FINANCIAL MANAGEMENT assignments 1-4 Essay Example | Topics and Well Written Essays - 500 words

FINANCIAL MANAGEMENT assignments 1-4 - Essay Example It is an indispensable tool for the economists, investors and analysts to measure the well-being of an economy. Real GDP is different from nominal GDP as it takes into account the inflation, thus producing a better scale of measurement. 2) Define and indicate the significance of the LIBOR. What was the LIBOR at the time you completed the assignment? LIBOR is the London Interbank Offered Rate and it is the rate at which the most creditworthy banks lend funds to each other. It is considered as a benchmark rate in the major countries of the world such as US, UK and Canada. LIBOR is considered as of paramount importance in the corporate world because when the LIBOR increases it creates a financial panic, which tightens the flow of credit and erodes the trust between the banks for their ability to pay each other. In addition to that, all the credit loans such as credit card, mortgages and student loans are dependent on LIBOR therefore it has a direct impact on the consumers. It is estimat ed that $360 trillion of international financial products are based on LIBOR (Reynolds, 2010). Current LIBOR LIBOR 1-Month 3-Months 6 Months 0.26% 0.31% 0.46% Source: LIBOR, other interest rate indexes (Bankrate.com) 3) Define and indicate the significance of the prime rate.

Methods research Assignment Example | Topics and Well Written Essays - 250 words - 1

Methods research - Assignment Example Each of the 500 respondents will fill a questionnaire with 30 questions. The questionnaire will be based on a 5-point Likert type scale and ordinal scale with open-ended answers being measured using non-ordinal scale. Prior permission for interview will be obtained from the randomly selected schools. The respondents will only be allowed to participate after agreeing to the consent form. A pilot study will be conducted by randomly selecting a sample of 30 participants; 15 male and 15 female. Necessary adjustments will be made based on the outcome of the pilot study to assure validity and reliability of the research. The research assistants will administer the questionnaires to obtain the primary data. The researcher will administer both closed ended an open-ended questions through personal interview. The closed ended questions will be administered first. The open-ended questions will be administered afterword with an aim of clarifying some of the responses from the closed ended

Self-Reflection and Self SWOT Analysis

Self-Reflection and Self SWOT Analysis Self analysis is nothing but calculation of ones opinions and activities. That is costing of ones emotions, personality and behavior. From this people can easily recognize their individual strength and weakness. Moreover self analysis is a process or it is a test to judge the abilities, talents and expertise. Self awareness is one of the way to yourself in which to discover our separable personalities, rate structures, politics, usual feelings and tendencies. Because for some stuffs, manufacture facts and learns we are all dissimilar to react. And this is very useful to sometimes pass time in self reflection to increase a superior vision into ourselves. SELF AWARENESS: Self awareness is a main thing for us, because when we know the healthier thoughtful of ourselves then we are the authorized to create a ups and downs and also to figure our parts of strengths. Moreover in our level of recognize areas we would like to make developments over and over again. That is so self awareness is the stage of aim setting. Self awareness is a skill for education. Education here is nothing but knowing ourselves. If a person know about ourselves, then only the person modify the stuffs they want to adjustment himself. Each person have a aim to their life like to became leadership man, playful life, relaxation life and so on. And the person will try and makes works relevant to his aim. But this everything is possible only by the investigating his emotions, reactions, trusts and qualities. Thus it is the self awareness performance. That is, a person will know about their own personalities like skills, thoughts, beliefs, inspiration and sensations. This kind person will only able to say the word i am self aware . That is, if i want to say i am self aware then i had a strong observation about myself and i had studied myself. Determining the exact path that ranges the aim can be probable simply by self-analysis. Self-awareness is one thing chooses whether you are the correct one to become a head or not. I must recognize the powers and weaknesses to become familiar for every circumstance. In the progression of these gatherings i am not forceful a person what to accept as true, how they should consider or what they should to do. I am mainly focused with persons tests in levitation their self awareness. When you grow into more self aware you automatically bring in to being to see phases of your behavior and the character that you did not warning earlier. Some authors give quotes about self-awareness they are, Raising an Emotionally Intelligent Child In the last decade or so, science has discovered a tremendous amount about the role emotions play in our lives. Researchers have found that even more than IQ, your emotional awareness and abilities to handle feelings will determine your success and happiness in all walks of life, including family relationships. John Gottman. Being powerful is like being a lady. If you have to tell people you are, you arent. Thanks to Maria Marquis Thoreau There are a thousand hacking at the branches of evil to one who is striking at the root, and it may be that he who bestows the largest amount of time and money on the needy is doing the most by his mode of life to produce that misery which he strives in vain to relieve. -Margaret Thatcher. We wait all these years to find someone who understands us, I thought, someone who accepts us as we are someone with a wizards power to melt stone to sunlight, which can bring us happiness in spite of trials, which can face our dragons in the night, who can transform us into the soul we choose to be. Just yesterday I found that magical someone is the face we see in the mirror: Its us and our homemade masks. -Richard Bach. Self-Analysis: Self-analysis involves understanding ones own  preconscious and insensible