Open Access Original Research Article

Empirical Study on the Influence of Working Capital Management on Performance of SMEs in a Developing Economy

Lazarus Lanquaye Lamptey, Kennedy Frimpong, Alfred Bassaw Morrison

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/BJEMT/2017/33579

The study examined the influence of working capital management on the performance of SMEs in Ghana. Both descriptive and correlational research design was adopted for the study. The annual financial statements from 2011 to 2015 of SMEs in the Greater Accra, Ashanti and Brong Ahafo Regions of Ghana were examined. The study adopted availability/convenience sampling technique to select four hundred (400) SMEs. The impact of working capital management on the performance of SMEs in Ghana was established through the use of Ordinary Least Square (OLS) regression technique. Average Return on Capital Employed (ROCE) was proxied as the measure of performance whilst average cash conversion period, average account receivable days, average inventory turnover days and average account payable days were used as proxies for working capital management. The study found that cash conversion period, account receivable days and inventory turnover days were significantly and negatively related to performance. On the other hand, account payable days was ascertained to have a positive relation with performance. It is thus concluded that effective working capital management impacts on the performance of SMEs. The implication of these results is that by decreasing the cash conversion period, account receivable days and inventory turnover days, the SMEs can increase their profitability. The study recommends that the SMEs should consider a reduction in the cash conversion period, average account receivable days and average inventory turnover days. The SMEs must also consider negotiating for favourable terms of payments with their suppliers.

 

Open Access Original Research Article

The Effect of Brand Extension Strategy on Brand Image to Customers

Seyed Mohammad Alavinasab, Morteza Soltani, Javad Alimohammadi

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2017/32736

The purpose of the study is to investigate the effect of brand extension strategy upon brand image to LG customers. Home appliances and mobile phone are considered as original product and extended product respectively. The research model includes five variable; initial brand image, perceived fit, perceived quality, consumers’ attitude and final brand image. Random sampling method was used and A total 376 questionnaires were circulated, and the response rate was 100 %. The results show that initial image of the brand has positive, significant impact on consumers’ attitude towards brand extension as well as final image of brand.

 

Open Access Original Research Article

An Empirical Analysis of Public Health Expenditure on Life Expectancy: Evidence from Nigeria

Ilori Isaac A, Olalere S. Sunday, Babatola M. Adeleye

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/BJEMT/2017/31783

This paper examines an empirical evidence of the specific impact of public health expenditure on life expectancy in Nigeria using time series data spanning between 1981 and 2014. The study made use of the recent bounds testing co-integration approach developed within the framework of the Autoregressive Distributed Lag (ARDL) procedure to determine the long-run relationship between public spending on health and life expectancy in Nigeria. Empirical findings suggest that a long run relationship between life expectancy, public health expenditure, primary school enrollment exist in Nigeria. The results showed that Primary School Enrolment (PHEXP) and Carbon-dioxide Emission (CAREM) significantly and directly influenced the rate of life expectancy in Nigeria. On the other hand, Primary School Enrolment (PSEN) was found to be insignificant in both short and long runs contrary to economic theory. It was also revealed that environmental factors such as carbon dioxide emissions which was used in this study affects individuals’ health. Therefore, based on the findings of this study, it recommends that government should introduce programmes that will enable people to be aware of the effect of carbon-dioxide emissions on individual’s health and should advise people and industries the appropriate measure to be taken and as well to separate residential and industrial areas, to avoid any hazard caused by carbon-dioxide emissions. Also, the government should increase and restructure the public expenditure allocation to the health sector.  

 

Open Access Original Research Article

Determinants of Non-farm Micro and Small Enterprise Participation in Rural Ghana

Sylvester Nsobire Ayambila, Isaac Osei-Akoto, Michael Ayamga

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/BJEMT/2017/33814

The non-farm sector is critical for the socio-economic development of Ghana especially the rural poor. This paper analyses the determinants of individual participation in non-farm enterprises and the intensity of participation. The paper used the Economic Growth Centre (EGC)/Institute of Statistical, Social and Economic Research (ISSER) Socio-Economic Survey data collected in 2009. The paper estimated the determinants of participation using a probit model and then estimated the intensity of participation using a truncated regression model. The results indicate that majority of adults engaged in non-farm enterprises in rural Ghana are women (about 73 %). The study found that females tended to participate more in non-farm self-employment and are less likely to participate in non-farm wage employment. The results further showed that individual characteristics such as the gender of the individual, being head of a household, being the spouse of a household head, having formal education, age of the individual, having access to credit, possessing a mobile phone, per capita ownership of land and livestock influenced the participation of individuals in self-and wage employment. Results from truncated regression model for self-employed enterprises showed that having access to mobile phones, owning more livestock and electricity are important in determining the intensity of participation in self-employed enterprises. For wage-employment, being a household head, spouse of household head, having access to mobile phone and owning more livestock increased the number of days working on wage employment. Education is relevant for employment in the non-farm sector especially wage-employment. Government should play a lead role in making formal education accessible to the rural people. Deliberate policies should focus on addressing critical factors such as access to credit, mobile phone, electricity and education which are relevant for increasing participation intensity in rural enterprises.

 

 

Open Access Case Reports / Case Studies

Traditional Handloom of Kargil District, Ladakh

Nazir Ahmed, Maria Abbas, Asif Malik, Afzal H. Akhand, Bilal Ahmad Lone, Lyaqat Ali, Sandeep Kumar, M. I. Bhat

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2017/33908

Handloom weaving is one of the main activity of nomadic people of Kargil district of Ladakh region of Jammu and Kashmir. Weaving becomes their chief occupational priority especially during harsh winter season when they have no agricultural related work to do. The weavers, especially women folk, follow their ancestral traditional methods for converting raw wool into various woollen handloom products. These handloom products full fill their local needs, help them to improve their financial savings and thus empower themselves. In the present study handloom of district Kargil have been presented. The various handloom items of the Kargil district include; Snamboo, bali topi, thouth, rouchak, bali dorma, bali guncha, Jainamaz, Thulpa, Salchkpa, phengma, Pherba, Kartapa, kanchy, lakshups etc. which have been described in detail in the paper. Traditional handloom making business, need based trainings should be provided to local women for improvement in their product quality and product diversification so that they may easily compete in international as well as national market.