking
investment decisions.

25

After the symposium, six strategic process plans for

survival

identified

were

situation

analysis,

business

environment review, planning assumptions, strategic results,

strategic programmes, and strategic resources.
Ugorji believes that for a business to achieve its plans
and objective, it must be geared towards a careful and
detailed appraisal for the environment in which it went to
operate and then harness and employ those strategies that
may be suitable to the customers it wants to satisfy in terms
of service ideas and products. Jerry Johnson thinks that there
are two alternative options open to small scale business for
survival. The first option involves accepting a low share in a
dominated market, avoiding competition with big companies,
reducing spending on research development. The second
option requires the entrepreneur to segment, innovate in the
market specialize in the segment and keep control at the
top. Okoh writing on the Survival Strategies for Small
Businesses pointed out that entrepreneur should heed the
call to look inwards for sourcing for raw materials locally for
their productive activities.

26

Ifedi concluded that corporate strategy is comparative

for corporate survival because of its simplicity, effectiveness
and disciplined planning mechanism.
2.7 THREATS AND OPPORTUNITIES IN THE BAKERY
INDUSTRY IN NIGERIA.
Bakery industry like any other industry exists in a
changing environment. In recent years, the industry has
been

threatened

by

various

adverse

environmental

conditions.
Before 1984, Millers imported all their raw materials
needs such as wheat and wheat flour on open licenses. In
1984, customs tariff import prohibition No. 2 order banned
the importation of wheat flour under license. Again, in 1986,
the Customs and Excise Decree No. 3 1986 placed a blanket
ban on wheat and wheat products importation of wheat
products in importation. As Nkpoloukwu observed, a lot of
foreign

exchange

was

being

wasted

to

sustain

the

importation of wheat.
The

introduction

of

the

structural

adjustment

programme (SAP) has resulted to higher production cost

27

(Gbodo Nosi) prices of bread had to increase and given

falling real income, effective demand for bread products
started to decline. Higher cost meant larger working capital
and the financial institutions were reluctant to grant credits
given the tight fiscal policy consequent on SAP.
The flour mills in Nigeria are suffering losses because of
under-utilization

of

capacity

due

to

shortage

of

raw

materials. A report by Dantata showed that at the Northern

Nigerian Flour Mills Limited, turnover fell from N48.5 million
to N18.4 million by year ended, March 19. This represents a
62% fall. Another threat to the industry is low demand for
flour made from wheat grown locally. Ogedengbe stated that
the contention is not quality, but the wheat variery among
which are hardred winter, hard-red spring, Iduram and White.
Only white wheat is grown in Nigeria. And white wheat is
only suitable for the production of pastries, crackers, noodles
but not bread. Unavailability of skilled labour force is also
serious threat to the industry. According to Ugboaja Small
Scale Industries experience high labour turnover as a result
of inability of the industry to attract and retain skilled labour

28

force and inadequate technical training in our education

system.
Inspite

of

the

seemingly

intractable

threats,

the

industry still harbour viable opportunities for growth, one

major advantage, savage and small reported, was that bread
has no good substitutes. According to survey reported by
Ngozi Ikenao, wheat farmers in Kano state made 200% profit
on wheat sales. In order to accelerate wheat production,
government has offered several incentives as subsidy to
wheat farmers. Kanu, reported that by 1988, the government
of Kano state had invested about N25 million naira in
subsidies and other support services. Kanu, assuming a
present total production of 300,00 metric tones of wheat in
19, projected that by 1992, Nigeria whet metric tones. That
is, 600,000 more than projected domestic consumption of
wheat and wheat products of 1.4 million metric tones (see
table 2.7.1.)
Table 2.7.1.

PROJECT WHEAT PRODUCTION AND

CONSUMPTION IN NIGERIA 1988 1992.

Year

Target

Public

Target

Difference

29

population

Sector

Consumpti

(Tonnes)

Investment

on

(Tonnes)

4
1988
300,000
27 million
1,200,000
1989
725,000
63 million
1,250,000
1990
1,150,000
100 million
1,300,000
1991
1,575,000
138 million
1,350,000
1992
2,000,000
175 million
1,400,000
Source: Business times, December 5, 1988, P. 12.

Tonnes
5=2-4
-900,000
-525,000
-150,000
225,000
600,000
Daily Times

(Nig.) Limited Lagos.

From the foregoing, one can assert that all hope is not
lost for the bakery industry in Nigeria, especially with the
latest reports that bread can be made from rice, cassava,
barley or sorghum flour (Ikeano)

REFERENCES
1.

Akalonu Canice (1989) Lack of Marketing Skill Hinders

Small

30

Scale Buiness, Guardian Financial Weekly, Guardian

Newspapers Limited, Lagos.
2.

Aluko S.O. (1972) A.O. Oguntoye and Y.A. Afonga (ed)

Small Scale Industries in Western Nigeria. Ile Ife
(Industrial Research Unit, Obafemi Awolowo University,
Ife.

3.

Anambra State Ministry of Finance and Economic

Development

Industrial

Survey

(Industrial

Survey

Division, Enugu).
4.

Bosewell Jonathan, The Rise and Decline of Small Firms

(George Allen and Urwin Limited London.

5.

Central

Bank

of

Nigeria,

Credit

Policy

Guidelines

Monetary Policy Circular No. 21 Central Bank of Nigeria,

1986)
6.

C.E. Iwuji and A.E. Okoroafor Small Scale Industry and

Employment Generation in Human resources and
African (ed) by Ukandi G. Domachi and Victor Diejemah
(Praeger Publisher, New York, 1979)

31

7.

Eluka

J.

(1989)

Small

Business

Management

(Unpublished Lecture Notes) State University of Science

and Technology, Enugu.
8.

Federal Republic of Nigeria, Industrial Policy Guidelines

Monetary Policy Circular No. 21. Central Bank of Nigeria,
1986.

9.

