Background of the Study
Economic recessions are periods of negative growth that lead to decreased demand for goods and services, increased unemployment, and heightened uncertainty. For entrepreneurs, particularly those in manufacturing sectors like furniture production, recessions can severely disrupt business operations. The furniture manufacturing industry in Nasarawa State, which relies on the steady demand for household and office furniture, faces unique challenges during economic downturns. During recessions, consumers often cut back on discretionary spending, affecting the sales of non-essential goods like furniture. Entrepreneurs in this sector must navigate these challenges while trying to maintain profitability and growth (Adebayo & Bello, 2023).
This study investigates the effects of economic recession on entrepreneurial activities, focusing on furniture makers in Nasarawa State. It aims to explore how recessions affect the business strategies, financial performance, and survival of small and medium furniture manufacturing businesses.
Statement of the Problem
The impact of economic recessions on entrepreneurship, particularly in the furniture manufacturing sector, is a significant concern. Furniture makers in Nasarawa State have experienced reduced sales and increased operational costs during recessions, which affect their ability to sustain operations. However, the specific effects of economic downturns on these entrepreneurs have not been comprehensively studied.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
This study focuses on furniture makers in Nasarawa State and evaluates how economic recessions affect their business activities. Limitations include the variability in the size and resources of different furniture businesses, which may influence their resilience during economic recessions.
Definitions of Terms