materials like ideas, Para praxes, memories, fleeting thoughts, and powerful emotions. By self analysis a person can simply find the weakness and by rectifying their weakness that person can capable to see the places and positions they have to adjust. Best of all, all persons has incorrect opinions and personal faults committed by them, But by the self analysis the person can simply able to avoid the problems and reach the requirements with no chunks. Self-analysis creates several profits that is it produces a extraordinary level of control that is to improve the person such as helpful talents, capacities and powers can leading easily and they can have a capacity to the true tracks. Self analysis process is very helpful and act as great end in idea making process which is suits for business surroundings. Career choice is almost whether they happy by gettings, assignment, place of work, organizational core, situation, challenges, superior for improvement, connection and the support from the age group. The chief dissimilarity between the self analysis and self awareness is that identifying a persons actions by approaches and talents. WELFARE IN SELF ANALYSIS AND SELF AWARENESS: By performing the self analysis a person can absorb their weakness. By this identification a person can know the real requirements to face the carrier. And they can easily increase the skills and talents by their positive skills. Moreover about decision-making and clear vision, self awareness shows positive and negative ways. CONCLUSION: Thus the method of learning own personality said to be a self analysis and ability of perform the process is called self awareness. We have to increase the strength and weakness by improving the skills. Thus the self analysis and self awareness is much important for career development. PRESENTATION OF RESULTS BASED ON ONLINE TEST: INTRODUCTION: For self analysis there are many number of tests are available and here I am going to discuss about some analysis test report. CAREER PATH TEST: The career path test is like a quiz type, which have two things they are, the activities which makes interests and gives joy and the another thing is about what kind of behaviour i have for my goal. This career path test shows result as yellow for interest and green for style and as I to accepted with this result. As in the result I am very much interested in supervision and administration management. Yes that is the reason iam doing administration course now. And also about my relaxations is like home duties and roaming is very much true. I am spending more time on managing and at all times deliberate the whole thing before starting it. So that the result of career planner quiz said as gathering report and evaluating are also suitable. Always I think of complexity in doing any jobs. I continuously use to say hard work is not the big one, only doing and finishing the thing is great. Various people can do the difficult job by hard work, but some people can do the same job by finding the easiest way. I need to be one of them always. My career planner quiz also said that I am creating the sophisticated processes for doing complex work. My results are ever reasonable because nothing I choose carelessly and without any reason. Before making decision I use to study the points for accepting and rejecting. Then only I will choose to decide if the qualities and income are high otherwise not. Next in the social equality point of view, I never took the others chances and I use give the chances for others when I am in group. This concept is very much believed by me. This concept is very much believed by me. So I agree with the points about my style such as reasonable decision maker and independent. Thus in the career test I can understand my interest and styles and I can agree with this results about my behaviour. So I accepted this self analysis test about me is true. JOHARI WINDOW: Consider the adjective list of me and my friends to map the character awareness by means of overlap and difference between them. It is called the johari window. The johari windows results accepted by me about 100%. In this window the test results grouped into four categories. First one is arena which means the characters known to both self and others? It gives me the result bold, energetic and friendly. It is accepted because I am so friendly to the people with me. Second thing is facade which means the traits known to self but not to others. It says I am happy and nervous. I accepted I am happiest person; I can make any time happy and also make nervous situation on mingle with people without mind the country, language. I am confident about what I am doing. Before start anything I use to search merits and demerits. After decide to do, I dont want to confuse myself. I am always friendly thats why I can make happy all. This is the thing I feel my strength. Ever I responsive because eve ry action there is a reaction. Pre-planning is possible only when I am sensible. Third thing in the johari test is blind spot. It is about the characteristic which is known to others but not to self. By this my friend can expose me and I can understand him that how much he understands me. I can realize my blind spots including knowledgeable and mature. About my culture surroundings i am mature. Thus this result says 100% to my mature. I am little bit nervous and little bit relaxed. Most of the time I am relaxed, nervous comes while lack of confidence in doing complex things. But I always show the relaxed face to others. In debate, I felt nervous sometimes and this results to degrade my performance. The johari windows results accepted by me about 100%.. Final category is about new who is new to both self and others. I need to concentrate these characters and analyse those characters about me. The unknown characters such as my braveness, intelligence, calmness, brave, giving, modest, able, accepting and others are under research. I need to analyse myself to become self aware. PSYCHOMETRIC TEST: In order to change my activities and a number of development tips based on my personal results for suggestions, The psychometric test is use full. There are two parts in the psychometric test that is shapes and views. That is the aim of the report is to give u ideas for your professional and personal development. Based on our personal reports of shapes we will find a few suggestions in this report in