Bed Wetting in School Children Essay Example for Free

Bed Wetting in School Children EssayBedwetting ( excessively referred to as nocturnal enuresis) is the involuntary passing of urine during sleep after the age at which bladder control usually occurs. It tail assembly be an embarrassing, frustrating and distressing problem that affects millions of children. It is more common than most parents think. Many children are dry out at night by the time they reach the age of 5 but others allot all-night to get going dry. When children still wet the bed when they are 6 or older, parents usually start to conk concerned that their child may have some kind of physical or emotional problem. slightly decide not to stress astir(predicate) it and give it time others will seek medical advice, take their child to counselling or use alternative therapies.Once children go to Primary School and become aware that other kids of their age are dry at night they become embarrassed about it. Some children avoid going to sleepovers and school camp s because of the fear of other kids discovering their problem. Teenagers are usually even more distressed by the bedwetting and many worry the problem will never go away. It often has a significant impact on their self-esteem.I decided to choose Bowen Therapy for Bedwetting as the subject for my Research chuck because I have always had a passion for working with children. As a mother of dickens daughters and having dealt with toilet training issues I have experienced how upsetting and frustrating bedwetting can be for a child and their family.As Bowen Therapy is a wonderful holistic technique to promote physical and emotional balance, it is an holy man way to help children gain control of this problem.This research task explores the different causes and methods of treatment of nocturnal enuresis. It also outlines the anatomy of the urinary system and the nerves and muscles involved in micturition to gain a advance understanding of how Bowen Therapy addresses this condition.I eva luated the goodness of Bowen Therapy on nocturnal enuresis in combination with dietary modifications as recommended by Mr. Bowen. The therapeutic value of omega-3 fatty acids is also mentioned (which have been proven to be effective in treating nocturnal enuresis) and the benefits of Neuro-Developmental reflex integration exercises.

Student Retention Essay Example for Free

Student storage EssayImagine that you are a second grade teacher. Your principal suggests that one of your bookmans who performed bruskly this form repeat second grade next year. Given what you know ab come to the fore the research on retention, how would you move? I would ask the principal to reconsider his decision and to examine the students situation more(prenominal) carefully to make an informed decision. First I would present the scientific results on retention students. harmonise to the scientific study, retention has negative effects on students rather than positive. Its a misconception that many echo retention will solve for the poor performance be front they are learning the same material whole over again. If the student is having poor donnish skills, he will continue to have poor academic skill if its non being addressed appropriately. Retention will not address the cause of the students poor performance. On the contrary, when students are kept back, they are more likely to face reactance displaying social and mental health problems, such as negative attitudes toward teachers and school, misbehavior, symptoms of anxiety and depression, and so forth.Also scientific research show retained students are 40 to 50 more likely than nonretained students to drop out of school. Moreover, low achieving children who are promoted learn at least as much, if not more, the following year, have a stronger self-concept, and are better adjusted emotionally than similar children who are retained. Second, I would present my suggestions and recomm demiseations as to what to do with the student. I believe its more important to find ways to provide the learning supports the students necessity when they are not doing well at school.We need to figure out the root cause of the students poor performance in school and then address it accordingly. Was it due to inappropriate forms of counselling or would it be due to outside stresses. If its due to inappropriat e instruction, we can find ways to adapt to the students learning style and then instruct accordingly. If more support is unavoidable we can also provide one on one help after school as well. If its due to family stress, we will schedule a meeting with the students parents and address it at the meeting.At last, I would also convey to his third grade teacher about his situation and what he needs to work on in order to catch up with his peers. If the root cause is not addressed properly, retain the student for one more year might show some temporarily academic improvement, but the student is most likely to lag behind again in posterior years. I suggest we look deeper into the students situation and provide the necessary support mandatory to do well in the class.Thirdly, I would like to schedule a meeting with the students parents and make sure the parent is aware of the current situation. We will inform the students parents of his poor academic performance and offer them the options we have to help the student. At last we will ask for the parents inputs and thoughts on the situation. I believe working as a team, the school, teacher, and parents will produce the best result. At the end I would sincerely ask the principal to allow sometime to rethink the situation to come up with a solution that is best for the student in the long term.

English Letter of Persuasion Essay Example for Free

English Letter of Persuasion EssayI am writing to you today to predication that my road, Knobatnight Lane in Ipswich, be made a priority in the future for gritting. As Im sure you know the road itself is on the main bus route for our local substitute(prenominal) school, the prestigious Clive Warrens Finishing School of Excellency, and Im concerned that a leave out of gritting during winter weather could possibly endanger people and their property or leave buses trying to uphold down their route stranded. Furthermore, as you may be aware, Knobatnight Lane has achieved notoriety in recent age due to the spate of killings by rogue escapee emus from the world famous Nutty Acres emu chancel based on the end of the street on Knowyourrole Boulevard. Im worried that these wild beasts, having saturnine their backs on the peaceful and respectful nature of Nutty Acres, will render any snow-stragglers stranded by stopped buses bereft of life (so to speak). We need to keep our streets safe and gritting seems to be the only way (After the council rejected my suggestion for a series of emu nets to be installed on every street corner)Overall I think that the safety of the people living in this area is par number and with a small amount of effort, time and mainly, grit, together we can save lives.Yours SincerelyK. Dilkington

Disney Movie Vs History Film Studies Essay

Disney Movie Vs Hi paper Film Studies adjudicateAre in whole Disney movies, which remove the quotations from History, have the same story as the actual History. If you ask this forefront to any historian, they will vocalize, No. to find this out I determined to watch a Disney movie, which is ground on fib. The represent of the movie is Pocahontas. I watched this movie and I realize that this movie has just the name of the characters right, but the story was very several(predicate) from the actual history, which was interesting, and kept me interested until the end. I bet if the Disney had do this movie with the actual story it would not be interesting as it was after making changes in the story. I decided to watch this movie, because it was Disneys start-off animated movie that was based on History among all(prenominal) the animated movies. It had a big success in movie theaters, even though the story was different from the actual History. I am going to write what was happening in the movie and what actually happened in the history.Pocahontas was Native Ameri stinkerful. She was a daughter of Powhatan, who was the chief of the Algonquian Indians in 1607 (American Promise, 49). Her real name was Matoaka, which was the nickname of her childhood. As the Native American custom, when she was born, she was sent with her mother to live in her mothers village. When she grew up to be almost 5-6 eld she lived with her father, and her older brothers and sisters. Among the all children, Pocahontas was her fathers favorite child. She was famous for saving life history of chief John metalworker (Pocahontas.org). Pocahontas was the first animated movie of the Disney, which was based on History. Although it had name of the characters from the history, but the story was not the same as it was in actual history. It came out in 1995. Disney movies are famous for fantasy and fairy tales. Disney movies have stigma umteen movies based on the history. Most of t hem movies have the real names from the history but their story is different from the actual history in many ways.In Disney movie it starts exchange open this, in 1607, a group of settlers arrived in new world to start new life. Their captains name was John smith. The journey was tough. They had to go through storm, and person whose name was Thomas and he was drowning and saved by smith. They were all lucky teeming to make to new world. For the mean metre, in that respect is a Native American tribe nearby which was led by Powhatan. There is a rumor that his daughter Pocahontas is going to pop off married with Kocoum, who is a state of warrior. However, Pocahontas was not interested in Kocoum. Pocahontas does not have many friends but in that location are some, which from animal world like Hummingbird and Raccoon. They all go to her grandmother and she was a tree that gave Pocahontas advice when she needed. She also tells them a story roughly the Englishmen. Smith was roamin g in the countryside of that area, unlike other settlers, who were afraid to go out. Smith runs into Pocahontas. They both spend some magazine after that and fell in love. However, other natives were still fighting the settlers. Therefore, Powhatan orders natives to stay away from the settlers. Pocahontas disobeys her father, she continues to spend the time with smith, and she introduces him to her grandmother (Pocahontas, 1995). This was the story from the movie.In actual history, Captain John Smith arrived in their area. It was 1607 and there were more(prenominal) than hundred people. They build the fort in that area in order to survive from the attacks of the Native Americans. However, in the same year in December when Smith is out for hunting in order to get food to survive, Powhatans warrior captures him and takes him in their area. Powhatan and Smith had a long talk and after that when Powhatan was about to come out Smith, Pocahontas came there and saved Smith by laying her self on Smith while natives were beating smith (American promise, 49). When asked by Powhatan for a reason to save Smiths life, Pocahontas said she did not want any excuse to provoke settlers. Because she knew that settlers are capable of defending themselves, which can be dangerous for the natives in that area. Powhatan arranged for Smith to take him can to the settlement. Powhatan then realized that his daughter did not just saved Smiths life, but she saved lots of peoples life (filmprincesses.com).As we all know that Disney movies are incomplete without bad character. In this movie bad character is Kocoum he started to spy on Smith and Pocahontas. Kocoum also tries to attack them but he failed because Thomas was around that area, when he saw that Kocoum is going to attack on them he kills him. When Powhatan came to know about them he declares war with the settlers. He plans to kill Smith at sunrise. When Thomas came to know about was he goes to the settlers and warns them. Anoth er Captain whose name was Ratcliffe think that natives are hiding the gold, and they are trying to protect it from us, therefore, they declared the war. Ratcliffe and some of the settlers decided to go in natives place and get all the gold. Once again Pocahontas manages to save Smith from her father. At the same time, Ratcliffe builds up and he intended to shoot chief but the bullet hit Smith. Smith was not dead on the spot but it was not clear whether he would be able to live with the love of his life or not (Pocahontas, 1995).In actual history, after saving Smith, Pocahontas would regularly go to settlement and play with English boys. Colonist did not have enough food and they all were starving in the first winter. They cloud not even grow their food because it was so moth-eaten that growing own food was just not possible. Pocahontas regularly went to visit and taking the food along for some of her friends. She saved many lives in that first winter which known as, Starving Time (Pocahontas.org). When more ships arrived at Jamestown, Smith went to Powhatan to negotiate to sell him the land of Powhatan. Some Whiteman misbehaved and Natives thought they were dangerous. Smith tried to make a peace but he failed. He got badly injured in a burst of gunpowder. Nobody knew if he would be able to live or not. There was rumors about Smith, which said he was dead, some said, he sailed away in one of the ship returning to Europe. Pocahontas knew that he was not there, and there was emptiness in her life. She was hoping that Smith would return( Pocahontas and Her World 60-61).In the movie, Disney has changed all the characteristics of Pocahontas and Smith, they made her look very cute, and Smith was handsome person, which was very different in actual history. In movie, audience can see a little affection between Pocahontas and Smith despite of having age difference, Smith was twice as her age. Pocahontas was about 13 years old and Smith was around 29 years (American Promise, 49). All Disney movies have this cistron in them. One more element that is common in all Disney movies is a man who can do anything for the love of his life, in this movie man was Smith who could do anything for Pocahontas, love of his life. This movie had many elements, which were remarkable, for example, the animation, and the expression of the characters. Pocahontas was shown in movie talking with the mice and kissing the dogs. At one point where Powhatan is about to kill Smith, Pocahontas runs to save his life, and says, I love him, Father, and lays herself on Smith. But, we all know that is not the real story. She did not say that in real life, but she did saved Smiths life in order to avoid problems with the settlers. In the movie, we show Captain Ratcliffe as a villain, but in real life, Ratcliffe had nothing to do with Pocahontas.Finally, in conclusion, we can all say that this movie had the characterization right but they changed the story, which made the movie fr om fictional from the diachronic characters. This movie mostly attracts the children who like animated movie and this movie has all the elements that children like to watch. However, this can have a big impact on their mind, because if they do not know what happened in actual history, than they whitethorn think that what they saw in the movie was true. Sometimes this kind of movies can be humiliating to the culture. later watching this movie, children may think that the colonial life was very easy and happy, even though we all know how the conditions were like during the colonial life. I personally think that Disney should make the movie, which is based on history with the real story, so children can also learn the truth about our history.

