PROVISION FOR BAD DEBTS: A STRATEGY FOR ENHANCING BUSINESS GROWTH IN SMES
CHAPTER ONE
Introduction
1.1 Background of the study
According to Wikipedia, a bad debt is an amount recorded by the enterprise as a loss to the enterprise and recognized as an expense, since the bad debt due to the enterprise can not be obtained and all the efforts required to recover the debt are unrecoverable. exhausted. probably remains uncollectible and is written off. Bad debts appear as an expense in the company’s income statement, which reduces net income.
In general, companies estimate the bad debts that could be incurred in the current period based on past earnings estimation processes, and most companies account for them because not all their accounts receivable will likely do so. . United States federal law defines “debt” as an obligation for the consumer to pay money resulting from a transaction in which money, goods, insurance or services have changed hands. The Cambridge International Dictionary defines a “guilt” as an extra amount of money someone owes.
How long does it take for debtors (borrowing clients) to pay their debts? Understanding the payment behavior of potential customers is essential for evaluating credit management in any organization, as insufficient credit controls can lead to significant financial planning issues (Atradius 2012).
According to Atradius (2011), late payments and payment defaults are still of great importance worldwide. The study also revealed that 305 of the debts are paid too late, while 3% go wrong, the main reason being that the buyers do not have sufficient funds to pay.
Credit problems are usually identified at the end of the credit channel (Katoh 2004). Before a loan becomes bad, it must be granted. In addition, the poor quality of a loan is sometimes due to factors other than the credit process, such as negative selection and moral hazard (Satiglitz and Weiss, 1981), or any external shock that may change the nature of the loan. borrower’s ability to borrow. repay (Minsky 1985).
According to Gitman (1992), several aspects suggest sound management of bad debt. These include credit standards, credit terms and collection procedures.
1.2 Problem statement
The issue of borrowers has become a subject of concern in the global financial circuit. Financial experts are still exploring different ways to solve this problem. Over the years, we have been discussing the method that worked best. Experts agree that no method stands out, the choice is independent of other factors such as economic stability and the effectiveness and reliability of the national database. The SME has also developed various ways to remedy this anomaly. Credit facilities are therefore the main commercial asset and the main source of revenue for most SMEs. However, some loans, especially purchases, are bad and have a negative impact on the profitability and overall performance of the institutions. In Nigeria, most medium-sized companies face the challenge of canceling bad debts, which requires effective default management strategies.
1.3 purpose of the study
The broad objective of the study is to examine how the Provision for Bad Debts is a useful strategy for Enhancing Business Growth in SMEs Specific objectives are;
- To identify the causes of bad debt.
- To assess the impact of bad debt on the performance of SME.
- To recommend suitable strategies on how to minimize the debt in SME.
1.4 Significance of the study
The study aims to help the SME take a comprehensive approach to bad debt. The study will also be of interest to public universities, higher education institutions, research institutes and individual researchers interested in SME growth and development and will use the results for further research. This study will encourage researchers to identify the effectiveness and efficiency of the SME. The research will help individual public companies understand their position relative to the standard of their bad debt.
1.5 study hypothesis
HO1: Provision for Bad Debts is a not a significant strategy for Enhancing Business Growth
1.6 Scope and Limitations of the Study
The study scope is limited to investigating the Provision for Bad Debts is a useful strategy for Enhancing Business Growth in SMEs in Lagos state. Limitation faced by the research was limited time and financial constraint
1.7 Definition of Basic terminologies
Bad Debt
A bad debt can be understood as a loan which the creditor finds difficult or impossible to recover.
Bad Debt Estimation
The methods used in estimating doubtful accounts also differ depending on the nature of the company or business.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Provision for Bad Debts: A Strategy for Enhancing Business Growth in SMEs can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Provision for Bad Debts: A Strategy for Enhancing Business Growth in SMEs" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Provision for Bad Debts: A Strategy for Enhancing Business Growth in SMEs" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can this topic “The Impact of Staff Training Programme on Employees’ Performance” be used for Industrial Relations and Personnel Management (IRPM) Project?
Yes it can be utilized for research — This research examined the impact of staff training programme on employyees’ performance with special reference to Longman Nigeria Ltd. The research adopted survey research design. Data were gathered through primary source with the aid of a well-structured questionnaire. Simple random sampling technique was adopted in the selection of sample, this was used to eliminate biasness in the selection process of the respondents. Data garnered were presented on table using percentage and the formulated hypotheses were analysed with the used of Chi-square statistical method. The result of the analysis shows that workers’ productivity after training is improved depending on the appropriate content of training administered. The analysis also proof that huge sum of money invested in the training and development of manpower …
Can the material for “Determinants to Family Planning Choices among Women of Reproductive Age” be used as a guide for Midwifery Project?
Yes it can be used — Family planning is the process of controlling the number of children wanted in a marriage using contraceptive method, often known as birth control measure. The aim of the study is to determine the Family Planning Choices among Women of Reproductive Age. In achieving this aim, the following specific objectives were laid out to examine the role of male in family planning, find out reasons poor application of contraceptive (family planning) method in the area of study, and Proffer solution or recommendation that will further improve on the existing use of contraceptive method and to further open the eyes of the male folk in full participation in family planning. The research design used in this report is descriptive design, utilizing questionnaire …
Can this topic “Student Examination Result Processing System” be used for Computer Science (CS) Project?