order to change our behaviour by trying certain activities. As a result of psychometric shapes test says as, I am a happy to snatch the leadership in team and make every effort to clearly regulate the individual roles and responsibilities. I am normally succeed in effective coordinating the work every day jobs and that everyone concentrates on the upcoming tasks and objectives. And my work manner like highly target motivated and for my mind think i keep in the mind the relationship between cost and benefits. I like to question usual approaches and prefer to creatively and flexibly tackle problems and tasks. I am open to new things, and occasionally contribute innovative ideas and suggestions yourself. yes i agree with this result in organizational behaviour. And this test shows that i need to aware of significance of useful contacts and relationships, and need to develop contacts quickly on the informal level and sometimes incorporate these relationship for your own purpose. And i need to recognize the core of a problem and take hold of the f undamental effects of actions. In these report i not accept with the last sentence that is i need to recognize the core of problem and take necessary effects. I know my decision is correct for current situation . Thus i agree with the aware need for me. And the test shows to try something like make list of all teams and groups in which you work together with others it helps how we describes our own role in these groups. yes so that going to try these types and even i am happy with this results i am limited with organizational development and this results reports i want to aware of here, yes it is true. Thus the progress tip given to me is great idea that can easily workout and result giving tip. The second part of the psychometric test is about view. This results summarizes the results of questionnaire views which i have completed. It indicates my personal values, professional intrests and motives. Is described under which circumstances and in which professional context i can use and develop my maximum potential. The result from the views shows that, When selecting a workplace, i should pay attention to environment of helpfulness. i want to offer my help freely and real generously and expect in return that i will also be offered the same level of support when i need it. In comparison to other professional aspects it is absolutely importance to me that i can become enthusiastic about my work and that i have the feeling that my work has a real meaning to it. And one more thing i need to feel particularly good when i often driven to perform at my intellectual peak. In comparison to my other aspects it is noticeable that it is very important for as, that company in which i was work conveys a feeling of safety and security to me. In comparison to others my attitude in this connection is absolutely typical. Thus i accepted this views results about me and try to pay attention for the above. HUMAN METRICS: The next test result is human metrics has given me result as Extravert(33%),  Ã‚  Sensing(12%),  Ã‚  Feeling(112%),  Ã‚  Judging(22%). Already I discuss my adjustment in many situations and I accept the point extraversion because I can mix together with people. This said I am important. I agreed with this. Always I take care of needs and assigning jobs to fellows. I use to give more importance to projects than life. This is 50% true. Because I use to find simple way to solve the big project not the difficult and excessive demand. And also i have moderate preference of extraversion over introversion as 33% and then i have slight preference of sensing over intuition as 12% and also i have slight preference of feeling over thinking as 12% and to i have slight preference of judging over perceiving as 22% Sensing which means physically touch. I actually aware of sensing. I always use to equip Thinking with a new, full of life sense of how the things work.. I think this I really accept I am sensing I always forecast the things in future. So I am innovative, that I always think of future. Many times before I do any activity, which really helps me that I am pre planned. Then judging result shows that I judge based on the people behaviour and attitude, which is helpful in taking right decisions. So that the result of Human metrics help me to provide for my part in doing best development. CONCLUSION: Thus the four types of test is very useful to identify our behavior and performance in organizations. The Johari windows said the behaviour I have and those behaviour are grouped four based on who knows it. The human metrics said the results by percentage and psychometric said by two parts as shapes and views. One having strength and weakness other having the things to be take care of when choosing work place. Career planning question said my interest and way. Thus the self-analysis tests results having in the region of 80% true. Hence I am accepted the test results. SWOT ANALYSIS: INTRODUCTION: The analysis is about identifying self concept that is strength, weakness, opportunities and threats is called SWOT analysis. Identifying the self concept provides development in own life. So that the analysis is to be take out and grouped as follows. (S)TRENGTHS: The positive behaviour I have is said to be strength of mine is that Problem Solving, Teamwork, Decision Making. I am very much superior to have other main strengths even as being with my team is decision-making, free and innovative idea. My friends are for all time prizing me for those things. Before me deciding anything I statistically study the qualities and demerits of doing such thing and decides if it is acceptable. In team, I ever representation only my points and I give chance to others for expose them also. This are the capability of management. I can manage any kind of people and any kind of situation. And also My strength is my adjustment. I am very much adjustable with the people without considering the country and language. I can combine with the different kind of people. The people, who yet know me, identify me as friend finder. My means of administrating fellows and making friends are my great strengths I feel. This is the thing motivate my friends to prize my brains equality. I am always welcome the changes and challenges. Then I give the imaginative and new idea to replace usual things and making the simple way for doing multifaceted thing