Working Capital Financing by Banks in Small Enterprises

2017 ◽  
pp. 137-158
Author(s):  
Md. Mosharref Hossain ◽  
Yusnidah Ibrahim
Keyword(s):  
Commercial Banks ◽  
The Other ◽  
Capital City ◽  
Small Enterprises ◽  
Working Capital ◽  
High Involvement ◽  
Policy Initiatives ◽  
Capital Financing ◽  
Good Number ◽  
Structured Questionnaire

Among all the economic players, small enterprises (SEs), by number, dominate the whole world business segment. However, it is a very common problem for SEs, in every economy either developed or developing, to get access into formal financial sector. Working capital can be treated as the life blood for SEs to be operated. But unfortunately, most of the small enterprises face serious problem while obtaining such loan from banks. On the other hand, banks face a lot of problems to finance working capital to SEs. Therefore, this chapter intends to identify the problems faced by SEs in obtaining and by banks while financing working capital. A total of 413 small enterprises were interviewed through a structured questionnaire administrated directly by the researchers and selected purposively from the capital city (Dhaka) of Bangladesh. The major findings indicate that about 72% small enterprises got the access into banks for working capital loan although all of them face a lot of problems while obtaining such loan from banks. To identify the problems and challenges faced by banks while financing working capital to SEs, 34 commercial banks' officials working in SME department were interviewed through questionnaire and selected purposively based on their high involvement into SME sector lending. Bankers encountered different problems and challenges related to working capital financing in SEs. Based on the survey findings, a good number of solutions have been formulated for policy initiatives.

Working Capital Financing by Banks in Small Enterprises

2020 ◽  
pp. 1042-1063
Author(s):  
Md. Mosharref Hossain ◽  
Yusnidah Ibrahim
Keyword(s):  
Commercial Banks ◽  
The Other ◽  
Capital City ◽  
Small Enterprises ◽  
Working Capital ◽  
High Involvement ◽  
Policy Initiatives ◽  
Capital Financing ◽  
Good Number ◽  
Structured Questionnaire

Among all the economic players, small enterprises (SEs), by number, dominate the whole world business segment. However, it is a very common problem for SEs, in every economy either developed or developing, to get access into formal financial sector. Working capital can be treated as the life blood for SEs to be operated. But unfortunately, most of the small enterprises face serious problem while obtaining such loan from banks. On the other hand, banks face a lot of problems to finance working capital to SEs. Therefore, this chapter intends to identify the problems faced by SEs in obtaining and by banks while financing working capital. A total of 413 small enterprises were interviewed through a structured questionnaire administrated directly by the researchers and selected purposively from the capital city (Dhaka) of Bangladesh. The major findings indicate that about 72% small enterprises got the access into banks for working capital loan although all of them face a lot of problems while obtaining such loan from banks. To identify the problems and challenges faced by banks while financing working capital to SEs, 34 commercial banks' officials working in SME department were interviewed through questionnaire and selected purposively based on their high involvement into SME sector lending. Bankers encountered different problems and challenges related to working capital financing in SEs. Based on the survey findings, a good number of solutions have been formulated for policy initiatives.

scholarly journals Informal Sector’s Structural and Demographic Fundamentals against the Efficacy of Monetary Policy in Nigeria

2020 ◽  
pp. 1-18
Author(s):  
Emeka Osuji ◽  
Stanley Emife Nwani
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Developing Economies ◽  
Banking System ◽  
Working Capital ◽  
Access To Finance ◽  
Banking Services ◽  
Start Up ◽  
Monetary Policy Effectiveness ◽  
Structured Questionnaire

The informal sector is globally significant because it accounts for much of the job placements, especially in the developing economies. About 99 per cent of the 37million enterprises in Nigeria are microenterprises, most of which are financially excluded. This study examined the structural and demographic features of Nigeria’s MSMEs, from the stand point of the efficacy of monetary policy. The study employed survey research design using structured questionnaire administered on 282 microenterprises in Lagos. The results indicated that the MSME sector suffers significantly from limited access to finance and banking services. Operators in the sector placed little or no reliance on commercial banks for both start-up and additional working capital. They, therefore, operated largely outside the banking system thereby acting, at best, as passive observers of government’s monetary policy actions. The study recommended the vigorous pursuit of financial inclusion, as a strategy for enhanced monetary policy effectiveness.

scholarly journals Does working capital management affect the profitability of commercial banks: the case of Kosovo

