scholarly journals Impediments to Capital Market Financing of Small and Medium Enterprises in Nigeria

2018 ◽  
Vol 1 (4) ◽  
Author(s):  
Okoye Lawrence Uchenna
Keyword(s):  
Capital Market ◽  
Small And Medium Enterprises ◽  
Medium Enterprises

scholarly journals THE ROLE OF ISLAMIC CAPITAL MARKET FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) THROUGH SYNERGY OF MUTUAL FUND AND VENTURE CAPITAL INSTITUTION

2017 ◽  
Vol 3 (1) ◽  
pp. 81-112
Author(s):  
Yulizar D. Sanrego
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Mutual Fund ◽  
Small And Medium Enterprises ◽  
Proposed Model ◽  
Investment Manager ◽  
Corporate Venture ◽  
Medium Enterprises ◽  
Fund Investment

It is worldly known that one of the main obstacles which is often faced by the micro, small, and medium enterprises (MSMEs) practitioners is the ability to access sources of funding. At the time where the absorption of banking credit to MSMEs is still very limited, the role of sharia capital market is considered as an alternative to support this limitation. Expanding the role of sharia capital market finds it moment when Indonesia Finance Service Authority (FSA) issued regulations that provide space for the capital market to also active in real sector businesses. In accordance with the FSA Rules N0.37/2014, mutual fund (unit trust) in the form of Collective Investment Contract (CIC) - Limited Investment/ Participation Fund (LPF) has the objective to pave the way for mutual fund investors to make direct investments in real investments. The proposed model that might be realized to smoothen the intermediary role of sharia capital market to the development of MSMEs is through the hybrid model that might linking mutual fund/investment manager and corporate, particularly venture capital. Using Analytical Network Process (ANP) approach this paper indicates that with the value of rater agreement 1.0, the research found that there are four main cluster problems which become an obstacle the proposed model, namely: (a) the reputation of mutual fund/investment manager; (b) investment grade rating of corporate (venture capital); (c) risk appetiate of investor as shahib al-mal; and (d) government regulation. Policy recommendation that might become solution, according to the value of rater agreement 1.0  is sequentially as follow, namely: (a) fully support from government; especially for a relatively new mutual fund with no experience in the capital markets industry; (b) Corporate (venture capital) should be able to offer Islamic Microfinance Finance Institutions (IMFIs) and MSMEs that have good business feasibility to the mutual fund/investment manager as well as investor; (c) the government should be able to guarantee legal certainty in the context of protection, including advocacy for investors; and last but not least (d) There is an extremely hope that investors could change their investment behavior paradigm, from risk averse to risk taker.Keywords: Sharia capital market, Mutual fund, Venture capital, MSMEJEL Classification: G1, G23, G24

scholarly journals China venture market overview

2019 ◽  
Vol 27 (4) ◽  
pp. 753-760
Author(s):  
Marina S. Reshetnikova
Keyword(s):  
Capital Market ◽  
Small And Medium Enterprises ◽  
Scaling Up ◽  
Chinese Economy ◽  
High Tech ◽  
Stage Of Development ◽  
Current State ◽  
New Development ◽  
The Government ◽  
Medium Enterprises

Today the Chinese economy has rapidly begun the transition to a new stage of development. Its basis is high-tech production and national breakthrough technologies. This process happens due to the transformation of the government strategy in the direction of scaling up innovation through the inclusion of small and medium enterprises. China has been able to raise venture investments for its new development plan. However, since 2016, the rapid growth of the Chinese venture market has raised many concerns. The purpose of the study was to analyze and assess the current state of China's venture capital market. The research proved that, despite signs of overheating, it is still premature to talk about the formation of a “bubble” in the Chinese venture market. The article concludes with a discussion that China is transforming itself again and that the next wave of innovation and private entrepreneurship will be the wave of the future, with substantial global consequences.

