Tag Archives: Financing

Effect of Small and Medium Scale Financing on Entrepreneurial Development in Delta State (Published)

The main objective of this study is to examine the effect of small and medium scale financing on entrepreneurial development in Delta State. Three objectives to ascertain the effect of household income on entrepreneurial development; to examine the impact of thrift savings on entrepreneurial development and to determine the effect of loans on entrepreneurial development guided the study. The cross sectional survey research design method was employed. The geographical area for this study was the south-south region in Nigeria. The participants of the study were 215 entrepreneurs in south-south region in Nigeria. The non-probability sampling method was used because the population was large and not easily accessible and the researcher had no control over it. The research instrument was a 16-item validated structured questionnaire, the item measures were based on a five-point likert scale. Primary data were used since data were collected directly from entrepreneurs in south-south region. Data obtained were analyzed using correlation and regression. Findings from multiple regression analysis revealed that household income has significant positive effect on entrepreneurial development (β = .158, P<0.01). The findings also revealed that user thrift savings has significant positive relationship with entrepreneurial development (β = .123, P <0.01).Thus Government should come out with a clear policy on SMEs. There should be a firm choice between state sponsorship without control, autonomy of SMEs without assistance and state sponsorship with control. SMEs are still in their infancy in Nigeria and must therefore be sponsored without government control.

Keywords: Delta State, Entrepreneurial Development, Financing, Small and Medium Scale

Financing Basic Education in Nigeria: The Alternative Methods (Published)

The existing methods of funding public schools under the Universal Basic Education (UBE) programme is not adequate to meet the needs of the schools in Nigeria. This is causing a degradation in academic standards, facilities and equipment and poor outcomes among the learners.  Alternative sources of raising public funds to finance basic education have come into focus. Such attention has become important because basic education plays a very vital role in an educational system. These new strategies come as complements to the traditional modes through which schools can access needed fund, objectively to improve schools and achievements among learners.

Keywords: Basic Education, Financing, Nigeria, alternative methods, schools

Financing Constraints of Small and Medium Enterprises in South-Western Nigeria (Published)

This study focused on the investigation of the financing constraints of small and medium enterprises in South- Western Nigeria. The study determined how high bank changes, high legal documentation fees and collateral securities are related to financing constraints for small and medium enterprises in south- western Nigeria. The study was carried out using a quantities methodology through administration of a structured questionnaire. The data gathered was analyzed using descriptive and inferential statistics such as percentages, correlation analysis and multiple regression, with the aid of statistical package for social science (SPSS) version 20 with a cut off set a p= 0.05 level of significance. The study was conducted in six states of south – west Nigeria that is Lagos, Ogun, Oyo, Osun, Ondo and Ekiti. The result show that high bank charges constitute financing constraint since p-value is < 0.05; there is no significance evidence to conduct that high legal documentation fees is a constraint to financing small and medium enterprises since p-value is > 0.05 and there is positive but weak relationship between collateral securities and financial constraint of small and medium enterprises in south-west Nigeria. This study has contributed to literature on financing constraints of small and medium enterprises

Keywords: Financing, Financing Constraints, Small and Medium Enterprises

The Predictive Ability of Corporate Profitability Components and Future Earnings (Published)

Firms employing additional debt finance often do so with the expectations that future profits will more than compensate for the fixed cost of borrowing. Similarly additional investment of equity capital indicates management confidence that the future profitability of the firm will be greater than the fixed operating cost. Therefore the mapping of financing, investing and operating decisions to current earnings provides a more rounded view of likely future earnings. Following the decomposition of return on equity into financing, investing and operating leverages components by Agburuga & Ibanichuka (2016), we explore the ability of these components of corporate profitability to predict future earnings. We found that future earnings (FTE) was negatively related to financing leverage component (FLC) and investing leverage component (ILC) and positively related to operating leverage component (OLC). This study thus provides evidence consistent with the trade-off theory. The negative relation of FLC and ILC and positive relation of OLC respectively to future earnings is analogous to and systematically explains the negative and positive relations of accrual and cash flow components of earnings to future earnings and stock prices contrary to the Bernard & Stober (1989) finding that it is not systematic.

