Business, Management and Economics Research

Online ISSN: 2412-1770
Print ISSN: 2413-855X

Quarterly Published (4 Issues Per Year)





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Volume 5 Number 4 April 2019

Assessing the Effectiveness of Commercial Bank Loans as Sources of Funding/ Capital Formation for Small and Medium Enterprises (SMEs) in Southeast, Nigeria


Authors: Ugwu-Oju M. Obiageri ; Vincent A. Onodugo ; Mbah, Paulinus Chigozie
Pages: 62-70
DOI: doi.org/10.32861/bmer.54.62.70
Abstract
The paper assesses the effectiveness of commercial bank loans as sources of funding Small and Medium Enterprises (SMEs) in Southeast, Nigeria. A cross-sectional survey method wherein structured questionnaire was used to collect data was adopted. A sample of 500 respondents was randomly selected from the five industrial hubs in the five states of Southeast, namely Nnewi, Aba, Enugu, Abakiliki, and Owerri. With the aid of pecking order theory (POT)/hypothesis of Lending, percentage formula, and SPSS version 20.0 tools, the data generated from the respondents were analysed. Among others, the results of the analysis reveal that SMEs and commercial banks are highly indifferent to the loans facilities; strict collateral requirements, high interest rates, and the nature of requirements for guarantors dissuade SMEs from accessing loans; and government interventions provided palliative measures but failed to address the problems associated with the loans. Therefore, this paper recommends policy reforms to reduce interest rate, collateral and guarantor requirements. Further research on how to modernise and harmonise other external sources of SME funding such as ‘daily contribution’ and ‘Isusu’ systems is required.

Real Estate Level Forecasting - Review


Authors: Hongfei Guo ; Hao Jiang ; Weijian Zhang ; Fuqian Cui ; Ru Zhang ; Zhihui He ; Yitao Lun ; Qiufan Chen ; Qiufan Chen
Pages: 57-61
DOI: doi.org/10.32861/bmer.54.57.61
Abstract
With China’s rapid economic growth in recent years and the acceleration of urbanization, the real estate price has also shown a substantial increase, especially the housing prices have always been high in first-tier cities. This paper systematically combs the research on the factors affecting house price and the forecasting method of house price at home and abroad, and puts forward some suggestions on the regulation and control of real estate price in our country. It also points out the deficiency of data statistics and research perspective in empirical research. On this basis, it is proposed that we should strengthen the scientificalness and comprehensiveness of the empirical data, put forward a reasonable and appropriate hierarchical classification method for influencing factors, make clear the importance and coupling mechanism of each level, and excavate the dominant influencing factors.