Yes it can be utilized for research — This study was carried out to verify all the manual process involved in generating Students Examination Result and to seek a way of automating the system for effective operations. Since there is continuous moves towards technological advances that enhanced productivity of labor and free human beings of task more economically by machines. Computer and its appreciations have become vital tools in economic, industrial and social development of advanced countries of the world. This system is designed to efficiently handle processes like inputting scores, storing results, classifying the grade points automatically calculated, and interpreting data of students overall result. The usual manual process now reached a level where it is difficult for the available man power to cope with the magnitude …
Can the material for “Creating Employment Opportunities Through Co-operative Movement” be used as a guide for Cooperative Economics and Management (CEM) Project?
Yes it can be used — Cooperative movement is a system of economic action and business enterprise characterized by the absence of the profit motive and involving as it’s primary function, the distribution of goods and services. The study was carried out to investigate the Co-operative Movement on Creating Employment Opportunities in Ogbaru Local Government Area, Anambra State. In achieving this aim, the following specific objectives were laid out to determine the factors militating against the creation of employment opportunities by the cooperatives movement and identify the type of the employment opportunities created by cooperatives movement in the area under study. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of …
Can this topic “Assessment of Advancement Capabilities of the Nigerian Local Government System” be used for Business Administration and Management (BAM) Project?
Yes it can be utilized for research — The topic of this study “An analysis of development capabilities of the Nigerian local government system:. Which is been considered as an avenue to know the development of rural areas in the country. This study which was conducted in Idemili North local government embraced these objectives primarily to analyzing the development work carried out in the area via the local government either directly or indirectly motivating and encouraging the people, as well as looking into the factors that constitute impediment to a more rapid development of the areas after local government reform of 1976. The aim of the project work is therefore to cover a research gap that has existed over these years. I hope that based on the. “Analysis of the development …
Can the material for “Integrated Web-Based Management Application for Small Business Enterprise (SME)” be used as a guide for Management Project?
Yes it can be used — The appearance of the Internet has led to a revolution in many spheres of human activity, however, probably the biggest impact it has had in developing the global business environment. Information, their availability and speed of exchange are the basis of successful modern business enterprise, and the Internet in this context is the perfect tool for finding and distributing information. Complex, Web applications have become essential for survival and development of modern enterprises in a global, international markets. Web applications are by nature distributed applications, which means that they are programs that run on more than one computer and communicate via a network. Specifically, the web application is accessed via a web browser and therefore update and maintain web applications …
Can this topic “A Feminist Perspective on the Dilemma of the Girl Child in African Culture” be used for English Education Project?
Yes it can be utilized for research — This research examines the dilemma of the girl child in African culture and the fundamental problems confronting her existential being. It explores the unfair treatment the girl-child receives in a male chauvinistic and particular society like Africa and the negative effects of such to her femininity. As a way of redeeming the dignity of the girl child and positioning her for a better life, emphasis is placed on the feminist approach and how such could be used to combat the various exploitative and unjust treatment most African societies subject the girl child to in the name of custom and tradition. Since, the discourse of feminism flows well with the objective of this research, efforts will therefore be made to extract …
Can the material for “Design and Implementation of a Computer Based Payroll System” be used as a guide for Computer Science (CS) Project?
Yes it can be used — A payroll system is software which organizes and arranges all the tasks of employee payment and the filing of employee taxes. The aim of the study is to design and implement a Computer Based Payroll System that will eliminate the problems of the existing system. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will calculate the basic salary and allowance of staff, provide an easy way not only to automate all functionalities involved, and manage the leaves and Payroll for the employees of the Federal Polytechnic Nekede. The motivation that led to the implementation of the proposed system, is as a result of the difficulty in handling personnel records …
Can the material for “Design and Implementation a Computerized Drug Information Management System, Drug Procurement and Distribution Tracking System” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Drug procurement and distribution tracking system is a set of computer programs that obtains the supplies of drugs, distribute the drugs and monitors the inventory control of the drugs. The aim of the study is to design and implement a drug procurement and distribution tracking system using pharmacy department of the Enugu State University Teaching Hospital (ESUTH) as a case study. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will provide information about the quantity of drugs remaining and ensure ordering of drugs without mistake of procuring more than required. The motivation that led to the implementation of the proposed system is as a result of the manual recording …
Can this topic “Role of Interior Design in Hospitality Industry” be used for Sociology Project?
Yes it can be utilized for research — The saying “good look is a good business” is no more a new thing in hospitality industries. The efficiency and effectiveness of an hospitality industry depends on how the interior design is been packaged. This research work examines the role of interior design in hospitality in order to achieve the goals and objectives of the industry. This research work try to check the effect and prospect of interior design and its social contribution to the hospitality industry, the project and increase it research for data collected which include interviews, questionnaire administration and personal observation. Findings reveal that interior designs play a good role in hospitality industry. However, the study recommends that interior design cannot be ignored in hospitality industry. Finally, …