Business and Economic Environment in Lagos | Analysis

c qualified and Economic Environment in Lagos Analysis1.0INTRODUCTIONBusiness is seen to operate in spite of appearance an environment. This environment could either present a holy terror or an opportunity to the organizations that operate in it. This essay sticks to describe the melody environment in the metropolis where the researcher lives. The first section exit give an e trulywhereview of what subscriber line environment is all about. Further more than, Lagos offer leave be apply as a case study to examine the melody environment where the researcher lives. Then, different forces or conditions that encourage or capture business activities in Lagos kingdom exit be discussed2.0AN OVERVIEW OF BUSINESS surroundAccording to Nyandat (2013) Business environment nookie be defined as forces or surroundings that affect business operations. These forces may include customers, competitors, suppliers, distributors, attention trends, substitutes, regulations, giving medicati on activities, and preservation, social, political and cultural factors.Ogunro (2014) explained business environment as the combine of all environmental conditions and influences that atomic number 18 capable of affecting or influencing business activities. Furthermore, Obiwuru et al (2011) in any case defined environment of business as the collection of the pattern of all the external and internal conditions and influences that affects the existence, ripening and development of the business.For the part of this essay, Lagos state in Nigeria provide be utilize as a case study to analyze the business environment in the city where the researcher resides.Lagos state is the former capital of Africas largest landed estate, Nigeria it is the most dwell city in sub-Saharan region with more than 15 million people. Lagos is called center of excellence because of its reputation of ho victimisation the very trump out of Nigerias expert workforce. It is similarly home to the grou nds top industries and businesses with over 65% of imported goods passing through its ports and 80% of manufacturing be handled within or around its vicinity. With such massive sparing facts, Lagos is the life-wire of the Nigerian economy. This is outmatch explained by the fact that no macro- sparing activity privy ever pursue with Lagos being alienated.There ar forces or conditions that encourage or curb business activity in Lagos and these include2.1Human CapitalThe estate of Lagos is a very good advantage for business entrepreneurs because both skilled and unskilled workforce is available and very cheap. Lagos state has a universe of more than 15 million people of which 75% of them are youths and fervent to work in mold to earn a living. The city has the best of skilled workforce f read-only storage diverse regions including immaterial experts. This has military serviceed the business activity because you can get any expert you want at a very impartable price.2. 2 Inadequate actor Supply Inadequate reason supply is one of the major challenges that affect the business activity in Lagos. Every company has a standby exponent generator which is being used when there is power failure .Firms expenditure on diesel engine and petrol (as the case may be) is unbearable and this is affecting the productivity. This development is impacting negatively on the business investment collectable to step-upd expenditure on diesel and petrol by enterprises. This as well as comes with the consequences of declining productivity and competitiveness. Many companies suck been closed down imputable to inadequate power supply part some companies where forced to relocate to the nearby ground.Nigeria has lost very capacious amount of money due to inadequate power. In 1990, the World brim estimated the economic loss to the country from power in energy, at about N1 trillion (Adenikinju, 2005, p.3).Using telecom industry in Nigeria as an example which is an Ol igopolistic merchandise where we waste very few telecom industries their major challenge is power which they use to power all the base send across the country. around of them spend an outrageous amount of money to power these base stations because they can non afford to behave network failure due to power outage. telecommunication Operators Spend N10 Billion Annually to Power BTS (Nurudeen, 2014, p.1)2.3Security Situationdanger is an innovative(prenominal) major concern that affects businesses in Lagos, there is very proud rate of insecurity in the city and this made some distant investors to decline from investing in the country. The security agencies are trying to realise a secure and peaceful society but the giving medication understood needs to do more in separate to give the foreign investors courage to come in and invest. Using Oil and Gas field as an example, where we have Oligopolistic market structure and the price is being dominationled and correct by the giving medication, there is a lot of oil theft and air vandalism in the downstream orbit which affects the economy.The latest estimates by the pay Minister, Dr Mrs. Ngozi Okonjo-Iweala put the oil theft at about 400,000 barrels per twenty-four hours the environment of the affected communities besides suffers serious degradation as a consequence of this line of work. (Ibru, 2014, p.2)2.4 Poor InfrastructuresLack of good infrastructure in the city is another major challenge many companies have their industries turn up at the industrial layout which is quite far from the metropolis. Commuters find it very arduous to access some remote places to buy products due to bad roads. (Gilbert, 2009) approach shot to raw materials for the company use is a major challenge also statistical distribution of goods and go to the metropolis is also a big problem due to bad roads. There is a lot of traffic congestion in the metropolis and valuable hours are being lost due to traffic which is caused by bad roads. There is no good health care field for the poor masses, many people could not have access to medical care because of widespread poverty in the country and this is causing very big negative impact to the country due to naughty mortality rate.3.0 ConclusionThe economic environment in Lagos state has been facing a lot of challenges but despite all that, they were able to create jobs, wealth for individuals, as well as revenue for the governing through role and gross.4.0 ReferencesAdenikinju, F. (2005) Analysis of the constitute of infrastructure failures in a developing economy the case of the electricity sector in Nigeria. intensiveness 148 of AERC research paper, African Economic search Consortium.Gilbert, C. (2009). Nigerias Bad Roads are Getting Worse. lendable http//www.voanews.com/content/nigerias-bad-roads-are-getting-worse-74805987/415952.html. Accessed 4th June 2014Ibru, G. (2013) Press conference on the economy by the Lagos chamber of commerce and industry. 