Personal Statement on Ethics Essay Example | Topics and Well Written Essays - 1000 words

Personal Statement on Ethics - Essay Example Division of ethical area is figured out by philosophers. Meta Ethics Meta Ethics explore the root of ethical principles and the message they convey. It highlights universal truth, strength of God and intention behind ethical decision. It includes emotions of an individual in certain situation (Vendemiati, 2004). Normative Ethics It comprises of good communication skills, responsibilities that we must follow and control our behavior in convenient manner. Normative Ethics are more towards practical solutions. Act which should be done and main reason behind it. To leave whatever defined as a wrong (Levinas, 1969). Applied Ethics It involves the investigation on limited controversial issues. Controversial issues like infanticide, abortion, environmental affairs, nuclear war, animal rights, capital punishment and homosexuality (Lyon, 1999). Personal Values I am a human being who prefers to behave in ethically and morally correct ways. Ethics are important to me. Evil thoughts may force on e to take wrong actions and hurt other. There are steps a person takes in life out of jealousy to reach some goal in life which is very important. People take ethically wrong steps basically when they want to achieve their desired goals and to do that they are willing to take any steps, positive or negative. I do not believe in short cuts. I believe in achieving my goals, through my own efforts and by following the right path. My belief is to serve humanity in every possible manner. I prefer to apply my knowledge and skills to contribute to the society and serve others. I believe that one should try to socialize and make friends. Obey laws to make this world a better place. Contribute peace, remain loyal, try to be honest as much as possible, work hard and help others, respect social rights of others. Keep the surroundings clean. Give liberty to others. Take suggestions from others before making decisions. Don’t impose orders. To me, following these above mentioned facts is f ollowing an ethically correct code in life. Differentiate right form wrong: It is human perception to define right and wrong. Something which is right for one is not correct for others. To me ethical values are created by social setup, religion and legal laws. First of all there are some aspects which are right for everyone like peace, friendship, love, truth, liberty, freedom, practical solutions and good deeds. Such aspects are considered as ethical intuition. Second thing we approach is our religion. As a student, I am interested in study of religions, and I have noted that almost all popular religions of the world preach humanity and ethical behavior. Consider Buddhism, enlightened awareness of Buddha is considered. Buddha was a peace loving human being and the religion he has preached also talks about equal rights and ethical conduct. These ethics includes no killing, lying, intoxicants, stealing, and sexual misconduct. In Christianity ethical values include love, mercy, grace and forgiveness. Forgiveness is important because humans commit sins (Fagothey, 2000). If we cannot forgive each other our grudges will not let us human beings behave ethically. In Islam ethical values are to follow the Allah and His prophet Muhammad (Peace Be upon Him). Muslims are accountable for every good and bad deed in the end of this world. Third thing is the law and

Differences between Race & Gender Essay Example | Topics and Well Written Essays - 1750 words

Differences between Race & Gender - Essay Example This paper highlights that Stanton et al describe the way men have mistreated women in the society for so long. Man is said to have never allowed a woman to exercise her rights, deprived her voice before the law, and the woman has been denied right to own property. Stanton et al however condemn these cores of actions and suggests that only God has the sole responsibility of defining the roles and abilities of men and women in the society. â€Å"We insist that they have immediate admission to all the rights and privileges which belong to them as citizens of United States†. This paper declares that Dub Bois talks of seclusion by the society which makes you odd and feel discriminated, he talks of the problem of the twentieth century as the color line. It once dawned on him that he was different from others when a young lady refused to pick a card from him while seated amongst other people. This matter was the first hand experience of Dubois on brutality of discrimination. Meanwhile the women in America underwent lives of suffering struggling with a lot of burdens on their shoulders; â€Å"in all the roles was to seek fulfillment as wives and mothers†.  

E-Commerce Business Model Assignment Example | Topics and Well Written Essays - 2750 words

E-Commerce Business Model - Assignment Example The main objective of the e-commerce organisation is to attract online customers and to increase the sales (SportsDirect, 2013). The following image will show screen-print of SportsDirect: SportsDirect follows Business-to-Consumer (B2C) business model. There are significant differences between Business-to-Business (B2B) and Business-to-Consumer (B2C) customers. Concerning B2C customers, it involves business transactions between organisations and customers. The basic concept behind this business model is that e-retailers can sell the products to the customers through various tools such as internet shops or telemarketing. On the other hand, in B2B business model, both purchasers and sellers are business organisations. The purchasing procedure in B2C and B2B is also dissimilar. In B2C, the purchasing method is simple where customers use their credit or debit cards along with providing other necessary information in order to make a sale. Conversely, in B2B business model, the payment can be done through invoice, especially for bulk purchases (Barkley & et. al., 2007). There is substantially more stake in sales opportunities in B2B websites in comparison to B2C websites. However, it can be observed that several B2B websites had faced bad customer experiences than B2C websites. Majority of B2B websites focus on designing websites for themselves rather than for the suitability of customers. Thus, this attitude creates a hindrance in the way of potential customers who use internet in order to discover organisations which can satisfy their requirements. However, it is worth mentioning that internet had significantly altered the relationship between organisations and customers where majority of interactions are demand oriented (BusinessWire, 2006). The quick development of collaborative internet services has resulted in a continually increasing number of e-commerce websites. With the increase in e-commerce

