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Assessing Determinants of Financial Constraints on Small and Medium Enterprises in Kumasi Metropolis, Ghana
Francois Mahama,
Etornam Kwame Kunu,
Patience Ama Nyantakyiwaa Boahen,
Albert Kweku Bediako
Issue:
Volume 2, Issue 4, November 2017
Pages:
198-203
Received:
11 December 2016
Accepted:
27 May 2017
Published:
28 June 2017
DOI:
10.11648/j.jbed.20170204.11
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Abstract: This study seeks to determine the hitches of accessing financial institutional loans; determine the sources of financial assistance to SMEs apart from financial institutions and determine the determinants of financial constraint on SMEs in the Kumasi Metropolis, Ghana. A descriptive, cross-sectional survey was conducted among 300 purposively selected SME operators. Both descriptive and inferential statistics were computed during the analysis of the data using both SPSS and Microsoft Excel. Results show that the hitches they encountered are “high interest rates”, “lack of business registration”, “lack of collateral” and “poor or no business plan”. Also about 34.3% depend on personal savings, 32.7% of them depend on the firm profit and 21.3% of them also depend on assistance from family and friends whilst 11.7% of them also depend on trade credit as other sources of finance. Finally, the “Age of the firm”, “Professional and entrepreneurial experience”, “Firm ownership type”, “Performance of the firm”, and “High interest rate payments” were the determinants of financial constraints on SMEs. Therefore, SMEs should endeavor to formalize their business operations registration and pay appropriate taxes. Government should also create favourable environment and policies that will reduce the financial constraints on SMEs leading to success of entrepreneurship in the country.
Abstract: This study seeks to determine the hitches of accessing financial institutional loans; determine the sources of financial assistance to SMEs apart from financial institutions and determine the determinants of financial constraint on SMEs in the Kumasi Metropolis, Ghana. A descriptive, cross-sectional survey was conducted among 300 purposively select...
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Services Sector Growth and Development Sustainability in Nigeria
Issue:
Volume 2, Issue 4, November 2017
Pages:
204-214
Received:
8 May 2017
Accepted:
18 May 2017
Published:
11 July 2017
DOI:
10.11648/j.jbed.20170204.12
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Abstract: Between 1981 and 2013, services share of gross domestic product in Nigeria grew five times the share of manufacturing coming second to agriculture. However, the output growth rates of services and manufacturing exceed that of agriculture. The study formulated the question as to whether the observed services sector expansion can support long-term economic growth. Two models were specified for estimation with manufacturing and agriculture as dependent variables and vectors of services outputs as independent variables. Data expressed in 1990 constant basic prices were sourced from Central Bank of Nigeria and expressed in logarithm form for regression. Using two test statistics, all variables in the regression were confirmed stationary at not more than one order of integration Given that the variables are cointegrated, the autoregressive distributed lag model and three other augmented static estimators were applied to the models. All diagnostics tests support the stability of our models and reliability of results. We conclude that a strong service-manufacturing association is necessary for services sector growth to sustain long-run economic development.
Abstract: Between 1981 and 2013, services share of gross domestic product in Nigeria grew five times the share of manufacturing coming second to agriculture. However, the output growth rates of services and manufacturing exceed that of agriculture. The study formulated the question as to whether the observed services sector expansion can support long-term ec...
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Dynamic Relationship Between Fiscal Policy and Economic Growth in Nigeria (Long and Short Run Analysis)
Issue:
Volume 2, Issue 4, November 2017
Pages:
215-226
Received:
9 May 2017
Accepted:
20 May 2017
Published:
20 July 2017
DOI:
10.11648/j.jbed.20170204.13
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Abstract: This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction mechanism (ECM). The results revealed that the variables were all stationary at level and co-integrated of the same order in the long-run. The result also showed that fiscal policy significantly influenced the rate of growth in Nigeria economy. It was therefore recommended that government should ensure transparency in budget implementation and fiscal discipline to put Nigeria on the path of sustainable growth.
Abstract: This study investigates empirically the fiscal policy impact on the economic growth index in Nigeria for the period 1985-2015. Data for the study were collected from secondary sources. The expost facto research design was adopted for the study. The data were analysed using OLS multiple regression, unit root test, co-integration and Error Correction...
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The Effect of Foreign Direct Investment on Economic Growth in Ghana
Isaac Nketsiah,
Matthew Quaidoo
Issue:
Volume 2, Issue 4, November 2017
Pages:
227-232
Received:
17 May 2017
Accepted:
12 June 2017
Published:
25 July 2017
DOI:
10.11648/j.jbed.20170204.14
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Abstract: This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.
Abstract: This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the po...
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Approved But Not Contracted: Assessing the Challenges of Women Owned Small and Medium Enterprises Integration into the Formal Economy in Malawi
Sane Pashane Zuka,
Linda Sowoya
Issue:
Volume 2, Issue 4, November 2017
Pages:
233-239
Received:
7 April 2017
Accepted:
14 April 2017
Published:
27 July 2017
DOI:
10.11648/j.jbed.20170204.15
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Abstract: Women economic empowerment has become an established policy goal in a number of countries. There is currently increased belief that this goal can be achieved by supporting small and medium enterprises (SMEs). To this end, restructuring of economic activities to facilitate women participation in the formal economy is seen as a sure way to developing SMEs. Integration of women owned SMEs into the formal economy is particularly perceived as facilitating women owned SMEs access to investment capital, business and market opportunities. The process of facilitating new entrants into the formal market, however, involves negotiations and contestations among market actors. Employing the social capital concept, this paper examines the challenges of women integration into the formal sector in Malawi. Data for this paper was collected through structured interviews and focus group discussions with women owned SMEs. The study findings demonstrate that unless accompanied by enforcement mechanisms, women integration into the formal economy will remain symbolic than real. While there is a lot of rhetoric for the integration of women owned SMEs into the formal economy, formally registered women owned SMEs largely survive through informal transactions. In particular, the findings demonstrate that bridging social capital that enables entrepreneurs to operate in the formal economy is locked out for many women forcing them to depend on informal bonding social capital.