Education Systems Comparison: Australia and Mongolia

Education Systems Comparison Australia and MongoliaCOMPARISON surrounded by MONGOLIAN AND AUSTRALIAN EDUCATION SYSTEMI would like to introduce comparison between Mongolian and Australian Education strategy in several beas such as general statement, find, tincture and capacity. premier(prenominal) of all I would like to introduce general statement for twain countries. Education in both countries follows pre teach, elemental coil and thirdhand fostering and technical precept and vocational dressing and tertiary precept.Both countries preschool raising is non compulsory. Mongolian preschool gentility is offered to children vulcanised2 to 5 in kindergarten, but Australian preschool education offered children senesced 3 to 5. Mongolian preschool education is an instructional institution and by the Mongolian Preschool education law kindergartens shall succeed preschool education to children of preschool age and ensure their school prep ardness. Australian archeozoic child hood education has many types of preschool education such as kindergarten, child care center, Montessori center and act.Also, there are many similarities on bring outicular and secondary education in two countries which means 12 division schooling system. The official entry age is 6 year old children in two countries. In addition, the Mongolian Government initiated transforming primary and secondary schools into a 12 year system in 2008. This transition will be shade by 2016. In Mongolia, that 6 years of primary, 3 years of lower secondary and 3 years of upper secondary schooling. In Australia that 7 years of primary and 5 years of secondary. In Australia, in the some states territories, primary schools often let in a pre-school.In Mongolia, technical education and vocational training (1-2.5 years) sub- sector comprises specialized upper secondary schools as well as post-secondary diploma programs housed in high(prenominal) education institutions. thitherfore, in Australia, e ach state has a Vocational Education and Training or Technical and shape up Education system. It is prepares people for work in a career that does not need a university degree.In Mongolia, higher education is awarded by colleges, institutes and universities. At the higher education level, bachelor programs usually last iv to five years and six years for medical programs. Masters programs usually require one to two years and docto judge programs require three to four years to complete. Likewise, Australian higher education (6+) awards are classified as follows certificate, diploma and associate degrees, which cover one to two years to complete, some aspects of higher education are the responsibility of States and Territories. In particular, most universities are recognized under the State and grease legislation.Secondly, I would like to compare access of education in both countries. In Mongolia, 76.3 percent preschool age children refered in preschool education services. In 2009 /2010 academician year, there are 785,8 thousand students enrolled in institutions of testicle education. There were 102, 6 thousand children in 814 kindergartens. In 2009, 58.6 percent of pre-school children who are 2-5 year olds enrolled at institutionalise education programs and 17.4 percent of get pre-school children enrolled in alternative forms of educational services.In Australia 97.5 per cent of children attended for early childhood education the year before school. The year before a child is due to attend primary school is the main year for pre-school education. This year is far more commonly attended, and may take the form of a few hours of activity during weekdays. Preschool is in some states and territories relatively unregulated.In Mongolia, in 2009/2010 academic year, 557,3 thousand pupils in 710 primary and secondary schools. The primary and secondary education acquit enrollment rate was 91.5 percent. An addition, girls enrollment in primary and secondary cycle i s greater than boys.In Australia, primary and secondary education is compulsory between the ages of 6 to 17, depending on the state or territory. The primary and secondary education net enrollment rate was 99.3 percent. In recent years, over three quarters of students stay at school until they are seventeen. Government schools educate about two thirds of Australian students, with the other third in Catholic and Independent schools. A small portion of students are legally home-schooled.Higher Education in Mongolia has universities and colleges. There are 146 universities, which is 42 are public, 99 are private and 5 are international. During the last 5 years number of students enrolled in higher education institutions increased by 70,1 per cent. The proportion of fe virile students is 61.8% of total higher education enrolment. That data indicate an unusual reverse gender gap in higher education. This is particularly noticeable at the higher levels of education where typically female greatly outnumber male students.Last 5 years enrolments in occupational programs such as foreign languages, law, computer science, engineering, medicine, and tourism was more than double.Tertiary education in Australia provider is university self-accrediting provider, non self-accrediting provider. In 2009, the Australian higher education system consisted of 41 universities, of which 37 are public institutions, 2 are private, and 2 are Australian branches of afield universities 2 other self-accrediting higher education institutions and non-self-accrediting higher education providers accredited by State and grunge authorities, numbering more than 150 as listed on State and Territory registers. These include several that are registered in more than one state and territory.Thirdly, in short, I want to compare and contrast quality of education both countries. The most important aspect for quality education is the learning achievement. According to the platform for International Stude nt Assessment for 2006 ranks the Australian education system as 6th on a worldwide scale for Reading, 8th for Science and 13th for Mathematics. The Education force, published with the UNs Human Development Index in 2008, based on data from 2006, lists Australia as 0.993, amongst the highest in the world, however Mongolia lists as 71, the medium level. In addition, many universities in Australia have gained international recognition. Two of the most acknowledged are the Academic rank of World Universities, produced by Shanghai Jiao Tong University, and the THES QS World University Rankings, which in 2006, had no fewer than 13 universities amongst the worlds top 200. That is wherefore many foreign students wants to study in Australia at schools and universities.Quality in education is not proficient in Mongolia. Particularly, urban-rural gap in education quality still exist. According to some recent research, children attention rural schools perform significantly worse than child ren attending schools in aimag centers and Ulaanbaatar. Rural schools have limited access to resources needed to support higher learning achievements.Another main issue of qualitative aspects in education is teacher and children ratio. In Mongolia teacher and children ratio in the preschool is 252 and 301 is for secondary school.2 But 183 is for preschool and secondary is about 201 in Australia.5 It depends states and territories.Teachers are key out players in implementing of the education sector, especially in classroom and pedagogy and learning quality, which is highly dependable on their professional capacity and supply. Two countries teacher qualification and professional knowledge and skills are similar, but teaching method is different.As I mentioned the last another issue of qualitative aspects in education is curriculum. The Mongolian Government approved a new set of competence based education curriculum/standards for pre school, primary and secondary education emphasizin g the quality of education. These new curriculum is being introduced in the school year of 2005/2006. On the other hand, national curriculum /standard has renewed to be promoting a human increment as develop pupils competence in terms of communication skills, self-confident, a critical thinking and difficulty solving abilities etc. In Australia there is a mandatory curriculum in addition to elective subjects. For the students are need to take state-wide external tests in English-literacy, mathematics, science, Australian history, geography, civics and citizenship and computing skills in.Finally, I want to relieve a few words about educational efficiency. The Mongolian Law on Education stipulates that at least 20 percent of the government budget is allocated to education. Government uptake on education as a percent of GDP is 9 and a percent of GNP is 19.09 in 2004. Education expenditure has significantly increased over the last few years.Educations share of public expenditure ha s also remained consistently high, averaging 18.6 percent over the 2008-2010 period, although it has not quite reached more than 20 percent share as required by the Education Law, (revised in 2006). But the national education budget has increased by 2.5 clock in 2004 as compared to 1996. The education sector is financed principally from two sources the Central budget (81.7 percent in 2008) and the local budget (9.3 percent) with revenue raised at province and city levels. Other sources of revenue include development fees (4.1 percent), donations from individuals and organisations (1.6percent), project funds (0.1 percent) and others (2.7percent).In Mongolia, school and kindergarten financing is operated based on per child normative variable expenses with adjusting indexes. Indexes used to adjust the different situations in terms of population density, distance as farawayness of school location so on. However, some of remote and rural schools are still facing problems cerebrate w ith financial shortages due to not enough children attending in their kindergarten and school.Since 1997, state financing only firm costs such as heating, electricity and water in higher education institutions. Student tuition fees constitute the major income source for universities, institutes and colleges. It makes up 80% of higher education income.In conclusion, it can be clearly seen that Australian and Mongolian education system are a few similarities some orbital cavity such as general statements and accesses. However, the quality in education two countries is very different. Quality in education in Australia is the highest in the world, although in Mongolia, such as many indicators of the education quality and efficiency are not good enough and we have to change trends also, remind that there is need for form _or_ system of government and operational strategy reforms. Therefore, Mongolian education sector is undergoing new stage development reform. It has encountered new c hallenges created by poverty and social deprivation. The following issues are considerable in future development of education sector in Mongolia. Generally, Australian education system has a good policy, management, and sustainable development for every part of the education sub sectors. Finally, I believe that to improve relationship and to expand cooperation between Australian and Mongolian education sector.

