What Is An Analysis Of Findings Finance Essay

Chapter 4

4.1 Introduction

This chapter is to show the consequence and information analysis which consists of two parts. Part I present the primary informations collected from questionnaire with the sample from the little and average endeavors. In Part II, the secondary informations gathered from CGC Annual Report to analyze that warrant strategy have been utilized by deficient collateral SMEs. Besides that, informations besides gathered from newspaper, cyberspace and past research worker.

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4.2 Part I- Primary Data

This survey consists of 65 set study questionnaire which indiscriminately selected the little and average endeavors located in Penang, Kedah, Perak and Kuala Lumpur. There were 58 sets of questionnaire collected from the respondents out of the 65 sets which were to the full answered.

Table 4.1: The Summary of Sample Profile

Overview of Data Gathered

Entire

Number of Questionnaire Issued

65

Number of Questionnaire Collected & A ; Used for Analysis

58

Respond Rate

90 %

Table 4.1 is the sum-up of sample profile which gives the return rate of 90 % . Below are the information presentations harmonizing to the age of companies, legal position of the companies, beginnings to finance, rate the fiscal services in Malaysia, job in the growing of endeavors, types of recognition installation, aim to take loan, job in obtaining loan and ground of rejecting loan application.

4.3 Data Presentation

Figure 4.1 No of respondents harmonizing to age of companies

Figure 4.1 indicates that the largest figure of respondents for age of companies is 8 to 10 old ages which are 17 respondents followed by the age between 1 to 3 old ages which is 16 respondents. The smallest of the age is more than 15 old ages which is 5 respondents, 11 to 15 old ages which is 6 respondents and scope between 4 to 7 old ages is 14 respondents.

Figure 4.2 No of respondents harmonizing to legal position of companies

The above figure shows that 41 % respondents is under the Private Ltd Co, 26 % is partnership companies, followed by 24 % respondents are under exclusive owner legal position and merely 9 % respondents are single companies.

Table 4.2 Beginnings of finance used by SMEs

Beginnings of Finance

No of Respondents

% of Respondents

Owners financing

17

30 %

Private fiscal establishments

8

14 %

Equity finance

4

7 %

Bank funding

19

32 %

Hire purchase and leasing

6

10 %

Others

4

7 %

Figure 4.3 No of respondents of beginnings of finance used by SMEs

Figure 4.3 shows that the no of respondents of beginnings of finance used by SMEs. From the studies most of the respondents are utilizing bank funding which are 32 % and proprietors financing 30 % . This is followed by 14 % of SMEs used private fiscal establishments, 10 % hire purchase and leasing and both of equity funding and others are 7 % . For the study, bank funding and proprietors financing are the most popular beginnings of finance.

Figure 4.4 No of respondents harmonizing to rate of fiscal services in Malaysia

Figure 4.4 shows that most of the SMEs do non fulfill the fiscal services in Malaysia. There are 32 % of respondents rate it hapless and 17 % respondents rate it fair. 28 % of respondents are evaluation the fiscal services as mean, 14 % respondents rate it goods and 9 % respondents are rate it really good.

Table 4.3 Ranking harmonizing to the job in the growing of endeavors

Problems

Rank 1

Rank 2

Rank 3

Rank 4

Rank 5

Leaden norm mark

The frequent require regenerating the equipment

7

11

16

14

10

183

Instability of demand for goods and services

4

9

10

16

19

211

Obtaining sufficient funding

23

16

9

5

5

127

Low profitableness of the sector

6

7

12

17

16

204

Tax issues

18

15

11

6

8

145

Table 4.3 shows the ranking of the job in the growing of endeavors. Leaden mean mark method is used to find the most of import and the least of import job. 1 rank is the biggest job faced by the endeavors, 5 is the least of import job.

Figure 4.5 SMEs obtained fiscal support from commercial bank

The figure shows that 100 % of respondents obtain fiscal support from commercial bank. This indicates that commercial bank is the chief beginning of SMEs funding. It means that there are low involvement rates, service fees and bank charges provided by commercial Bankss compared to other beginnings.