Abstract: Women economic empowerment has become an established policy goal in a number of countries. There is currently increased belief that this goal can be achieved by supporting small and medium enterprises (SMEs). To this end, restructuring of economic activities to facilitate women participation in the formal economy is seen as a sure way to developing...
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The Effect of Foreign Direct Investment (FDI) on the Ghanaian Economic Growth
Tee Evans,
Larbi Frank,
Johnson Rebecca
Issue:
Volume 2, Issue 4, November 2017
Pages:
240-246
Received:
20 May 2017
Accepted:
31 July 2017
Published:
16 August 2017
DOI:
10.11648/j.jbed.20170204.16
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Abstract: Foreign direct investment (FDI) has been an important source of economic growth for Ghana, bringing in capital investment, technology and management knowledge needed for economic growth. This paper studied the relationship between FDI and economic growth in Ghana for the period 1980-2012 using time series data. The data used in this study was mainly from a secondary source consisting of yearly observations for real GDP growth and foreign direct investment net inflows as a percent of GDP (FDI ratio). The data was sourced from the World Banks World Development Indicators database. The linear regression technique was applied using the yearly data to ascertain the effect of FDI on real GDP. The study establishes that FDI and other two control variables under consideration impact significantly on the economic development of Ghana. It was determined in the research that the increasing trend of FDI inflows has also significantly increased the GDP of the country. Therefore, the FDI inflows to Ghana is a key driver for economic growth and development and that it does not only boost capital formation but also enhances the quality of capital stock in the country.
Abstract: Foreign direct investment (FDI) has been an important source of economic growth for Ghana, bringing in capital investment, technology and management knowledge needed for economic growth. This paper studied the relationship between FDI and economic growth in Ghana for the period 1980-2012 using time series data. The data used in this study was mainl...
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Relationship Between Organization Reward System and Workers Attitude to Work
Ellis Idemobi,
Chigbue Donatus Ngige,
Peter Nkeonyeasoa Ofili
Issue:
Volume 2, Issue 4, November 2017
Pages:
247-254
Received:
29 May 2017
Accepted:
14 June 2017
Published:
26 August 2017
DOI:
10.11648/j.jbed.20170204.17
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Abstract: This research on effect of reward system on organizational performance was aimed at determining the effect; effects of organizations reward system on workers’ productivity; to determine the relationship between organizations reward system and workers attitude to work; to determine the relationship between organizations reward system and job satisfaction; and to find the relationship between rewards system and workers commitment. The data used was gotten with the aid of a questionnaire and analyzed using the chi-square test of independence. The result shows that: organizations reward system has a significant effect on workers’ productivity; there exists a significant relationship between organizations reward system and workers attitude to work. Also there is a relationship between organizations reward system and job satisfaction. These led to the conclusion reward systems have significant effect on workers attitude to work The study recommended improving the reward system of organizations so as to increase the level of satisfaction among employees; and making the reward policy of the organization in such a way that it will compete favorably with those of other organizations in the industry.
Abstract: This research on effect of reward system on organizational performance was aimed at determining the effect; effects of organizations reward system on workers’ productivity; to determine the relationship between organizations reward system and workers attitude to work; to determine the relationship between organizations reward system and job satisfa...
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The Impact of Demographic and Social Factors on Firm Performance in Kenya
Issue:
Volume 2, Issue 4, November 2017
Pages:
255-261
Received:
25 July 2017
Accepted:
14 August 2017
Published:
11 October 2017
DOI:
10.11648/j.jbed.20170204.18
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Abstract: An excellent performance in terms of output or profitability is one of the major goals of any firm. In order to achieve this, firms use various inputs such as financial resources (capital), human resources (labor force), technology among others. Demographic factors such as gender, education level and age also play a key role. The current study investigated the impact of these demographic and social factors on performance of business firms in Kenya using data from MSME 2016 survey, which was conducted by Kenya National Bureau of Statistics in 2016. Firm performance was measured by average monthly revenue, which is equivalent to the value of the firm’s maximized output. The factors investigated include education level, gender and age of the firm. In addition to these factors, the study also investigated the effect of labor force, capital and firm’s ownership structure on performance. Ordinary least squares technique and descriptive statistics were used. The study found that education level and age of the firm have a positive effect on performance. Firms operated by males were found to have a better performance than those operated by females. In addition, the study found that partnerships, cooperatives and companies (both private and public limited) perform better than family owned business firms did. (JEL D21, D22, D24, M21).
Abstract: An excellent performance in terms of output or profitability is one of the major goals of any firm. In order to achieve this, firms use various inputs such as financial resources (capital), human resources (labor force), technology among others. Demographic factors such as gender, education level and age also play a key role. The current study inve...
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