Intercultural studies Finding Nouf Research Paper

Intercultural studies Finding Nouf - Research Paper Example The basis for major events in the story is when Nouf, a sixteen-year-old girl goes missing thereby triggering her family to organize a search. The family seeks for a lead from Nayir Sharqi, regarded as a desert guide, to help the search party. After 10 days of search, anonymous desert pilgrims discover her body just when Nayir was to give up. The test carried by coroner’s office indicates that the cause of death was drowning. The family’s dissatisfaction by the coroner’s investigation triggers Nayir to sacrifice on a journey of finding out what transpired at the time of death. The journey to determining the cause of death makes Nayir to seek for help from Katya Hijazi, who is one of the workers at the coroner’s office. Katya Hijazi is courageous enough to carry her own investigation even though her partnership with Nayir was at stake because of the cultural beliefs. Nayir has to antagonize the cultural limitation and his desire for a partnership with a fem ale character. The writer presents a society which enshrines discrimination by its cultural patterns. Intuitively, the presented society is deeply rooted in their Muslim culture which serves as the influence of the themes presented in the novel. The writer presents the culture as having different forms of patterns which serves in modeling the relationship between the people. Generally, one of the major cultural patterns presented is the need to shun any partnership between men and women. This is evident when Nayir goes to work in partnership with Katya to realize the cause of death (Ferraris, 23).

The Cape by kenji nakajami Essay Example | Topics and Well Written Essays - 1000 words

The Cape by kenji nakajami - Essay Example These people lived in isolated places outside the main city. The works usually given to burakumins are lowly jobs such as slaughter jobs, tanners, construction workers and butchers. Because of the discrimination, prevalent social and gender issues were noticeable. People engage in vices such as drinking, smoking and sex. Engaging in incest relationships also occur because they live in extended families. Violence was also prevalent. The protagonist tended to escape the harsh reality of life even though the surrounding characters and environment pull him down. He did not know much about his father but he did now want to live the way his father did. As he struggled more towards improvement of his life, the more he became down and much like his father. He slept with his half sister who was a whore. He was engaged in sex, drugs and alcohol. All vices were extensively depicted in the novel. All diseases of the society are undeniably seen in the novel as the characters live in isolation and discrimination is unstoppable. Living in isolation is really a great discrimination since all men are created equal but prejudices in life hinder the equality for all. The burakumins live in their ghetto and do not even have much access to the society unlike ordinary citizens have. They are seen as dirty and lowly jobs are for them. Few of them have reached high school level but the majority were not able to finish elementary education. Why is it that the discrimination has been inherited from their ancestors? Feudal era had been long gone but the discrimination and generalization regarding the image of burakumins still lived on. It is like the isolation of people with a dreaded disease like leprosy in other countries in the ancient times. Maybe, the discriminated people are not as isolated as the lepers but the treatment that the burakumins receive is very poor. In response to the discrimination, burakumins are not able to improve their lives; their environment exhibits much of th e social evils as most people would describe them. They do not live in extravagant homes but in simple houses grouped together separated from the rest of the society. Some may have honest jobs but the pay is not sufficient for their needs. Despite the poverty striking their neighborhood, they still have time for vices and the bad habits are unstoppable. The remaining money is spent on gambling, alcohol, sex and drugs and there is no hope for them to improve their lives. They use the vices as scapegoats for their problems. They tend to â€Å"cure† themselves by indulging into more alcohol, drugs and even crimes later on. It seems that the government neglected the minority of the population. These people are citizens in any case and should be entitled to all of the benefits a citizen enjoys. They should have better livelihood to sustain and support themselves. Great rehabilitation must be done for the members who are addicted to vices and reduce crimes by free access to higher education. They should be able to start again and forget about the dark past. It is not that important if their past was filled with violence and so-called â€Å"social evil† as long as they are willing to change for the better. The novel shows that sex had became part of the lifestyle of the people living in ghettos because they are desperate to earn a living. Even if the job is dirty, they will do it. Since the income is not enough, they quarrel over money and the family relationships are at stake. Brothers, sisters and in-laws

Anti Heros Essay Example | Topics and Well Written Essays - 1250 words - 1