Keywords: Financing, investing and operating leverages components; accrual and cash flow components; return on equity

Relationship of Cash Flow Ratios and Financial Performance of Listed Banks in Emerging Economies – Nigeria Example (Published)

The study examines the relationship between cash flow and performance in the Banking sector of Nigeria. The study involved a survey of four (4) Banks quoted in the Nigeria Stock Exchange. Data were obtained from the annual report and accounts of selected Banks. The data were subjected to statistical analysis using correlation technique. The result of the study revealed that operating cash flow has a significant and strong positive relation with performance in the Banking sector in Nigeria, it was also reified that investing cash flow and financing cash flow have negative and weak relationship. The study recommends that regulatory authorities such as CBN, SEC, CAC and NDIC should be securitizing their financial statement and also external auditors of the quoted Banks in the Banking sector to use cash flow ratio in evaluating performance which will help investors make good decisions

Keywords: Cash flow, External Auditor, Financing, Investing, Operating, and Banks

Causes of Small Businesses’ Failure: An Exploratory Study within Jeddah’s Governorate in Saudi Arabia (Published)

This study aims to highlight some of the reasons for the failure of small businesses, such as unemployment among Saudi nationals, reliance on expatriate labor, the absence of a regulatory framework, and difficulties in the funding of some financial institutions. Thus, the objectives of the study are: to highlight the important role that small businesses represent in the Saudi economy, to find appropriate solutions for the failure of small business, to create a framework to support the small business, and find financing mechanisms for small business. To achieve the overall objective of the study, a field study was conducted with owners of small businesses within Jeddah’s governorate in the Kingdom of Saudi Arabia. A purpose-designed questionnaire was prepared and sent to participating businessmen. The data gathered from those questionnaires was compiled and statistically analyzed using IBM SPSS Statistics® software package. After pilot testing, a questionnaire was sent to 130 businessmen with 100 completed questionnaires returned (approximately 77%). Data was analyzed by the researcher using frequencies, percentages and Chi- square calculations. The results of the study indicated that poor management, a lack of bank loans and workers training were the most important reasons for failure. The study contains five sections, section I: Introduction to the study and previous studies. Section II: The importance of small projects and the most important contemporary problems and challenges. Section III: Analysis of results of the study. Section V: Conclusions and recommendations. In light of the results of this study, the researcher provided recommendations in order to highlight the factors that lead to, either the failure or success of small businesses.

Keywords: Failure Causes, Financing, Jeddah, SMEs, small businesses

Causes of Small Businesses’ Failure: An Exploratory Study within Jeddah’s Governorate in Saudi Arabia (Published)

This study aims to highlight some of the reasons for the failure of small businesses, such as unemployment among Saudi nationals, reliance on expatriate labor, the absence of a regulatory framework, and difficulties in the funding of some financial institutions. Thus, the objectives of the study are: to highlight the important role that small businesses represent in the Saudi economy, to find appropriate solutions for the failure of small business, to create a framework to support the small business, and find financing mechanisms for small business. To achieve the overall objective of the study, a field study was conducted with owners of small businesses within Jeddah’s governorate in the Kingdom of Saudi Arabia. A purpose-designed questionnaire was prepared and sent to participating businessmen. The data gathered from those questionnaires was compiled and statistically analyzed using IBM SPSS Statistics® software package. After pilot testing, a questionnaire was sent to 130 businessmen with 100 completed questionnaires returned (approximately 77%). Data was analyzed by the researcher using frequencies, percentages and Chi- square calculations. The results of the study indicated that poor management, a lack of bank loans and workers training were the most important reasons for failure. The study contains five sections, section I: Introduction to the study and previous studies. Section II: The importance of small projects and the most important contemporary problems and challenges. Section III: Analysis of results of the study. Section V: Conclusions and recommendations. In light of the results of this study, the researcher provided recommendations in order to highlight the factors that lead to, either the failure or success of small businesses.

