Application of Probability Theory in Small Business Management in Nigeria

Abstract

The paper is on the application of probability theory in small business firms in Nigeria. It looks at the rate small business firms fail despite the programmes of government directed at their survival. The continued failure has resulted in a wide gap between the haves and the have-nots. The application of probability theory in small business is examined to find the implications and in restoring the gap between the rich and the poor through better and informed decisions. The survey design was adopted in the study.  The instruments for gathering data for the study were mail questionnaire and interview guide. The population of the study was 1625 small firms in Enugu State, South East Nigeria. A sample size of 345 small firms was considered adequate for the study.  The findings indicate that probability theory has wide application in small business firms; probability shows specificity in business situations and is inevitable in this era of information overload caused by ICT. It is recommended that small business firms especially those in the fashion industry should learn and apply probability theory since there line of business was more prone to chance occurrences.

Keywords: Probability Theory, ICT, Specificity.