Anti Heros - Essay Example The Maltese Falcon is a film that has a hero as well as an antihero; the film stars Humphrey Bogart as the director / private investigator Sam Spade who has been regarded as the antihero and not the hero, for reasons discussed within the purview of this paper. Sam Spade has a very tough exterior as he lives life by his own rules and rarely listens to anyone else. When his partner in crime dies, he does not even seem to bother or care, displaying an aura of someone that does not have any emotions. He tries to put forth a very strong and non caring attitude towards the audience. He does not possess any scrupulousness; this is clear when the audience finds out that he had been having an affair with the wife of his partner. Furthermore, he plays along with Brigid within the movie, not letting people know for sure whether or not he actually had feelings for her. This makes a number of people averse to his entire character because he does not come off as a man who would listen to anyone or be liked by most people. He says, â€Å"When a mans partner is killed, hes supposed to do something about it. It doesnt make any difference what you thought of him. He was your partner and youre supposed to do something about it. And it happens were in the detective business. Well, when one of your organization gets killed, its bad business to let the killer get away with it. Bad all around. Bad for every detective, everywhere.† (The Maltese Falcon) Spade’s rugged aura puts off a number of people and his smooth mannerisms help to provide a very hard twist to the entire story. Spade is truly an antihero with a penchant for women. A number of people have maimed the movie to be exactly like its contemporary, Citizen Kane. Spade does not carry a gun throughout the movie; however he shows people that he is not afraid to use one. He will do anything in order to make some money and is not attached to many things, probably because of his prior life

Becoming a Successful Leader in the Hospitality Industry with Research Paper

Becoming a Successful Leader in the Hospitality Industry with Ban-Ki-Moon's Leadership - Research Paper Example This paper analyses or compares the leadership styles in hospitality industry with that of Ban Ki-Moon. According to Tracy and Hinkin (1994), â€Å"Hospitality managers should develop a strong sense of vision to clarify and communicate organizational objectives and create a working environment that fosters motivation, commitment and continuous improvement† (Tracy and Hinkin, p.18). Since hospitality industry is a service oriented industry, the behaviors of the employees play a vital role in bringing success. Demotivated employees may not behave properly with the customers and therefore it is essential for the leaders to ensure that the customer servicing staffs are adequately motivated to their profession all the time. Relationship building with the customers is vital for the hospitality industry to keep a good image in the market all the time. Even a single bad incident can damage the reputation of the organization immensely. â€Å"Both "people skills" and "business skills" are needed and a good manager will exhibit both. People skills include fair play among employees, respect, problem solving abilities and customer relations†(Leadership in Hospitality Industry). Ban Ki-Moon's leadership and the leadership in hospitality industry have lot of similarities. ... In other words, Ban is successful in treating all the countries fairly and he has shown no reservations towards any of the countries. He reacted based on situations or facts rather than the reputations. Leaders in hospitality industry should learn a lot from Ban’s leadership style. Hospitality industry leaders should make sure that all the customers are getting adequate treatment in their organization irrespective of the differences in the origins of the customers. In other words, an American and Indian customer who booked deluxe rooms should get equal treatments irrespective of the country of origin of the customer. Ban is not only keen in solving international political problems, but also in solving environmental problems. Leaders in hospitality industry should also show better commitments towards the community in which their organization operates. It should be noted that majority of service industries generate huge amount of wastes and some hotel groups have the habit of di sposing these waste injudiciously. Taking inspirations from Ban’s leadership, leaders in hospitality industry should make sure that none of their organization’s activities would cause any harm to the environment. Waste handling and recycling should be done in an environment friendly manner so that the people staying around the hotel may not be affected in any ways. Ban is not at all interested in doing something to boost his images. He is interested in doing meaningful things rather than face saving things. Some hotel groups have the habit of doing something to polish their personal face and that of the organization. Current customers are intelligent enough to identify the motives of organizations.

Magnet Schools and the Pursuit of Racial Balance Essay

Magnet Schools and the Pursuit of Racial Balance - Essay Example There are 3 goals of magnet schools - to reduce minority isolation, to eliminate minority isolation and to prevent minority enrolment. Out of 54 schools in Cincinnati sample frame 10 magnet schools and 10 non magnet schools were selected. A questionnaire was distributed to all the fifth grade parents and to all non administrative staff in each school of the selected temple. Magnet schools are a tool for racial balance. Many parents believe that the goal of integration is beneficial for both the parents as well as the students. In conclusion we may say that the students will derive benefits from encounters with students from different races. In 1802, Nassau Hall was consumed by fire, the next year Dickson College's building was burned down likewise there were many such college buildings which were either burned or affected by other natural calamities like lightening. Often when a college had a building, it had no students and when it had students it had no buildings. And it if had both than it didn't have money, professors or president. College founding in the 19th century was undertaken with the same spirit as canal-building, farming etc. Yale men were responsible for setting up Christian goals in the west. For the Methodists and the Baptists founding colleges became a part of their process of coming to terms with middle class societies.