because I prefer the stylish information. (W)EAKNESSES: Nervous Dependency Inflexible These are my weakness. Nervous even as speaking in some get-together is my very poor weakness. Still I can combine with any kind of people, I have this problem in proper and specialized meetings. one more great weakness I felt is still I cannot analyse this trouble. I am trying to beat this thing now. Dependency make me another one weakness and I feel it be able to make difficulty in my way but till it is not so. Inflexible to others stress so that I am trying to avoid this kind of weakness from me. (O)PPORTUNITIES Taking advantage from current market analyzing the current marketing strategy .For me the greater opportunity for hearing from other people who are in parallel role or same path to me. One more great thing is that attractive my open skill by means of finding the skills I have and shape the open skills in the correct way. And also to take on others in providing feedback about their experience of me. (T)HREATS The work needs excessive demand, a person being hidden by too much stress. That is the reason I wish easily reachable work. That is the large number of daily stress, which conspires against self-reflection CONCLUSION Thus from the SWOT analysis, i know my strengths, weakness, opportunities and treats. Based on my strengths and weakness i am going to improve my active skills and simultaneously beat my problems. And from opportunities and threats i going get feedbacks from experienced persons and at the same time to impose my attractive skill in correct way of manner

The Cayman Islands :: essays research papers

Part I - The Question   Ã‚  Ã‚  Ã‚  Ã‚  When I was 18, my family took a trip to Cancun for Spring Break. I absolutely loved the beaches and palm trees, the white sand, hot sun and blue waves. Ever since then I have had a real passion for tropical islands. My favorite and perhaps the most beautiful Islands I’ve researched are the Cayman Islands. I’ve only seen pictures and heard stories but I’ve already decided that’s where I am getting married. I still however, don’t know anything about the islands. My love for these islands and my thirst for knowledge on the topic has driven me to do more research and find out the history behind the Cayman Islands. I want to know everything about them, so far the only thing I know is that there are three islands, Grand Cayman, Cayman Brac, and Little cayman. I would like to know more. I am hoping to learn about the early development of the islands, the people, growth, tropical climate and environment. I am doing this purely for my own reference and curiosity. Part II - Research   Ã‚  Ã‚  Ã‚  Ã‚  I began researching for this paper online because it was easy for me to use and a lot faster than looking up information in text books, and it’s a lot more accurate and up-to-date. Immediately I found about a hundred web sites worth printing. After scrolling through page after page, site after site I realized I had barely scratched the surface, so I decided to pick the ones with the most promising titles and print them all. Then I began the tedious task of sifting through all those papers until I found the best ones. I think I ended up with about six different sites, all on different things about the islands. One of the best ones was about the history of the Cayman Islands, I found this to be the most factual. Another good one mostly was about the Geography and Geology of the islands. The rest of them were mainly about visiting the islands, the discovery of the islands, touring the islands and comparing and contrasting the three islands.   Ã‚  Ã‚  Ã‚  Ã‚  After this I went to the Jackson Community College Learning Center and read through books and Encyclopedias about Cayman Islands but I found most of these to have the same information as my web sites, but not as good. I found a few pictures and maps that were helpful in my own understanding of the islands, unfortunately they wouldn’t be much help with my paper. The Cayman Islands :: essays research papers Part I - The Question   Ã‚  Ã‚  Ã‚  Ã‚  When I was 18, my family took a trip to Cancun for Spring Break. I absolutely loved the beaches and palm trees, the white sand, hot sun and blue waves. Ever since then I have had a real passion for tropical islands. My favorite and perhaps the most beautiful Islands I’ve researched are the Cayman Islands. I’ve only seen pictures and heard stories but I’ve already decided that’s where I am getting married. I still however, don’t know anything about the islands. My love for these islands and my thirst for knowledge on the topic has driven me to do more research and find out the history behind the Cayman Islands. I want to know everything about them, so far the only thing I know is that there are three islands, Grand Cayman, Cayman Brac, and Little cayman. I would like to know more. I am hoping to learn about the early development of the islands, the people, growth, tropical climate and environment. I am doing this purely for my own reference and curiosity. Part II - Research   Ã‚  Ã‚  Ã‚  Ã‚  I began researching for this paper online because it was easy for me to use and a lot faster than looking up information in text books, and it’s a lot more accurate and up-to-date. Immediately I found about a hundred web sites worth printing. After scrolling through page after page, site after site I realized I had barely scratched the surface, so I decided to pick the ones with the most promising titles and print them all. Then I began the tedious task of sifting through all those papers until I found the best ones. I think I ended up with about six different sites, all on different things about the islands. One of the best ones was about the history of the Cayman Islands, I found this to be the most factual. Another good one mostly was about the Geography and Geology of the islands. The rest of them were mainly about visiting the islands, the discovery of the islands, touring the islands and comparing and contrasting the three islands.   Ã‚  Ã‚  Ã‚  Ã‚  After this I went to the Jackson Community College Learning Center and read through books and Encyclopedias about Cayman Islands but I found most of these to have the same information as my web sites, but not as good. I found a few pictures and maps that were helpful in my own understanding of the islands, unfortunately they wouldn’t be much help with my paper.

