Effect Of Trade Credit On The Performance Of Small And Medium Scale Enterprrises In Nigeria ( A Study Of Selected Firms In Abia State ):- Philip Ozichi P
ABSTRACT
Small
and medium scale enterprises are constantly faced with the challenges of
obtaining funds for their establishment and expansion. This research work was
embarked upon to buttress the effect of trade credit as a source of finance and
how it can be effectively managed to guarantee efficient/returns. Government
contributions in ensuring credit availability, sources of finance available to
small-scale enterprises and management of trade credit was also discussed. Data
was collected using both primary and secondary sources which included
questionnaire, personal observation, textbooks, etc. The data collected were
presented and analyzed in tables using chi-square statistical tool, and it was
revealed that trade credit is a suitable source of finance to small and medium
scale businesses and it also contributes to their profitability. Entrepreneurs
and management were recommended to. obtain trade credit to launch their
businesses to the next level instead of relying heavily on formalized sources
of finance. They should also obtain credit that is relatively proportionate to
the size of their business to avoid existence of idle fund. Also, efforts
should be made in maintaining prompt payment of invoice to reduce credit risk,
as this will ensure greater returns in the long run.
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PHILIP, P (2024). Effect Of Trade Credit On The Performance Of Small And Medium Scale Enterprrises In Nigeria ( A Study Of Selected Firms In Abia State ):- Philip Ozichi P . Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-trade-credit-on-the-performance-of-small-and-medium-scale-enterprrises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2
PEACE, PHILIP. "Effect Of Trade Credit On The Performance Of Small And Medium Scale Enterprrises In Nigeria ( A Study Of Selected Firms In Abia State ):- Philip Ozichi P " Mouau.afribary.org. Mouau.afribary.org, 15 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-trade-credit-on-the-performance-of-small-and-medium-scale-enterprrises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2. Accessed 30 Oct. 2024.
PEACE, PHILIP. "Effect Of Trade Credit On The Performance Of Small And Medium Scale Enterprrises In Nigeria ( A Study Of Selected Firms In Abia State ):- Philip Ozichi P ". Mouau.afribary.org, Mouau.afribary.org, 15 Aug. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-trade-credit-on-the-performance-of-small-and-medium-scale-enterprrises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2 >.
PEACE, PHILIP. "Effect Of Trade Credit On The Performance Of Small And Medium Scale Enterprrises In Nigeria ( A Study Of Selected Firms In Abia State ):- Philip Ozichi P " Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-trade-credit-on-the-performance-of-small-and-medium-scale-enterprrises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2