G.C. Akwaeze Managing Agro-Allied and Small Scale

Industries Management Today, July (August 1989)

10. Ituama

Ben

How

does

the

environment

affect

marketing? Guardian Financial weekly, June 26, 1989,

Guardian Newspapers Limited, Lagos.
11. Jack M T Ovurie Coping with Small Size Business
Business Times, 18 June, 1990. (Daily Times Limited,
Lagos)
12. Macdonald A.M. et al chambers Twentieth century
Dictionary W & R chambers Ltd. Edinburgh, 1970.
13. M.K.O. Abiola Role of Small Scale Industries Business
Concord, 9th December, 1988 Pg. 11 (Concord Press
Nigeria Limited, Lagos)

32

14. Stapanete J.E. Industrial Development in Indonesia

(U.N.O. Technical Assistance Programmes 1955) pg. 4466.
15. Tan J. Veen Van The Netherlands Communications Vol.
1 Pg. 6
16. The Observer, Small Business Career Services (The
observer Newspaper London, March, 1980) Pg. 2-3.
17. United Nations, Economic Survey of Asia and Far East
(UN Bangkok, 1958 (1959) Pg. 99-100

33

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 INTRODUCTION
This chapter attempts to discuss the methods, designs
and procedures employed in the study. It will discuss the
choice of data collection instruments, the proposed method
of analysis and presentation of findings.
The research design adopted for this work by the
researcher is the survey design.
3.2 DESCRIPTION OF RESPONDENTS
The target population were owners/managers of the 83
bakeries in Enugu urban which were operating in 1986, that
is up to the period of the ban of wheat importation.
Forty of them were still operating in 1989. Forty three
have gone out of business.
3.2.1

Sample Size

In order to determine the sample size, Yamanes

formula was applied as shown below.
n

34

I + N (e)2
Where n =

Sample Size

Population = 83

level of significance 0.05

9 constant

And substituting the values

n

83
1 + 83 (0.05)2

83
1.2075

69

The researcher faced the additional task of determining

the proportion of the functional and extinct bakeries to
include in the sample.
The

problem

was

solved

by

adopting

Bowleys

proportional allocation formula.

nh

nNh
N
Where nh = number of units allocated to each stratum.
n

total sample size

Nh

number of items in each stratum in the population.

35

Proportion for functional bakeries

nh

= 69 x 40
83

Proportion for extinct bakeries

nh

69 x 43
83

25

For a check of accuracy

K
nh

nh1 + nh2 nhk

34 + 35

K
nhi

69

Sample for functional bakeries 34

Sample for extinct bakeries

35

Total sample size

69

3.3 METHOD OF SAMPLE SELECTION

The sample was selected by the simple random
method. The names of the functional bakeries were written
on a piece of papers which were folded and put in a bag.
After mixing the slips thoroughly, the researcher selected
one slip at a time. The name on the slip was recorded and

36

returned to the bag. The method of sampling is called

balloting with- replacement.
The slip were mixed up again before another slip was
selected. This operation was continued until the proportion
needed for the functional bakeries were completed. This
process was repeated for the extinct bakeries. This process
of sample selection is random, which is the method whereby
each unit of the population has an equal change of being
selected.
3.4 SOURCES OF DATA
Both primary and secondary data were used in the
study. the researcher generated the primary data through
the survey conducted.
The secondary data were collected from the records of
the Association of Master Bakers and confectioners (Enugu
branch), Newspaper, Journals, Official statistics published by
government agencies and ministries.
3.5 PROCEDURE IN GATHERING DATA
The instrument for gathering data were a structures
questionnaire augmented with additional information from

37

oral interviews. The questionnaire were administered to

functional bakeries in Enugu, while the proprietress of extinct
bakeries were located and interviewed.
Eighteen items of questionnaire were developed to
elicit information on the four primary hypothesis of the study
(Appendix D). The researcher developed the interview
questions from hypothesis number 5 (Appendix E).
3.5.1

Instrument Validity

Instrument validity refers to the method of determining

the extent the instrument measures what it purports to
measure.

In

order

to

validate

the

instrument,

the

questionnaire were first vetted by the academic adviser and

all his recommendations and corrections were affected. In
order to further validate the instrument, the questionnaire
were applied on a pilot study of seven bakeries in Emene,
Enugu.
The interview question were equally vetted by the
adviser

before

being

discovered were corrected.

administered.

Inconsistencies

38

3.5.2

Instrument Reliability

Reliability is a test of the degree of consistency of

responses collected by the use of the instrument. To test the
reliability of the responses to the pilot study were compared
to the responses from the main study. The two were
consistent. We therefore, conclude that the instrument was
reliable.
3.6 METHOD OF DATA COLLECTION
Data for this study was collected through questionnaire
and oral interview. The questionnaire were delivered in
person to the manager of the bakeries and collected later
when completed.
The researcher considered the managers as the ones
qualifies in a small scale bakery to provide the information
sought by the questionnaire. In the end, 34 managers
representing 85% of functional bakeries completed the
questionnaire used in the analysis, appendix B.
Among the 35 extinct bakeries were willing to take part
in the study, appendix C. The others have sold their business

39

or have left the area altogether. The researcher was

therefore forced to interview those available for the analysis.
While this small number makes general conclusions tenuous,
the research is satisfied that if respondents gave enough
honest and useful answers to make the study relatively valid.
3.7 METHOD OF DATA ANALYSIS
The collected data were first classified with the aid of
frequency

tables.

Using

percentages,

comparative

relationships were established. The researcher also used bar

charts and pie charts to represent the data. In order to be
able to draw reliable conclusion from the data analysis, the
chi-square statistics were employed to test the stated
hypothesis.

40

REFERENCES
1.

Association

of

Master

Bakers

and

Confectioners,

Membership Register, Enugu Branch, 1986.

2.

Association

of

Master

Bakers

and

Confectioners,

Membership Register, Enugu Branch, 1989.

3.

Y. Yamane, Statistics: An Introductory Analysis 3 rd

Edition, (New York: Harper and Row Pub.)

4.

