Background of the Study
Financial planning is a critical component of business management, particularly for small businesses in developing economies like Nigeria. In the restaurant industry, poor financial planning can lead to cash flow problems, inefficient use of resources, and ultimately, business failure. In Bauchi State, restaurants are an essential part of the local economy, providing employment and contributing to the food service sector. However, many restaurants struggle with financial instability due to inadequate financial planning, lack of proper budgeting, and failure to track financial performance (Umar & Saleh, 2023).
This study will examine the role of financial planning in the survival and growth of small restaurants in Bauchi State, focusing on how financial strategies such as budgeting, cash flow management, and financial forecasting impact business success.
Statement of the Problem
Many small restaurants in Bauchi State face financial challenges that threaten their survival, including poor cash management, inadequate capital, and failure to plan for unexpected expenses. Despite the importance of financial planning, many restaurant owners do not engage in formal financial planning processes, which leaves them vulnerable to financial risks and inefficiencies. This study aims to explore how financial planning contributes to the long-term survival and sustainability of small restaurants in the region.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
This study will focus on small restaurants in Bauchi State that have been in operation for at least one year. Limitations include the difficulty in obtaining accurate financial data from small business owners due to concerns about privacy and lack of formal financial records.
Definitions of Terms