Impact Of Credit Management On The Operation Of Small Scale Enterprises In Nigeria

Impact Of Credit Management On The Operation Of Small Scale Enterprises In Nigeria

ABSTRACT

The study excavated into impact of credit operation on the operation of named small scale enterprises in Nigeria. The study examines whether integration of the world profitable enhances product development and performance and whether the arrival of internet has effect on product invention in the libation assiduity.

The check exploration design was employed in this study and the questionnaire was the main exploration instrument. A aggregate of 30 repliers make up the sample size of the study and ki- forecourt was used as the statistical tool to dissect or in assaying the collected data.

The findings of this study revealed that extension of credit to guests is an average for praying deals of small scale diligence. effectiveness in the operation of small scale business lies on the way credit is been managed. likewise, small scale business credit standard and credit analysis before extending credit to guests.

Table Of Content

Chapter One

Preface

Background of the Study

literal Background of the Case Study( Cadbury Nigeria Plc)

Statement of Problem

Ideal of the Study

Exploration Question

Exploration Hypotheses

Significance of the Study

Compass of the Study

Limitation of the Study

Description of Terms

Summary of posterior Chapters

Chapter Two

Literature Review

Preface

Concept of Small Scale Business.

Characteristics of Small Scale Enterprises

Places and significance of Small Scale Business

Factors to Consider Before Starting a Small Scale Business.

Over View of Governments trouble in the Development of SMEs in Nigeria

Abstract Framework Credit Management.

Administration of Credit

Credit Control

Propositions of relative operation

Chapter Three

Exploration Methodology

Preface

Research Design

Characteristics of the Studies Population

Paraphrase of exploration Questions

Paraphrase of Research suppositions

Exploration Instrument and Administration

Sample and Sampling Design

Styles of Data Analysis

Limitation of the Study

Chapter Four

Data Analysis And Interpretation

Preface

Analysis of Personal Data

Analysis of Variables

Test of suppositions

Chapter Five

Summary Of Findings, Conclusion And Recommendation

Preface

Summary of Findings

Recommendations

Conclusions

Memoir

Questionnaire

Chapter One

Preface

Background To The Study

Private Sector Development as suitable volition for promoting sustainable and balanced growth in African has attracted considerable attention. numerous government and development associations have concentrated on the creation of medium- scale enterprise( SMEs) as a way of encouraging broaden participation in the private sector. The creation of SMES and especially of those in the informal sector is viewed as a variable approach to sustainable development because it suits the coffers in Africa.

The contemporary business terrain faced with a number of challenges particularly the globalization process is on course is attempt to regularize operation. One the strategies used in managing with globalization is credit operation. Credit operation refers to those decision variables that impact the quantum of trade credit that is, investment in recurable which a business establishment may take over to any given time. It plays a vital part in promoting small scale diligence in Nigeria.

The creation of small scale artificial business is well honored and much better strategies of diligence development in developed and developing countries and its capability to enhance entrepreneurial and operation chops.

In( 1973) Nigeria Small Scale diligence Association defines small scale business as those having investment like capital, land, structure and outfit up to 60,000 and employing no more- than fifty people.

Some scale diligence a business could be pertaining to the sector of frugality that’s substantially concern with the distribution and marketing both artificial and domestic products. According to Ajonbadi( 2002) saying Small Scale Industry is an assiduity which the total capital employed is over1.5 but not further than 50 million including working capital of it 100 workers.

The exploration work is to dissect critically the impact analysis of credit operation strategies to sector of trade, the problem in managing credit problems and with the end of chancing a continuing result to the problems and expand the conditioning of small scale business in the frugality in order to arose the magnet both government and existent.

Statement Of Problems

Small medium businesses have limitations and problems that regard for their failures. All business association is irrespective of their objects have gospel of growth, survival and adaptiveness.( LAWAL, 1993).

