Franchising and the Survival of Aluminum Firms in Kogi State

Abstract

Aluminium firms appear to be in continuous competition in Kogi State. The firms in this competitive atmosphere comprise of mini, small, medium and large firms in the aluminium sub-sector. About 80% of small and medium enterprises in the aluminium sub-sector seem to experience problems of low market share, production inefficiency, and lack of public confidence (goodwill), low turnover and survival. Consequently, the objective of this study is to determine the relationship between franchising and survival of aluminium firms in Kogi State. Correlation survey research design was employed. The data obtained were analysed with the Pearson’s Product Moment Correlation Coefficient. Finding revealed that there is significant relationship between franchising and survival of aluminium firms in Kogi State. This implied that increase in the franchising would promote the activities of small and medium enterprises in the aluminium sub-sector and vice versa. It was also found that franchising has positive relationship with the performance of aluminium enterprises in Kogi State. Based on the findings, it is recommended that efforts should be madeby investors, stakeholders and the government of Kogi State to create awareness among small and mediumsized aluminium enterprises in Nigeria regarding the potential benefits of franchising.