Select Currency
Translate this page

THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES

Format: MS WORD  |  Chapter: 1-5  |  Pages: 61  |  822 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Small and Medium Industries (SMIs) have been widely acknowledged as the springboard for sustainable economic development. According to UNDP (1974), developing countries including Nigeria, have since the 1970s shown increased interest in the promotion of small and medium scale enterprises for three main reasons: the failure of past industrial policies to generate efficient self-sustaining growth; increased emphasis on self-reliant approach to development and the recognition that dynamic and growing SMIs can contribute substantially to a wide range of developmental objectives. These objectives include efficient use of resources, employment creation, mobilization of domestic savings for investments, encouragement, expansion and development of indigenous entrepreneurship and technology as well as income distribution, among others. Consequently, programmes of assistance in the areas of finance, extension and advisory services, training and provision of infrastructure were designed by the government for the development of SMEs to enhance the attainment of these objectives. However, the full potential of the SMIs in the developmental process have not been realized, owing to various constraints.

Financial management is one of several functional areas of management which is central to the success of any small business (Meredith, 2006). Financial management is the management of finances of a business in order to achieve the financial objectives of the business. McMahon et al. (2008) defines financial management based on mobilizing and using sources of funds: Financial management is concerned with raising the funds needed to finance the enterprise’s assets and activities, the allocation of theses scare funds between competing uses, and with ensuring that the funds are used effectively and efficiently in achieving the enterprise’s goal. Financial management as used in this study is composed of five (5) constructs and these include; working capital management which is also subdivided into cash management, receivables management and inventory management. Other constructs under financial management include; investment, financing, accounting information systems and financial reporting and analysis. Ross et al (2009) indicated three kinds of decisions the financial manager of a firm must make in business; these include the financing decision, and decisions involving short-term finance and concerned with the net working capital, investment and financial reporting. Similarly, Ang (2002) indicated three main financial decisions including the investment decisions, financing decisions and dividend decisions. Meredith (2006) asserts that financial management is concerned with all areas of management, which involve finance not only the sources, and uses of finance in the enterprises but also the financial implications of investment, production, marketing or personnel decisions and the total performance of the enterprise. However, such areas are not currently well embraced by SMEs in Kenya and urgent attention needs to be paid to. Lack of effective management during SMEs early stages is also a major cause of business failure for small businesses. Owners tend to manage these businesses themselves as a measure of reducing operational costs.

Inefficient financial management may damage business efficiency and this will continuously affect the growth of the Small and Medium enterprises. However, efficient financial management is likely to help SMEs to strengthen their business efficiency and, as a result, these difficulties can partly be overcome. Kazooba (2006) argues that though Kenya is among the countries with high startup of SMEs, it also has the highest numbers of non performing SMEs as well high number of closure of SMEs. However, the studies conducted did not show how the components of financial management affect the overall business efficiency of SMEs. A large number of business failures have been attributed to inability of financial managers to plan and control properly the current assets and current liabilities of their respective firms (Mbaguta, 2002). So this study therefore focuses on the influence of financial management on the growth of small and medium scale industries, using Adeyemi oil palm PLC as a case study.

1.2     STATEMENT OF THE PROBLEM

Presently, small-scale business enterprises in Nigeria are faced with problems that hamper the growth and development of these enterprises. This support the saying that, the successes of any business whether small, big or mega depends largely on the performance of people which is management, finance and multiple and high tax

To ensure the achievement of this management objective in Small-scale business, this research has been proposed to address the following challenges:

1.     Management problem caused by poor planning

2.     Finance problem caused by lack of financial support and poor funding

3.     Multiple and High Taxes

According to Wanjohi (2009) starting and operating a small business includes a possibility of success as well as failure. Because of their small size, a simple management mistake is likely to lead to sure death of a small enterprise hence no opportunity to learn from its past mistakes. This may be attributed to lack of planning, improper financing and poor management has been cited as the main causes of failure of small enterprises (Longenecker, 2006). Though it is clear that small and medium scale industries (SMIs) play a critical role in economic development the rate in which newly established SMIs collapsing it is wanting. It is against this realization that the current study aims to investigate the effect of financial management practices on growth of SMIs. These problems make it glaring that there is a need to carry out a study on the influence of financial management on the growth of small and medium scale industries.

1.3     OBJECTIVES OF THE STUDY     

The general objective of this study is to examine the influence of financial management on the growth of small and medium scale industries, using Adeyemi oil palm PLC as a case study. The specific objectives are:

1.     To ascertain the influence of investment practices on the growth of Adeyemi oil palm PLC.

2.     To establish the effect of working capital management practices on the growth of Adeyemi oil palm PLC.

3.     To determine the effect of financial reporting and analysis practices on the growth of Adeyemi oil palm PLC.

4.     To find out how financial planning practices influence the problem of lack of funding in Adeyemi oil palm PLC.

5.     To investigate the influence of accounting information systems on the growth of Adeyemi oil palm PLC.

1.4     RESEARCH QUESTIONS

The relevant research questions related to this study are:

1.     What is the influence of investment practices on the growth of Adeyemi oil palm PLC?

2.     What is the effect of working capital management practices on the growth of Adeyemi oil palm PLC?

3.     What is the effect of financial reporting and analysis practices on the growth of Adeyemi oil palm PLC?

4.     How do financial planning practices influence the problem of lack of funding in Adeyemi oil palm PLC?

5.     What is the influence of accounting information systems on the growth of Adeyemi oil palm PLC?

1.5     SIGNIFICANCE OF THE STUDY 

The findings of this study will enable management of small-scale businesses to appreciate better the need for a proper feasibility study and business plan before starting up a business for easy management. The study will enable the government, private sector and prospective small-scale business entrepreneurs to come up with policies that will improve the management of small-scale business.

The findings from this study are relevant because it elucidates the influence of financial management on the growth of small and medium scale industries. The survival of every business is determined by proper financial management.

This study will enhance the existing body of literature by contemplating the areas of the literature that have not yet been examined or considered and incorporating these factors into the current study. The study will thus form the basis for further studies in the field.

1.6     SCOPE OF THE STUDY

The scope of this study is restricted to examining the influence of financial management on the growth of small and medium scale industries, using Adeyemi oil palm PLC as a case study.

  DOWNLOAD THE FULL PROJECT

THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Uduak From Uniuyo
IProjectMaster is the best project site for students. Their works are unique and free of plagiarism!
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Abdul Mateen Iddrisu
UDS
At first I taught is a site full of fraudsters until I saw my project in my Gmail after my payment.. THANK YOU IPROJECTMASTER and May God the almighty bless u guys abundantly
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Abraham Ogbanje
NATIONAL OPEN UNIVERSITY OF NIGERIA
At first I was afraid.. But I discovered they are legit. I will bring more patronize
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Abdulrahman Jibrin
Nti Abaji
Nice one work prompt delivery tanx
Very Good
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Samuel From Ajayi Crowther University
You guys just made life easier for students. Thanks alot iprojectmaster.com
Excellent

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for THE INFLUENCE OF FINANCIAL MANAGEMENT ON THE GROWTH OF SMALL AND MEDIUM SCALE INDUSTRIES, What do i do?

Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!