2020 ◽  
Vol 9 (1) ◽  
pp. 126
Author(s):  
Ibish Mazreku ◽  
Fisnik Morina ◽  
Florentina Zeqaj
Keyword(s):  
Commercial Banks ◽  
The Other ◽  
Debt Ratio ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Current Ratio ◽  
Bank Profitability ◽  
Working Capital Management ◽  
The Impact

Purpose: This paper aims to analyze working capital and its impact on the profitability of commercial banks. The other objectives of this study are to analyze the factors that influence the profitability of commercial banks, to find out the relationship between profitability and working capital management. To achieve these research objectives, several research questions have been posited: How much does working capital affect the profitability of commercial banks? What are the relationships between bank profitability and bank size, debt ratio and current ratio? What are the other factors affecting the profitability of commercial banks? Methodology: The empirical data to be used in this research are secondary data and will be based on annual reports of commercial banks and reports of the Central Bank of Kosovo. From these data, some indicators such as return on assets, current ratio, debt ratio and banks’ size will be calculated. This research covers a period of 5 years and the data will be analyzed and interpreted through econometric models. In addition, to analyze the impact of working capital on the profitability of commercial banks in Kosovo, trend analysis will also be applied through the comparative method. Findings: Based on the empirical results, we can conclude that bank size and the current ratio have positively affected the performance of commercial banks in Kosovo, whereas the debt ratio has had a negative effect. All the independent variables in relation to the dependent variable (ROA) are at the standard level of significance P-value = 0.05. Practical implications: Through this study we can recommend all commercial banks in Kosovo to invest much more in working capital, since financial investments in working capital affect the bank's profitability. This means that a high investment in the elements of working capital can lead to increased bank profitability, whereas its profitability decreases when investment in working capital is low. Originality: This paper presents real and sustainable results with respect to the conclusions. The period analyzed (2013-2017) is a persuasive period for drawing competent conclusions and recommendations.  Keywords: working capital, debt ratio, current ratio, bank size, return on assets JEL Classification: G2, G20, G21, G3, G32, D24

scholarly journals IMPLEMENTASI AKAD MUDHARABAH BERDASARKAN PSAK 105 TENTANG AKUNTANSI MUDHRABAH DAN FATWA DSN MUI PADA PRODUK PEMBIAYAAN DI BANK SYARIAH MANDIRI KCP LAWANG

2019 ◽  
Vol 11 (1) ◽  
pp. 21-38
Author(s):  
Tisa Arifi Putriani ◽  
Muhammad Fahmul Iltiham
Keyword(s):  
Accounting Standards ◽  
Profit Sharing ◽  
The Other ◽  
Working Capital ◽  
Work Shop ◽  
The World ◽  
Capital Financing

In a financing transaction that is sacrificed, the Sharia Mudharabah contract is a very familiar transaction agreement for the world of sharia finance today, because the mudharabah contract itself is a contract of cooperation between the two parties, where one party acts as the owner of capital and the other party acts as the capital manager of a certain business with profit sharing ratio (profit) according to the agreement between the two parties. Because the purpose of this study is to determine the implementation (implementation) of the mudharabah contract in financing products at Bank Syariah Mandiri KCP Lawang. Then based on the results of the study it is known that the implementation (implementation) of the mudharabah contract on financing products at Bank Syariah Mandiri KCP Lawang is in accordance with the accounting standards in PSAK 105 on Mudharabah Accounting and also in accordance with sharia reviews based on the DSN MUI Fatwa regarding Mudharabah Financing. The application of the mudharabah contract at Bank Syariah Mandiri is found in the work shop financing product with the type of working capital financing to customers.

scholarly journals IMPORTANCE OF FINANCIAL MANAGEMENT FOR THE PROPER FUNCTIONING OF AN ENTERPRISE WITH SPECIAL REFERENCE TO THE MICRO AND SMALL ENTERPRISES (MSES) OF MANIPUR

2021 ◽  
pp. 20-28
Author(s):  
Jangkholam ◽  
A. Rajmani Singh
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Secondary Data ◽  
Primary Data ◽  
Small Enterprises ◽  
Working Capital ◽  
Efficient Management ◽  
Key Factor ◽  
Micro And Small Enterprises ◽  
Structured Questionnaire

Micro and Small enterprises is a very important segment that continues to contribute enormously for the economic development of the country and to the state of Manipur in particular. The success and failure of these enterprises depends a lot on the efficient management of its financial resources. Working capital management which is very much a part of the financial management is also a key factor as the functioning of most of these enterprises depend mainly on their working capital. This paper therefore attempts to study the financial management practices followed by the Micro and Small Enterprises (MSEs) in Manipur and to make an awareness about the importance of financial management practices in their business conduct. For the purpose of the study both primary and secondary data are used. Secondary data were collected from the related available literature like books, articles, magazines, MSME annual report, directory of MSME Manipur, etc. Primary data is obtained by distributing structured questionnaire to the owner/manager of the sample enterprises. The results of the study revealed that the financial management practices followed by the Micro and Small enterprises in Manipur are only fire-fighting in nature and no standardised rules or procedures are followed in managing their finance. The study suggested that a standardised financial management practices should be adopted by these enterprises which will enable them to measure and compare their performances.