Design And Atmosphere In Customer Expectations About Restaurants

determination And Atmosphere In Customer Expectations About eaterysWhat defines a good eating place? A good location, wide variety of food for thought stumblee reddish and prices sealedly argon crucial factors but the lift out food in town wont help a eating ho procedure out if the aura is enti affirm non right and c fabricationnts dont feel easy. Some like it entertaining and lively, separates prefer quieter atmospheres. Perfect Design toss promise a charming atmosphere but raft sometimes even calculate boring. In this study distinguish adequate categories of eaterys pull up stakes be identified, combined with an empirical investigate exploitation three restaurants of different categories. Every of the essence(p) aspects of atmosphere creation pass on be explained and recommendations pull up stakes be given.1 presentation and statement of relevanceAims of the BBA ThesisThe aim of this Thesis is to identify the special aspects of customer mirth and go the imp ortance of picture and atmosphere in a hospitality establishment, specificall(a)y in a restaurant environment. It forget examine whether or not normal is an important factor shaping customer expectations active a restaurant. Different techniques of interior purpose and atmosphere creation result be identified such as usage of colour, lighting, use of smells and medical specialty. Further the dissertation will explore victoryful design concepts in the Hospitality industry. The human senses that jackpot be captured by design will be discussed and the wherefore becomed emotions and their possible benefits to the hospitality industry identified. It will show how ambience affects consumer behavior and whether it can serve as a critical factor in determining the success or failure of a business. The thesis will alike include examples of such successful design concepts.Analytical ProcedurePublications will be studied and apply to give an understanding of the term design, in relation to ambience creation. Different techniques and footing of design will be explained with the help of several publications provided in the list of resources. afterwards swelled the boilersuit understanding of the given topic, the actual research compend begins. Using the website www.onlineumfragen.com, an online challengenaire was intentional, featuring pictures of three restaurants of different design categories. starting signal there are questions about the overall design and atmosphere aspects of each individual restaurant (named restaurant A, B and C in the questionnaires). Later the respondents will be asked to choose one of the three to intention a special event (e.g. their birthday) at. Choosing to conduct the critique online gave the opportunity to define a population using networks such as Facebook (www.facebook.com). A group was developd on April 22nd 2010 and 1427 people were invited to join the group and philanthropic asked to complete the survey. Aft er a week, the group was closed on April 29th. By wherefore 201 people in like mannerk procedure in the survey. After defining the relevance of design as a factor in customer expectations about a restaurant and how it indeed affects satisfaction by the example of three restaurants, the paper will give recommendations to enhance customer satisfaction and then conclude on the captureings that were determined by the study.Restaurant DesignIn past times Interior Architecture or Interior Fitting describe the very same process but the term Design became a good deal more than appropriate in todays world. Be positionings planning and handcraft Design involves intention and craftiness. Restaurant Design requires experience and precise know-how. tone at the industry one veryizes that there is a lot of competition in an immense marketplace. Chances of living challenges like an economic crises or even precisely a change to a raw(a) edit out take care very low nowadays. correspond t o Kotler (1983) the field of Marketing Research identified the importance of design and atmosphere in restaurants. The meaning of the get on product gained importance, meaning the Restaurant and everything that comes with it. The tangible product, meaning the food and beverage aspect of the Restaurant bit a minimal graphic symbol in the buying conclusiveness of the customer. Kotler even claims that in some cases the atmosphere alone influences the buying decision the or so.Design creates a new world of experiencesIn whatever given situation, whether in an upscale restaurant, in a dining motorcar of a train, a simple tavern on the countryside, the guest should always be the center of attention. In any successful business t is essential to care about the customer and try to litigate his or her motifs by all means. Especially in todays world, consumers are expression for change and indirect request to get away from it all. This also means that it is not sufficient anymore t o count on having a renowned chef and excellent food in your restaurant anymore. It is more and more necessary to distinguish your restaurant through first-class swear out and create that special atmosphere in which guests will feel homey and the more will be animated to consume.It takes much more than simply changing the comment of the walls, lay up new curtains, changing the lights, buying new tableware or furniture when planning and designing a restaurant. The architecture and the design of the actual space create the stage for the shrink from, in which the idea and concept of the possessor or decorator mother to be visually translated to the guests. The challenge here is to typeset guests for a culinary experience. This can be achieved through the right use of modify, materials and lightning to stimulate all five senses and thus prepare for consumption and delectation.Significance of design and atmosphere in RestaurantsEating out has become as much a lifestyle choice and form of entertainment as a source of nourishment. (Ryder, 2007)The 7th P of Marketing and the 5 Senses of humansThe 4Ps of Marketing (Product, Price, Place and Promotion) have for a long-time counted as the Marketing classics. When looking at the Marketing Mix of a service we shall add three more Ps. These are People, Process, and material evidence.People in this case simply means Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for (Service Marketing Mix The 7Ps).Process refers to the systems use to aid the organization in delivering the services.More important in this study though is the last of the Ps sensual evidence.Physical Evidence is the element of the service mix, which allows the consumer again to make judgments on the organization. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough mo de to be able to lie down Physical evidence is an essential ingredient of the service mix, consumers will make perceptions ground on their hole of the service pro lot which will have an impact on the organizations perceptual plan of the service. (Service Marketing Mix The 7Ps)Now besides this crucial 7 Ps, there are also the 5 S that are of importance here. In other words, it the 5 senses of man play a fundamental role in the buyers decision-making process. Man gathers all information through his environment. We experience our milieu through our senses of ken, comprehend, taste, smell and touch. Since Man is exposed to a stimulus satiation by todays industry, the sense of sight evolved as main criteria for perception of the surrounding environment.The sense of sightThe sense of sight is the most overabundant of senses in todays times. 70 to 80% of our perception is influenced by the sense of sight (Sehsinn). The human sense of sight can and should be stimulated in many ways by gastronomy. The interior furnishing, the colouring material schemes, the lightning techniques, heterogeneous design contrasts, the cleanliness of the establishment and even the appearance of the staff are significant aspects that can determine the success or failure of a business. All these factors also help to create a lasting number of the establishment in the customers mind, and can therefore outlet in to a customer that will turn in and recommend the restaurant to friends. If these aspects fail to stimulate the sense positively, the customer is sure not to return.The sense of hearingThe sense of hearing allows Man to experience conk out, fray and words and is fully developed already 4 to 5 month prior to birth (Senses, 2007). In Gastronomy there are multiple ways to stimulate this sense, on one hand there is the background music that is practically used to create a certain ambience. Conversations among guests or staff or even between guest and staff and also noise that comes out of the kitchen can function as a stimulus. The soundscape should be lively, but not too gilded and definitely not too silent. The acoustics can be well directed by means of carpets, sound absorbing materials, tablecloths and other dcor. Depending on what kind of atmosphere one would want to create, the choice of music is another crucial factor. A line must be force between establishments like the newest In-restaurant in impertinent York City and that charming Brasserie in Paris Saint Germain. One could say there lie worlds between the two and this must also be implemented when choosing the music. In General one can say that the younger Generation is used to louder sound than the erstwhile(a), but in most hip restaurants in New York, the music is so loud there is barely any talking. Now imagine that soundscape in the charming Brasserie in Paris. So when making the choice about music volume one should dig the mean between the target groups and also not forget to adapt to the type of image and ambience one would want to transmit to the clients.The sense of tasteThe sense of taste is the least developed of all senses. Due to the fact that Man can provided distinguish between 5 tastes it is almost un in all likelihood how a sense like that can determine our look of life and joy for life to that extend. The older we get, the less we taste. A newborn child has about 10.000 taste buds, whereas adults only have 5.000 on average. (Senses, 2007) Man can only taste four qualities. These are sweet, sour, bitter and salty. Other tastes are tasted through smelling, both through the nose or through the mouth and throat.The sense of taste is undoubtly the one of the most important factor for customer retention, but not anymore the most important in gastronomy. The menu and the quality of the food are factors that can determine the success of a business. If the food is good, the guests are more likely to turn a blind eye on shortcomings in the design and atm osphere. The optimum and everyones promise to eminence and success is a good combination of the both, since customers are willing to consume more and with more pleasure if the right ambience is created around them. (Ryder, 2007)The sense of smellA designer who creates bearings and spaces engages our sensations of touch, sight, and sometimes hearing. But what of our noses? despite olfactions unmatched strength to evince memories and emotions-two essential objectives of design-smell is a recountingly untapped medium in design practice. (Black, 2010)In gastronomy there are ways to market services through smell. The appetizingly smell of fresh lively food, freshly brewed coffee, baked bred or even the smell of flowers can stimulate the sense of smell and therefore put the guests in a consumption mood. Strong body odor of staff or deplorable smells of the kitchen should be avoided as guests will feel disturbed and their appetite will probably be kaput(p) with the smell. Eva Wiste n (2010) even goes so far as to claim that scent itself can be decribed as a form of design. All of the categories and critical tools we normally apply to design can also be employ to scent, from the recognition of a balance between means and goals, to the different degrees of engagement with the rest of the world. (WISTEN, 2010)Wisten further explains in her article that scent is already being used widely as a design element. Manufacturers seem to be reaching a tipping point of awareness that scent is important in creating a total brand experience. For example, casinos, hotels, private clubs, new automobiles are ofttimes designed with signature scents. (WISTEN, 2010)Scent can play a more emotional, expressive, and even functional role in our daily lives. Since Mans associations with scent are improbably sozzled and cognitively bonded with memory and prior experiences, scents might open up new ways to try and remember. Becoming more alive to scents will also add texture, depth, and richness to our everyday experiences, if we can find ways to incorporate them that move beyond air fresheners and analogs of natural scents. (WISTEN, 2010)Also, a scent can be used to tag objects and places and accordingly build associations and habits. According to Wisten (2010) it would therefore enable customer retention on a brand new level. (Black, 2010)The sense of touchUnfortunately the importance of the sense of touch is often underestimated in tourism. When exploring their surrounding, people like to look, taste, hear and smell but they also explore by soupcon the materials and even enjoy touching pleasant materials. A soft blanket in a Hotel means or comfortable chairs in a restaurant are factors that also determine a squeamish atmosphere. As mentioned above, the choice of materials is also important not only to the eye but even more so to the sense of touch. (-ller, 2009)The science of coloriseColor. A characteristic of light or of surfaces or object that is perce ptible to human vision and that is described by various color names, such as red or drab. ( destiny, 1997)Colors stimulate all our senses they are linked to our subconscious knowledge and memories and therefore create certain associations (Stadler, 2010).People try to flee the routine, to relax from the daily stress and to regenerate, but to be able to do so the atmosphere as to be right. Using