In Defense of Gun Control Laws Essay Example for Free

In Defense of Gun Control Laws Essay Guns have always been associated with crimes. The use of guns may either work in the positive or the negative way. On the positive side, it could help in deterring the proliferation of crimes. The mere use or presence of it is sufficient for other criminals to stop their criminal intents. However, this is just one way of looking at gun use and ownership. If guns could be used for combating crimes and criminals, it could also be used to the proliferation of criminal acts. Many evil minded people would utilize firearms in order to compel people to do as they desire—including unlawful acts. The mere presence of a gun is sufficient to threaten an individual and to put one’s life in danger. Any wrong move in using a loaded gun might be the end for another’s life. It is due to this reason that the ownership, possession and use thereof are strictly regulated by the state. For anti-gun control advocates, they feel the need for less strict regulations on gun control and ownership. They are advocating that the laws be relaxed and for the law makers that gun ownership is essential in fighting criminals and crimes. It serves as the ordinary man’s protection against abusive individuals. In this day and age, there so many crimes that are being committed and a great number of criminals causing chaos to society, thus, the need for greater protection against them. Such advocates also invoke that it is their constitutional to own guns. However, in a case decided last June 2008 by the United States Supreme Court, it was upheld that reasonable efforts under of controlling the proliferation of firearms on the hands of private individuals is allowed. The law enforcers and makers however should be guided that there should be no outright ban on handguns (Newsbatch, 2008). This ruling of the Supreme Court would indicate that ownership of guns is not only limited to the military but it also extends to ordinary individuals so long as there is proper regulation. Indeed there is nothing wrong in the ownership and possession of guns as long as there is proper regulation thereof of the enactment and recognition of gun control laws. Blackstone, a former US District Court Judge also shares the view that the public should not be prohibited of their right to bear arms. They should be accorded this right especially in a country where there is a vast militia power. The bearing of firearms is the security of the people against abuse and their mode of defending themselves. However, this should be done in moderation and should be properly regulated (Guncite, 2007). In opposition to the claim that the ownership and possession of guns help deter criminality in the country, this cannot hold to be always true. As previously indicates, the use of guns may work positively or negatively. Instead of stopping crimes, it could even be the means of committing thereof. According to the article of Deborah White (n. d. ), the United States has the highest number of private people owning guns. There are about 80 million Americans of 50 percent of the total homes which own 223 million of guns. Attached with this figure is the fact that more than 30, 000 men and women in the United States die each year due to gun shoot wounds, this is the highest homicide rate from guns around the world. Moreover, it should be noted that among the 30, 000 deaths indicated above, only 1, 500 of which are caused by accidental killings. This is a very alarming figure since it would imply that the high percentage gun ownership and gun shot related incidents have a positive relation. The more guns there are in the streets, the greater is the number of people dying with a bullet on their bodies. Policy Almanac (n. d. ) also reported that there has been a 173 percent increase from 1985 to 1993 and 126 percent from 1993 to 1999 in the number of homicides which are annually committed with the use of a firearm by persons who are between the ages 14 to 24. The figures should serve as a wake up call for law enforcers and remind them the need to properly regulate the ownership of guns and the use thereof. There should be more restrictive laws to be imposed by the state. Stricter measures could lead to lesser crime rate as well as crime related incidents. In order the address the issue on gun control, several laws were enacted federally and locally or by state. On the federal level, the first major mandate was enacted in 1934. Based on this initiative, the sale of machine guns and other fully automatic firearms will be regulated. Four years after such legislation, another law was passed requiring gun sellers to have a license. In addition, the law also prohibits the sale of guns to those who have been convicted of violent crimes. The next law which addressed the issue on gun ownership was passed in 1968. This law is the Gun Control Act of 1968. Based on the said law, imported guns are to be regulated and gun-licensing requirements will be increased. The list of people who should not own and should not be sold with firearms was extended to individuals who have been convicted with any form of non-business related crime, those who are incompetent mentally d those who have been using illegal drugs. After the said legislation, another federal law was again passed in 1986. Such mandate indicated mandatory penalties on the use of a gun to commit federal felonies. Included in the said law is the prohibition on the use of bullets which have the capacity to penetrate bulletproof apparel. Manufacture and importation of semi-automatic assault weapons were also banned in 1990 (Newsbatch, 2008). After the said law was promulgated by the Congress, another federal gun regulation was passed in 1994, the Brady Bill. The said bill is considered as the most comprehensive federal effort on gun control. Through this law, a five day waiting period is necessary before purchasers can have their guns. Such period would give the law enforcement agencies to investigate the background of the purchaser. However, this law did not last as it was declared by the Supreme Court to be an infringement on state’s rights. The law was re-drafted and provided that the conducting of background investigation will be accomplished through a national computer system. The provision on the five day waiting period was also removed. In terms of the state or local laws, there has been variance in the enactment of the laws. However, the common provisions include Child Access Prevention law or the prohibition on leaving a loaded weapon which could be easily accessed by a minor. Another is the concealed weapon law or the need to obtain a license which would allow one to carry a concealed weapon. Others include the following: regulation of private sale to minors, regulating all secondary market sales, ban on assault weapons and the one hand gun a month laws, among others. Despite these seemingly comprehensive laws, there is a need to impose stricter measures in order to regulate the ownership, use and possession of guns. Although it is recognized that there is a need for guns in the society, the continued sale thereof to private individuals and the growing number of people who own such should be carefully studied. Guns are very dangerous. It carries with it an authority which no other object could possess. The mere presence thereof is already a cause for alarm. People who have such may use it to protect themselves or to threaten other people. Given the extraordinary authority accorded to firearms, people who are not properly oriented with the use thereof may abuse such authority. Thus, there is a need to regulate the use, possession and ownership thereof to have proper guidance and to eliminate the bad effects thereof to the society. The authority that comes with any firearm carries with it the responsibility to utilize it only to purposes to which it was intended and not to create abuse. Despite the high funding that come from anti-gun control laws, politicians should comply with their basic responsibility to uphold the common good in the society. They should not be easily swayed by the sources of their funds during the last elections.