The important part which small scale enterprise play in the economics of nations, from the first to the last savant in the experimental countries makes them veritably applicable in numerous aspects of profitable programs especially those of artificial development. still, the extent to which these enterprises contribute to artificial development depends on the position of growth and development of these enterprises.

In Nigeria, just as in utmost other countries, small scale enterprise are more in number than large scale enterprises. This isn’t surprising given the nation’s how position of development in both mortal coffers and capital conformation.

Small Scale enterprises like medium enterprises, still produce bulk of the employment handed in the creation of entrepreneurship and application of indigenous technology as well as icing indeed and more applicable position of diligence.

Objects Of The Study

The general ideal of the study is to examine the impact of credit operation on the operation of named small scale enterprises in Nigeria.

substantiation has shown that small scale enterprises generally accomplish” NICHES” and produces largely technical service of product in a geographical area and don’t perceive any clear competition.

1. The main purpose of this exploration is to understand the types of credit, standard of credit, administration of credit and credit terms.

2. also review the problems of managing credit of small scale business in Nigeria, with the end of chancing lasting result to them and conceivably bring up creative and ideas general towards expansion in the growth and development of small scale enterprises( SME) in the state.

3. To intensely review the part of the government over the time in the small scale assiduity enterprises so as to draw attention of the government to the development of the sector.

Exploration Questions

i) Do survival of small scale business depend on availability of credit installation?

ii) Does institutional impulses given by government agencies affect the trouble of small scale business in Nigeria?

iii) Is there significant relationship between credit operation and small scale enterprises performance?

iv) To what extent do credit operation influence small scale enterprises productivity?

v) Is there any significant relationship between credit operation and small scale enterprise profitability?

vi) Does credit operation reduce fraudulent act in SSEs?

vii) Does credit operation reduce accoutrements destruction in SSEs?

Exploration Suppositions

HO- There’s no significant relationship between Credit operation and

Small Scale Business in Lagos State.

H1- There’s significant relationship between Credit operation Small

Scale Business in Lagos State.

HO- Credit operation strategy of SMEs don’t have significant goods

on their profitability.

H1- Credit operation strategies of small scale enterprises have a

significant effect on their profitability.

Significance Of The Study

The important of small and medium enterprises in the frugality. AT the end of the study, the experimenter expects that the finding will serve as a point of reference to the managing of business association pupil, professional, pupil of economist and general public. This study will reveal the applicable of credit operation.

This study also contributes to knowledge in terms of vittles of fresh information in the form of ideas, opinions and views from the field( assiduity drivers) to develop and move the sector forward by way of checking the relationship that exists between the fiscal institution and SMEs in Nigeria.

Compass And Limitation Of The Study

The study covers credit operation SMEs in Nigeria, particularly in Lagos State and doesn’t extend to other sectors. This study is confined to named small scale enterprises in Ikeja original government of Lagos State. The study covers a representative figures of the generality of SMEs. No special consideration is given to coitus, age and nation in collecting data from the repliers.

The position of delicacy in this study is commensurable to the vacuity of information that the repliers are willing to give. Also, there’s this query that information given is without bias. Also, bearing a exploration study is a serious business. It requires a commitment of time, plutocrat and energy, both intellectual and physical. Hence, balancing the study with academics and going to work is a Herculean task.

Delineations of Terms

Credit Management decision variables that impact the quantum of trade credit that is, investment in recurable which a business establishment may take over to any given time.

Banks This is a fiscal institution that aid in collection of deposit and granting loans and other supplementary service to the public.

BankingIs a service delivery business in which information is vital, whether in the recognizing of cheques or other recessions.

ConsolidationsThis is another term used in place of junction and accession. therefore, it’s the combination of two or further pot.

EnterprisesThis is any marketable undertaking that’s either hype of intimately possessed or controlled. The word is used interchangeably with organisation in this study.

Performance The degree of effectiveness and effectiveness with which the organisation objects are achieved.

Small Scale EnterprisesThese are enterprises in which power consumptions, number of workers, amount of raw accoutrements , affair like are small in size.