modify, designers can stimulate the senses and therefore create moods or create different and completely new atmosphere (Stadler, 2010) It doesnt necessarily mean that everything has to be as colorful as it gets, but putting the right contrasts or idioms and harmonizing design elements already does the trick. In other words uttermost(a) unity of colors leads to under-stimulation whereas extreme complexity leads to over-stimulation. Harmony is a dynamic equilibrium. (Morton, 2008) arrangement the science of colors is important to be able to create moods and emotions and direct guests to co nsume with pleasure. The world is too colorful to leave a wall blank and white, on the other hand loud colors arent the optimum either and can lead to unwelcomed side cause (Stadler, 2010). The use of colors belongs to one of the most fundamental possibilities to influence our surrounding and our wellbeing.Classification of colorsthither are three so called master(a) or primary colors rosy-cheeked, Blue and Yellow ( show 1). In traditional color theory, these are the 3 pigment colors that can not be mixed or formed by any combination of other colors. All other colors are derived from these 3 hues. There are vicarious colors that are created through commixture two of the primary colors with each other jet plane, Violet, orange ( haoma 2). Blue and Yellow make Green, Blue and Red make Violet and Red and Yellow result in Orange. There are also tertiary colors that are formed by mixing a primary and a secondary color. Thats why the hue is a two-word name, such as sad- common, re d-violet, and chicken-orange as seen in variant 3. (Morton, 2008) persona 1 Primary Colors Blue, Red and YellowFigure 2 Secondary Colors Green, Orange and ViolettFigure 3 Tertiary Colors Yellow-Orange, Red-Orange, Red-Purple, Blue-Purple, Blue-Green and Yellow-Green.Effect of colorsBefore discussing the impact of specific color hues, there are some more general observations that need to be noted. It is widely accepted to order colors into general families of fervent, cool and so-so(p) colors. (Pile, 1997)Warm colors The word warm has another meaning here, in the same sense as we speak of a warm greeting, a warm friendship or a warm atmosphere. The hues on the warm side of the color circle are red, orange and yellow, including all their shades, tinctures. These warm colors are generally still to create a cozy, comfortable, homelike and pleasant atmosphere (Pile, 1997). Experiments also have shown that interiors with primarily warm color shemes will appear comfortable to occupan ts even with the actual air temperature lower than required to achieve comparable with(predicate) comfort in identical spaces using cooler colors.Cool colors Every shade and tint of the green-blue-violet side of the color circle fall under this term. They are related with calm, relaxing and more meditative experiences. Cool colors tend to lower the sense of actual air temperature and therefore are often preferred in spaces where excessive heat (climatic or artificial) can be anticipated. At an extreme, cool colors may have a negative and depressive psychological impact (Pile, 1997).Neutral colors White, Black and colour in fall between warm and cool, having less intense psychological impact and therefore in its extreme form may have a bland or boring effect. In its positive uses, nonsubjective colors may propose businesslike, practical and utilitarian atmospheres with a minimum of emotional content (Pile, 1997).According to Molton (2008) colors have the power of conveying a mood or message. It can make or break how people perceive a business or a product. As evidence, consider the $23 million in sales made by Heinzs green ketchup. In the following abstract the effects of individual colors will be identified.BlueMolton (2008) claims that blue color can work as appetite suppressant. Blue colored food is not a common occurrence in nature. There are no such things as blue salad, blue meat and besides blueberries, the color blue just doesnt exist a significant quantity of natural food color. Looking at Figure 4 one will admit that this dish with blue colored rice looks everything but tasty.Figure 4 Blue Rice, Cherry Tomatoes and Pork (http//i67.photobucket.com/albums/h289/cyberpete/Cooking/PICT0254.jpg)Spaces appear larger in size and seem chilly and clean. In Interior Design one should use the color blue only in spaces to relax, for example in the Wellness area of a Hotel, where red would have the opposite effect.RedRed is claimed to be a dynamic and aggress ive color. It stimulates psychologically and physically, enhances labor and movement and even encourages dancing. Not only venues with a dance floor make successful use of this color but also restaurants use red in dining environments, since the right shade of red can work as an starter (Mahnke, 1996). It activates metabolism and blood circulation of the body as it signifies pure energy. However it can also appear evoke and result in irritated guests (Morton, Color Matters, 2008).YellowYellow brings the sunshine in. The color has the effect of lightning up bad mood and puts a room into a sunny and positive atmosphere. Spaces even appear bigger and more vital. It enhances concentration and stimulates the mind towards a positive attitude even in combination with darker colors. It is ordinarily used in Cafs and Bars since yellow inspires conversation and communication. In gastronomy it can be used to keep guests longer and therefore make them willing to consume more (Mahnke, 1996). GreenGreen has a calming effect on people it gives a feeling of balance tranquility, and security. The color is often used in conference rooms in Hotels (Pile, 1997) as it stands for creativity and willingness to learn new things. A green room appears vital and has a regene paygrade effect on the human organism. The color seems friendly and relaxing. Green is neither a cold nor a warm color, often it is understood as a neutral pole between the two.OrangeOrange can create a cheerful warm and comfortable atmosphere. It is known as the friendly and social color in Interior Design (Pile, 1997) that also has the ability to enhance appetite (Mahnke, 1996).BrownBrown as used in interior decorating has the effect of giving a rustical and comfortable atmosphere.White, Black and GreyWhite, Black and Grey belong to the so-called non-colors. They are faultless combined with other colors. However if too much black, white or grey is used in interior decoration it can give a feeling of heaviness and darkness. These colors make ameliorate use as neutralizers or contrasts to other colors (Pile, 1997).Color in RestaurantsAccording to John Pile (1997), Restaurants call for a particularly sensitive use of color. An inappropriate color scheme might be the cause for a restaurant to fail even if it might have been successful otherwise. As mentioned in the previous abstract, appetite is very strongly affected by light and color. The sight of a blue cake wouldnt make your mouth water as much as it did when it was chocolate-brown. The experience of eating can be made more pleasant or less so, through the choice of color in surroundings.Experience suggests that certain colors are best avoided entirely these include black, darker or cold grays, strong tones of violet and yellow-greens. (Pile, 1997).Pile further states that the color red is believed to be stimulating to the appetite and other warm tones tend to generate a comfortable atmosphere but should be used with moderation along w ith stronger accent colors. To conceal spots and soiling in a restaurant establishment, it is usual to choose certain colors, materials and patterns, however the color of such areas as tabletops, linens, dishes glassware and menus, that take in most of the diners field of vision of the restaurant, should be considered along with the colors of the rest of the interior space (Pile, 1997).In his book Color in Interior Design, John Pile claims that even the style of food should have an effect in color choice. He states that in fast-food outlets, cafeterias and other restaurants where a rapid pace of service is anticipated, the choice of bright colors and strong contrasts have the best effect. Restaurants with more traditional style, perhaps serving expose cuisine at a more leisurely pace and probably even at higher prices, are better served by softer, warmer tones seen under a lower level of lighting. The use of natural wood tones, metallike elements, and mirrors are traditional eleme nts in bar areas.Dining rooms of traditional clubs are commonly developed in tones of brown and tan suggesting a masculine atmosphere while lighter tones of cream, beige and yellow relate to a more varied clientele. (Pile, 1997). There are certain types of restaurants, such as Seafood restaurants, that have developed a tradition in style and setting, using natural wood for tabletops and floors along with areas of off white, tan or brown in other elements. The color Blue is a favored accent color, as it supposedly is associated with the sea, but it should definitely not be used in excess as to avoid a cold and unappetizing effect. Various national cuisine style restaurants can also be emphasized through use of color, such as white and red in Austrian or red green and white in Italian restaurants, but such associations are not essential and always threaten to turn to clich when they are overdone.Customer Satisfaction QuestionnairesImportance of customer satisfactionCustomer satisfacti on depends on a product perceived performance in delivering value relative to a buyers expectations (Philip Kotler, 2006). The buyer will be satisfied, according to whether or not the products performance meets the expectations. Expectations are based on experiences, opinions of friends and market information and promises.New Baroque grounding of New BaroqueVenues of this category peculiarity exuberant lightning, decadence and pattern. Many restaurants take their cues from this approach, yet are rather more contemporary with just the odd extravagant flourish. (Ryder, 2007)The restaurant chosen to name this category in this study is the Cospaia in Brussels, Belgium.Figure 5 Restaurant COSPAIA, Brussels, BelgiumDesign Concept of CospaiaThe concept is unique and mysterious. For Cospaia Jan Tindemans united a passionate designer and an exclusive location. The myth starts immediately with the location of Cospaia on the Boulevard de la Toison dOr. Many habitants and visitors of Brussels will surely remember some of the famous eateries that used to occupy this location. The entire neighborhood breathes luxury and coziness. scoop shovel boutiques and first class hotels in the immediate vicinity, the Brussels Financial union, the Embassies and the European quarter all indoors walking distance.It is a dream location for a new style restaurant with international ambition. Cospaia will easily fit in that exclusive list of addresses next to Caf Costes in Paris, Bank in London, Vau in Berlin and Arts in Barcelona.Marcel Wolterinck, an internationally recognized designer has created the interior design. (http//www.cospaia.be)5.3. Presentation of Results from Questionnaires orbiculate ViewsIntroduction of spheric ViewsVarious aspects of other cultures and countries inspire the designs of restaurants of in category. Asia is continuing to lead the way as major(ip) influence in restaurant design in cities of the western world, whether or not it reflects the cuisine on offe r. (Ryder, 2007) Representing the chapter Global Views in this study will the Megu Midtown in New York City, USA.Figure 6 Restaurant MEGU, New York City, USADesign Concept of MeguDesigned and created by Yasumichi Morita and his Japenese based team Glamorous. For the first, Megu owner Mr Koji Imai asked Morita to introduce real Nipponese beauty to New Yorkers. (Ryder, 2007)The design team Glamourous chose to blend traditional and modern Japanese times. Authentic and avant-garde Japanese ingredients are combined to suit every palate. The overall dcor is make full with customary Japanese interior accents, complimented with a contemporary ambiance.The rich fabrics, the highest-grade wood materials, and the artistic integrity were upheld in the construction of MEGU Midtown. To express the rich design of Megu, they made the design rise vertically. Almost everything about the design in the main dining room points from the ceiling to the floor. The lamp pillars, the family crests that ca scade from top to bottom, and the 27-foot long hand drawn mural of tigers. When the guests arrive, they walk up the stairs to the mezzanine and then descend to the main dining room when their reservation is ready. In the waiting bar there is illuminated photographic art conveying the heart of Japan, on 7-foot Kimono fabric pedestals. The visual delights at MEGU Midtown in terms of design are, the lamp pillars, the family crest emblems, the open sushi and Teppan-yaki kitchens, and the d pound Crystal Chandelier. Using the high ceilings and the wall-to-wall windows they have created another distinct and wonderful space. (www.megurestaurants.com/philosophy)6.3. Presentation of Results from Questionnaires forward-looking ClassicIntroduction Modern ClassicSimple dining spaces that often feature classic designs from the ordinal century belong to this category. The interiors dont rely on any design tricks, themes or grand gestures. Instead the designers rely on the beauty of natural mate rials such as marble and stone for adornment. (Ryder, 2007) the example of this category presented in this study is The Modern in New York City, USA.Figure 7 Restaurant THE MODERN, New York City, USADesign concept of The ModernInspired by the Bauhaus movement, The Modern was created by architects Bentel Bentel. The design plays a major role in every aspect of the dining experience at the Modern. Open, elegant and filled with light, the Dining board offers views of the Abby Aldrich Rockefeller Sculpture Garden. Both the Dining Room and Bar Room are adorned with furniture and tableware from modernist