Impact Of SMEs On Economic Development

Impact Of SMEs On Economic Development CHAPTER 4 Small businesses contribute substantially to two fundamentals of poverty reduction job creation and economic growth (The World Bank Group). In the previous chapter we examined a complete picture of MA in the theory of banking and at offering economic evaluation and strategic analyses of the process, also high lighting the performance of commercial banks in post consolidation period in Nigeria. It then viewed the benefits, consequences and limitations of MA and concluded with recent estimates of the effects of bank consolidation on Small Business Lending. In this chapter we shall be looking at the roles of SMEs, its benefits and impacts on the economic development. We shall also be looking at how SME get funded and the main sources of cash. Finally we will compare this credit availability to SMEs before consolidation and after consolidation in the Nigerian banking sector 4.0 Introduction Small enterprises are the seeds of the private sector, and also the source of innovation and diversification. They supply larger companies and develop their own activities and product lines. When they grow, they provide employment and tax revenues. Small and medium-sized enterprises can be the motors of economic growth. In most African countries, however, the business environment is not conducive to enterprise development ( Bercy, 2005 ). Small and Medium scale Enterprises (SMEs) are important for successful economic growth and social development. SMEs, properly supported, foster Entrepreneurship a proven pre-requisite for national economic success. Public and private policy support of SMEs is most effective when SMEs are part of the formal sector. One key objective therefore is to encourage migration of SMEs from informal to formal sector (Oyekanmi, 2006) Nigerian SMEs in informal sector are beyond the reach/help of public or private policy Policies do not provide sufficient support Difficult access to finance To use SMEs to stimulate economic growth and encourage businesses requires SMEs to move from informal sector to formal sector. 4.1 Definition of SMEs SME is an acronym for small and medium enterprise. It is a term that is used in a different way in different country and used differently even within the same industries. In the United States for instant SMEs can be used to express firms from small office home office to even large company. In Europe SMEs is used to refer to a business firm or company that has fifty to two hundred and fifty employees with an annual turnover of seven to forty million euro. Yet these SMEs must have a total asset less than twenty-seven million euro. In Canada, the industry uses the term SMEs as a reference to any company that has less than five hundred employees while categorizing company with employees above this number as large business. The definition of SMEs is country specific which is measured on size and level of development. In Nigeria SMEs are the moral fibres of the economy, a large percentage of businesses in Nigeria employ less than one hundred employees (Oyekunmi, 2006). This segment provides fifty percent of employment and fifty percent of the total industrial output. This can be said that most of the developing nations, its private economy comprises totally of SMEs and seen as the only reasonable employment opportunity for communities ( Oyekunmi, 2006) 4.2 Impact of SMEs on Economic Development Nowadays, the importance of SMEs has been recognised worldwide and their immense involvement to economic growth, community organisation, employment, catalysts of growth, innovation and skills and development. SMEs account for over 95% of enterprise and 60%-70% of employment, and generate a large share of new jobs in Organisation for economic Co-operation and development economies. (OECD Africa). Since the dawn of industrial changes and globalisation the importance and contribution of small firms is enhance as the economies of scale reduces. Nevertheless a lot of the conventional problems SMEs faces have also become more acute in this global environment. Such problems as lack of funding or credit availability, problems in utilization of technology, constrained managerial capabilities, regulatory weight down and low yield. Since every economy stands to gain from SMEs precise strength and weakness, policy framework and the role of government must evolve for these enterprises to flourish , adapt to new demands and strains and to reap the benefit of globalisation. For this reason encouraging entrepreneurship is high on the agenda of governments in OECD member countries, developed and developing economies. The importance of entrepreneurship stands out in this time of innovative change, and fostering a climate to help the dynamism in firm creation is considered fundamental worldwide.( OECD African Economic Outlook ,2009) 4.3 Role of SMEs to Economy Small and Medium Enterprises (SMEs) occupy a place of pride in virtually every country or state. Because of their significant roles in the development and growth of various economies, they have been referred to as the engine of growth and the vehicle for socio- economic change of any country. SMEs are seen as an authentic medium for the realization of national economic objectives of poverty alleviation and employment generation at low investment cost. Another benefit of SMEs includes access to the infrastructural facilities made available by the very existence on these enterprises. Also the spur of economic activities through supplies of items produced, distribution process stemming from rural to urban centre, enhances the standard of living of the employees and their families as well as those who directly and indirectly related with them ( Onuorah, 2010). The benefits of SMEs are innumerable and cannot be exaggerated. These benefits are summarized below. Economy