R. Kumar Sum, A Manual of Sampling Technique

(London: Heineman 1976)

5.

Nwanna O.C. Introduction to Educational Research

(Ibadan; Heineman Limited, 1981)

41

CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA
In this chapter we present the data collected on this
study and attempt to analyze them so that appropriate
inferences can be drawn from them. The data were
presented here in sections.
Section 1:

Profile of Bakery Managers

Section
information

1
on

of
the

the

presentation

owner/managers

provides
of

the

profile

functional

bakeries. They are presented in tables 4.1.1 and 4.1.2

Table

4.1.1:

Percentage

Distribution

of

Bakery

Proprietors
by Age and Sex.
Age/Sex

Total

Percentage

Under 30

30 40

12

35

40 50

10

15

44

50 60

15

42

Total

25

Percentage

34

75

26

100
100

Source: Field Survey

The main point that emerged from this table is that
bakery industry in Enugu Urban has significant male
managers/ owners. 74 of the owner/managers are makers
contrary to general belief that bakery is essentially a female
profession.
TABLE 4.1.2
DISTRIBUTION OF BAKERS BY THEIR EDUCATIONAL
QUALIFICATION.
QUALIFICATION
FREQUENCY
FSLC
3
WASC
17
OND
3
HND
4
FIRST DEGREE
7
TOTAL
34
Source: Field Survey

PERCENTAGE
9
50
9
12
21
100

Another significant finding is that bakery industry in

Enugu is owned and managed by reasonably educated
people. All of them had at least First School Leaving

43

Certificate. Nearly half of them are educated beyond

secondary school level.
Section 2: Operation/Production Strategy
In section 2, we present the operational changes that
have taken place in bakery industry since the ban on
importation of wheat. This main aspects of the operations
were examined, namely; number of shifts per, production
methods and volume up till 1986. All the baking houses
operated for 24 hours and ran up to 3 shifts a day. As for
operations method, most of them had fully mechanized
production processes for shaping, cutting and placing dough
on bread palates. A significant observation is on that since
that time most of the bakeries maintained semi-mechanized
and fully mechanized operations. Only 4 of the bakeries that
is 12% were forced by declining volumes to change to
manual operations.
Table 4.2.1
Operational Changes in Baking Industries since 1986
Types

of No. of bakeries %

operation

maintaining

of No.

Total

pre
Shifts

per

of

forced

bakeries %

of

to

make total

32

94

changes
2

44

day
Production

30

88

12

method
Production

24

26

76

Volume
Source: Field Survey
Significant changes occurred in the production volume
because of rising cost. Only 8 of the bakeries or 24% have
been able to maintain their pre-1986 volume of production.
These findings are summarized in table 4.2.1. and figure
4.2.1.
HYPOTHESIS TESTING
Bakers were asked if they had made some changes in
their methods of operation because of the ban on wheat. The
responses are shown in table 4.2.1.
Figure 4.2.1: Changes in Operations Strategies
These responses indicate that substantial changes has
taken place between 19 and 19 in the operational methods
of bakers 32 of them (74%) has ceased to operate shift
duties; 4 (12%) had changed from a fully automated process
to manual operations. 26 (76%) had made major changes in

45

their distribution methods. These observations are reinforced

by the hypothesis testing shown below.
HYPOTHESIS RESTATED
Ho: The ban on wheat importation did not cause any
significant changes in methods of wheat importation.
Hi:

The ban on wheat importation caused a significant

change in methods of operations of bakeries.

1.

The

application

formular

is

the

chi-squared

test

formular:
X2

(0 e)2
e

where O =
e
2.

observed frequencies
expected frequencies

From the observed frequencies in table 4.2.1 expected

frequencies were computed using the formula:
e = (row total) (column total)
Overall total

The computed values are shown in table 4.2.2.

Table 4.2.2: CHANGES IN OPERATION

46

Operation

No Change

Change

Total
Shift Production

2 (13)

32 (21)

34
Method Production 30 (13)

4 (21)

34

8 (13)

26 (21)

34

40 (39)

62 (63)

102

Volume
Total
3.

Chosen level of significance = 0.05

4.

Degree of freedom for 2 and 3

Contingency table given as (K 1) (r 1)
Where K = number of columns
r = number of rows
(2-1) (3-1) = 2

5.

Critical value for 2 degree of freedom at 0.05 level of

significance.
X2 0.05 = 5.991

Test Statistics:
X2
=

(0 e) 2
e
(2-13) 2 x (32 21)
2
21

x (30-13)
12

12

x (4-21)2 x (8-13)2 x
21
13

47

(26 21)2
21
=

9.3 x 5.8 x 22 x 13.8 x 1.9 x 1.19 = 53.99

Decision: calculated x2 is greater than the critical value. We

therefore reject the NULL hypothesis and accept the
alternative that the ban on wheat importation caused major
changes in methods of operation of bakeries.

Section 3: Marketing Strategies

Section 3 is the presentation of the same marketing
strategies adopted by bakers in order to survive the ban on
wheat importation. Three main areas of marketing strategies
were examined. These are distribution, diversification and
adjustment of selling prices.
Table 4.3.1

Changes in Marketing Strategies among

bakers.

Marketing
strategies

No. of bakeries

of No. of bakeries % of

maintaining pre total

force

changes

1986

to

make total

48

Distribution
Diversificatio

strategies
14
5

41
15

20
29

59
85

34

100

n
Selling Prices
Source: Field Survey

The finding is that significant changes in the marketing

of baking products occurred as follows:
a.

Before the ban on imported wheat, bakers appointed

distributors to whom, they deliver their products and
combine this with direct sales to consumers from vans
Key

and from factory sites.

1986
b.