greats, with a focus on Danish design. (http//www.themodernnyc.com)6.3. Presentation of Results from QuestionnairesResearch DesignResearch DesignThe type of research design is very important for the whole study and is a major factor for the significance of the results. In the case of this study a quantitative research design was chosen.Ryder (2007) defines restaurant design styles the matic categories Global Views, New Baroque, Modern Classic and High Concept. In this study three categories were chosen as examples Global Views, New Baroque and Modern Classic. Then one restaurant out of each of these categories was elected to represent the category. While preparing the questionnaires some recommendations were kept in mind. The length of the survey played an important role. The survey was designed online in English language only. It was kept in mind to keep the survey answer possibilities plan and simple. Three different pictures of different restaurant were implemented in the survey. This was done using the website http//www.onlineumfragen.com. Questions about the overall design and atmosphere relating to each picture of the three restaurants were created (Bitner, Evaluating Service Encounters The Effects of Physical Surroundings and Employee Responses, 1990) (Kisang, 2005) and (Wakefield Blodgett, 1999). After completing the general questions about each individ ual restaurant, the participants were asked to choose one establishment to plan a special event at (eg. their birthday party). The population was defined using the social network website http//www.facebook.com. A group was created and 1427 people invited to join. After one week of data collection (April 22nd April 29th 2010) the survey went offline and the analysis began. By then there were 201 samples in the study.Besides the Personal Data Information and the question where respondents are asked to choose one of the three restaurants for a special event, there are solely rating scales in the survey. All respondents completed the questionnaires through the website only. After some adjustments and the preparation of the data collected, the Data then was exported into the Program SPSS, ready for further analysis. The complete questionnaire can be found in the Appendices.Data analysisDemographicsAfter one week of data collection a proud sample of 201 respondents was achieved. This abs tract will give an introduction to the population of the study. 126 of the respondents in the survey are female, that leaves 75 male respondents (Figure 1Gender). Figure 2 Age shows that 14 respondents were younger than 20 years old. The majority of respondents (98 respondents) are between 21 and 24 years old. 69 respondents are 25-29 years of age and 20 respondents are older than 30 years.Figure 8 GenderFigure 9 AgeThere are 121 respondents still at University and 70 respondents who already have graduated from University. 9 participants have a High school fleece and 1 completed an Apprenticeship (Figure 6Education).115 Students took part in the survey. The remaining respondents are White-collar workers (2

Development of Credit Facilities in Sierra Leone

increment of cite Facilities in sierra Le wizardChapter 1This landing field is on the substructure of realization facilities to fine and ordinary coat Enterprises in sierra Leone with special focus on the manifestation industries.1.1 Background to the prudence of sierra Leonesierra Leone is a relatively petty kingdom, on the western United States Coast of Africa with an atomic get 18a of approximately 28,000squ be miles. The estimated population is 5.5 jillion inhabitants, 30% of whom resides in the western bea of the country according to new-fashioned census in 2006.The state of the countrys prudence, immediately later(a)r on independence from the British Colony in 1961 up to the 1970s, was quite satisf exerciseory in basis of performance. The vary regularize amid the Leone and early(a) extraneous currencies was relatively fair. more than than so, the British Pound Sterling was exchanged at integrity belabor (1) to One Leone (Le1). The inflation rate was extremely low. The countrys compensation from exports were very lots attr stand forive, with Diamond export explanation for well every(prenominal)where 50% of the countrys foreign exchange earnings. This was nigh followed by exchange crop exports such as Cocoa, coffee, oil colour palm, piassava and chillies. The countrys out-of-door debt persuasion at this meter was non spirited,between 1972 to 1975, the prudence started experiencing d hold turn that was leading(predicate)ry(prenominal)ly delinquent to international f fermentors, such as the far-famed oil price shock in 1973. Natur all in ally, the 1980 Organisation of Africa union (OAU) summit that was hosted by the g everyplacenment of sierra Leone fuelled the debt crisis in sierra Leone.Beca utilize of the foreign exchange scarcity in the country, the recognition engagement between municipal importers and their seam bulge outners aboard collapsed. In 1988, the country was compel to devalue her curren cy.Between 1992 and 1994, sierra Leone successfully implemented an adjustment course of instructionme restrain by the world-wide Mo net incomeary descent (IMF) under the adept Accumulation chopine (RAP). The World stick also supported the program through the reconstructive memory of Import doctrine (RIC) in 1992 and the morphologic accommodation Credit (SAC) in 1993. Following the successful implementation of the RAP, the IMF approved a three class establishment support under Enhanced Structural Adjustment zeal (ESAF). The implementation of the low gear annual program was cut off by the escalation of the turn out activities in 1995. With the return of democracy in 1996, the IMF supported the frugalalal retrieval program adopted by the new Goernment with a uphold annual program under the ESAF.Poerty step up with real per capita declining to US$142 in 2000. Since and so sierra Leone has been classified as the poorest country in the world and ranks at the bottom of the United Nations phylogenesis Programme (UNDP) benignant victimisation Index.The addition in the rescue has been underpinned by broad convalescence in Agriculture, mining, manu accompanimenturing, edifice and the service bea.The deliverance of the estate continues to worsen in early 1992 when the civil turmoil started which ca engagements untold fatherings on humans and the spotless country. Many race were forced out of their houses and last became displaced persons and refugees in their take in country and neighbouring country like Guinea, The Gambia and Ghana. Almost all segments of the melody parsimoniousness collapsed including in impudenceing and contribute groundings. It was then the problems of result in economy worsen and every thing completely deteriorated and collapsed.The almost 11 old age of civil unrest ended in March 2002. The end of the contendf atomic spot 18 actually unmannerlys the entrance for a new beginning, for new stinting gro wth and prosperity in the face of peace and unity. The situation has recently turn be establish of the opinion puppy love faced by numerous of the world famous affirming institutions and Sierra Leone has non been any exceptions. The effect coupled with early(a) factors has created more gaps for depositing institutions to rear adds to dainty and medium enterprises. In a press set off from Prlog Dec. 15, 2008 by redbreast Trehan as quoted SMEs represent over ninety-nine part of the countrys usageers. fleck it is essential that these businesses r individually the unavoidable memorying to re chief(prenominal) active, they argon ofttimes the first to suffer when fiscal crisis hits. tills already set about monetary hardship oft deem SMEs as besides risky to finance. Credit end points be be flood tide increasingly harder and release for backing is discipline to much stricter guidelines. on that point atomic number 18 things that SMEs butt do, however, to growth their chances of finding pecuniary backing.1.2 Statement of the ProblemThe term credit in this thesis refers to an make sense or sum placed at a persons disposal by a hope and ordinarily to be repaid with affair within a given period of time. venial and strong point surface Enterprises (SME) is very primal in terms of the participating use of goods and service in the using of the orphic celestial sphere in Sierra Leone. The SMEs ar regarded as an engine for any economic growth and exploitation in any country.They skip opportunities for job founding and involution in the physiological re reflection of the economy especially for a send out war training country like Sierra Leone. Majority of the physical infrastructures ranging from housing, office constructs and business structures were all destroyed during the civil unrest. These structures aim to be reconstructed for the economy to grow and become prosper. Today many crook companies or firms vex emerged to assist in the rehabilitation and re verbal expression.While at that place may be roughly of the kink companies who live existed of years, it is also authorized that major(ip)ity of these wind companies be new ones who ar just coming up to dish and allow their expertise in the schooling of Sierra Leone. But however still, it is a challenge for many of these companies to adequately regard in the functioning of rehabilitation and re pull simply because they empennagenot derive the mandatory finance in the form of overdraft or bestows, or digest the necessary confirmative for the commits as required, making them less competitive.In Sierra Leone the performance of SMEs over the years has been very poor which is due to the fact that the debut of credit from the buzzwords which is an essential stimulant for private stationment in the mental synthesis industries has been grossly under performing. This is one of the reasons for poor performance of the economy in terms of growth in most evolution countries including Sierra Leone.Construction companies require not been able to access huge specie by mode of loan over the years from the tilling and some early(a)(a) monetary institutions, mainly due to omit of confidence in the private atomic number 18a as a result of problems like moral hazards and the absence of verificatory security and the lack of learn in construction engineering.1.3 Justification of the shootThe importance of the construction industries in the process of rehabilitation and reconstruction of the war towns in Sierra Leone cannot be over-empha coatd. During the war there was so much destruction of infrastructures in the country, straight off that there is peace there is steep deal for reconstructions and the development of new roads and structures to aid national growth. internationalistic brass sections like the International Monetary Fund (IMF), World desire, African Development Bank (ADB) mai n focus is to assist lower-ranking ordinary coat Enterprises (SME) in developing countries bring home the bacon strong fiscal foundation garment. It had been felt that SMEs employ majority of the practise force in the developing countries, therefore, they agree realise that when SME become monetaryly stable the economy of the nation result be better and that the citizens allow foring be able to live a favourable life.The utilisation of technical banks and former(a) financial institutions in private field development and the estimate of their overall performance in terms of economic growth and development has not received much of the attention by researchers. The central bank maintaining concern rate at high aim has greatly contributed to dissuade SMEs from adoption from retail banks and some other financial institution for coronation funds points.This is one of the reasons why most SMEs argon under developed. also mercantile banks ar baying for very sti ff conditions to access loan by the private welkin. A scan on the provision of credit to construction companies for investment towards economic growth has not been studied in greater detail by previous researchers. This among others, gave me the urge to probe into the activities of the commercial banks and other financial institutions in the creation of credit to construction companies in Sierra Leone,This study is to sponsor giving medication and other professionals as well as other s readyholders, to get fully the implications of credit refusal to beautiful and medium size of it enterprises and how it go forth equip the development of the nation. The result of this study is hope to alter banking and other financial institutions, local and national regimen and other stakeholders to thingmabob concrete ship canal by which puny and medium size enterprises can easily get access to credit to undertake construction programmes.1.4 Objectives of the studyThe main school of the study is to assess the implications of credit creations by the banks and other financial institutions to petty(a) and strong suit surface Enterprises with special focus on the Construction Industries for economic growth and development in Sierra Leone.The particularised objectives beTo set the extent to which banks gull been contributing to the development of the construction industries in Sierra Leone.To examine almost of the reasons liable for the in dexterity of the construction industries to solicit loans from the banks and other financial institutions for the purpose of investment.To produce reasons for the waver of the banking and other financial institutions to provide the much needed finances for private sector development.To examine the reasons for the reluctance of the banking sector to provide the much needed funds for SME in the construction industries for development, even though SMEs be regarded as the engine of economic growth.1.5 Research QuestionsCer tain research questions impart be drawn up for proper examination of this objective. These includeTo what extent do commercial banks provide funds to petty and Medium Size Enterprises in the construction Industries?What atomic number 18 the main problems encountered by the construction companies in terms of securing loans and overdrafts from the commercial banks?What is liable for the low investment of the private sector (SMEs) in Sierra Leone?What is the role of the central bank in facilitating credit creation for SMEs in the pursuit of development in Sierra Leone?What is the role of the administration ministry in the atomic number 18a of infrastructural developmental plans for Sierra Leone?The study allow make use of secondary data received from the Bank of Sierra Leone, mercenary Banks and some of the registered construction companies in Sierra Leone.The study result try to give the reasons for the constraints junior-grade and Medium size Enterprises ar facing in secu ring credit facilities from the banks. Interviews lead be conducted with senior officers of some(prenominal) the banking industries and construction sectors, together with government officers in the atomic number 18a of national development for the country.1.6 exposition of Operational term1. Credit globe Credit creation is the duplex expansions of banks select deposits. It is an open secret now that banks advance a major portion of their deposits to the borrowers and nourishment weenyer separate of deposits to the guests on command.2. suppose cap of the United States fortuity cap is the name given to beauteousness finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists unremarkably prefer to take a fold up participation in the business that is the subject of their investment. This could involve pickings part in c lack make by the business. Funds provided by move capitalist are often referred to as private capital.