contribution in the provision of outputs in form of goods and services. Generation of employment involves creation of jobs at relatively low capital cost. And the employment opportunities provided reduces village to city (rural-urban) migration and allows for even development Utilization of local resources: This promotes the use of local raw materials requiring simple technology SMEs help to reduce income disparity by developing a group of both skilled and semi-skilled workers as a basis for expansion Income generation: SMEs constitute major avenues for income generation and participation in economic activities in the lower income and rural brackets of developing societies especially in agriculture, trading and services. Stiglitz and Weis (1981) observe that small and medium scale firms with opportunities to invest in positive net present value projects may be blocked from doing so because of adverse selection and moral hazard problems. This selection problem occurs when providers of funds cannot validate the firms access to quality projects. While the hazard problems is related with the possibility of SMEs diverting funds to alternative projects or taking more risks than they can afford to. (Ogujiuba, Ohuche, Adenuga, 2004). Since SMEs ordinarily do not have access to public funds through the capital market, they obviously have to depend on banks for funding. The reliance on banks makes them even more vulnerable for the simple reason that crisis in the financial system can have a great impact to credit supply to SMEs, thus, SMEs are subject to funding problems in equilibrium and these problems are worsening during periods of financial instability. Berger and Udell (2001) further note that shocks to the economic environment in which both banks and SMEs exist can significantly affect the willingness and capability of banks to lend to small and medium scale firms. Government worldwide have realised the importance of SMEs and have encouraged them by originating and creating policies that are favourable to encourage, support and make funding accessible. To encourage the developments in small and medium enterprise are a plus as the role SMEs plays in economic development. (Oladele, 2009). 4.4 SMEs Promotion in Nigerian The Nigerian government has supported the SMEs development programs since its independence, yet very few of which have yielded impressive results. Now the challenge is to recognise the factors that influence their performance and development as well as the implications of these factors for policy. Ever since the attainment of independence in Nigeria, every known regime recognizes the importance of promoting SMEs as the basis of economic growth. As a result, several micro lending institutions were established to enhance the development of SMEs. Unfortunately, records indicate that the performance of SMEs in Nigeria has not justified the establishment of this overabundance of micro-credit institutions. Odedokun (1981) notes that in spite of the quantum of credit made available to the SME manufacturing sector; the contribution of the index of manufacturing to GDP was only 7 percent between 1970 and 1979. Source: CBN Annual Report, 2008 The major credit programs and specialized credit delivery institutions implemented to promote SMEs in Nigeria between the year 1971 to 1997 includes: The small scale industries 1971, agricultural credit guarantee scheme (ACGSF)of 1973, the Nigerian Agricultural and Co-operative Bank of 1973, the Nigerian bank for Commerce and Industry of 1973, the small and medium scale enterprises loan scheme 1 2 of 1992, National Economic Reconstruction Fund of 1994 and The Family Economic Advancement Program of 1997.( Oyekunmi, 2006). Others includes micro credit institutions include the Nigerian Bank for Commerce and Industry (NBCI), National Economic Reconstruction Fund (Nerfund), the Peoples Bank of Nigeria (PBN), the Community Banks (CB), and the Nigerian Export and Import Bank (NEXIM), and the liberalization of the banking sector. (Ogujiuba, Ohuche, Adenuga, 2004). In addition there has been an entrepreneurship development centres in three zones since 2008, which is has trained nine thousand people and is expected to create about five hundred and twenty-five thousand jobs in three to five years. Most of these programmes failed due to poor administration in loan processing and credit procedure, poor monitoring techniques and the abuse of the scheme attributed to corruption (Oyekunmi, 2006). CBN initiated together with the Bankers Committee In 1999, an interventionist strategy called the Small and Medium Industries Equity Investment Scheme (SMIEIS). This scheme requires banks to set aside 10 percent of their profit before tax to fund SMEs in an equity participation framework. (Ogujiuba, 2004). SMIEIS requires all banks in Nigeria to set aside 10% of their PBT for equity investment in SMEs (revised to 5% from end 2006) ( Oyekunmi, 2006) According to Mambula (1997), since its independence, the small business development programs have generally yielded poor results, despite the immense amount of money invested by the Nigerian government. But this can be associated to the fact that these funds hardly reached the SMEs business because funds got lost to bureaucratic bottle neck and end up in accounts of public office holders. It has however been worrisome that despite the incentives, policies, programmes and support aimed at revamping the SMEs, they have performed rather below expectation in Nigeria. 