Table 4.4 Ranking harmonizing to the type of recognition installation

Type of recognition installation

Rank 1

Rank 2

Rank 3

Rank 4

Leaden Average mark

Working Capital loan ( bank overdraft, go arounding recognition )

18

17

13

10

131

Capital outgo ( term loan, renting and engage purchase )

17

16

13

12

136

Trade funding ( Trust reception, bankeraa‚¬a„?s credence, bankeraa‚¬a„?s warrant )

8

12

18

20

166

Government Assistance Scheme

15

13

14

16

147

Table 4.3 shows the ranking of the type of recognition installation taken by respondents. Leaden mean mark method is used to find the most of import and the least of import recognition installation. 1 rank is the most taken by the endeavors, 4 is the least taken by the endeavors.

Table 4.5 No of respondents and per centum harmonizing to intent of taking loan

Reason

No of respondents

% of Respondents

Acquisition of belongings, works and motor vehicles

18

31 %

Increase the production

6

10 %

For working capital funding intent

20

35 %

For upgrading of engineerings

14

24 %

Figure 4.6 Purpose of taking loan by little and average endeavors.

The figure above indicates that 35 % of respondents have taken loan for the on the job capital intent and 31 % for acquisition belongings, works and equipment. Most of the endeavors are obtaining recognition installations for carry throughing their demands for the capital. 14 % of the respondents have taken loan for upgrading their engineerings. 10 % of the respondents are taking loan for addition the production intents.

Table 4.6 Reasons for rejecting recognition installation application

Reason

No of respondents

% of Respondents

The application did non run into the eligibility

12

21 %

Poor recognition history

14

24 %

Insufficient surety and collateral

17

29 %

Perceived deficiency of profitableness of the house

15

26 %

Figure 4.7 No of respondents harmonizing to ground for rejecting recognition installation application

The above figure shows that 29 % respondents reference that the commercial Bankss reject the recognition installation application is that they could non give sufficient sureties and collateral. 26 % of respondents say that commercial Bankss reject an application because they perceived that the endeavors are deficiency of profitableness. 24 % says the application rejected by Bankss is due to hapless recognition history including the manager and surety issue.

One Sample T-test

Table 4.7 Consequences of One Sample T-Test Analysis

One-Sample Statisticss

Nitrogen

Mean

Std. Deviation

Std. Error Mean

societal

58

.26

.442

.058

rate

58

.24

.432

.057

hapless

58

twenty-two

.421

.055

loan

58

.05

.223

.029

cut down

58

twenty-two

.421

.055

One-Sample Trial

Test Value = 0.1

T

df

Sig. ( 2-tailed )

Average Difference

95 % Confidence Interval of the Difference

Lower

Upper

societal

2.735

57

.008

.159

.04

.27

rate

2.494

57

.016

.141

.03

.25

hapless

2.247

57

.028

.124

.01

.23

loan

-1.646

57

.105

-.048

-.11

.01

cut down

2.247

57

.028

.124

.01

.23

In this research, one sample t-test is used to find whether the hypothesized mean differs significantly from the examined sample mean. One sample t-test was used to happen out whether application recognition installation process and status had important influence on the job faced of deficient collateral and societal warrant system, involvement rate and processing costs, hapless certification and direction, rejecting loan application and cut down of recognition installation. The consequences of One Sample T-Test are stated in Table 4.7.

The important elements can be determined by taking those elements with important degree of 5 % . There are five dependent variables consisted of deficient collateral and societal warrant system, involvement rate and processing costs, hapless certification and direction, rejecting loan application and cut down of recognition installation.

One sample T-test showed that the recognition installation process and status had important job of deficient collateral and societal warrant system at 5 % important degree ( sig: 0.008 ) . Hence, Set 1 hypothesis H0 is rejected and H1 is accepted. Malayan SMEs have faced the job of deficient collateral and societal warrant system when run into up process and status recognition installation application. Credit Guarantee Corporation was established with the ground to assist Small and Medium Scale Enterprises ( SMEs ) with deficient collateral to entree recognition installations by commercial Bankss ( Credit Guarantee Corporation, 2003 ) . Credit Guarantee Corporation Annual Report 2009 recorded that the Corporation registered a warrant rise in its loans growing in twelvemonth 2009, vouching 14,073 histories valued at RM3.1 billion compared with 10,368 histories valued at RM3.0 billion in 2008. Datoaa‚¬a„? Sri Abdul Hamidy said that little and average endeavors have funding deficit but faced the job of deficient collateral, they can seek warrant from Credit Guarantee Corporation ( The Association of Banks in Malaysia, 2009 ) . He besides said that Bankss must take down the demand of process and status to assist out SMEs in obtaining loan. Past research worker Daniel ( 2009 ) have proven through the beginnings from the Department of Statistics Malaysia, there are 55.2 % is lack of collateral, 13.1 % is hapless certification and 10.7 % is no fiscal path record. It can see that the SMEs could non supply sufficient collateral, paperss fiscal path record to run into up the status of application loan. Furthermore, Chaitrong ( 2010 ) concludes that the trouble accessing support and deficient collateral are normal jobs confronting by Malayan SMEs.

