RECOMMENDATIONS FOR SMALL AND MEDIUM SCALE BUSINESS : SUMMARY, CONCLUSION

SUMMARYIn the course of the introductory analysis (chapter one), it was observed that an agent, is someone who brings another person called the principal into contractual relationship with third parties. An agent is a person who is given the authority by the principal to enter into a contract on his behalf.


            Therefore, agency theory provides the framework for discussing the relationship that exists between the various interest groups in an organization. It views the firm as a composite unite consisting of separate group advocates it own interest and ensures it stands at an advantageous position in relation to the firm. The theory brings out a clear exposition of the actions of some managers who are not in shareholders and maximization objective is therefore pursued.
Unfortunately the agent who suppose to uphold the principle of fiduciary duty, a duty which includes the avoidance of conflict of interest and not to take secret profit, secret reward or secret commission or a bride, now revel in self interest pursuer putting in place management that services most a time the self interest that seem to be their paramount objectives as against the over all objectives of the firm. Thereby having goal divergent as against goal congruence.
            A principal is the person who employs another person called, agent to act on his behalf.
Management in all business and organization activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. The managerial function of controlling is the measurement and correction of the performance of activities of subordinate in order to make sure that all levels of objectives and the plan devised to action them  are being accomplished.
            As a result of these observation and experiences the author of this project has undertaken this research to find out how, agency relationships can impact positively on the management control system so as to ensure shareholders wealth maximization. Thus, these studies very carefully pained out the similarities and more importantly the differences between previous researches and the current study.
            The instrument employed for the data collection were questionnaires. The respondents included SMEs with and those without agency relationship. Based on the analysis made at end of each table chapter 4, the researcher summarizes that majority of small and medium scale business are without agency relationship in Abi L. G. A of Cross River State. The result of collaborate assertion that there is a significant effect of agency relationship on the operations of small and medium scale business in Abi L. G. A of Cross River State. Again, it was established that agency relationship has impacted positively on management system even as management override has greatly reduced. The result of table 4-4 attested to this.                         
CONCLUSION
The study of the implication of agency relationship on the operations of SMEs have been quite revealing. It clearly points out that Agency relationship is critical in maximizing business gains in particular and cooperate administration in general. Although the study is limited to small and medium scale enterprises, it can produce an amazing result if conducted on cooperate organizations both in the cooperate business world and in government.

RECOMMENDATIONS
The following recommendations are found necessary for government, Business Organizations and researchers.
(i)        Government should evolve deliberate policies to develop small and medium scale enterprises as they constitute the bedrock of micro economic development in the state.
(ii)       Government should promote accent to credit for SMEs through continuous funding of the bank of industries (BOI).
(iii)     A tax regime that favours SMES should be put in place as a matter of urgency to arrest the imminent collapse of SMEs in the State.
(vi)      Agency theory approach to business management should be embraced by all corporate business especially those registered in the corporate Affairs Commission.

RECOMMENDED AREAS FOR FURTHER RESEARCH
This research was limited to small and Medium Scale Enterprises. I therefore recommend that interested researchers wishing to investigate the implication of Agency theory should consider Public Limited Companies (PLC) for an expanded knowledge.

REFERENCES
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APPENDIX A
Definitions of Terms  
            The researcher wishes to define certain terms which to him could assist the reader in understanding the study.
1.         Agent:            An agent is some one who enter into contractual relationship with another person called the principal,
2.         Agency: “agency” is defined as relationship between the principal and the agent.
3.         Principal: A principal is “a person who, being sui juris, that is, of legal capacity, employ some one else to do an act which “he or she is competent himself to do”
4.         Agency Relationship: A relationship in which a principal engages an agent to perform some service on his or her behalf’s this involves delegating authority by the principal.
5.         Fiduciary Duty: This includes a duty to avoid conflict of interest and not to take secret profits, secret reward or secret commission or a bride.
6.         System: A system has been defined in the Oxford English Dictionary as simply “a set or assemblage of things connected, or interdependent, so as to form a complex unity; a whole composed of parts in orderly arrangement according to some scheme or plan”. .
7.         Corporate government: Is defines corporate government as the process, structures and relationships through which the Board of Directors oversees what the executives do to achieve the objective of the company.  
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