Reconstitution of a Partnership Essay

Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any of them acting for all. An essential element of partnership is to have an agreement and wherever a change takes place in this relationship it results in reconstitution of the partnership firm. Reconstitution of the firm may happen under any of the following circumstances and as a result there will be a change in the profit sharing ratio: 1) Change in the profit sharing ratio amongst the existing partners; 2) Admission of a new partner; 3) Retirement of an existing partner; 4) Death of a partner and 5) Amalgamation of two partnership firms Change in the profit sharing ratio of existing partners: The partners of a firm may decide to change their profit sharing ratio and in such eventuality, the gaining partner (i.e. the partner whose share has been reduced) unless otherwise agreed should be paid some compensation and the compensation is the value of goodwill represented by the gain because the change in profit sharing ratio means that one partner is purchasing from another partner of the profits. For example; James and Jones, two partners of a firm are sharing the profits of the firm in the ratio of 3:1 and if it is decided that in future both will be equal partners, it means that James is selling to Jones  ¼ th (3/4-1/2) share of profits. Therefore, Johns will pay to James an amount equal to one fourth of the total value of goodwill. In concrete terms, suppose, the profit is $20000 previously James would get $15000 and Jones would get $5000. After the change in the profit sharing ratio, each would get $10000. James, therefore, loses annually $5000 and Jones gains $5000. If the goodwill is valued at $40000, Jones must pay James one fourth of $40000 namely $10000. This adjustment is usually made by passing an adjustment entry. In this case, John’s capital account will be debited and James’ capital account will be credited with $10000. In addition to the adjustments for goodwill, the change in profit sharing ratio also requires the adjustment of profit/loss on revaluation of assets and reassessment of liabilities, accumulated reserves and profit (or loss) etc. Sacrificing ratio and gaining ratio: Change in the profit sharing ratio of existing partners will necessarily mean that one or more partners are surrendering a part of their share in the profits in favor of one or more other partners. A part of share being so surrendered is termed as â€Å"sacrificing ratio† while the share gained by each partner is termed as â€Å"gaining ratio†. â€Å"Sacrificing ratio† is computed by deducting the new ratio from the old ratio. â€Å"Gaining ratio† is computed by deducting the old ratio from the new ratio. References: http://classof1.com/homework-help/accounting-homework-help/

Access tofinance as a growth constraint for SME - Free Essay Example

Sample details Pages: 6 Words: 1722 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? Introduction Many researchers have proved that small and medium size firms faces more constraints to access external finance as compare to large size firms. However there is no research on the factors which effects on the growth of SMEs in developing economy of Pakistan. Study shows that SME plays a key role in the economic development of the country but due to the lake of developed financial institutional structures SME sector faces obstacles to access the external sources of finance. Don’t waste time! Our writers will create an original "Access tofinance as a growth constraint for SME" essay for you Create order Government should take serious steps for the monitoring and development of financial institutional system. Regardless of the increasing interest in the development of community by providing funds to SMEs there are different views regarding to the effectiveness of Pro-SME policies. older in terms of years of incorporation, large size firms and foreigh-owned firms less hurdles to access the external sources of finance as compare to the new small size and locally owned firms. Many researchers stress on the importance of all other factors which effects the business environment for all firms. These factors includes entry and exit barriers for the new entrants in the business, presence and implementation of property rights, contract enforcement, presence of information related to the firms like credit bureau, channels for external finance. Presence of competitive business environment which allows encourages the new innovative entrepreneurs. Furthermore, access to finance plays a very key r ole in the overall business environment rather then constructive destruction in which a large number of inefficient and low growth SMEs . This paper is going to contribute in the policy making for the SMEs. Literature review SMEs, business environment and growth Studies shows that SMEs play a vital role in the economic development of the country but the imperfections in the financial institutional structure impede the progress of SMEs. Many studies at country level ad microeconomic level have reviewed the importance of SME in the industrialization process which leads to economic development ( Snodgrass and Biggs, 1996 ), on the other hand Beck et al. (2005a) studied the relationship between SME, poverty alleviation and economic growth using a cross country data base and found a signification relationship. Same sort of work has been done by Ayyagari et al. (in press) by using Cross-country data and applying regressions between GDP per capita growth and SMEs share in manufacturing Employment and showed a strong positive relationship between GDP per capita and SME share. In his study he not only controlled other variable which may effect the growth of that country but also control those variables which may become reason for reverse causation and simultaneity biases he still found a strong relationship between economic growth and SMEs. On the basis of results from this study we can conclude that SMEs do not foster the economic growth but a large share of SMEs is a characteristic of growing economy. Result of this finding is consistent with the results of Beck et al. (2005a) that a large SME sector in the economy is a characteristic of fast-growing economies, but this is not a reason of the growth of economy. Furthermore he didnt find any evidence for the relationship between large SME sector in the economy and faster income growth. Klapper et al. (in press) used firm level data of Europe and found that regulations related to entry of new businesses effects the economic development. A regulation related to the entry of new businesses is one of key element of business environment and was measured by the cost of registration for a firm, because a high registration fee may act as a barrier for the entrance of new firms. M ean while he considered property right protection and access to finance as those variables which may help the new firms to enter in the business. Further he concluded that low entry barrier and healthy business environment