4.5 Funding opportunity for SMEs To assist SME development, priority should be given to financial reforms and appropriate financing. Effective financing of SMEs should include regulatory reform the creation of a friendly business environment for doing business, the extension of guarantees to local banks to entice them to lend in local currency (e.g. USAID Development Credit Program), tax incentives for rewarding companies that agree to have their financial statements audited, the creation of equity funds suitable for SMEs, financial incentives for partnerships, etc. (Bercy, 2005). SMEs being very unique and important and because of their relative small size can be negatively affected by changes in the financial institution especially banks during crisis period. The credit availability to SMEs is very important and significant not only from a theoretical point of view but also for policy purposes. In many countries different innovation have enthused extensive restructuring in the financial sector. Commercial banks have engaged in mergers and acquisitions, which has lead to the vanishing of many small credit institutions and appearance of complex financial conglomerates. Merger has open previously isolated markets due to the lifting of geographical barriers hence reducing market segmentation. SMEs can be funded in two major ways; internal finance, concerned with getting money from personal savings and from friends and relatives and external finance when the company grows and begins to expand. External financing is sourced from most financial institutions. There are two notable variants of external finance and these include debt financing and equity financing. Dept financing engages interest bearing instruments and are secured by asset collateral and have term structured into it. This can be long termed or short termed. Examples of dept finance include loans, overdrafts, leasing and hire purchase arrangement and letters of credit. Equity financing allows the banker or investor the right of ownership in the business. This as such may not require collateral since the equity participant will be part of the management of the business. ( Ogujiuba et all, 2004). We have seen the two approaches to overcome financial gap to SMEs. This approach has been further encouraged by two approaches. The first has been to broaden the collateral based approach by encouraging bank lenders to finance SMEs with insufficient collateral. The second approach is to broaden the viability based approach since its concerned with the business itself and the aim has been to provide an increase return in the general business, create a favourable environment and reduce risk. Viability based financing is especially associated with venture capital. This often entails a detailed review and assistance with the business plan. A common aim or feature of the viability based approach is the provision of appropriate finance that is tailored to the cash flows of the SME. (Berger and Udell, 2005). Levy in 1993 reported that smaller enterprises have limited access to financial resources compare to larger organisations and he discussed the impact of his findings in economic growth. SMEs funding is supplied through the business financial market in the following Retained Profit The Financial Market The use of banks. Government monetary policy 4.5.1 Retained Profit In the course of running a business profits are made, when these profits are kept for future use to expand the business it is referred to as retained profit. This profit is there for use to help buy new machinery, vehicle, computer etc to improve the business and keeps it going. On the other hand the retain earnings can be used to expand the business by diversification. And it can also be kept for a rainy day. 4.5.2 Financial Market The financial Market is a system that allows buying and selling of financial securities and instruments. It is a centre where bonds and stock are traded, and allows people to buy or sell commodities such as precious metals or agricultural good and other items of value at low transaction costs. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. In finance, financial markets facilitate: The raising of capital (in the capital markets) The transfer of risk (in the derivatives markets) International trade (in the currency markets) The financial market matches those who want to buy with those who want to see. Money market is one component of the financial market for asset involved in short term borrowing and lending usually not exceeding one year. Trades in the money market involve T-bills, Commercial Papers (CP), bankers acceptance, Certificate of Deposits (CD) and both mortgage and asset backed securities. 4.5.3 Banks The systems of banking in Africa are not properly adapted to lending to SMEs with some exceptions. This makes financing a more difficult approach, hence making financing more flexible would be a welcoming help (Bercy, 2005). All over the world the importance of promoting SMEs as a channel of growth and industrialization has been recognized. One of the vital roles of the banks is to devise a way to creating loan package and providing loans to small business that are otherwise not properly informed. (Berger, Klapper and Udell 2001). Conversely credit provision to small borrowers may be affected by a number of factors. Bank consolidation is one of the major factor affecting credit to small borrowers. The creation of mega bank suggests that large institution devote less of their asset proportion to lending to small business than smaller less complex institution. ( Emeni and Okafor, 2008) .These mega banks may be oriented towards transaction lending and providing capital markets services to large corporate clients. These institutions often have their headquarters in business metropolis far away city centre that are a great distant from small borrower. Ogujiuba, Ohuche and Adenuga, 2004) Banks in Nigeria although reported to being highly liquid and wanting to make loans available, they are usually put off by the uncertain nature of SMEs. And since these banks do not provide the necessary funds required to start a business, run the business and keeps it going, SMEs tend to rely on personal assets for their working capital. This reliance on personal funds makes it very difficult to operate at optimum capacity, increase output and make sales. It also limits investment to develop, expand operation or even improve technology. This risk on bank not lending is attributed to lack of information on SMEs true situation in terms of finance and their performance ability to repay loans both principal and interest. And since the judicial system is not reliable, banks cannot enforce contracts, hence making business environment generally risk prone and uncertain.