The Effect of Pilerfing on the Profitability of Small Businesses A Case Study on Shield Agro Chemical Company Ltd in Takoradi

Abstract

The study is based on an abstract on the effect of pilfering on the profitability of small businesses on Shield Agro Chemical Company Limited in Takoradi,Ghana. The avoidance of pilfering in small businesses is a standard objective an entrepreneur should achieve. If stocks level keeps falling through pilfering, small businesses suffer financial losses. Although many new businesses are started each year, their failure rate is alarmingly high. It is estimated that over 60% of small businesses fail within two to five years by Marfo and Boakey(2005). Furthermore, eight of every ten businesses end within ten years, mainly due such losses. The wholesale/stores department is blamed sometimes right by other departments since pilfering is believe to occur at their end, as stated by Lawson (2003). To obtain a zero degree of pilferage, it is vital to ensure that all departments know the negative effect of pilfering and all other necessary information. However measures of this kind are not enough as wholesale\stores department has a practical role in undertaking a daily stock taking.

Keywords: Pilfering, standard objective, Shield Agro Chemical Company Limited, Entrepreneur, stock taking and financial losses.