Full Project-IMPROVING THE PERFORMANCE OF SMALL SCALE BUSINESS THROUGH EFFECTIVE BUDGETARY CONTROL

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CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
Budgeting control is the process of ensuring the accomplishment of budgetary plans by applying the needed corrective measures to deviation i.e. moving away from the original plans it is also a process of assigning responsibilities for the achievement of budget targets measuring actual performance and comparing actual with planned performance budgetary control is therefore as essential as the making of budget. All survival conscious organization both public and private have objectives or goals which they try to attain with resources available to them. These objective or goals include survival in hostile and competitive business world. Maximizing of profit as well as attaining a certificate level of societal responsibility to community in which they operate. Resources for the attainment of this objectives are limited hence the need for planning. Planning in form of budgeting a budget is plan of action which an organization intends to execute within any given period it is not enough to make which cannot be achieved. Therefore, the achievement budgetary plans require control mechanism.
1.2  STATEMENT OF THE PROBLEM
The modern business world is characterized by intense competition, new product development, use of advance technology, diversification etc. all these are aimed at making success out of businesses. But we know that not all business are successful. Some have collapsed. Others liquidated while others have been swallowed by stronger organization, and still many others have successfully weathered the hostile business environment. Recently, some business organization in Nigeria i.e. banks have been listed as distressed while others are listed as healthy. Some manufacturing organization has ceased production while others are producing below installed capacity. The list is endless. The question then is, why does some organization find it difficult to survive while others which operate under the same economic condition make huge profits does budgeting and budgetary control influence the survival of organizational? This research is therefore aimed at determining the import of effective budgetary control on organizational survival using United Africa Company Nigeria Plc. As a case study. United African company Plc is one of the few companies that has maintained a steady progress in its business activities its turnover as well as the profit figure on the increase for the past four years and business has been generally good for the company inspite of prevailing national economic problem. Relating him survival of the company to its budgetary control is the aim of this research.
1.3  OBJECTIVE OF THE STUDY
The objective associate with this study include:
To determine whether budgeting is an effective management tool in organizations
To determine whether budgetary control has contributed to the success and survival of most set ups.
To determine whether some organization would still have achieved success without effective budgetary control
To determine whether participatory budgeting aids effective budgetary control
To determine the impact of deviation from established budgets
To assess the relevance of management principles on budgetary control
To make recommendation on how to improve performance in organizations.
1.4  SCOPE AND LIMITATION OF THE STUDY
Budgetary control measures shall be the focus of our study we may not present budget schedules as this is outside the scope of our study, but rather we shall present, state some problems encountered during the period of data collection. Their was the problem of time to interview management and staff, time to visit various organization and time to re evaluate the responses to questionnaires. All these time were not adequate hence time became a constraint. A study of this nature would require financial assistance from either the government or private bodies but since this was not possible the researcher utilized the limited resource available to him. Some questionnaire administered on management and staff of the organization visited was not returned some were returned unanswered while some came back with incomplete answers. All these limited our sample size form what it was originally intended.

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