(Ogujiuba, Ohuche and Adenuga, 2004) The table below show the proportion of loans given to SMEs by commercial banks. It gives a brief summary for six years from 2000- 2005 of the ratio of loans given to SMEs to the total credit available to commercial banks in Nigeria. From this table it can be deduce that percentage of loans made available to SMEs is very low and over the years it reduces even more to a more trivial proportion. Table 4.1 Ratio of Loans to SMEs to Commercial Banks Total Credit YEAR Loan to SMEs (=N=M) Commercial Bank Total Credit (=N=M) Ratio of Loan to Total Credit (%) 2000 44,542.3 508,302.2 9.7 2001 52,428.4 796,164.8 6.6 2002 82,368.4 954,628.8 8.6 2003 90,176.5 1,210,033.1 7.5 2004 54,981.2 1,519,242.7 3.6 2005 50,672.6 1,899,346.4 2.7 Source: Central Bank of Nigeria Statistical Bulletin Volume 16, 2005 4.5.4 Government policy (New Monetary Policy) The Nigeria Government in a bid to encourage small and medium scale enterprises has introduced several monetary policies. This has been mentioned in the previous chapters. The success of this strategy is based on its proper implementation, co-ordination and supervision. These monetary policies includes: The Small and Medium Enterprise Equity Investment Scheme (SMEEIS), the Small and Medium Enterprises Credit Guarantee Scheme (SMECGS) and the Microfinance Banks and Micro Credit Fund. 4.5.4.1 Small and Medium Enterprises Equity Investment Scheme (SMEEIS) The Small and Medium Enterprises Equity Investment Scheme is a voluntary initiative of the Bankers Committee in agreement with CBN, approved IN 1999. It was aimed at mitigating the risk-averse behaviour of banks. The scheme was a responds by the federal government to the promotion of small and medium enterprises as a tool of industrialization, poverty alleviation and job creation or employments. This scheme required all commercial banks in Nigeria to set aside annually ten percent of their profit before tax (PBT) for promotion of small and medium enterprises and equity investments. This was the banks own contribution in responds to the federal governments efforts in economic growth. This takes care of the burden of all financial charges such interest under normal bank lending. In addition the scheme provides financial, advisory, technical and managerial support from the banking industry. ( Soludo, 2005). Activities approved for funding under the scheme includes manufacturing, constru ction, Information technology, education, tourism and services. The funds set aside by banks under the scheme increased from N13.1 billion in 2002 to N41.4 billion in 2005. However, actual investments grew much slower from N2.2 billion in 2002 to N12.1 billion in 2005, representing only 29.1 per cent of the funds set aside. This further increased to N21billion in 2007 representing a further 21.5 per cent of funds set aside. (CBN Statistical Bulletin, 2008) Figure 4.2 Banks Investment in SMEs through SMEEIS Source: CBN Statistical Bulletin, 2008 Table 4.1 SME Reserve for Small and Medium Scale Industry of Top Five Commercial Banks in Nigeria. (NM) Zenith First Bank UBA Union Bank Intercontinental 2009 3,729,204 11,193,000 2008 3,729,204 9,439,000 2,635,000 3,868,498 2007 3,729,204 7,916,000 2,635,000 5,537,000 3,868,498 2006 3,729,204 6,998,000 2,635,000 4,931,000 2,387,122 2005 2,580,324 1,379,000 2,050,000 4,429,000 1,527,532 2004 1,224,242 1,379,000 1,426,000 3,491,000 856,935 2003 1,224,242 1,379,000 865,000 2,280,000 856,935 Source: Annual Reports of the Various Banks Various studies have pointed out that inadequate data on SMEs business activities and the vague scope of economic activities are some of the major issues constraining disbursement of funds under the scheme. Two very important policy actions were than taken by the Bankers Committee in 2005, to restructure the scheme so it could take proper effect. The first policy action was to implement the funding of all business activities with the exception of general commerce and financial services under this scheme. It was restructured to contain and provide for non-industrial enterprises so that other sectors of the economy such as agriculture, housing, transport and utilities can be funded under this scheme. The name of the scheme was, therefore, changed to Small and Medium Enterprises Equity Investment Scheme (SMEEIS), to reflect the expanded focus. The Bankers Committee also embarked setting the guidelines for the management of withdrawn un-invested funds during the year. The second policy a ction was to set the limit of banks equity investment in a single enterprise. This was increased from N200 million to N500 million, thus accommodating the real medium sized industries that constitute the missing middle in Nigerias industrial structure. These two policies had an instantaneous impact on the scheme as investment rose by 29.4 per cent in 2005 to N12.1 billion. The cumulative amount set aside by the banks at end- December 2005 stood at N41.4 billion, compared with N28.8 billion at the end of the preceding year 2004. The final benefit of this policy is expected to manifest fully from 2006, following the success on bank consolidation exercise in 2005. (CBN Annual Report, 2005). 