scholarly journals The Growth Prospect and Challenges of Financing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Bosede Olanike Awoyemi ◽  
Aderonke Abisola Makanju
Keyword(s):  
Financial Institutions ◽  
Capital Market ◽  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
Security Market ◽  
Growth And Survival ◽  
Growth Prospect ◽  
Deductive Method ◽  
Medium Enterprises ◽  
Credit Worthiness

This study identifies the growth prospect of financing Micro, Small and Medium Enterprises (MSMEs) in Nigeria and the challenges that constitute a hindrance to the growth of MSMEs in Nigeria. This study employed descriptive analysis, simple percentages and deductive method to describe the growth prospect of financing MSMEs and the problems experienced by the MSMEs. It was found that the growth and survival of MSMEs are still hampered by inaccessibility to funds owing to different reasons and challenges. The chief among the challenges is that financial institutions look at many MSMEs as high risk debtors without credit worthiness. The key finding of this study is that the financial support in term of loans given to MSMEs by the financial institutions has been declining continuously over the years and this hamper the growth prospect of MSMEs. The Federal Government should formulate policies that would encourage MSMEs to begin to source funds from the capital market through the introduction of the third-tier security market since there is an increasing growth in the number of MSMEs in Nigeria.

scholarly journals Financial development and economic growth in developing countries: evidence from Saudi Arabia

2014 ◽  
Vol 11 (2) ◽  
pp. 718-742
Author(s):  
Meshaal J. Alshammary
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Capital Market ◽  
Small And Medium Enterprises ◽  
Market Development ◽  
Gdp Growth ◽  
Var Models ◽  
Real Gdp ◽  
Medium Enterprises

This study investigates the long-term and short-term relationships between capital market development and economic growth in the Kingdom of Saudi Arabia (KSA) for the period from January 1993 to December 2009. It employs a wide range of vector autoregression (VAR) models to evaluate the importance and impact of capital market development on economic growth. We used real GDP growth rates and None Oil GDP as proxies for economic growth and the stock market index (SMI), the bank credits to the private sector (BCP) and the broad money supply (M2) as proxies for the capital market development. The VAR models indicate a positive and significant long-term causal relationship between capital market development and economic growth. Granger causality tests show that economic growth Granger-cause capital market development and vice versa when using the real GDP growth rate variables. The study implications are as follows. Firstly, investment in real economic activities leads to economic growth. Secondly, the stock market might hinder economic growth due to its volatile and international risk sharing nature, low free-floating share ratio, number of listed companies and the domination of Saudi Individual Stock Trades (SIST) characteristics. Thirdly, policymakers should seek to minimise stock market volatility and fluctuations, increase both the free-floating share ratio and number of listed companies and shift investment domination toward corporate investors by considering its effect on economic growth when formulating economic policies. Fourthly, the banking sector might hinder economic growth due to its lack of small and medium enterprises lending and shareholder concentration issues. Finally, policymakers should seek to encourage banks toward more involvement in small and medium enterprises SMEs’ lending, which will strengthen the private sector role.

scholarly journals Alternative Trading Systems in Germany – Entry Standard vs. Neuer Markt

2016 ◽  
pp. 223-233
Author(s):  
Sonia Woś
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Small And Medium Enterprises ◽  
Trading System ◽  
Trading Systems ◽  
German Capital ◽  
Similarities And Differences ◽  
Capital Access ◽  
Medium Enterprises ◽  
Neuer Markt

The aim of the article is to compare the former German alternative market, the Neuer Markt, with the current Entry Standard, in the context of providing capital access to small and medium enterprises. The article characterizes the German capital market since 1987, focusing on the current alternative trading system – the Entry Standard segment. The objective has been achieved with the analysis of the Entry Standard IPO emission requirements, selected statements demanded from issuers and the market structure. Those issues are compared with the former Neuer Markt. During the research, foreign literature, press articles and Frankfurt Stock Exchange publications and reports were applied. The author wants to indicate the main similarities and differences between the Neuer Markt and the Entry Standard. The comparison confirms that the alternative trading system plays a huge role in providing capital access to small and medium enterprises.

scholarly journals An Empirical Study on the Stock Price Volatility of Small and Medium Enterprise Board in China