After

the

ban

and
1986 given

No change

rising
change costs

declining

1989

production volume and other difficulties. Most of the

30

bakeries were unable to maintain delivery vans and

hence.
MARKETING
STRATEGIES ADOPTED BY BAKERS
20
Frequencies
FIGURE 4.3.1

10

Distribution

Prod. Range

Selling Price

49

Source: Field Survey

compelled their distributors to collect from the factories.
Only 14 of the bakeries or 14% have been able to maintain
their pre-wheat-ban distribution methods. Before the ban
majority of bakers concentrated on bread alone. The ban
caused 29 or 85% of them to diversify their product range.
The greatest noticeable change caused by the ban is on
prices. All 34 bakers or 100% agreed that they were forced
by rising cost to increase their prices. The findings are
presented in table 4.3.1 and figure 4.3.1 above.
HYPOTHESIS TESTING ON MARKETING STRATEGIES
Respondents were asked questions regarding reactions
to the new challenges posed by the ban on wheat

50

importation. The reply were collected and presented in table

4.3.1. The proportion of bakers who changed distribution
methods was 20/34 = 59 and all the respondents changed
selling price.
HYPOTHESIS 4 RESTATED
Ho: The ban on imported flour has resulted in no significant
new challenges among bakers.
Hi:

The ban has resulted in new challenges among bakers

1.

Applicable formula is the Chi-Square test formular given

by
X2

(0 e)2
e

where o = observed frequency

e = expected frequency
2.

From the observed frequencies in table 4.3.1 the

expected

frequencies

were

computed

formula.
e

(row total) (Column total)

Overall total

Table 4.3.1 shows the computed values

using

the

51

Table 4.3.2
New

NEW CHALLENGES FACING BAKERY

Distributio

Challenges
n
No change
Change
Total
Source: Field

14 (6)
20 (28)
34 (34)
Survey

Product

Selling

5 (6)
29 (28)
34 (34)

O (6)
34 (28)
34 (34)

Total

3.

Chosen level of significance = 0.05

4.

Degree of Freedom for 3 x 2 contingency table given as

(K 1) (r-1)

Where K = number of columns

r = number of rows
(3-1) (2-1) = 2
5.

Critical value of 2 degrees of freedom at 0.05 level of

significance
X2 0.05 = 5.991
Test statistics
X2

= (0 e)2
e

(14-6)2 x (5-6)2 x (0-6)2 x (20-28)2 x (29 x 28)2 x (34 x 28)2

10.7
0.17
6
2.3
0.4
1.3
=
20.28
Decision calculated X2 is greater than the critical value
(20.88 x 5.991). therefore, we reject NULL hypothesis and

19
83
102

52

accept the alternative that ban on wheat importation has

resulted in new challenges among bakers.
SECTION 4:

FINANCIAL STRATEGIES

In section 4, we present the financial adjustments made

by bakers in the face of ban on wheat importation. Two main
areas

of financial adjustments were examined.

These

adjustments are in terms of funds invested and sources of

finance.

Significant

changes

were

made

in

financial

arrangement by bakers as follows:

7 or 12% of the bakers did not make any changes in funds
invested. 22 or 65% of the bakers made any changes in
sources of finance. The summary of findings are presented in
table 4.4.1 and figure 4.4.1.
Table

4.4.1:

FINANCIAL

ADJUSTMENT

AMONG

BAKERIES
Financial

No. of bakeries

adjustmen

maintaining

pre-

Invested

position
7

%
total

1986

of

No. of
bakeries

of

Total

forced to
21

make change
27

79

53

Funds
Sources

of

12

35

22

finances
Source: Field Survey
HYPOTHESIS TESTING ON FINANCIAL STRATEGIES
Respondents reply to question on if the ban on wheat
importation resulted to any new financial arrangements were
collected and presented in table 4.4.1 and figure 4.4.1. The
properties of change in invested funds was 27/34=79 and
sources of funds 22/34 = 65.

HYPOTHESIS RESTATED
Ho: The increase in cost of wheat flour has not resulted
significantly in new financial arrangements.
Hi:

The increase in cost of wheat flour has resulted

significantly in new financial arrangement.

1.

Applicable formula is the chi-square test formular:

X2 (o-e)2
e
where o = observed frequencies
e = expected frequencies

65

54

Figure 4.4.1: Changes in Financial Arrangements

30
25
20
15

Frequencies
Y
10
5

Invested Fund
Sources of Fund
2. Source:
FromField
theSurvey
observed frequencies, in table 4.4.1 the
expected frequencies were calculated using the formula
e =

(row total) (Column total)

Overall total

The computed values are shown in table 4.4.2

Table 4.4.2
Finance
Invested
fund
Sources of

CHANGES IN FINANCIAL ARRANGEMENT

No change
7 (10)
12 (10)

Change
27 (24)

Total
34

22 (24)

34

55

fund
Total
19 (20)
49 (48)
3. Chosen level of significance = 0.05
4.

68

Degree of freedom for 2 x 2

Contingency table given as (K- 1) ( r 1)

Where K = number of columns
r = number of rows
(2-1) (2-1) = 1
5.

Critical value for 1 degree of freedom at 0.05 level of

significant.

X2 0.05 = 3.841
Test Statistics
X2

(0-e)
e

= ( 7 10)2 x (27 24)2 x (12-10)2 x (22- 24)2

10
24
10
24
= 0.9 x 0.375 x 0.4 x 0.16
= 1.835
Decision: Calculated X2 is less than the critical value (1.835
< 3.81) therefore, we accept the NULL hypothesis that the
increase in cost of wheat flour has not resulted in new
financial arrangements.