Besides that, the recognition installation process and status had important job of involvement rate and processing costs at 5 % important degree ( sig: 0.016 ) . Therefore, the Set 2 hypothesis H0 is rejected and H1 is accepted. There are involvement rates and processing costs job when meet up recognition installation process and status. Harmonizing to Power Pro pull offing manager Cheryl Tong, the Bankss raise the involvement rate of the strategy will take to the little and average endeavors have trouble in their concerns ( Spring Singapore,2010 ) .

Furthermore, the recognition installation process and status had important job of hapless certification and direction at 5 % important degree ( sig: 0.028 ) . Therefore, the Set 3 hypothesis H0 is rejected and H1 is accepted. Harmonizing to Chaitrong ( 2010 ) said that hapless hard currency flow direction is common jobs among Malayan SMEs.

However, the recognition installation process and status had no important influence on rejecting loan application in Malayan SMEs due to the important degree of 0.105 which is more than the important degree of 0.05. Therefore, Set 4 hypothesis H0 is accepted and H1 is rejected. Commercial Bankss will non merely rejecting the application of recognition installations if do non run into up the process and status, they offer other suited recognition installations to the endeavors. For this state of affairs, commercial Bankss may bear down the high involvement rates to cover the processing costs. If the collateral could non run into up the mark of recognition installations, commercial Bankss usually offered the CGC strategy with good path record.

Additionally, the recognition installation process and status had important job of hapless certification and direction at 5 % important degree ( sig: 0.028 ) . Therefore, the Set 5 hypothesis H0 is rejected and H1 is accepted. There is a job faced of cut down installation when could non accomplish the application recognition installation status. Harmonizing to Daljit ( 2009 ) , little and average endeavors are confronting force per unit area in obtaining recognition installations. Commercial Bankss will transport out the periodical reappraisal to find whether borrowers were ability refund in the close hereafter. If failure to run into the status, the recognition installation would cut down or overturned. For recent instances, a company has successfully obtain overdraft installation amounting to RM200 million. Unfortunately, the monetary value of natural stuff dropped so the original overdraft installation slashed to half.

Drumhead

Based on the analysis was carried out in this chapter, the consequences of hypotheses are shown in Table 4.10.

Set

No.

Hypothesiss

SET 1

Holmium

RejectedThere is no job faced of deficient collateral when meet up recognition installation process and status.

H1

Accepted There is a job faced of deficient collateral when meet up recognition installation process and status.

SET 2

Holmium

RejectedThere are no involvement rates and processing costs job to run into up recognition installation process and status.

H1

Accepted There are involvement rates and processing costs job when meet up recognition installation process and status.

SET 3

Holmium

RejectedThere are no job faced of hapless certification and direction when run into up recognition installation process and status.

H1

Accepted There are job faced of hapless certification and direction when run into up recognition installation process and status.

SET 4

Holmium

AcceptedThere is no job faced of rejecting loan application when meet up recognition installation process and status.

H1

RejectedThere is a job faced of rejecting loan application when meet up recognition installation process and status.

SET 5

Holmium

RejectedThere is no job faced of cut down installation when run into up recognition installation process and status.

H1

AcceptedThere is a job faced of cut down installation when run into up recognition installation process and status.

Table 4.10 Summary of the Result of Hypothesis Testing

Harmonizing to the analysis of the hypothesis, the consequence indicated that four out of five hypotheses were accepted and one hypothesis was rejected. The four important influence by recognition installation process and status are deficient collateral and societal warrant system, involvement rate and processing costs, hapless certification and direction, and cut down of recognition installation. However, there is no job faced of rejecting recognition installations application when run into up recognition installations process and status in Malayan SMEs. This survey helps the commercial Bankss to cognize that the job faced by Malayan SMEs in obtaining recognition installations.

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