2017 ◽  
Vol 8 (2) ◽  
pp. 12
Author(s):  
Qishui Chi ◽  
Jieyi Huo
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Small And Medium Enterprises ◽  
Supply And Demand ◽  
Price Volatility ◽  
Long Run ◽  
Medium Enterprise ◽  
The Government ◽  
Medium Enterprises

This article utilizes structural change method to examine the fluctuation characteristics of stock prices of China’s small and medium enterprises. This study indicates that time series of Chinese small and medium-sized enterprises stock prices are not characterized by mean reversion. Therefore, the policy bailouts in the market including the rescue package of the government in June 2015 are ineffective because they are offset by other factors. The long-run growth of stock prices depends on the supply and demand situation in capital market as well as the growth of national economy but has no connection with the policy bailouts.

scholarly journals Working capital management and firm profitability: Evidence from SMEs in Malaysia

2020 ◽  
pp. 99-105
Author(s):  
Hoang Cong Huan, Duong Nguyen Minh Huy Hoang
Keyword(s):  
Capital Market ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Firm Profitability ◽  
Medium Enterprises

Efficient working capital management is particularly important for Small and Medium Enterprises (SMEs) in coping with greater difficulty in accessing capital market. In this research, we investigate the importance of working capital management to SMEs by analyzing the influence of working capital management and its components (inventory, accounts receivable and account payable) to profitability of SMEs. By using a sample of SMEs listed on the ACE market – an alternative, sponsor-driven equity market designed for Malaysian SMEs during the period from 2010 to 2016, our findings suggest that managers of Malaysian SMEs can enhance profitability by holding a large amount of inventory, offering more trade credit to customers, and lengthening the cash conversion cycle.

Model Pemberdayaan Usaha Mikro Dan Pengaruhnya Terhadap Kemandirian Usaha

2015 ◽  
Vol 2 (1) ◽  
pp. 75-93
Author(s):  
Mudasetia Hamid ◽  
Evy Rosalina Widyayanti
Keyword(s):  
Human Resources ◽  
Small And Medium Enterprises ◽  
Poverty Rate ◽  
Cultural Centers ◽  
Central Java ◽  
Tourism Education ◽  
The Indian Ocean ◽  
Medium Enterprises ◽  
The City

Yogyakarta is a city and the capital of Yogyakarta Special Region in Java, Indonesia. It is renowned as a center of tourism, education and culture. Yogyakarta is one of the foremost cultural centers of Java. This region is located at the foot of the active merapi vulcano. Yogyakarta is often called the main gateway to the Central Java as where it is geographically located. It stretches from Mount Merapi to the Indian Ocean. This province is one of the most densely populated areas of Indonesia. Yogyakarta is popular tourist destination in indonesia after Bali. These have attracted large number of visitors from across Indonesia and abroad to the city. This status makes Yogyakarta is one of the most heterogeneus cities in Indonesia. In edition, Yogyakarta has attracted large number of people to reside in this city for business. One of these comers is small entrepreneurs with their market munchies enterprise (specially a traditional snack trader). This business is one of famous business in Yogyakarta, we will find rows of pavement vendors selling market munchies. The students and tourists are their main target customers. Market munchies enterprise is part of small and medium enterprises SMEs as livelihood activities. SMEs has an important role in economic growth of Indonesia. Therefore, it is very important to develop and strengthen the micro enterprise empowerment. Micro enterprise empowerment is one of strategy to reduce the poverty rate in Indonesia. Major challenger in implement this program are that micro entrepreneurs are conventional and have satisfied with their revenue. It is very important to develop a comprehensive and sustainable micro enterprise empowerment which consist of strengthen the quality of human resources, maximize the government’s roles, empower the enterprise capital and strengthen the partnership and autonomous. Micro enterprise autonomy will contribute to the economic and investment climate. This will lead to establish an accountable enterprise both for the micro enterprise and customers which at the end will strengthen the development of the micro enterprise in Yogyakarta.Keyword: micro entreprise, human resources, government roles, capital, partnership and autonomous.

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