results high productivity, more employment and economic growth. The paper concluded that poor business environment have adverse effect on the SME sector performance because they are more sensitive to the business environmental factor such as market imperfection and dampen competition as compare to large size firms. A comparison study of Italy and UK was conducted to study the effect of entry barrier on the SME sector growth. In Italy the entry cost is 20% of GNP where as it is 1.4% of GNP in UK but the growth rate of smaller firms in Italy is slower then UK. The reason for slower growth of Italy small firms is the existence of many old and inefficient firms. But due to low entry barrier at beginning a larger number of small size firms starts out in Italy but th ey grow more slowly as compare to UK. These finding are complementary to the results of Beck et al. (2005a) and also helps to understand that why a large size SME is improbable to be linked with faster growth, Large SME sector is result of low entry barriers but also with better business environment. Firms are more likely to enter in those economies where they can easily access to external finance better property right laws and better investor protection. (Demirguc-Kunt et al., 2006 ) used firm level data from 52 different countries and found that firms are more likelihood of incorporating in those area where they face less hurdles to their growth, well developed financial institutional sector, presence and implementation of laws, investors protection in terms of strong shareholder and creditor rights, low tax rates and easy bankruptcy process. In those countries where financial and legal institutional are more developed and have favorable business environment, corporations in th ose countries reports less financing, legal and regulatory hurdles. Djankov et al. (2004) used survey data by interviewing with the entrepreneurs and non-entrepreneurs form seven cities across Russia and found that beside personal characteristics business environment is also one of the most important factor for a entrepreneurs to take decision to become the entrepreneur. The study also found several significant evidences that perception related to the corruption and attitude of government officials towards entrepreneurship encourage or discourages the entry of new firms in economy. These results are similar to the results of Johnson et al. (2002). Cull and Xu (2005) studied the behavior of Chinese entrepreneurs and found that Chinese entrepreneurs are more willing to reinvest their earnings if they feel confident and secure about legal system specially property right protection and have easier access to external finance. To study the different dimensions of business environ ment and to check that are all these dimensions are equally important Ayyagari et al. (2005) used firm level survey data of 80 countries and found that out of different variables like access to finance, legal and taxation system, corruption macroeconomic and political stability only finance and political instability have greater impact on the firms growth and finance is the most strong among all these. By combining all these results we can conclude that the presence of competitive business environment which allows encourages the new innovative entrepreneurs. Furthermore, access to finance plays a very key role in the overall business environment. In many poor countries or in developing economies the enterprises and SMEs holds a very large share and form the base for private sector-led growth (Hallberg, 2001 ). Ayyagari et al.(in press) found that SME plays a key role in the employment rate of any country he found that enterprises with up to 250 countries holds the overall 60% of the total employment in manufacturing countries. (Ber-ger and Udell, 1998; Galindo and Schiantarelli, 2003) studied both the developing and developed economies and found that in both economies small size firms have less access to the external fiancÃÆ'ÂÂ © and their growth is more effected with this constraint. Schi er and Weder (2001) show that older in terms of years of incorporation, large size firms and foreigh-owned firms less hurdles to access the external sources of finance as compare to the new small size and locally owned firms. The result of the studies were not only statistically but also economically significant. Kumar et al. (1999) studied the Indian firms and find that the average size of firms in human capital-intensive and RD intensive industries is larger in countries with better property rights and patent protection. Conclusions This article summarizes recent empirical research which shows that access to finance is an important growth constraint for SMEs, that financial and legal institutions play an important role in relaxing this constraint, and that innovative financing instruments can help facilitate SMEs access to finance even in the absence of well developed institutions. The research has a number of important policy implications. The research summarized here suggests that a competitive business environment, of which access to finance is an important component, facilitates entry, exit and growth of firms and is therefore essential for the development process. A focus on improving the business environment for all firms is more important than simply trying to promote a large SME sector which might be characterized by a large number of small but stagnant firms. Although SMEs constitute a significant part of total employment in many countries, one of the reasons they may not be able to contribute to e conomic growth is because they face greater growth obstacles. Indeed, compared to large firms, SMEs are more constrained by different obstacles, and limited access to finance is an important one of these. Research suggests improving legal and financial institutions helps all deserving firms access finance and grow, but the effect is greatest on smaller firms. Both firm-level and industry-level studies suggest that small firms do relatively better compared to large firms in countries with better-developed institutions. Furthermore, we see that in the absence of well developed financial markets and legal systems, it is difficult for firms to grow to their optimal size since outside investors cannot prevent appropriation by corporate insiders, limiting firm size. This is important for The literature suggests that a focus on improving the institutions and the overall business environment is probably the most effective way of relaxing the growth constraints SMEs face and facilit ate their to contribution to economic growth. However, institution building is a long term process and in the interim innovative lending technologies hold promise, providing market-friendly ways of relaxing the constraints SMEs face. A contestable financial system makes it more likely that such technologies will be adopted more rapidly, with foreign banks playing an important role in facilitating this process, whereas public banks have been less useful in the past.