Pengembangan Kemitraan Koperasi, Usaha Mikro Dan Kecil (KUMK) Dengan Usaha Menengah/Besar Untuk Komoditi Unggulan Lokal

2019 ◽  
Vol 9 (1) ◽  
pp. 53-66 ◽  
Author(s):  
Dandan Irawan
Keyword(s):  
Business Performance ◽  
The Other ◽  
Economic Conditions ◽  
Small Enterprises ◽  
Business Partnerships ◽  
Short Term ◽  
Business Partnership ◽  
Structure Factors ◽  
Micro And Small Enterprises ◽  
Business Entities

Basically a natural partnership will achieve its goal if mutual requirements, mutual reinforcement, and mutual benefit can be maintained and made a strong fundamental commitment among partners. Nevertheless the development seems very slow. The cause is the presence of specific and different conditions and structure factors compared to other countries. Along with that, we still encounter various forms of gaps, such as inequality among regions, among income groups, between sectors, among economic actors, and so forth. The next problem is that in business entities including cooperatives and micro and small enterprises in running their business activities requires business partnerships with medium and large enterprises in order to improve business performance and business scale. While on the other hand our economic conditions and structures are not yet fully conducive to fostering partnerships based on purely business considerations or competitive market motivations but the business partnership of the foundation is strong enough in our country's constitution. Partnerships will work if partners are equally benefiting. Our concept of partnership is like that, although in the short term, there is a party or a party benefiting more from the other side.

“A Study on the Influence of Rewards on Job Satisfaction With Special Reference to Education Industry in Oman”

2019 ◽  
Vol 118 (1) ◽  
pp. 114-124
Author(s):  
Mrs Nithya Sambamoorthy ◽  
Mr Subhash Kodiyil Raman ◽  
Mr Bhraguram Thayyil
Keyword(s):  
Job Satisfaction ◽  
Special Reference ◽  
Secondary Data ◽  
The Other ◽  
Primary Data ◽  
Other Hand ◽  
Education Industry ◽  
College Of Technology ◽  
Main Factors ◽  
Structured Questionnaire

This research is an examination and a study on the influence of rewards on job satisfaction of lecturers at Shinas College of Technology (ShCT). In academic industry, rewards are one of the factors that affecting job satisfaction of the employees and this will lead to affect their performance in their jobs. So, when rewards are more the job satisfaction will be high and when rewards are less the job satisfaction will be less. On the other hand, the age will not affect the job satisfaction. Previous research reveals that Job satisfaction is very important to success the industry and the rewards are the main factors which affect job satisfaction. The main purpose of this study is to know the influence of rewards in job satisfaction among the lecturers in ShCT. Moreover, this research attempts to identify how much rewards affect the job satisfaction in ShCT.  For this study used two types of data which are: primary data and secondary data. The sources of primary data is the response from lecturers at ShCT. It is collected through structured questionnaire and distributed such to 60 respondents. Secondary data, collected from internet, books, journals, articles etc.

FATORES QUE PREJUDICAM A GESTÃO DE CAPITAL DE GIRO DE MPE INDUSTRIAIS

2017 ◽  
Vol 3 (1) ◽  
pp. 43
Author(s):  
André Luiz Franco ◽  
Vera Mariza Henriques de Miranda Costa ◽  
Fábio Ferraz Junior ◽  
Tabajara Pimenta Junior
Keyword(s):  
Business Community ◽  
Small Enterprises ◽  
Stock Management ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Management Indicators ◽  
Micro And Small Enterprises ◽  
Major Factors ◽  
Managerial Activity

