Overcoming Barriers to Credit Availability for SMEs Dissertation

Overcoming Barriers to Credit Availability for SMEs - Dissertation Example Introduction and Relation to Previous Research Availability of finance for small and medium enterprises (SMEs) has been a topic of research among academicians since it impacts the economy of a nation (Beck and Demirguc-Kunt,2006; OECD,2004). One of the perennial problems faced by SMEs is the access to capital (Scholz,2007).There has been extensive research on why SMEs find it difficult to obtain funding, why transparent SMEs stand better chance of finance availability than opaque SMEs, how financing differs from traditional SMEs to innovative SMEs and what SMEs can do to improve their chances of obtaining finances, given that they function in a regulated environment. This topic is of interest since access to financing has been identified in many business surveys as one of the most significant obstacles to the survival and growth of SMEs (OECD,2004).It will be of value to understand what are the barriers that exist in financing of SMEs and what can be done both by financial Institutions and SMEs to overcome the same. Barriers to SME Financing According to OECD (2006) reasons identified for SMEs inability to procure finances especially in comparison with larger firms usually include: ï‚ § Incomplete range of financial products and services ï‚ § Regulatory rigidities or gaps in the legal framework ï‚ § Lack of information on both the bank’s and the SME’s side. Banks may avoid providing financing to certain types of SMEs, in particular, start ups and very young firms that typically lack sufficient collateral.

Performance Management and Employee Relations Essay

Performance Management and Employee Relations - Essay Example Like ISO 9001:2000, its intention is not to be regulatory in content but it advocates the advantages from officially defined processes producing data and metrics which drive constant improvement. The goal of both models is to encourage comprehension and maturity, where the organisation monitors its execution in a continuous cycle to better its services and products. Both models are similar in intent and in representing best practice; however there are disparities particularly in the formal evaluation process. ISO 9001 certified companies should meet the requirements of the standard and persist on doing so by undertaking routine surveillance, so as to guarantee that the results of the initial assessment stay valid. In contrast, the SEI characteristically requires just a one-off assessment in order to corroborate an organisation's maturity rating contending that once a company has sustained improvement entrenched within its culture then it shall continue to do so. On the other hand, CSC had become familiar to the benefits offered by its regular LRQA visits and feels that comparable benefits could be present through regular checks against the CMM. LRQA has offered its routine ISO surveillance activity to include the concern of the SEI CMM model criteria. The LRQA evaluator who is trained in the CMM model consequently takes this into account while looking at the every visit and references his findings within the evaluation report. 3. Public-Private PartnershipA Public-Private Partnership (PPP) is a contract between a public agency (local, state or federal) and a private sector body. Through this agreement, the assets and skills of each sector (private and public) are shared in bring a service for the use of the common public. Concomitant to the sharing of resources, all party shares in the rewards and risks possibility in the delivery of the service or facility. The PPP form is a comprehensive form that is used by LRQA in approaching the evaluation. This form covers important aspects like Goal Setting; Performance Review; Training and Development Plan; Career Development and Progression; and a Summary that includes the manager's comments on overall performance review. 4. LRQA appraisal method - CMM model Since 2003, LRQA has been deploying the CMM model during its regular ISO 9001 inspection visits for CSC. This has seen LRQA adjusting its characteristic audit