56

SECTION 5: RAW MATERIALS STRATEGIES

In section 5, we present the strategies adopted by
bakers since the ban on wheat importation in order to
survive. Up till 19 all the bakers used 100% wheat flour to
produce bread and other bakery products. As for source of
supply of raw materials, most of them bought from the open
market or direct from flour millers.
A significant observation is that since the ban, many
bakers have changed the composition of their baking flour.
Only 10 or 20% still bake with 100% wheat flour while 24 or
71% have changed to use composite flour. Significant
changes were noticed in the source of supply of raw
materials. Only 6% or 2 bakers continued to use their regular
supply of raw materials, while 24% or 32 of them have had
to change supply source. Most bakers now receive their
wheat flour from the black market. The findings are
presented in 4.5.1 below and in figure 4.5.1.
Table 4.5.1: COMPOSITE AND WHEAT FLOUR SUPPLY
SOURCE AND USAGE.
Raw

No. of bakers

of

No. of

of

57

Materials

maintaining
pre-

total

1986

position
2

Supply

bakeries

Total

forced to
make change
32

6%

94%

source
composition
of flour
(Usage)
HYPOTHESIS

10
TESTING

29%
OR
Key

Source: Field Survey

STRATEGIES
30 The

RAW

24
71%
MATERIALS

No change

reply to question on howChange

the ban in wheat

importation has affected the source of raw materials for

25

bakeries are presented in table 4.5.1. The table shows that

the

proportionate

change

in

supply

source

20

composition of raw materials was 24/34 = 0.71.

Frequencies

CHANGES
IN SOURCE OF RAW MATERIALS
15
FIGURE : 4.5.1
10

Sources of Supply

Composition
Raw Materials

Source: Field Survey

and

for

58

HYPOTHESIS 3:

RESTATED

Ho: The sources of raw materials for bakeries remained

significantly
unchanged after the ban on wheat importation.
Hi:

The source of raw materials has changed significantly

following
the ban on wheat importation.
1.

Applicable formula is the chi-square test formula given

by
X2 = (0-e)2
e
where O = observed frequencies
e = expected frequencies

59

2.

From the observed frequencies in table 4.5.1 the

expected

frequencies

were

computed

using

the

formular
e = (row total) (computed total)
Overall
Raw

Supply

materials
No change
Change
Total

source
2 (6)
32 (28)
34 (34)

Composition

Total

10 (6)
24 (28)
34 (34)

12
56
68

3.

Chosen level of significance = 0.05

4.

Degree of freedom for 2 x 2 contingency table given as

(k-1) (r-1).
Where k = number of columns
r = number of rows
(2 1) (2-1) = 1

5.

Critical value of 1 degree of freedom at 0.05 level of

significance X2 0.05 = 3.841

Test Statistics
X2
=

(0-e)2
e
2
(2-6) x (10-6)2 x (32 28)2 x (24 28)2

60

1.7 x 2.7 x 0.6 x 0.6

6.6

Decision:

28

28

Calculated X2 is greater than the critical value

(6.6 >3.841) therefore we reject the NULL hypothesis and

accept the alternative that the source of raw material has
changed

significantly

following

the

ban

on

wheat

importation.

SECTION

6:

REASONS

FOR

DEMISE

OF

DEFUNCT

BAKERIES
Section 6 is a presentation of reasons given by
managers/proprietors of bakeries for getting out of the
bakery business. The reasons were categorized into those
related to the ban and those not related to the ban on wheat
importation. The reasons given were classified into five,
namely: funds, raw materials, labour sales and production.
Table 4.6.1 below: shows that 60% of bakers went out of
business 1986 and 1989 because of reasons related to the
ban on wheat importation. The other 40% went out for

61

reasons not directly related to the ban on wheat importation.

The same is true of figure 4.6.1 and 4.6.2 shown.
Table 4.6.1 REASONS FOR DEMISE
Reasons

% of total

Ban

related
5

45%

related
6

55%

Raw

15%

11

85%

Materials

75%

25%

Labour

18%

82%

Sales

56%

44%

23

40%

33

60%

1480

2120

Fund

Production
Total
Degree

Not

ban

% of Total

Source: Field Survey

REASONS FOR DEMISE
Respondents responses to the cause of folding their
bakeries are presented in table 4.6.1. The table shows that
33/56 = 0.60 folded because of ban on wheat importation
while 23/56 = 0.40 folded for reasons not related to the ban.
HYPOTHESIS 5: RESTATED
Ho: The ban on wheat importation did not cause the demise
of a
significant number of bakeries.

62

FIGURE 4.6.1: REASONS FOR DEMISE OF BAKERIES

Related to
Ban
40%

Not related
to ban

12

60%
10

Source: Field Survey

8

Figure 4.6.2: DISTRIBUTION OF REASONS FOR DEMISE

6

Fund

Raw Materials

Labour

Sales

Production

63

Source: Field Survey

Hi:

The ban on wheat importation caused the demise of a

significant number of bakeries.

1.

Applicable formular is the chi-square test formula given

by
X2 = (0-e)2
2
Where O = observed frequencies
e = expected frequencies

2.

From the observed frequencies in table 4.6.1 expected

frequencies were computed using the formula.

64

(row total) (Column total)

Overall total
The computed values are given in table 4.6.2 below
3.

Chosen level of significance = 0.05

4.

Degree of freedom for 2 x 6 contingency table as ( k- 1)

(r 1)
Where K = number of columns
r = number of rows
( 5 1 ( 2-1) = 4
5.

Critical value for 4 degrees of freedom at 0.05 level of

significance.
X2 0.05 = 9.488

Table 4.6.2: REASONS FOR DEMISE

Reasons

Ban related

Not Ban

Finance

6 (7)

related
5 (4)

11

Raw

11(8)

2 (5)

13

Materials

3 (7)

9 (5)

12

Labour

9 (7)

2 (4)

11

Sales

4 (5)

5 (4)

33 (34)

23(22)

56

Production
Total

% of Total

65

Test Statistics
X2 (0-e)2
e
= (6-7)2 x (5-7)2 x (11-8)2 x (2-5)2 x (3 7)2 x (9-5)2
7
7
8
5
7
5
X (9-7)2 x (2-4)2 x (4-5)2 x (5-4)2
7
4
5
4
=

.14 x .57 x 1.13 x 1.8 x 2.28 x 3.2 x .57 x 1 x 0.2 x 0.25

11.4

Decision: Calculated

X2 is greater than the critical value

(11.14 > 9.488) therefore, we reject NULL hypothesis and

accept the alternative that bakeries folded because of ban
on wheat importation.

CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter is a summary of the findings and
conclusions

arrived

at

by

the

researcher

and

the

recommendations on Survival Strategies of Small Scale

Bakeries.
5.1 SUMMARY OF FINDINGS

66

The operations in the bakery industry were classified

into three: Production shift, method and volume. The
study showed that 94% of respondents changed the
number of shifts they operated before the ban. Only
12% changed their production methods in terms of
mechanization, while 76% changed their production
volume. The test statistic showed that there were
significant changes in operations between 19 and 19
( section 2 of the production pages 43 50)
The study revealed that bakers device many marketing
strategies to survive the ban. They are in the form of
new distribution strategies, products diversification and
new selling prices. Table 4.3.1 showed that 59% of
bakers made changes in distribution channels. 85% in
product rant and 100% of respondents adjusted their
selling prices. The test statistic showed that the ban on
whet importation resulted in significant new marketing
strategies (section 3 pages 47 52).
Section 4 shows that the bakers made new financial
arrangement following the ban on wheat importation.

67

79% made changes in amount of funds invested and

65% made changes in source of funds. The calculated
average percentage change was 72%. However, when
the findings were subjected to the statistical test it
showed a Ivo change situation.
The analysis showed that the source of raw materials
changed by 94%, while 71% of bakers changed the
composition of the raw materials used in baking.
(section 5 pages 57 61)
The reasons for the demise of bakeries were classified
into those related and those not related to the ban. The
analysis of data showed that 60% of the bakeries forced
out of business attributed their demise to the ban on
wheat

importation,

while

40%

were

reasons

not

connected to the ban (see table 4.6.1). In section 6, a

statistical test of significance showed that a good
number of bakeries folded because of ban on wheat
importation.
5.2 CONCLUSION

68

In the light of the findings above, the researcher was

able to deduce the following conclusions about the study.
The findings that significant changes were made in
operation methods led us to conclude that these
changes were survival strategies adopted by the bakers
to survive the ban on wheat importation. Bakers cut the
number of shifts, and reduced production volume
following

scarcity

of

wheat

flour

and

other

raw

materials.
The bakers who continued to operate after the ban on
wheat importation in 1986, as the analysis showed,
adopted new marketing strategies such as product
diversification,

reduced

distribution

outlets

and

increasing product prices.

The data analysis showed that significant changes were
not made in financial arrangement. Bakers sources of
funds remained predominantly from personal and
family sources as banks did not play a significant role
as financiers.

69

Most of the bankers did not change the amount

invested. The strategy they adopted was to scale down
production.
The bakers adopted some survival strategies to survive
the difficulties of sourcing raw materials. There was
significant change is source of supply of raw materials
and in the composition of the raw of materials, many
bakers now buy their wheat flour from the black
market,

instead

of

from

millers.

Many

also

use

composite flour to bake.

The bakers who folded up in the face of the ban on
wheat importation were those who could not adopt the
survival strategies. Many of them could not get the
basic raw material-wheat flour.
5.3 RECOMMENDATION
In view of the findings and their conclusions, we make
the following recommendations as survival strategies for
small scale bakeries.

70

Bakers adopted the strategy of cutting the number of

shifts and reducing production volume in order to
survive the ban on wheat importation.
These are short term survival strategies, which have
the negative effect of worsening the unemployment problem
of the nation. For this reason, a more constructive survival
strategy will be to increase production volume by making
increased use of composite flour developed by our research
institutes.
The new strategies to diversify their product range by
bakers is a national answer to declining volume. There
is a need for product standardization among bakers
nationwide

to

reduce

the

confusion

among

the

consuming public. The National Association of Master

Bakers and Confectioneries should select those product
from the range that can be standardized and mount an
enlightenment campaign. The aim of the campaign will
be to educate and assure the consumers of products
value and safety.

71

Small firms cannot go into advertising on their own

therefore the association by this recommendation should do
it for all the members.
Among small firms generally, finance has been and
continues to be a source of problem. Perhaps, with the
establishment of the proposed National Small Scale
Industries

Corporation

(NSSIC),

Economic

Reconstruction

and

Fund

the

National

(NERFUND),

the

financing of this sector would have been taken care of.

This shall include small scale bakers.
Small businesses must not always continue to look up
to

government

to

do

everything

for

them.

The

association of Master Bakers and Confectioners should

liaise with the researchers at the Federal Institute of
Industrial Research Oshodi (FIRRO) and other such
bodies to organize workshops for the bakers on the use
of composite flour. In this way, we can evolve some
bakery products that are unique, to and consumed, in
Nigeria.

72

The average baker should be more adaptive and

innovative.

They

opportunities

to

should
learn

avail
more

themselves
about

new

of

the

bakery

technology by attending conferences and seminars on

bakery. These are potent survival strategies in the face
of harsh economic conditions.

BIBLIOGRAPHY
Abiola M.K.O. (1988) Role of Small Scale Industries
Business Times,
Lagos, Concord Press Limited.
Akalonu, Canice,

Lack of Marketing Skills Hinder Small

Scale Business
Guardian Financial Weekly, Lagos. Guardian Newspaper
Limited.
Akwaeze G.C. (1989) Managing Agro-Allied and Small Scale
Industries
Alhaji S.O., Oguntoye A.O. & Afonja Y.A. (1976) Small Scale

73

Industries in Western Nigeria Ile-Ife Industrial Research

Unit, Obafemi Awolowo University, Ife.
Anambra State of Nigeria Fund for Small Scale Industries
Credit
Scheme (1986) Ministry of Commerce and Industry,
Enugu.
Annual Abstract of Statistics (1986) Federal Office of
Statistics,
Lagos.
Ansoff

A.

Ogor

(1968)

Corporate

Strategy

London:

McGrawhill.
Association of Master Bakers and Confectioners: (1989)
Membership
Register, Enugu Branch,.
Bosewell Jonathan, (1972) The Rise and Decline and Small
Firms
London: George Allen and Urwin Ltd. 1972
Central Bank of Nigeria Credit Policy Guideline: (1986)
Monetary
policy Circular, .