Differences between Race & Gender Essay Example | Topics and Well Written Essays - 1750 words

Differences between Race & Gender - Essay Example This paper highlights that Stanton et al describe the way men have mistreated women in the society for so long. Man is said to have never allowed a woman to exercise her rights, deprived her voice before the law, and the woman has been denied right to own property. Stanton et al however condemn these cores of actions and suggests that only God has the sole responsibility of defining the roles and abilities of men and women in the society. â€Å"We insist that they have immediate admission to all the rights and privileges which belong to them as citizens of United States†. This paper declares that Dub Bois talks of seclusion by the society which makes you odd and feel discriminated, he talks of the problem of the twentieth century as the color line. It once dawned on him that he was different from others when a young lady refused to pick a card from him while seated amongst other people. This matter was the first hand experience of Dubois on brutality of discrimination. Meanwhile the women in America underwent lives of suffering struggling with a lot of burdens on their shoulders; â€Å"in all the roles was to seek fulfillment as wives and mothers†.  

So Much to Tell You by John Marsden Essay Example for Free

So Much to Tell You by John Marsden Essay How does the composer, John Marsden, use a variety of techniques to reveal the struggle involved in Marina’s journey towards wholeness? The novel, ‘So Much to Tell You’ by John Marsden explores the concept of growth and change through the character, Marina, and her struggle to become whole. Throughout the course of the book, Marina develops from someone who is so psychologically wounded that she is unable to engage with members of her community, to someone who experiences healing and demonstrates the capacity to reach out to others. The contrast of Marina’s character from the beginning of the novel to the end portrays her development during her journey to heal. The composer uses techniques to convey Marina’s growth and change throughout the novel. In the early stages of the novel, it is evident that Marina has an extremely wounded psyche due to conflict within her family. This leads to her having a resultant lack of spiritual wholeness, which she continually struggles with to heal. The damaged nature of her psyche is highlighted in the recount of Marina â€Å"Looking at the fragmented stars† on Ann’s doona and Ann’s dialogue, â€Å"They do fit together† foreshadows the ultimate reintegration of Marina’s psychological health. When Marina describes her â€Å"grey school blankets† which are sombre, lifeless and boring, even though there is an underlying tone of yearning, she is ultimately characterising herself as boring and lifeless also. Throughout Marina’s journey to wholeness we see many stages of struggle and conflict, and many of these struggles originate from Marina’s own lack of self-worth and her diminished ability (in the early stages of the novel) to communicate. This fearfulness of communication is conveyed through the rhetorical question she uses when she refers to the possibility of her teacher reading her journal: â€Å"What if he reads them? If he doesn’t keep his promise†¦I am lost. In this particular quote the metaphorical use of the word ‘lost’ highlights her fear of engagement with others and indicates that fear is an obstacle she has to overcome if she is to heal, grow and adjust to the way her life is changing and continue on her journey to wholeness. Marina’s struggle with communication and continued lack of wholeness is very present when Marina refers to her tennis practice: â€Å"I sat under a tree and watched†¦watched all the tennis players†. This description of Marina passively watching a tennis game, rather than actively participating in the game, symbolizes her inability to participate in life and also acts as a ontrast between the warm interactions displayed by the other girls and the social isolation Marina feels. This particular incident highlights the psychological damage that has taken place in Marina as there is a contrast between her present inaction and her recount of her past involvement in the lines, â€Å"In primary school, I played sport a lot and was quite good at it†¦I beat the other girls by miles†. Marina is characterised as steadily accepting awareness of the fact that other girls also struggle psychological problems and this moves her further along the path towards wholeness. Marina’s intense reflective tone in the lines, â€Å"It didn’t occur to me that there might be other people who are feeling really bad. Little dark islands floating in the shadows of the school† captures her recognition that other people also feel socially isolated. This recognition is suggested through the metaphor of the â€Å"little dark islands† which is intratextually connected with Marina’s use of an implied metaphor of an island to describe her own state of mine at the beginning of the novel: â€Å"the words break over my desk in soft waves†. Paradoxically Marina’s realisation that other people also feel isolated helps to make her feel less isolated. Marina’s relationship with her father is a major struggle that she has to face on her journey towards wholeness. Marina’s description of her father as a poisonous presence and the use of a descriptive simile in the line ‘like a radioactive cloud’ represents him as toxic and dangerous, but this is contradicted when she shows a glimmer of empathy in the question, â€Å"What’s it like where he is? †. This continued emotional uncertainty of Marina’s as she vainly attempts to clarify whether she loves or hates her father, is a major theme running through the novel and the evolution of her relationship with her father is crucial to her personal growth. Through the progression of highly emotional journal entries, we begin to learn that solely, Marina feels guilty for putting her father in jail. When she makes the comparison between scared and scarred: â€Å"I just realised how alike those words are† we learn that under all her barriers she is still scarred emotionally because of her father’s â€Å"brooding, quiet and ugly silences†. When Marina states that it is â€Å"really important to know whether he hates me or not† we realise that in every way she is imprisoned by the unknown presence in her mind, which is her father. We can acknowledge affirmation of this when she â€Å"draws stripes, which aren’t stripes at all, but are bars, prison bars† on the sand and can understand it as a symbol of Marina being trapped by vestiges of mistrust, fear and self-deprecation. When Marina arrived at Warrington she didn’t speak. However, as she progressively begins to address her struggles she becomes more accustomed to expressing herself in her journal and soon finds her â€Å"voice†. It is through her journal that she initially allows herself to express her pain, release her deepest thoughts and continue on her journey to wholeness. When Marina gives Cathy a flower: â€Å"I nearly backed out, but I didn’t. I placed it on her bed†, it was the first time Marina had reached out physically towards someone. This is a signpost of her mental health and is the first physical sign of her breaking down her self-imposed barrier. In expansion of Marina growing in health, the weekend at Mr Lindell’s, when Marina â€Å"picks up the ball and throws it back†, she visibly interacts with others and shows signs of progression on her journey towards wholeness. When Marina expresses that she â€Å"scored the wrong family† she discovers that not all families are destructive and this allows her to release her initial complete hatred towards all relationships. When Marina says that she wants her father to â€Å"hold her and forgive her† she shows stark contrast to her original aversion to close proximity at the beginning of the novel. Her motivation to meet her father grows greater day by day and it eventually is much greater than her fear. She expresses anxiety in the lines, â€Å"I keep imagining him seeing me and then his face going cold and hard† but soon disregards this and continues on her path towards wholeness as she states that she gets â€Å"courage† when she reads his letter. Once Marina begins to accept and let her father back into her mind, she begins to travel in great leaps along her journey to wholeness. At the end of the novel, the intense moment between Marina and her father (so much so that the â€Å"air was swollen†) releases Marina from her internal prison, and allows her to speak to her father and say: â€Å"I’ve got so much to tell you†.

