I need someone who can write a research proposal for my Final dissertation along with Ethics form. Topic is: '' ASSESSING THE LEADERSHIP STYLES OF NON-PROFIT ORGANIZATIONS & it’s impacts on overall b

PROPOSAL ON PROJECT TOPIC: PROVISION FOR BAD DEBT; A STRATEGY OF ENHANCING BUSINESS GROWTH IN SMES IN EDO STATE, NIGERIA

Background of the study

A bad debt is an amount recorded by an organization as a loss and recognized as an expense, since the bad debt to the organization cannot be obtained and all the efforts required to recover the debt are unrecoverable, probably remains uncollectible and is written off. Bad debts appear as an expense in the company's income statement, which reduces net income.

In general, companies estimate the bad debts that could be incurred in the current period based on past earnings estimation processes, and most companies account for them because not all their accounts receivable will likely do so. United States federal law defines "debt" as an obligation for the consumer to pay money resulting from a transaction in which money, goods, insurance or services have changed hands. The Cambridge International Dictionary defines a "guilt" as an extra amount of money someone owes.

How long does it take for debtors (borrowing clients) to pay their debts? Understanding the payment behavior of potential customers is essential for evaluating credit management in any organization, as insufficient credit controls can lead to significant financial planning issues (Atradius 2012).

According to Atradius (2011), late payments and payment defaults are still of great importance worldwide. The study also revealed that 305 of the debts are paid too late, while 3% go wrong, the main reason being that the buyers do not have sufficient funds to pay.

Credit problems are usually identified at the end of the credit channel (Katoh 2004). Before a loan becomes bad, it must be granted. In addition, the poor quality of a loan is sometimes due to factors other than the credit process, such as negative selection and moral hazard (Satiglitz and Weiss, 1981), or any external shock that may change the nature of the loan. (borrower's ability to borrow. repay (Minsky 1985).

According to Gitman (1992), several aspects suggest sound management of bad debt. These include credit standards, credit terms and collection procedures.

On the first hand, SMEs advocates argue that SMEs enhance competition and entrepreneurship and hence have external benefits on economy-wide efficiency, innovation, and aggregate productivity growth. Hence, direct government support of SMEs will help countries exploit the social benefits from greater competition and entrepreneurship. The second fact provided by the SMEs proponents was that SMEs are generally more productive than large firms, but financial market and other institutional failures impede their development.

Thus, pending financial and institutional improvements, direct government financial support to SMEs can boost economic growth and development (Beck, Demirgue-Kunt, L. and Levine, 2003; Kumar et al., 2006; and Collier, 2009). Lastly, they argued that SME expansion boosts employment more than large firm growth because SMEs are more labour intensive.

A recent survey of Organization for Economic Cooperation and Development (OECD) countries showed that: “SMEs account for a large share of the private sector economy representing between 96 and 99 per cent of the total number of enterprises in these economies. Micro-enterprises (0-9 employees) account for between 70 per cent and 90 per cent while small firms (0 to 49 employees) constitute at least 95 per cent of the total. Only 0.5 per cent of enterprises in the manufacturing sector employ more than 500 in OECD countries”. Empirical supports for this line of thought are prominent in past literatures such as Haltiwanger et al. (2010); Aremu and Adeyemi (2011); Ardic, Mylenko and Saltane (2011); Ayyagari, Demirguc-Kunt and Maksimovic, 2011); and de Kok et al. (2011) etc.

Moreover, flexibility on terms and conditions that many SMEs require may not be available. In particular, SMEs face considerable difficulty with sourcing start-up finance.

Problem statement

The issue of borrowers has become a subject of concern in the global financial circuit. Financial experts are still exploring different ways to solve this problem. Over the years, we have been discussing the method that worked best. Experts agree that no method stands out, the choice is independent of other factors such as economic stability and the effectiveness and reliability of the national database. The SMEs has also developed various ways to remedy this anomaly. Credit facilities are therefore the main commercial asset and the main source of revenue for most SMEs. However, some loans, especially purchases, are bad and have a negative impact on the profitability and overall performance of the institutions. In Nigeria, most medium-sized companies face the challenge of canceling bad debts, which requires effective default management strategies.

Purpose of the study

The broad objective of the study is to examine how the Provision for Bad Debts is a useful strategy for Enhancing Business Growth in SMEs Specific objectives are;

1. To identify the causes of bad debt.

2. To assess the impact of bad debt on the performance of SME.

3. To recommend suitable strategies on how to minimize the debt in SME.

Significance of the study

The study aims to help the SME take a comprehensive approach to bad debt. The study will also be of interest to public universities, higher education institutions, research institutes and individual researchers interested in SME growth and development and will use the results for further research. This study will encourage researchers to identify the effectiveness and efficiency of the SME. The research will help individual public companies understand their position relative to the standard of their bad debt.

Study hypothesis

HO1: Provision for Bad Debts is a not a significant strategy for Enhancing Business Growth

Scope and Limitations of the Study

The study scope is limited to investigating the Provision for Bad Debts is a useful strategy for Enhancing Business Growth in SMEs in Edo state. Limitation faced by the research was limited time and financial constraint.

DEFINITION OF BASIC TERMINOLOGIES

Bad Debt

A bad debt can be understood as a loan which the creditor finds difficult or impossible to recover.

Bad Debt Estimation

The methods used in estimating doubtful accounts also differ depending on the nature of the company or business.

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