4.5.4.2 Small and Medium Enterprises Credit Guarantee Scheme (SMECGS) CBN established the Small and Medium Enterprises Credit Guarantee Scheme (SMECGS). This scheme was set up in a bid to ease the rigid nature of the credit market in Nigeria, to also augment credit to the real sector and complement its 500 billion Naira Power/Manufacturing facility; the Management of the Central Bank of Nigeria (CBN) approved the establishment of a N200 billion Small and Medium Enterprises Credit Guarantee Scheme (SMECGS), to promoting access to credit to manufacturers and SMEs in Nigeria. It is funded one percent and managed by CBN. The aim ideas behind this scheme is to fast track the development of SMEs and the manufacturing sectors in Nigeria as a whole by providing guarantees, creating an atmosphere favourable for industrialization, increasing the accessibility of credit and generate employment. ( Soludo, 2006) 4.5.4.3 Microfinance Banks and Micro Credit Fund The Microfinance Policy Regulatory and Supervisory framework was a major policy initiative of the Bank in 2005 after consolidation of banks. Microfinance Banks and Micro Credit Fund was a replacement to community banks with a deadline to microfinance bank latest December 2007. The policy, among others, addresses the problem of lack of access to credit by entrepreneurs who do not have access to regular banks; strengthens the weak capacity of such entrepreneurs, and raises the capital base of microfinance institutions. The key elements of this framework was to set aside not less than one percent of the annual budget by state governments and local government for on lending through the microfinance banks, in addition to endorse and authorise the management of microfinance banks, establishment of the micro credit funds and introduce deposit insurance for micro finance banks to protect depositors funds. Problems associated with Credit availability for SMEs According to Cork and Nisxon, (2000) poor management and accounting practices have hampered the ability of smaller enterprises to raise finance. Owning to the nature of small business and the personal lifestyle of individual owners, goes a long way to affect operations and sustainability of the business. As a consequence of the ownership structure, some of these businesses are unstable and may not guarantee returns in the long run. However, there is reason to hope because according to Liedholm et al. (1994), a large number of small enterprises fail because of non-financial reasons. Remmers et al. (1974) reported the debt/total assets ratio to be independent of firm size while Peterson and Schulman (1987) reported that debt/total assets ratio to first rise and then fall with size of firm. Whatever sides you choose to take, the granting of loans to SMEs depends solely on the decision of the loan granting institution. And this choice is also depended on size of the balance sheet of the SMEs. The general problems associated with credit availability for SMEs everywhere is summarized below. Bad Credit History An adverse borrowing history of SMEs particularly if it is involving a sister organization will discourage the lender. The logical presumption is that if you do not have a good credit history then that is indicative of a personality pattern which means that in the future you will face the same problems as you are trying to clear you refinancing initiative. The bank is then well advised to stay away from you or at the very most offer you some very stringent terms for borrowing. Poor business plans Most SMEs applying for loans do not present convincing feasibility studies or attractive business plans. They are therefore regarded as high-risk ventures. Lack of Collateral Thirdly, even those SMEs with business plans not backed by adequate collateral. The lack of adequate collateral would be unacceptable risk for the lender. As banks cannot afford to take any chances of non-repayment of loans, they insist on these collateral requirements being met. In as much as they have nothing to fall back on should you default on your loan repayment obligations? Good financial management requires that they do not accept a refinancing initiative until they are sure that you are more than capable of covering the full loan if circumstances demand it. Collateral is the final reserve to meet this criteria and if it is missing, then the decision is likely to be negative. The impact of regulatory and monetary factors on bank loan The result is that monetary policy effects on bank lending depend on the capital adequacy of the banking sector; lending by banks with low capital has a delayed and then amplified reaction to interest rate shocks, relative to well-capitalized banks. Other implications are that bank capital affects lending even when the regulatory constraint is not momentarily binding, and that shocks to bank profits, such as loan defaults, can have a persistent impact on lending. Financial crisis Again bank financial distresses may also be an important determinant of credit availability during periods of credit crunch and accompanying financial crises. However, there are very few small firms that will satisfy the rigorous condition set by the traditional feasibility appraisal model, which is often designed for both small and big firms. While some aspects of the criteria of the feasibility model are met by some small firms, others are not met at all, therefore for banks to lend , they need to develop lending rules that accommodate the peculiar characteristics both for the SMEs and their owners. Other reasons In addition, many SMEs do not hold deposit accounts in the formal banking sector, which the banks require from loan applicants. Another reason SMEs were not given any concessions in terms of loan conditions was that in Nigeria no law exists to protect bankers against default. Yet another reason banks resist loans to SMEs is the unwillingness of owner/managers to acquire formal training. Such training is useful in providing added expertise and competence in a chosen field of business and in improving chances of obtaining loans.( Mambula, 2002) THE END .