2nd Quarter Online Available from Accessed 27th May 2014.Neyandat, C. (2013) how do you analyze the business environment? Gakus, twenty-first Oct. Available from http//www.gaksu.com/allpdf/140_notes.pdf Accessed 4th June 2014Nurudeen, A. (2014) Interview with the C.E.O of Airtel Nigeria, Daily Trust, Online 10th February.p.1. Available from http//allafrica.com/stories/201402100424.html?viewall=1 Accessed 28th May 2014Obiwuru T. Oluwalaiye, B. Okwu, T. (2011) External and Internal Environments of Businesses in Nigeria An Appraisal in International Bulletin of Business Administration (12)OGUNRO, O. (2014).International Journal of Academic Research in Business and Social Sciences. 4th ed. Rufus Giwa Polythecnic, Owo, Ondo state, Nigeria HR Mars. Question 21.0 INRODUCTIONMacroeconomics can be defined as study of economics that is more concerned with organisation structures, behavior and decision making which affects the country as a whole. It deals more with the countrys economy which includes gross interior(prenominal) product (gross house servant product), unemployment rate, price indices, exchange rate, Inflation. When a country is experiencing macroeconomic stability, it way that the countrys economy is very stable the Gross domestic Product (GDP) is very good, unemployment is reduced to the minimal rate and low splashiness. The aim of this essay is to examine the effectiveness of various approaches that may be used to reduce macroeconomic asymmetry spot exploring different policies which a countrys organisation could use to progress to macroeconomic goals2.0 AN OVERVIEW OF MACROECONOMICSMacroeconomics is concerned with government economic performance, it focuses on the economic trend of a nation. Macroeconomics deals with factors that that affect the countrys economy. Macroeconomic instability is major concern to any government and all possible measure must be taken to gibe that economic stability is maintained. Any country that suffer s macroeconomic instability get out possibly have a high rate of inflation, unemployment, low GDP or total recession. Different kinds of measure are taking by different countries to ensure that they maintained a stable economy. Below are some highlighted measures/policies which can be used to ensure that macroeconomic instability is reduced.2.1 PrivatizationPrivatization can be defined as a process by which some in businesslike and ineffective sector is being transferred to be managed by more efficient buck private sector for the benefit of economic growth. This will allow the government to perform its primary functions, that is administration of law and order thereby leaving the actual running of business enterprise to private sectors.Nwoye (2012) defined privatization as the transfer of ownership and control of enterprise from state to the private sector.The main reason why government privatize the humans sector is because of economic stability and this could be explained belowT o enhance energy in the cosmos sector there are so many inefficiency in public sector due to nonchalant attitude of the workers. most(prenominal) of the public servants believe that government are for the people, so they can do whatever they want without being fired and this affect the governments economy, there are so many ghost workers being paid by the government which affects the expenditure. simply when handed over to private sector, they become more efficient and generate more revenue for the government because the private sector cannot afford to lose money like the government, they will cut down the cost overhead to the barest minimum to be able to generate revenue which will help in the economic growth of the country.To decontrol the economic frame by reducing unnecessary administrative controls of the government deregulating the economic system helps the government to focus more on the administration of the nation by implementing law and order and good policies that w ill help in the economic growth. The government handing over the business management to the private sector will reduce their cost overhead and also increase efficiency in the administration of the nation.To decrease the volume of sleeveless instruments in the public sector as mentioned earlier, there are a lot of unproductive people and instrument in the public sector, nepotism and godfathers has contributed to inefficiency in the public sector where round peg is been put in a square hole. But when these sectors are being privatized, all these unproductive people and instrument will be removed and replaced with more productive instrument which will increase the employment and delivering of the goods and services thereby generating sufficient revenue for the government.To fortify the procedure of the private sector in the economy which will warranty employment and higher capacity utilization Fortification of the role of the private sector in the economy is very important as this wi ll help in decreasing the level of unemployment in the country and which helps in economic stability.Reduction of political check in the public sector politicial halt in the public sector increases the rate of corruption which affects the economy, but without the interference of the politicians when privatized, the sectors will be more productive with less corrupt practices.2.2 general Private Partnership (PPP)Omoh (2012) confirmed that government across the globe have come to terms with the fact that public sector cannot provide the undeniable infrastructure and have come to the conclusion that