High Lending Interest Rates and Their Impact on SMEs in Sierra Leone: Perceptions from Lenders | Chapter 1 | New Advances in Business, Management and Economics Vol. 8

 

Commercial banks play a very significant role in the growth of most economies, particularly in low and middle-income economies with a large portion of Small and Medium Enterprises (SMEs) in the informal sector and largely the private sector with big corporations that require commercial loans to fund high capital-intensive projects. Interest rate is one of the essential conditions in the lending decision procedure of commercial banks. The lending interest rate is a fraction of the loan sum that the lender charges for loaning money. The aim of the study is to understand the effect of high lending interest rates on the economy of Sierra Leone. This study, through longitudinal or time-series data collected and primary data gathered through a semi-structured interview with respondents from a sample of commercial banks and microfinance institutions, discovered that borrowers are saddled with the cost of interest rates. The study further found out that the loan interest rates in Sierra Leone are not only high but are exacerbated by the rate of inflation and the downward turn of the economy, coupled with interest rate volatility. This study employed both quantitative and qualitative analysis. The quantitative analysis used descriptive analysis to evaluate the impact of high-interest rates on borrowing. The Qualitative analysis examines and analyses existing literature on loan policy frameworks by commercial banks and microfinance institutions. The study concluded that a Central bank must ensure its fiscal responsibilities of running the economy are upheld to ensure economic growth and the livelihood of the people. Therefore, as part of its responsibilities, a Central bank should ensure that interest rates on loans are flexible and payable to encourage business and discourage bad debts, which in turn has negative effects on commercial banks and microfinance institutions. Hence, this study recommends that the Central Bank should, through its monetary policy, influence the fixing of interest rates by commercial banks and microfinance institutions by insisting on its reserve requirements as well as buying and selling risk-free treasury and government securities to affect the deposits the commercial banks have at the Central Bank.

 

Author (s) Details

Joseph Davies
School of Postgraduate Studies, Ernest Bai Koroma University of Science and Technology (EBKUST), Magburaka Town, Sierra Leone.

 

Mohamed Osman Turay
Economics Department, University of Makeni (UNIMAK), Makeni Town, Sierra Leone.

 

Samuel Koroma
Commercial Management and Entrepreneurship, Freetown Polytechnic College, Kissy Campus, Freetown, Sierra Leone.

 

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v8/1602

Factors Influencing Tax Evasion among Small and Medium Enterprises in Zimbabwe | Chapter 6 | New Advances in Business, Management and Economics Vol. 5

This paper aims to establish the major determinants of tax non-compliance among SMEs in the Zimbabwean economy. Small and medium-scale enterprises (SMEs) are recognized globally for being the backbone of the economy through economic advancement, innovation, wealth generation, and further growth. SMEs have a high tax non-compliance rate, which hinders the development brought to many economies.

 

The survey research design was used, and the SMEs operating in Bulawayo province were considered the sample of the study. The stratified random sampling technique was adopted for eliciting information, and questionnaires were administered to collect data from the respondents. 187 questionnaires were issued, and 153 were returned. Regression analysis was used to establish the relationship between tax non-compliance and the predictive variables using SPSS version 22. Three main models of tax compliance were reviewed in the literature, and strong evidence of tax compliance determinants was provided.

 

The study revealed poor follow-up strategy, lack of a tax audit, high tax rates, financial constraints, abuse of public funds by authorities, and tax education as the major determinants. SME operators should apply modern business survival strategies to counter financial limitations. ZIMRA should maintain a database for SMEs for tax audit purposes, intensify follow-up strategies, increase tax audits, and increase tax support services for SMEs. The government should consider reducing tax rates, which are perceived to be too high, as they promote tax evasion and failure among SMEs. Massive campaigns against evasion and avoidance of tax and intensive tax education should be embarked on

 

Author (s) Details

 

Banele Dlamini
Department of Accounting and Finance, Lupane State University, Zimbabwe.

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v5/7805

The Effects of Managerial Finance on Growth of Business: Evidence from Akwa Ibom State, Nigeria | Chapter 3 | Current Topics on Business, Economics and Finance Vol. 5

 This episode investigates the relationship between picked managerial finance functions and trade growth. The motivation was the usually heard argument that weak attitudes to administrative finance are the key factor in the high bankruptcy rate of business in different nations, including Nigeria. A survey research design was selected to obtain data from 105 trades operating in Akwa Ibom State - Nigeria and analyzed using Pearson’s Product Moment Correlation model. The judgments indicate that all of the administrative functions chosen for the study are strongly equated with growth, although at varying degrees of meaning. The findings mean that, given the diversity and specific nature of managerial finance, all aspect of administration relating to financial resources endure be treated seriously in consideration of ensure complete sustainable business progress.

Author(s) Details:

Ntiedo B. Ekpo,
Department of Banking & Finance, University of Uyo, Nigeria.

NseAbasi I. Etukafia,
Department of Banking & Finance, University of Uyo, Nigeria.

Ikechukwu A. Acha,
Department of Banking & Finance, University of Uyo, Nigeria.

John Udoidem,
Department of Banking & Finance, University of Uyo, Nigeria.

Ikenna Elias Asogwa,
Department of Accounting, University of Uyo, Nigeria.

Please see the link here: https://stm.bookpi.org/CTBEF-V5/article/view/10462

Determining the True Beneficiaries of University Research Output: Fostering Viability and Sustainability of Small and Medium Enterprises | Chapter 1 | Current Aspects in Business, Economics and Finance Vol. 1

This study aimed to identify the actual recipients of research output. The fact that research studies had been done but the alleged beneficiaries had not received feedback served as the impetus for this investigation. 80 professors from the Faculty of Commerce at one public institution in Zimbabwe participated in the study using a case survey methodology. Questionnaires that were semi-structured were used to elicit responses from academic scholars. Quantitative data was analysed using frequencies, percentages, cross tabulations, and Pearson chi-square tests. On qualitative data, thematic analysis was carried out. The findings show that just 36.92% of respondents had done research on small and medium-sized businesses (SMEs), while the remaining 63.08% had done other, unrelated research. 41.67 percent of the respondents (36.22%) who have conducted SMEs studies had not given their conclusions to the target audience. The results show that some university academics do not appear to prioritise disseminating research output for useful applications. The failure of academics to disseminate their findings exposed basic problems. According to the report, authorities should encourage the dissemination of research output by offering incentives and support mechanisms and should remind researchers of the need of conveying their discoveries for practical application. The study found a void in the literature about who benefits when research studies on SMEs are conducted but the findings are not shared with them, and it set out to fill that gap.

Author(s) Details:

Gwendoline V. Nani,
Graduate School of Business, National University of Science and Technology, Bulawayo, Zimbabwe.

Please see the link here: https://stm.bookpi.org/CABEF-V1/article/view/7296