74

Chandler Alfred O. Jr.(1962) Strategy and Structure The M.I.T.

Press,
Cambridge Mass U.S.A.
Customs and Excise (Miscellaneous Provision) Decree No.
32. Official
Gazette No. 26, Vol. 71, Ministry of Information,
Lagos.
Eluke, T. (1989) Small Business Management (Unpublished
Lecture
Notes) Anambra State University of Technology,
Enugu, .
Federal

Republic

of

Nigeria:

(1980.)Industrial

Policy

Guidelines:
Federal Ministry of Industries. Lagos
Ifedi, Victor

(1989) Imperatives of Corporate Survival

Guardian
Financial Weekly, . Lagos: Guardian News Papers
Limited.
Ikeano, Vicky Ngozi (1985) ECA Gives Recipe on Composite
Flour

75

Programme Business Times

Lagos: Daily Times

Limited
Ikeano, Vicky Ngozi (1989) Farmers make 200% profit on
wheat
sales Business Times , Lagos: daily Times Limited.
Ituama Ben (1989) How does the Environment Affect
Marketing?
Guardian Financial Weekly.

Lagos: Guardian

Newspapers
Limited.
Iwuju, C.E. & Okoroafor, A.E. (1979) Small Scale Industry
and
Employment generation in Human Resources and
African Development by Ukandi G. Damachi and
Victor Diejemah Prosper publisher. New York.
Johnson, Jerry (1979) Business Policy (Unpublished Lecture
notes)
Aston university England.
Learned, P.E. (1969) Business Policy Text and Cases Richard
Irwin

76

Inc. Homewood III,

Macdonald,

A.M.

(1972)

Chamber

Twentieth

Century

Dictionary
Ward R. Chambers Limited, Edinburgh.
Ministry of Development and Company Affairs (1969) Small
Scale
Industries in India,

Development Division, New

Delhi, India
Nwanna O.C. (1981) Introduction to Educational Research
Ibadan:
Heineman Limited.
Obawla, O.B.A. (1989) An Appraisal of Small Enterprise
Development Policies and Scheme (III) Business
Times Daily Times Limited, Lagos.
Ogedengbe, Biola (1990) On the wheat Ban Daily Times of
Nigeria
Ltd, Lagos.
Okeke, Kanu (1988) Wheat Production and the Task Force
Business times. Daily Times
Lagos.

of Nigeria Limited,

77

Okoh, Julius (1989) To curb failure to small business

Guardian
Financial Weekly Guardian Newspaper, Lagos.
Okorie N.N. (1992)

Small Scale Business Impact on the

Nigeria
Economy Oduduwa Business Journal.
Oshubuji, Okufola (1986) Ensuring the Survival of Small
Scale
Industries

Guardian

Financial

Weekly,

Lagos:

Guardian Newspaper Limited.

Otiteh, C.C.E. (1977) Industrial Development Centre Concept
(Unpublished

Report),

Industrial

Development

Centre, Owerri.
Ovuorie, Jack Mit (1990) Coping with Small Size Business
Business
Times. Daily Times Limited, Lagos.
Sawage, C.I. & Small, J.R.(1975) Introduction to Managerial
Economics. London: Hutchinson and Company
Limited.

78

Stapanek, J.E. (1955.) Industrial Development in Indonesia

U.N.O.
Technical Assistance Programme.

Sum, Kumer R. (1976) A Manual of Sampling Technique

London:
Heineman Limited.
The

National

Directorate

of

Employment

(1989)

Entrepreneurship
Development

Programme

for

Youth

Corps

Members NDE.
The Observer (1980) Small Business Career Services The
Observer
Newspaper London.
United Nations 1958/59 Economic Survey of Asia and Far
East UN:
Bangkok.
Veen, Van Tan J. The Netherlands Communications Vol. 1
Research

79

Institute

for

Management

Sciences

(RVB)

University of Delfi.
Uchegbu, Michael APPENDIX
A. (1989) A
The Need for Business Strategy
Guardian Financial Weekly Guardian Newspaper
Limited.
To Nike

Ugboaja, P.C. (1987)

Discussion on Educational Institutions
Trans Ekulu
Memorandum Presented on the
Programme of the
Abakpa
Directorate
of
Foods,
Roads
and
Rural

9th
Mile

Infrastructure,

Orlu

Resources

Asata
Consultative Committee.

Persons

Emene

Ugorji, Moses (1989) Understanding Society as Business

Strategy
ut
UwaniNigeria, Lagos.
Business Concord Press
yo

La
w
Yamene, Y. (1964) Statistics: An Introductory
Analysis, 3 rd
e
N

Ogbete

Edition

Awkunanaw

New York: Harper and Row Publishers, 1964.

To Port-Harcourt

SKETCH MAP OF ENUGU

Source: Town Planning Authority, Enugu

80

APPENDIX B
LIST OF FUNCTIONAL BAKERIES
S/N NAME OF ESTABLISHMENT

PHYSICAL

1
2
3
4
5
6
7
8

ADDRESS
1 Edible Street Abakpa
46 Obinagu Road Abakpa
12 ogwuago Abakpa Nike
6 Presidential Road
1 Obosi Street Asata
16 Ilukwe Street New Layout
34 Nwabueze Street, Ugbene
50 Mbosi Street, Ugbene

Edible bakery Industry

Chukwudi bakery
Goodname Special bread
Kates Bread Industries
Chinwe Bread industry
Chidi Bread Industry
St. George Ent.
Top Bakery Industry

AND

MAILING

81

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Tea Time Bread Industry

Chidi Bread Industry
Silver bread industry
Marys Bread Industry
Chinedu Bread Industry
Ezenwa Modern Bakery
Benlos Bakery Industry
Nnagozie Bakery
Onyeze Bread Industry
Pax Bread Industry
Helens Bakery
Chiomas Bakery
Echems Bakery
Chessy Bakery
Premier Bakery
Anaeliaku Bakery
Rose Bakery
Uncle Jones Bakery
Onwudiwe Bakery
Queens Bakery
States Bakery
Chibueze Bakery industry
New Society Bakery
Patcy Bakery
Mothers Pride Bakery
De Pesto Bakery