Construction Industry Is Ripe For Changes - Free Essay Example

Sample details Pages: 8 Words: 2436 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Research paper Level High school Tags: Innovation Essay Did you like this example? It is a truth ubiquitously attested-to from all engaging in the relevant research pertinent to the topic of this report that the construction industry is ripe for change. Actually, it would be more accurate to say that it is ready for revolution. Construction alone, seemingly, as opposed to nearly any other industry that one could think of it the industrialized and digitized West, has been able to operate in a manner much less than conducive for contemporary business. It is remarkable to consider how unlike other industries construction really is in its current operations. Don’t waste time! Our writers will create an original "Construction Industry Is Ripe For Changes" essay for you Create order Whether one considers any major industry today, they will all be unlike the construction industry in a very important way. For example, consider general or specified retail, the development and manufacturing of computer hardware or software, the service industries of law or medicine, or any other major industry, and one readily sees that they all frequently engage in innovation as it is proper to the irrespective industries and they certainly employ the important business tactic known benchmarking. However, with regard to construction, the voices are unanimous in their consent that for some reason or another this particular industry has been slow to innovate and aggressively improve itself in a world where every other company or industry seems to do this very thing. A Brief Survey of Recent Projects Designed to Address the Problem It would seem that it is widely acknowledged these days that innovation in construction is long overdue. For a number of years Purdue University has maintained a website concerned with presenting concepts of Emerging Construction Technologies. The Division of Construction Engineering and Management of Purdue University, specifically, has been the collaborative to spearhead this project. Additionally, there is a Centre for Innovative and Collaborative Engineering at Loughborough University, which maintains a website for discussing issues pertinent to the construction industry in the U.K. specifically and also just generally. The University recently launched a project to extend from April, 2004 to March, 2007, which would explore the reasons why there is not a strong culture of Research, Innovation and Development (RID) within the constructions industry. There is also a Construction Innovation Forum (CIF), which annually tries to award various individuals for excellent long- range achievements in innovation in construction. It remains to be explored in the remainder of this essay just which are the most important ways in which the industry of construction, and the related industries of surveying and property, have not yet innovated, though perhaps they should have. It is now appropriate to explore some concepts with which we will be working throughout the essay, and these are the concepts of innovation and benchmarking. Discussion of Innovation In2003 Kristian Widà ©n wrote an important article addressing the general issue of innovation within the construction industry and explored why the industry had done so poorly in enacting innovation. It was necessary for Widà ©n, as it is here, to begin by discussing the nature of innovation. Widà ©n offers several definitions from a number of sources and notes at the end of the section on defining innovation that the one thing all the various definitions have in common is that in innovation something new is created, a product or a process, and put to use. There is also an attending reason why any company anywhere would ever attempt to be innovative it would be for the good of the company. This perceived good by the company will either be for an increase in competitiveness with rival companies or for, what Widà ©n calls a survival strategy. Accordingly, if there is no perceived reason why a given construction company should attempt to be innovative, it is likely that no attempt at innovation will take place, given the fact that innovation always costs and usually costs in terms of time and money. Widà ©n notes that historically, with respect to other industries, it has been the clients themselves who imposed the necessity of proper motivation for industries to innovate. If the client did not require it, in short, it would often be the case that no innovation would take place. Again, there is a sense of necessity here. If the companies within the industry (e.g., in construction) are feeling no need to innovate from the client (i.e., there is no pressure exerted on the companies to innovate), then the status quo will be maintained indefinitely. This is not because there is no innovation taking place within the acts of the construction industry themselves. Certainly, the very nature of construction is such that it requires with each new project some manner of innovation. There are invariably unaccounted-for problems and obstacles that ar ise with each new project, thereby requiring of the industry to be to some extent innovative in dealing with new and unexpected obstacles to production. Also, Widà ©n says, there is a constant tendency within the industry toward inappropriate forms of co-operation on presumably all levels, not the least of which are the various time and spatial conflicts that arise with sub-contractors and the re-scheduling involved in the given project (again, when the unforeseen things occur). A further note that Widà ©n makes is that whatever innovations do occur on an individual project, they are often not carried over into subsequent projects. The innovations of construction are, perhaps peculiarly, reversible, and not irreversible as in some other industries. Benchmarking Within Industries and Its Practical Effects One aspect of this reversibility of innovations is somewhat connected to the concept of benchmarking in business. At this point, it is necessary to consider just what benchmarking is, as it relates to industries and capitalism. Benchmarking as a concept might be best thought of as that vehicle that moves companies in the same industries forward and in roughly the same technological directions. According to the American Heritage Dictionary of the English Language benchmarking as a transitive verb is defined in this way, to measure (a rivals product) according to specified standards in order to compare it with and improve ones own product. This definition places the concept of benchmarking squarely within the realm of capitalism as one company adapts to the advancements/improvements that rival companies in the same industry are making while still more or less observing the norms of the industry in which the company finds itself. That is, the extant standards within the indus try in question are used to measure a rivals product and to compare it with ones own current product and to make the recommended adjustments to ones own products or service in order to increase competitiveness. Although the definition does not explicitly state this, it would seem to be implied by the norms of capitalistic economies as they are found today that benchmarking occurs in the provision of products or services. There are practical effects that occur in capitalist economies when benchmarking occurs, especially in the realm of goods which are offered to the public. Let us consider a brief example as regards cellular telephones. Originally, a cellular phone was much like a cordless phone from the home with the exception