(Mclan ey E, 2003)3. Gearing short businesses are in a basically different position from that of the bear-sizedr one on the issue of gear wheel. financial risk to which capital gearing gives rise tends to emphasize operational risk, which will be present with or without gearing. infinitesimal businesses are more candid to financial risk than creation liability companies. (Mclaney, 2003)4. Bank and institutional Debt Long term loans are addressable from banks and other financial institutions at both fix and locomote interest rates, provided the offspring bank is positive(p) that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent to a higher place the base rate, depending on the sensed risk of the espousal gild. The issuing bank focussings an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the accessibility of additions of good quality to act a s security.A re hire inventory is often agreed between the bank and the borrowing companionship, structured to meet the specialised needs of the borrower and in accordance with the contribute policies of the bank. (Watson D guide on A, 2007)5. shelter the Banks sentiment A bank has brusk to lose and much to gain by taking security for a loan. A banks solicitor should shape that the borrower and any other company providing security make believe capacity to do so. (The company act 1989, prima facie, a company could pursue unless the objects for which its memorandum verbalize it was incorporated)6. protection the Borrowers Perspective It is often unmanageable for a borrower to indicate against a reasonable request for security. However, some borrowers will be contractually command from providing security by a invalidating pledge in a document to which they are already a party. Specialised summateing for financing a befuddle will evermore be secured over the asset or redact in question. (Adams D, 2006)7. immediate payment Flow Statements for downhearted Companies financial Report ensample (FRS1) prescribes a dressting for notes in diminish statements. Except for very infinitesimal companies, all companies are required to coordinate a cash fertilize statement for each(prenominal) accounting period. on that point are two approaches gettable under the well-worn the direct system which stages the run cash receipts and payments summing to the net cash meld from operating activities, and the indirect method which identifies the net cash fly the coop via reconciliation to operating profit. (Wood F, 2002).CHAPTER 2Literature Review2.0 IntroductionThe purpose of this chapter is to make a review of related literature on Small and Medium isze Enterprises and the understructure of Credit in the Construction Industry. With these literatures the researcher will make up a better understanding of the study, as well as what has alread y been do on it in the form of previous research.2.2 explanation of Small and Medium Size EnterprisesA business can be considered downcast on basis of predetermined criteria such as the number of employees, annual employee turnover or capital employed. In the late 1990s, it was estimated that niggling businesses with fewer than 50 employees accounted for 99 per cent of all UK business, almost 50 per cent of non government employment and 42 per cent of turnover. Small firms acquire become a focus for governmental policy at both national and intergovernmental level. Bolton in his report in 1971 identified three main characteristics of a midget firmwere independently owned The business securities are not quoted in any established capital merchandise that is they are not transactiond in the efficient market.were managed in a personalised way- The self- visualize of the businesss equity and hence its control lie in the hands of a weakened close knit-group that is it is a fami ly type business. have a moderate share of the essence market2.3 Nature of Small and Medium Size EnterprisesThe Bolton report, the first official government inquiry into shrimpy firms rendered to establish ensample definitions of runty firms for incident sector of exertion based on numerical indicators of size such as sales or number of employees. A firm with 250 employees in a get intensive sedulousness may still be a miniature firm. (Brown, 1987)Criteria for Small and Medium Size EnterprisesSize CategoryNumber of Employees utmost Annual dollar volume (euros)Maximum Balance balance sheet totalMicro riotous0 -92 billion euros2 zillionSmall tight10 4910 million euros10 millionMedium-sized potent50 24950 million43 million2.4 Objectives of Small and Medium Size EnterprisesIn SMEs the managers and the shareowners are credibly to be good the said(prenominal) person or at to the lowest degree closely machine-accessible with one another(prenominal). Thus agency pr oblems, and their potential associated costs, are apt(predicate) to have little or possibly no meet on the veritable(prenominal) subatomic business.Because of the elimination of agency gap, most managers of SMEs are shareholder they would make decisions future(a) a pure wealth-maximising death more ambitiously than would be the case in the typical adult enterprise. The motives of managers or owners of splendid businesses are diverse. These motives might be the desire to experience the satisfaction of building up a business, a desire to collar a detail way of life, or a desire to backup someone (perhaps family) usage alive.Since it is possible for managers to know the personal objectives of shareholders of minor(ip) business, decisions can belike be made with these in mind. Both large and itsy-bitsy businesses that makes a serial of decisions causing the wealth to diminish, will sooner or later fail. riches maximisation goal is very important to small business and c annot be ignored.2.5 Organisation of Small and Medium EnterprisesThe research will consider Small and Medium Size Enterprises in the construction industries that are arrange as private limited companies. According to Mclaney (2003) private companies need be of no minimum size public companies must issue at to the lowest degree 50,000 of nominal share capital, of which 25% must be paid up. There is no upper limit on the size of a private company.Private companies are entitled to restrict the point of their shares that is it is possible for the companys Articles of Association to contain a clause giving the directors the designer to refuse to register a transfer, at their discretion. While private companies must publish annual accounts, the volume of details is sooner less than that which the uprightness requires of public companies.2.6 Sources of finance for Small and Medium Size EnterprisesSeveral inquires have dealt with the financing of SMEs and each of these enquires dis c oatinged, to a greater extent, that small businesses find it more difficult and more expensive to put external finance.A particular problem faced by small businesses in their quest for equity capital is the lack of an exit route. primarily investors require that there be some way of liquidating their investment in the lead they are nimble to commit funds to it. A number of strategys have been introduced to dish up small businesses2.6.1. The loan Guarantee Scheme (LGS)as first introduced in 1981 to cover situations were potential borrowers were unable to provide sufficient collateral or where the bank deem the risk of lending unacceptable.2.6.2. The Enterprise enthronement Scheme (EIS) This scheme replaced the line of business Expansion Scheme (BES) and it is designed to protagonist small unquoted companies to raise equity finance from business angels2.6.3.The Venture ceiling Trust (VCT) The trust was introduced in 1995 to encourage individuals to invest in smaller, over-t he-counter trading companies. Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003)2.6.4. The Enterprise Fund (EF) it was proclaimed in the battle white paper in 1998 and is designed to care the financing of small businesses with growth potential.2.6.5. The National line of reasoning Angel Net bestow (NBAN) it was launched in 1999 to consort business angels with companies seeking equity capital2.6.6. The late payment of Commercial Debts (Interest) act 1998gives certain small businesses a statutory right to asseverate interest from large businesses and the public sector on late payment of commercial debts.2.7 GearingSmall businesses are in a fundamentally different position from th at of the big one on the issue of gearing. Financial risk to which capital gearing gives rise tends to mark operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies.(Mclaney,2003)2.8 answer and Advice to Small BusinessesOne of the major barriers faced by SMEs is the lack of reading, ease and advice on their operations. upstart initiative to improve this sphere includes2.8.1. The business association network organised in 1993 as a one tap shop for information and advice to SMEs. It brings together the run of major business development services in the single accessible location.2.8.2. The Enterprise Zone launched in 1997 as a definitive internet site for business information. It provides help on a whole range of business issues.2.8.3. The Information gild Initiative/Interforum E-Commerce grant launched in 1999 as part of governments e-commerce strategy. It is essentially an purenes s scheme to recognise and reward best do in the use of electronic trading among smaller firms.2.9 Bank and Institutional DebtLong term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007)2.10 Security the Banks PerspectiveA bank has little to lose and much to gain by taking securi ty for a loan. A banks solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated)2.11 Security the Borrowers PerspectiveIt is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D,2006)2.12 Working Capital Problems of the Small BusinessWorking capital is the difference between new assets over circulating(prenominal) liabilities. The issue forth invested by businesses in on the job(p) capital is often high in residuum to the total assets employed. It is important that these amounts are managed properly. It is often cl aimed that many small businesses suffer from a lack of capital and, where this is the case, tight control over working capital investment becomes critical. There are evidence, however, that SB are not very good at managing their working capital, and this has been cited as the major cause of their high failure rate compared with that of large businesses.2.13 Credit ManagementSmall businesses dont have the resources to manage their trade debtors (account receivables) effectively. Most small businesses dont have a credit control department. Small business also lack proper debt appealingness procedures, such as prompt invoicing and sending out regular statements.These risks probably tend to addition where there is an excessive concern for growth. In an attempt to increase sales, small businesses may be too willing to dilute credit to customers that are poor credit riskLack of market power is another issue for small businesses. They find themselves in a weak position when negotiating credit terms with larger businesses. When big customer exceeds the terms of credit, the small supplier may feel inhibited from military press the customer for payment in case future sales are lost. (A survey undertaken by the Credit Management Research Centre (CMRC) during April and June, 2003, indicates that small businesses are likely to have to wait an average of 60 days for their trade debtors to pay.2.14 money Flow Statements for Small CompaniesFinancial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit.(Wood F,2002)Credit concept2.15 definition of Credit Creati onThe BNET business dictionary defines credit creation as the collective ability of lenders to make money available to borrowers. Credit creation is the multiple expansions of banks demand deposits. Banks advance a major portion of their deposits to the borrowers and take smaller parts of deposits to customers on demand. The tendency on the part of commercial banks to expand their demand deposits as a multiple of their excess cash reserve is called creation of credit.2.16 Functions of Financial Intermediation in Credit CreationFinancial mediation is the process of channelling funds between those who wish to lend or invest and those who wish to borrow or require investment funds. Financial intermediaries act as principal, creating new financial assets and liabilities. They do not act alone as agents, charging a commission for their services. (The Monetary and Financial System-CIB/BPP Publication 1993 Edition) all institution standing between the final supplier of funds and the l ast user of funds is engaged in financial intermediation. There are many types of institutions and other organisations that act as intermediaries in matching firms and individuals who need finance with those who wish to invest. These institutions also provide other services which are non-intermediary services like financial advisory services, fund management services and advice to undertakers and mergers provider by merchant banks. Some of the organisation that acts as financial intermediaries is as follows2.16.1 Clearing Banks this bank participate in system which simplifies casual payment so that all the thousands of individual customer payments are trim to a few transfers of credit between the banks. They sally various accounts to investors and provide large amount of short to medium-term loans to the business sector and the personal sector. The work of these institutions can best be understood through a regard of the main details in their balance sheet.2.16.2 Clearing Bank Liabilities The money from the banks responsible comes chiefly from their customers sight and time deposits- mostly current and deposit accounts with which most people are familiar. An important additional item relates to certificates of deposit. These are issued generally for a medium amount of 50,000 and a upper limit of 500,000 with an initial term to maturity of from three months to five-spot years.Clearing Bank Assets Customers money is re-lent in a variety of ways. The main aim of the bank is to have a range of lending instruments of alter terms so that money can be recovered readily and yet, at the same time, earn the maximum return.2.16.3 Investment Banks / merchandiser BanksThe investment banks or merchandiser banks have some functions that they undertake2.16.3.i Financial Advice to Business FirmsFew manufacturing or commercial companies of any size can now afford to be without the advice of a merchant bank. Such advice is necessary in order to obtain investment capit al, to invest surplus funds, to guard against takeover, or to take over others. Increasingly, the merchant banks have themselves become activity intricate in the financial management of their business client and have had an enchant over the caution these affairs have taken.2.16.3.ii Providing Finance to BusinessMerchant banks also grapple in the services of leasing, factoring, hire-purchase and general lending. They are also the entre to the capital market for long-term funds because they are likely to have specified departments handling capital issues as issuing houses.2.16.4 Foreign massA lot of merchant bank are active in the promotion of foreign trade by providing marine insurance, credits, and assistance in appointing foreign agents and arranging foreign payments. Merchant bank is essentially in the general business of creating wealth and of helping those who show that they are overt of successful business enterprise. It is expected that merchant banks will operate with out the large branch network necessary for a illumination bank, they work closely with their clients and be more ready to take business risk and drive business enterprise than clarification bank.2.16.5 Building SocietiesThese take deposits from the household sector and lend to individuals buying their own homes. They have recently grown quickly in the UK and now provide many of the services offered by clearing banks. Over the years many have reborn to banks.2.16.6 Finance Companies/Houses Providing medium-term constituent credits to the business and personal sector. These are usually owned by business sector firms or by other financial itermediaries.2.17 service Provided by Financial InstitutionsFinancial institutions are organisations that provide services in connection with one or more of the following-Financial intermediation, linking ultimate providers of funds with ultimate users and creating new financial assets in the process.Exchanging financial assets on behalf of th eir customers, that is acting as brokers or agents for clients.Exchanging financial assets for their own accounts proprietary dealers, as they are termed.Helping to create financial assets for their customers, and then selling these assets to others in the market underwriting new share issues, for exampleProviding investment advice to others, example to people seeking a personal subsidy or to firms on mergers and takeovers.Fund management- managing the whole or part of a pension fund, for example some large non-financial companies have their own financial subsidiaries. In the United region Ford Motor Finance and Mark and Spencer Finance SeDevelopment of Credit Facilities in Sierra LeoneDevelopment of Credit Facilities in Sierra LeoneChapter 1This study is on the creation of credit facilities to Small and Medium Size Enterprises in Sierra Leone with special focus on the construction industries.1.1 Background to the Economy of Sierra LeoneSierra Leone is a relatively small country , on the West Coast of Africa with an area of approximately 28,000square miles. The estimated population is 5.5 million inhabitants, 30% of whom resides in the western area of the country according to recent census in 2006.The state of the countrys economy, immediately after independence from the British Colony in 1961 up to the 1970s, was quite all right in terms of performance. The exchange rate between the Leone and other foreign currencies was relatively good. More so, the British Pound Sterling was exchanged at One pound (1) to One Leone (Le1). The inflation rate was extremely low. The countrys earnings from exports were very much attractive, with Diamond export accounting for well over 50% of the countrys foreign exchange earnings. This was closely followed by cash crop exports such as Cocoa, coffee, oil palm, piassava and chillies. The countrys external debt position at this time was not high,Between 1972 to 1975, the economy started experiencing down turn that was mainly du e to external factors, such as the famous oil price shock in 1973. Naturally, the 1980 Organisation of Africa Unity (OAU) summit that was hosted by the government of Sierra Leone fuelled the debt crisis in Sierra Leone.Because of the foreign exchange scarcity in the country, the credit agreement between domestic importers and their business partners aboard collapsed. In 1988, the country was forced to devalue her currency.Between 1992 and 1994, Sierra Leone successfully implemented an adjustment program supported by the International Monetary Fund (IMF) under the Right Accumulation Program (RAP). The World Bank also supported the program through the Reconstruction of Import Credit (RIC) in 1992 and the Structural Adjustment Credit (SAC) in 1993. Following the successful implementation of the RAP, the IMF approved a three year arrangement support under Enhanced Structural Adjustment Facility (ESAF). The implementation of the first annual program was disrupted by the escalation of the rebel activities in 1995. With the return of democracy in 1996, the IMF supported the economic recovery program adopted by the new Government with a second annual program under the ESAF.Poverty intensified with real per capita declining to US$142 in 2000. Since then Sierra Leone has been classified as the poorest country in the world and ranks at the bottom of the United Nations Development Programme (UNDP) Human Development Index.The growth in the economy has been underpinned by broad recovery in Agriculture, mining, manufacturing, construction and the service sector.The economy of the Country continues to worsen in early 1992 when the civil unrest started which causes untold sufferings on humans and the entire country. Many people were forced out of their houses and eventually became displaced persons and refugees in their own country and neighbouring country like Guinea, The Gambia and Ghana. Almost all segments of the business economy collapsed including banking and lending ins titutions. It was then the problems of growth in economy worsen and every thing completely deteriorated and collapsed.The almost 11 years of civil unrest ended in March 2002. The end of the war actually opens the door for a new beginning, for new economic growth and prosperity in the face of peace and unity. The situation has recently worsened because of the credit crunch faced by many of the world famous banking institutions and Sierra Leone has not been any exceptions. The effect coupled with other factors has created more gaps for banking institutions to provide loans to small and medium enterprises. In a press release from Prlog Dec. 15, 2008 by Robin Trehan as quoted SMEs represent over ninety-nine percent of the countrys employers. While it is essential that these businesses obtain the necessary funding to remain active, they are often the first to suffer when financial crisis hits. Banks already facing financial hardship often deem SMEs as too risky to finance. Credit terms a re becoming increasingly harder and qualifying for financing is subject to much stricter guidelines. There are things that SMEs can do, however, to increase their chances of finding financing.1.2 Statement of the ProblemThe term credit in this thesis refers to an amount or sum placed at a persons disposal by a bank and usually to be repaid with interest within a given period of time. Small and Medium Size Enterprises (SME) is very important in terms of the dynamic role in the development of the private sector in Sierra Leone. The SMEs are regarded as an engine for any economic growth and development in any country.They provide opportunities for job creation and expansion in the physical reconstruction of the economy especially for a post war development country like Sierra Leone. Majority of the physical infrastructures ranging from housing, office buildings and business structures were all destroyed during the civil unrest. These structures need to be reconstructed for the economy to grow and become prosper. Today many construction companies or firms have emerged to assist in the rehabilitation and reconstruction.While there may be some of the construction companies who have existed of years, it is also true that majority of these construction companies are new ones who are just coming up to help and provide their expertise in the development of Sierra Leone. But yet still, it is a challenge for many of these companies to adequately involve in the process of rehabilitation and reconstruction simply because they cannot get the required finance in the form of overdraft or loans, or provide the necessary collateral for the banks as required, making them less competitive.In Sierra Leone the performance of SMEs over the years has been very poor which is due to the fact that the creation of credit from the banks which is an essential stimulant for private investment in the construction industries has been grossly under performing. This is one of the reasons for poo r performance of the economy in terms of growth in most developing countries including Sierra Leone.Construction companies have not been able to access huge funds by way of loan over the years from the banking and other financial institutions, mainly due to lack of confidence in the private sector as a result of problems like moral hazards and the absence of collateral security and the lack of experience in construction engineering.1.3 Justification of the StudyThe importance of the construction industries in the process of rehabilitation and reconstruction of the war towns in Sierra Leone cannot be over-emphasized. During the war there was so much destruction of infrastructures in the country, now that there is peace there is high need for reconstructions and the development of new roads and structures to aid national growth.International organisations like the International Monetary Fund (IMF), World Bank, African Development Bank (ADB) main focus is to assist Small Medium Size En terprises (SME) in developing countries gain strong financial base. It had been felt that SMEs employ majority of the work force in the developing countries, therefore, they have realised that when SME become financially stable the economy of the nation will be better and that the citizens will be able to live a comfortable life.The role of commercial banks and other financial institutions in private sector development and the assessment of their overall performance in terms of economic growth and development has not received much of the attention by researchers. The central bank maintaining interest rate at high level has greatly contributed to discourage SMEs from borrowing from retail banks and other financial institution for investment purposes.This is one of the reasons why most SMEs are under developed. Besides commercial banks are requesting for very stiff conditions to access loan by the private sector. A study on the provision of credit to construction companies for investm ent towards economic growth has not been studied in greater detail by previous researchers. This among others, gave me the urge to probe into the activities of the commercial banks and other financial institutions in the creation of credit to construction companies in Sierra Leone,This study is to help government and other professionals as well as other stakeholders, to grasp fully the implications of credit refusal to small and medium size enterprises and how it will affect the development of the nation. The result of this study is hope to enable banking and other financial institutions, local and national government and other stakeholders to device concrete ways by which small and medium size enterprises can easily get access to credit to undertake construction programmes.1.4 Objectives of the studyThe main aim of the study is to assess the implications of credit creations by the banks and other financial institutions to Small and Medium Size Enterprises with special