private sector intricacy in the provision of infrastructure in inevitable. Public private coalition is where the government and private sector goes into partnership to bring economic growth through building and construction of infrastructures, managing them for a shot term or long term and finally hand them over to the government afterwards a stipulated period as agreed. This partners hip helps to increase the gross domestic product and it can be done is so many ways it could take the form of Build-Operate-Transfer (BOT), Build-Operate-Own (BOO), Build-Own-Operate-Transfer (BOOT), Design-Build-Operate-Transfer (DBOT), Design-Build-Finance and Operate (DBFO). Other less customary ones are Build-Rent/Lease-Transfer (BRT or BLT) Build-Transfer and Operate (BTO). Omoh (2012)The Scope for the public private partnership ranges from Power generation plant and transmission, roads and bridges, ports, airports, railways, inland container depots and logistics hubs, gas and petroleum, water supply, housing, educational facilities (e.g. Schools, Universities) and healthcare facilities. This helps the government to spend less money on these areas while the partners will finance and manage these sectors for some time to recover their invested money.2.3 monetary PolicyHeakal (2013) defines fiscal policy as the means by which a government adjust its spending activity and tax r ates in order to monitor and influence a nations economy.Heakal (2003) also confirms that fiscal policy is based on the renowned British economist, magic trick Mynard Keynes, who is known as Keynesian economics his theory shows that government can influence macroeconomic stability / productivity level by change magnitude or decreasing tax levels and public spending. This influence will in turn curb inflation, increase employment and maintain a level-headed value of money.Gbosi (2008) says that fiscal policy entails the governments management of the economy through the controlling of its income and spending power in order to achieve certain desired macroeconomics objectives in which economic growth and stability is among them.Jhingan (2006) also acknowledges the power of fiscal policy as an instrument of macroeconomic stabilization.Iyeli Ijomah (2013) also established that if fiscal policy is used with circumspection and synchronized with other measures, it will possibly smoothen out business cycle which leads to economic growth and stability.Based on the above explanations, it could be said that pecuniary policy is a way or method the government is using to control economic goals in order to maintain stability in the nations economy. Fiscal policy can come as increase in gross or government expenditure in order to influence aggregate demand (AD) and level of economic activity. AD can be defined as the total level of plotted expenditure in an economy (AD= C+ I + G + X M) where C= Consumer spending, I= Investment, G=Government Spending, X= export, M= Imports)The government might implement the fiscal policy in order to dumbfound economic growth in a period of a recession, the government can also use fiscal policy to keep inflation low. Mainly, fiscal policy aims to stabilize economic growth in order to avoid boom and bust economic cycle.2.4 taxationAnyanwu (1997) defined taxation as the compulsory transfer or payment from private individuals, institution s or groups to the government.Nzotta (2007) stated the four key issues that must be understood for taxation to play its function in the society first, a tax is a compulsory contribution made by citizens to the government and this contributions is for general common use. Secondly, a tax imposes a general obligation on the taxpayer. Thirdly, there is a presumption that the contribution to the public revenue made by taxpayer may not be equivalent to the benefits received. Finally, a tax is not imposed on a citizen by government because it has rendered specific services to him or his familyAnyanwu (1993) also pointed out that there are three staple objectives of taxation these are to raise revenue for the government, to regulate economic activities and to control income and employment.Nzotta (2007) also confirmed that taxes generally have parceling, distribution and stabilization functions.The allocation function of taxes talks about determination of the pattern of production, the good s that should be produced, who produces them, the distribution function of taxes relates to the manner in which the effective demand over economic goods is divided among the individuals in the society while the stabilization function of taxes deals with attaining high level of employment, a reasonable level of price stability and arrogate rate of economic growth, with allowances for effects on trade.ConclusionThe above listed methods/ policies has been used by so many countries to maintain economic stability and Nigeria as a country has introduced these policies which is now helping the government to stabilize the economy.ReferencesAnyanwu, J.C., 1993. fiscal Economics Theory, Policy and Institutions. Hybrid Publishers, OnitshaAnyanwu, J.C., 1997. Nigerian Public Finance. Joanne Educational Publishers, OnitshaGbosi, A.N (2008) contemporary Macroeconomic problems and stabilization policies, Portharcourt, Automatic Ventures.Heakal. R. (2013) Investopedia. What is fiscal policy? Onli ne Available rom http//www.investopedia.com/articles/04/051904.asp accessed 2nd June 2014.Iyeli I.I Ijomah M.A (2013) A Re-examination of fiscal policy applicability in Nigerias economic growth process An econometric policy evaluation from experiential evidence. Vol 3. (4 July 2013) P.180 188Jhingan, M.L (2006) Macroeconomic Theory. New Delhi. Vrinda Publishers.Nwoye .I. 2013, Privatization of Public Enterprises in Nigeria The views and counterviews. Online Available from http//www.globalizacija.com/doc_en/e0062pri.htm Accessed 3rd June 2014Nzotta, S.M., 2007. Tax evasion problems in Nigeria A critique. Niger. Account. 40(2) 40-43Omoh G. (2012) Public Private Partnership The new way to infrastructural provision, Vanguard, Online 17th December. P.7. Available from www.vanguardngr.com/2012/12/public-private-partnershi-the-new-way-to-infrastructural-provision Accessed 30th May 2014