ResumoA importância das micro e pequenas empresas (MPE) pode ser notada pela relevante geração de riquezas e de empregos no Brasil. Contudo, os índices de insucesso e mortalidade para esse gênero de empresas são muito elevados e têm como um dos principais causadores a dificuldade no gerenciamento do capital de giro. A realização deste estudo teve como objetivo identificar e discutir os principais fatores, no âmbito da gestão de capital de giro, que prejudicam a continuidade das atividades das MPE industriais. A pesquisa envolveu uma coleta de dados com gestores de 55 MPE industriais.  Os resultados da pesquisa apontaram sete fatores mais importantes que interferem negativamente na gestão de capital de giro: formação inadequada dos gestores, acúmulo de atividade dos gestores, falta de planejamento financeiro, ausência de acompanhamento de indicadores de gestão, deficiência na gestão de estoque e produção, falta de condições de negociação com os fornecedores e restrições financeiras. Os resultados alcançados podem contribuir com a comunidade acadêmica e empresarial para ampliar a compreensão do que prejudica e dificulta a gestão de MPE, especialmente as que possuem atividade fabril. Palavras-chave: Capital de Giro; Micro e Pequenas Empresas; Mortalidade Empresarial.  AbstractThe importance of micro and small enterprises (SME) can be noticed by the relevant generation of wealth and jobs in Brazil. However, the rates of failure and mortality for this type of company are very high and have as one of the main causes the difficulty in the management of working capital. The objective of this study was to identify and discuss the main factors in the scope of working capital management, which hinder the continuity of the activities of industrial SME. The research involved a data collection with 55 industrial MPE managers. The research results pointed to seven major factors that negatively affect working capital management: inadequate training of managers, accumulation of managerial activity, lack of financial planning, lack of monitoring of management indicators, deficiencies in stock management and production, lack of negotiation conditions with suppliers and financial restrictions. The results achieved can contribute to the academic and business community to broaden the understanding of what harms and hinders the management of MSE, especially those that have factory activity. Keywords: Working Capital; Micro and Small Enterprises; Corporate Mortality.

Designing for Dissemination in Chronic Disease Prevention and Management

2017 ◽  
Author(s):  
Neville Owen ◽  
Ana Goode ◽  
Takemi Sugiyama ◽  
Mohammad Javad Koohsari ◽  
Genevieve Healy ◽  
...  
Keyword(s):  
Physical Activity ◽  
Chronic Disease ◽  
Cost Effectiveness ◽  
Health Behavior Change ◽  
The Other ◽  
Research Quality ◽  
Policy Initiatives ◽  
Rigorous Study ◽  
Behavior Change Program

This chapter emphasizes the need for research that is designed and implemented explicitly with dissemination in mind. This is illustrated in relation to environmental and policy initiatives to influence physical activity through active transport, and through the example of initiatives to reduce workplace sitting. The other element of this chapter, the broad-reach intervention-dissemination case study of a health behavior-change program, highlights the need to maintain key elements of research quality in designing for dissemination, to the extent that is practically possible: a rigorous study design; the systematic tracking of implementation and related costs; and, the conduct of dose-response, maintenance and cost-effectiveness analyses. These examples of designing for dissemination illustrate not only the exciting opportunities for real-world dissemination research, but also the resourcefulness and commitment required for success.

scholarly journals Joint Action on cancer iPAAC - building on experience and streamlining recommendations for the future

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M Jelenc ◽  
T Albreht
Keyword(s):  
Cancer Care ◽  
National Level ◽  
Cancer Control ◽  
Professional Community ◽  
The Other ◽  
Consensus Building ◽  
Good Practices ◽  
Policy Initiatives ◽  
European Code ◽  
And Control

Abstract Background Policy initiatives, proposals and projects often end up proposing solutions and/or measures that are eventually either not or only partially implemented or they are lacking a system, which would consistently evaluate their implementation and/or impact. Good solutions are often not visible enough to the broader professional community and it is important to identify certain outstanding challenges in cancer control and policy. Driven by the need to better use the outputs from projects on cancer policy, European Commission was trying to address two challenges - one was in solving the problems with the implementation and use of the solutions that have already been proposed and the other one in identifying the outstanding challenges in cancer policy. Results We have decided to follow the structure to develop a series of recommendations and examples of good practices at the national level by selected areas. These would be streamlined into a roadmap to support policymakers at the national and EU level in formulating their cancer policies. Three pairs of targeted recommendations have been identified: Cancer prevention, including health promotion, implementation of the European Code Against Cancer and the reshaping and extension of cancer registriesGenomics and immunotherapy in cancerChallenges in cancer care and governance of cancer control Conclusions Multinational collaboration can bring about important consensual solutions, which build on the existing good practices in the countries. This can be combined well with the existing work on specific areas, carried out both internationally and nationally. Consensus building on jointly defined challenges represents a task that appears to be resolved rather pragmatically. Key message It is important that advance in cancer care and control are quickly analysed and that policymakers receive up-to-date recommendations to improve their policies on cancer control.

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