of being able to have a much broader range of signal. A particular feature of both types of telephones at the time of the advent of the cellular phone was the Caller ID feature. It was possible in the late 1990sto add this feature for an extra charge t o ones service enabling an individual to see from what number the call was coming. The first few large-scale cellular providers began to make it an industry standard for cellular phone to have this feature and then the rest of the cellular providers followed suit, such that today it would be practically unheard of to begin a new cellular service with any U.S. company and not expect the Caller ID feature to be standard with the service. This was an example of benchmarking within a specific industry. An example in construction could be that universally nowadays in commercial construction framing crews use nail guns with which to frame as opposed to the common method of only twenty years ago (which was the simple hammering in of loose nails). Today it would be practically unheard of for a commercial construction framing crew to not use the nail guns in their framing. Benchmarking begins, then, as an attempt to be competitive in recognizing a smart innovation by ones rival c ompanies, but it ends by being a type of standardization of technology where every company adopts certain innovations as part and parcel to the industry in question. So, the levied charge against construction here is not that sustained innovation does not take place in the industry. It is simply that it is too infrequent and too slow to happen. Attempts to Address the Lack of Innovation in Construction et al Recent efforts to address the problems seemingly inherent in todays construction industry have focused on a number of lines. First, there are attempts that take into account the fact that there is a lack of specificity and/or good communication involved in client/contractor projects. Second, there have been recent attempts at reworking the construction at a fundamental level. One such of these attempts has been the recent Design-Build phenomenon (which also falls into the first category mentioned here too). Another has been a consideration of Public/Private projects and there merits. Author Kristian Widà ©n indicated that two solutions to the current crisis in the industry would centre on more of a specificity and delineating of all expectations from the client/owner toward the contractor(s). Additionally, Widà ©n indicated that long-lasting communication lines need to be established. Rather than the head of a contractor (or crew) simply popping in, as it were, to the job sites on rare occasion there should be much more of a long-term rapport established among all major individuals involved in a given project. As Edward Fisk and Wayne Reynolds concur, they write that the partnering concept needs to be revamped today as a means of creating a general environs where in all parties would work together toward the common goal of efficient and good completion of the project. Partnering is not a contract, but a recognition that every contract includes an implied covenant of good faith. While the contract establishes the legal relationships, the Partnering process is designed to establish working relationships among the parties through a mutually developed, formal strategy of commitment and communication. So, in this concept there is embedded several important ideas addressing current concerns raised by Widà ©n et al. First, there is a recognition of this good faith relationship and it is only as strong as each partys commitment to it. It is mutuall y developed, the authors say. It is interesting to note that though Fisk and Reynolds are very quick to point out that it is not a contract nor meant to replace the all-importance of the contract, nevertheless this partnering has a strategy which is formal. And again, it necessarily involves commitment and communication of all German parties. This suggestion would seem to be a much improved model today which is very casual among all parties involved (which could include client, general contractor, various sub-contractors, various crew leaders, and assistants to all of these individuals). There seem to be far too many parties involved in an already complicated process to have it be any other way than the model suggested by Fisk and Reynolds. Construction, surveying and property are overrun with a sense of the casual in the various professional relations among the parties. The fact that many aspects of the overall process like change orders or work to be done and the merely o ral contracts existing between sub-contractors and their crews are enough to establish the casual nature of much of the overall construction process. The Design-Build phenomenon of recent years has been an attempt at solving some of the systemic problems in the construction process and has simultaneously offered itself as a means of achieving innovation in the industry. The solution to some of the communication problems associated with contemporary construction is attempted to be solved by the Design-Build approach by eliminating, not middle men, but lines of separation between many of the key players. For example, a typical Design-Build firm can have altogether under one roof and working for the same company the contractor, engineer, and architect effectively providing an owner with a one-stop point of contact to design and build a proposed construction project. This one-stop place necessarily increases efficiency and the speed at which a project may be completed, especial ly when all of these individuals are truly under one roof (i.e., they are all employees or closely connected with the construction firm, rather than merely being distant consultants). However, a weakness of the Design-Build approach has been seen in its difficulty, at times, in dealing with governmental clients. Jeffrey Beard et al. note just such a case having to do with legalities burdening the process of pay to Design-Build firms. For at least this reason, the establishment of attempts by the U.S. government, to use an example, have been offered as private/public efforts at spearheading the way into the future of home and commercial building. One such program, which was instrumental in the publication of the two pieces of research by the U.S. Department of Housing listed in the bibliography for this report, is known by the acronym PATH (Partnership for Advanced Technology in Housing). It is noted explicitly in the report Commercialization of Innovations: Lessons Learned t hat public and private must together share the burden of the risk of innovation if the building sectors of industry are to avoid the dampening effects of litigation. Concluding Thoughts In whatever ways private industry is unable, on its own (despite the recent noble attempts of Design-Build, etc.) to follow the Commercialization of Innovations reports objectives, it is to be hoped that a union of private/public building schemes will be able to, as the report states, expedite the commercialization of innovation. It does seem clear that major attempts at bringing to the construction industry (and all closely related industries) long-lasting innovation is long overdue. In fact, as it was alluded-to earlier in this paper, what is needed is an entire culture that supports the advocacy and actual implementation of innovation. With any fortune and hard-work (both of which entailing implementation) of all or some of the recent initiatives and advisements indicated in this report, it seems that the construction industry might at long last engage in genuine aspects of competitive business, including long-term benchmarking and an overall culture of innovation.