Keywords: Failure Causes, Financing, Jeddah, SMEs, small businesses

Challenges and Obstacles That Small And Medium Enterprises Face In Terms Of Financing in Palestine (Published)

The purpose of the study attempts to analyze the obstacles and challenges that face small and medium enterprises in Palestine. This study seeks to look at the importance of small and medium enterprises, and to identify the most important constraints faced by small entrepreneurs in obtaining the required funding in Palestine, and what are the most important impediments toward financing of small projects. The investigation helped in identifying the major challenges of financing small and medium business and what to do in order to overcome these obstacles. It was also found that small enterprises are one of the most important key elements in achieving economic development in all countries of the world where it accounts for the highest percentage among all kinds of economic projects of all sizes. A qualitative closed-ended survey was carried out for collecting data from managers and owners of 35 businesses in Palestine. The responses of 28 statements were collected in five different categories. The findings showed that the Obstacles facing the growth of small enterprises in Palestine by respondents was “Weakness of representative organizations that defend the interests of small businesses, as well as Lack of legal frameworks and incentives for small businesses

Keywords: Challenges, Financing, Palestine, Small and Medium Enterprises

Impact of National Fadama 111 Development Project Financing On the Socio-Economic Growth of Ebonyi State in Nigeria. (Published)

One of the major problems confronting Nigeria today is how to improve the quality of life in the rural areas, reduce the level of poverty and contribute to economic growth through Fadama 111 Development Project. The aim of this study is to investigate the impact of National Fadama Development Project Financing on the socio-economic growth of Ebonyi State using contents analysis and descriptive survey. It was discovered that counterpart contribution by Ebonyi State government has significant effect on socio-economic development of Ebonyi State and that there is long run correlation between counterpart contribution by Local Government Areas of Ebonyi State and socio-economic development of the state. We concluded that introducing the principles of comparative advantage, by the provision of credit facilities to the comparative group in Ebonyi State, only for those businesses that earned them the highest income should be encouraged.

Keywords: Counterpart, Fadama, Financing, Income, economic growth

TEACHERS BELIEVE ABOUT PARENTS INVOLVEMENT IN GIRL CHILD EDUCATION AND FINANCING (Published)

The study examined the Believe of teachers about parents involvement in girl child education in the Federal Capital Territory, This is because the way at which the teachers believe the parents as a stakeholder in education involve and do their responsibility as parents has a lot of implication on the education of a Girl Child. Even though teacher as a stakeholder have a lot of role to play but a collaborative effort between parents and teachers on girl child education is more to be desired. It also aims at assessing the extent to which parents involvement in classroom teaching is perceived by teachers with less / higher qualifications. A descriptive survey research design of the expo-facto type was adopted for this study, A Teachers Believe about Parents Involvement in Girl Child Education and Financining Questionnaire (TBIGCEFQ) was used for data collection. The paper came up with some relevant recommendations.

Keywords: Child Education, Financing, Girl, Parents Involvement, Teachers

FINANCING TERTIARY INSTITUTIONS THROUGH INTERNALLY GENERATED REVENUE (IGR) (Review Completed - Accepted)

This paper examines how internally generated revenue (IGR) is being used to finance tertiary institutions in Nigeria. Most tertiary institutions in Nigeria have set up internally generated revenue units to source for funds in order to use in assisting government to finance the institutions. Internally generated revenue unit in higher institution therefore is to serve as relief to government expenditure. This paper discusses financing higher education in Nigeria. Effect of adequate funding of tertiary institution/higher education in Nigeria. The paper also explains the need for business development as internally generated revenue in higher institution and the need for intra preneuning for internally generated revenue in tertiary institutions. The paper therefore concluded that all necessary logistics for adequate internally generated revenue must be put in place to minimize fraud.

Keywords: Expenditure, Financing, Internally, Revenue