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 .

Gun Control is Racial Discrimination Essay -- Gun Control Essays

Gun violence is one of the most serious problems in the United States. Each year in the U.S., more than 35,000 people are killed by guns, a death rate much higher than that in any other industrial nations. In 1997, approximately 70 percent of the murders in the United States were committed with guns. However, ironically, the United States also is the country that has the most gun control laws. Gun control laws generally focus on passing legislation—by local state, or national government—to restrict legal ownership of certain firearms. Seemingly, gun control laws may decrease criminals’ access to guns, but in fact the same laws also have their negative effects. Thus, the controversy over gun control is always heated. But my paper is not about whether guns should be controlled or not. From another angle, looking closely at those gun control laws and their enforcement, we can not only see the criminal problem in America, but also another important social problem in America—racial discrimination. The racial problem of gun control has raised attention of some American scholars in the U.S. For example, a black man, General Lancy, who is the founder of a little organization known as the National Black Sportsman’s Association, often called â€Å"the black gun lobby† said when asked his opinion of gun control: â€Å"Gun control is really race control. People who embrace gun control are really racists in nature. All gun laws have been enacted to control certain classes of people, mainly black people†¦Ã¢â‚¬  Some white men have said almost the same thing. Investigative reporter Robert Sherrill concluded in his book The Saturday Night Special that the object of the Gun Control Act of 1968 was black control rather than gun control. Congress passed the act... ...ontrol certain classes of people†¦Ã¢â‚¬  References: 1. Sam B. Girgus, 1981, The American Self. Albuquerque: University of New Mexico Press. 2. Michael Golay and Carl Rollyson, 1996, Where American Stands. Canada: John Wiley & Sons, Inc. 3. Seymour W. Itzkoff, 1994, The Decline of Intelligence in America. London: Greenwood Publishing Group, Inc. 4. Don B. Kates, Jr., 1988, Restricting Handguns. Durham, N.C.: Duck University Press. 5. Jonathan Rauch, 1994, Demosclerosis: The Silent Killer of American Government. New York: Time Books. 6. James D. Wright, Peter H. Rossi, and Kathleen Daly, 1988, Under the Gun: Weapons, Crime, and Violence in America. Colorado: Sage Books. 7. Zhu Yongtao, 1991, Essentials of British and American Cultures. Beijing: Foreign Language Teaching and Research Press. 8. http://www.handguncontrolinc.org/history.htm