An Evaluation of Ethical Business Practices in Nigerian SMEs: A Case Study of Tailoring Businesses in Enugu
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Background of the Study
In recent years, the ethical conduct of Small and Medium Enterprises (SMEs) has become a key area of focus due to its importance in sustaining business growth and fostering a positive relationship with stakeholders. Nigerian SMEs, particularly in sectors such as tailoring, play a crucial role in the economy by creating jobs, generating income, and contributing to local development. However, ethical practices within these businesses often remain under-researched (Okafor & Nwankwo, 2024).
Tailoring businesses in Enugu, a state known for its entrepreneurial spirit, are part of Nigeria’s booming informal sector. These businesses often face challenges related to competition, labor standards, and customer satisfaction, which can lead to ethical dilemmas in decision-making. Issues such as pricing strategies, employee treatment, and product quality often have implications for the businesses' reputation and long-term sustainability (Eze & Umeh, 2025).
Statement of the Problem
Despite their importance to the local economy, many tailoring businesses in Enugu struggle with the implementation of ethical business practices. These practices are often compromised by financial pressures, lack of regulatory oversight, and the informality of their operations. As such, it is essential to evaluate the ethical practices in these businesses to understand their effects on the business's success and sustainability.
Objectives of the Study
- To assess the ethical business practices in tailoring businesses in Enugu.
- To analyze the impact of ethical practices on the success and growth of tailoring businesses.
- To identify challenges to ethical decision-making in tailoring businesses in Enugu.
Research Questions
- What are the common ethical business practices in tailoring businesses in Enugu?
- How do ethical practices influence the success and growth of tailoring businesses?
- What challenges hinder ethical decision-making in tailoring businesses in Enugu?
Research Hypotheses
- Ethical business practices positively affect the growth and success of tailoring businesses.
- Challenges related to financial pressures negatively impact the implementation of ethical practices.
- Tailoring businesses with strong ethical practices have better customer loyalty and long-term success.
Scope and Limitations of the Study
The study focuses on tailoring businesses in Enugu and examines their ethical practices between 2023 and 2025. Limitations include potential biases in self-reporting from business owners and limited access to proprietary data from private businesses.
Definitions of Terms
- Ethical Business Practices: Practices that promote fairness, transparency, and accountability in business operations.
- Small and Medium Enterprises (SMEs): Businesses with a limited scale of operation, typically employing fewer than 200 people.
- Tailoring Business: A small enterprise involved in creating or altering garments for customers.
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