3 Agula St. Abakpa Nike

7 Okwunnanam Street
38 Onyiuke
Oye Emene Market
24 Nkwubo Street. Emene
Garriki Awkunanaw
2 Uga Street. Emene
18 Obinagu Road Abakpa
Robinson St. Uwani
38 Eze Street, Uwani
Independence Layout
Agbani Road Awkunanaw
Thinkers Corner Emene
1 Aguleri St. Ind. Layout
50 Kenenth Rd. Awkunanaw
Abakaliki Road Emene
Independence Layout
66 Owerri Road Asata
2 Brodrick Street
73 Owerri Road, asata
14 Umunara Street
121 Railway Rd. Emene
St. Judes Street Emene
Abakaliki Road, Emene
3 Bank Street Emene
Ozalla St. Achara Layout.

82

APPENDIX C
LIST OF EXTINCT BAKERIES
S/N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

NAMES
Uchenna Bread Industry
Star Light Bakery
Liberty Bread Industry
Ezeora Standard Bakery
Ibezimako Bakery Industry
Merrys Bakery Industry
Chuka Bread Industry
Original Popular Bakery
Chidedum Bread Industry
Echezona Bread Industry
High Life Bread Industry
Obinwanne Bakery Industry
Uzochukwu Bread Industry
Favour City Bakery
Emefor Bread Industry
Okechukwu Bakery
Universal Bread Industry
Sunrise Bakery Industry
All Star Bakery Industry
Eden Bread Industry
Elders Bread Industry
Holy Rosary Bread Industry
Nwakas Bakery Industry
Nwabueze Bakery
Obiamaeze Freedom Bakery Industry
Anyanwu Bakery
Uchenna Bakery Industry
Kennys Cottage Bakery
Chimezie Bakery

83

30
31
32
33
34
35

Gold Bread Industry

Universal Bread Industry
Eugh Bakery
Tessy Bakery
One Society Bakery
Niger Line Bakery

APPENDIX D
BAKERIES DESCRIPTIVE QUESTIONNAIRE (BDQ)
Dear Sir/Madam
I am a student of Caritas University Amorji- Nike,
Enugu. I am conducting a study with the Survival Strategies
for Small Scale Bakeries in Enugu.
Please, complete the following questions to the best of
your ability. Be assured that information given shall be

84

treated as strictly confidential and shall be used only and

purely for academic exercise.
Thanks for your co-operation.

Yours faithfully,

Onyegasi Blessing Ire

1.

Personal Data
a.

Business Name

b.

Age

c.

Sex

d.

Academic Qualification

Please, thick

in the appropriate box

85

2.

How many shift duties were you operating before the

ban of wheat importation?

3.

a.

One

b.

Two

c.

Three

How many shift duties are you now operating after the
ban of wheat importation?

4.

a.

One

b.

Two

c.

Three

Which of the following describes your production

methods before the ban on wheat importation?

5.

a.

Used machines for everything

b.

Used both machine and manual

c.

Used only manual

After the ban on wheat importation, what production

method are you using?
a.

Use machines for everything

b.

Use both machines and manual

c.

Use only manual

86

6.

What method of distribution were you using before the

ban on wheat importation?

7.

a.

Direct to consumers

b.

Direct to retailers/wholesalers

c.

A mixture of a and b above

What distribution method have you been using since

the ban on wheat importation?

8.

a.

Direct to consume

b.

Direct to Middlemen

c.

A mixture of a and b above

What was the total invested capital in your bakery

before the ban on wheat importation?

9.

a.

Under N40,000

b.

N40,000 N80,000

c.

Above N80,000

Which was the major source of financing for your

business after the ban on wheat importation?
a.

Personal money plus borrowing from friends and

relatives
b.

Borrowing from financial institution

87

c.

Commodity credit

10. What was the total invested capital in your bakery since
the ban on wheat importation?
a.

Under N40,000

b.

N40,000 N80,000

c.

Above N80,000

11. Which was the major source of financing for your

business after the ban on wheat importation?
a.

Personal money plus borrowing from friends and

relatives
b.

Borrowing from financial institution

c.

Commodity credit

12. Which of the following was your usual source of raw

materials before the ban on wheat importation?
a.

Open Market

b.

Flour Mills Direct

c.

The black market

13. Which of the following was your usual source of raw

materials before the ban on wheat importation?
a.

Open Market

88

b.

Flour Mills Direct

c.

The black market

14. Before the ban on wheat importation, have you used

any other flour apart from wheat flour?
a.

Never

b.

Sometimes

c.

Always

15. Now after the ban on wheat importation, are you

making use of any other flour apart from wheat flour?
a.

Never

b.

Sometimes

c.

Always

16. How has the ban on wheat importation affected the

volume of your production?
a.

Reduce volume

b.

No change in volume

c.

Increase volume

17. Before the ban on wheat importation would you have

described yourself as
a.

A bread baker only

b.

Bread baker and Confectioner

c.

Confectioner

89

18. After the ban on wheat importation, would you now

describe yourself as
a.

A bread baker only

b.

Bread baker and Confectioner

c.

Confectioner

16. How has the ban on wheat importation affected your

selling price?
a.

Increase selling price

b.

No change

c.

Reduced selling price

APPENDIX E
INTERVIEW GUIDE: QUESTIONS

Addressed to farmers of now extinct bakeries

1.

What year sis you start your bakery?

2.

What year did you stop production?

3.

What

was

your

major

reason

why

you

stopped

production?
4.

Are there any other minor reasons? Name them

a.
.

90

b
.
c.
.
d
.
5.

What problems did you encounter, typical as a baker

a.
.
b
.
c.
.
d
.

91

6.

Would you come back to bakery if your major problem

is
removed?.........................................................................
.