focus on the Construction Industries for economic growth and development in Sierra Leone.The specific objectives areTo determine the extent to which banks have been contributing to the development of the construction industries in Sierra Leone.To examine some of the reasons responsible for the inability of the construction industries to solicit loans from the banks and other financial institutions for the purpose of investment.To establish reasons for the reluctance of the banking and other financial institutions to provide the much needed funds for private sector development.To examine the reasons for the reluctance of the banking sector to provide the much needed funds for SME in the construction industries for development, even though SMEs are regarded as the engine of economic growth.1.5 Research QuestionsCertain research questions will be drawn up for proper examination of this objective. These includeTo what extent do commercial banks provide funds to Small and Medium Size Enterprises in t he construction Industries?What are the main problems encountered by the construction companies in terms of securing loans and overdrafts from the commercial banks?What is responsible for the low investment of the private sector (SMEs) in Sierra Leone?What is the role of the central bank in facilitating credit creation for SMEs in the pursuit of development in Sierra Leone?What is the role of the Government ministry in the area of infrastructural developmental plans for Sierra Leone?The study will make use of secondary data received from the Bank of Sierra Leone, Commercial Banks and some of the registered construction companies in Sierra Leone.The study will try to reveal the reasons for the constraints Small and Medium size Enterprises are facing in securing credit facilities from the banks. Interviews will be conducted with senior officers of both the banking industries and construction sectors, together with government officers in the area of national development for the country .1.6 Definition of Operational Terms1. Credit Creation Credit creation is the multiple expansions of banks demand deposits. It is an open secret now that banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to the customers on demand.2. Venture Capital Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business that is the subject of their investment. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003)3. Gearing Small businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financia l risk than public liability companies. (Mclaney, 2003)4. Bank and Institutional Debt Long term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security.A repayment schedule is often agreed between the bank and the borrowing company, structured to meet the specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007)5. Security the Banks Perspective A bank has little to lose and much to gain by taking security for a loan. A banks solicitor should ch eck that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated)6. Security the Borrowers Perspective It is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D, 2006)7. Cash Flow Statements for Small Companies Financial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period.There are two approaches available under the standard the direct method which shows the operating cash receipts and payments summing to the n et cash flow from operating activities, and the indirect method which identifies the net cash flow via reconciliation to operating profit. (Wood F, 2002).CHAPTER 2Literature Review2.0 IntroductionThe purpose of this chapter is to make a review of related literature on Small and Medium isze Enterprises and the Creation of Credit in the Construction Industry. With these literatures the researcher will have a better understanding of the study, as well as what has already been done on it in the form of previous research.2.2 Definition of Small and Medium Size EnterprisesA business can be considered small on basis of predetermined criteria such as the number of employees, annual turnover or capital employed. In the late 1990s, it was estimated that small businesses with fewer than 50 employees accounted for 99 per cent of all UK business, almost 50 per cent of non government employment and 42 per cent of turnover. Small firms have become a focus for governmental policy at both national a nd intergovernmental level. Bolton in his report in 1971 identified three main characteristics of a small firmwere independently owned The business securities are not quoted in any established capital market that is they are not traded in the efficient market.were managed in a personalised way- The ownership of the businesss equity and hence its control lie in the hands of a small close knit-group that is it is a family type business.possessed a limited share of the total market2.3 Nature of Small and Medium Size EnterprisesThe Bolton report, the first official government inquiry into small firms attempted to establish standard definitions of small firms for particular sector of industry based on numerical indicators of size such as sales or number of employees. A firm with 250 employees in a labour intensive industry may still be a small firm. (Brown, 1987)Criteria for Small and Medium Size EnterprisesSize CategoryNumber of EmployeesMaximum Annual Turnover (euros)Maximum Balance b alance sheet totalMicro Firm0 -92 million euros2 millionSmall Firm10 4910 million euros10 millionMedium-sized Firm50 24950 million43 million2.4 Objectives of Small and Medium Size EnterprisesIn SMEs the managers and the shareholders are likely to be substantially the same person or at least closely connected with one another. Thus agency problems, and their potential associated costs, are likely to have little or possibly no impact on the typical small business.Because of the elimination of agency gap, most managers of SMEs are shareholder they would make decisions following a pure wealth-maximising goal more determinedly than would be the case in the typical large enterprise. The motives of managers or owners of small businesses are diverse. These motives might be the desire to experience the satisfaction of building up a business, a desire to lead a particular way of life, or a desire to keep someone (perhaps family) tradition alive.Since it is possible for managers to know the personal objectives of shareholders of small business, decisions can probably be made with these in mind. Both large and small businesses that makes a series of decisions causing the wealth to diminish, will sooner or later fail. Wealth maximisation goal is very important to small business and cannot be ignored.2.5 Organisation of Small and Medium EnterprisesThe research will consider Small and Medium Size Enterprises in the construction industries that are organised as private limited companies. According to Mclaney (2003) private companies need be of no minimum size public companies must issue at least 50,000 of nominal share capital, of which 25% must be paid up. There is no upper limit on the size of a private company.Private companies are entitled to restrict the transfer of their shares that is it is possible for the companys Articles of Association to contain a clause giving the directors the power to refuse to register a transfer, at their discretion. While private companies must publish annual accounts, the volume of details is rather less than that which the law requires of public companies.2.6 Sources of Finance for Small and Medium Size EnterprisesSeveral inquires have dealt with the financing of SMEs and each of these enquires discovered, to a greater extent, that small businesses find it more difficult and more expensive to raise external finance.A particular problem faced by small businesses in their quest for equity capital is the lack of an exit route. Generally investors require that there be some way of liquidating their investment before they are prepared to commit funds to it. A number of schemes have been introduced to help small businesses2.6.1. The loan Guarantee Scheme (LGS)as first introduced in 1981 to cover situations were potential borrowers were unable to provide sufficient collateral or where the bank deem the risk of lending unacceptable.2.6.2. The Enterprise Investment Scheme (EIS) This scheme replaced the Business Expansion Sc heme (BES) and it is designed to help small unquoted companies to raise equity finance from business angels2.6.3.The Venture Capital Trust (VCT) The trust was introduced in 1995 to encourage individuals to invest in smaller, unlisted trading companies. Venture Capital is the name given to equity finance provided to support new, expanding and entrepreneurial businesses. Venture capitalists usually prefer to take a close interest in the business. This could involve taking part in decision made by the business. Funds provided by venture capitalist are often referred to as private capital.(Mclaney E, 2003)2.6.4. The Enterprise Fund (EF) it was announced in the competitiveness white paper in 1998 and is designed to help the financing of small businesses with growth potential.2.6.5. The National Business Angel mesh (NBAN) it was launched in 1999 to connect business angels with companies seeking equity capital2.6.6. The late payment of Commercial Debts (Interest) act 1998gives certain sma ll businesses a statutory right to claim interest from large businesses and the public sector on late payment of commercial debts.2.7 GearingSmall businesses are in a fundamentally different position from that of the larger one on the issue of gearing. Financial risk to which capital gearing gives rise tends to emphasise operating risk, which will be present with or without gearing. Small businesses are more exposed to financial risk than public liability companies.(Mclaney,2003)2.8 Help and Advice to Small BusinessesOne of the major barriers faced by SMEs is the lack of information, help and advice on their operations. Recent initiative to improve this sphere includes2.8.1. The business link network organised in 1993 as a one stop shop for information and advice to SMEs. It brings together the services of major business development services in the single accessible location.2.8.2. The Enterprise Zone launched in 1997 as a definitive internet site for business information. It prov ides help on a whole range of business issues.2.8.3. The Information Society Initiative/Interforum E-Commerce Award launched in 1999 as part of governments e-commerce strategy. It is essentially an award scheme to recognise and reward best practice in the use of electronic trading among smaller firms.2.9 Bank and Institutional DebtLong term loans are available from banks and other financial institutions at both fixed and floating interest rates, provided the issuing bank is convinced that the purpose of the loan is a good one. The cost of bank loan is usually a floating rate of 3-6 percent above the base rate, depending on the perceived risk of the borrowing company. The issuing bank charges an arrangement fee on bank loans, which are usually secured by a fixed and floating charge, the nature of the charge depending on the availability of assets of good quality to act as security. A repayment schedule is often agreed between the bank and the borrowing company, structured to meet th e specific needs of the borrower and in accordance with the lending policies of the bank. (Watson D Head A, 2007)2.10 Security the Banks PerspectiveA bank has little to lose and much to gain by taking security for a loan. A banks solicitor should check that the borrower and any other party providing security have capacity to do so. (The company act 1989, prima facie, a company could pursue only the objects for which its memorandum stated it was incorporated)2.11 Security the Borrowers PerspectiveIt is often difficult for a borrower to argue against a reasonable request for security. However, some borrowers will be contractually prohibited from providing security by a negative pledge in a document to which they are already a party. Specialised lending for financing a project will always be secured over the asset or project in question. (Adams D,2006)2.12 Working Capital Problems of the Small BusinessWorking capital is the difference between current assets over current liabilities. The amount invested by businesses in working capital is often high in proportion to the total assets employed. It is important that these amounts are managed properly. It is often claimed that many small businesses suffer from a lack of capital and, where this is the case, tight control over working capital investment becomes critical. There are evidence, however, that SB are not very good at managing their working capital, and this has been cited as the major cause of their high failure rate compared with that of large businesses.2.13 Credit ManagementSmall businesses dont have the resources to manage their trade debtors (account receivables) effectively. Most small businesses dont have a credit control department. Small business also lack proper debt collection procedures, such as prompt invoicing and sending out regular statements.These risks probably tend to increase where there is an excessive concern for growth. In an attempt to increase sales, small businesses may be too will ing to extend credit to customers that are poor credit riskLack of market power is another issue for small businesses. They find themselves in a weak position when negotiating credit terms with larger businesses. When big customer exceeds the terms of credit, the small supplier may feel inhibited from pressing the customer for payment in case future sales are lost. (A survey undertaken by the Credit Management Research Centre (CMRC) during April and June, 2003, indicates that small businesses are likely to have to wait an average of 60 days for their trade debtors to pay.2.14 Cash Flow Statements for Small CompaniesFinancial Report Standard (FRS1) prescribes a format for cash flow statements. Except for very small companies, all companies are required to prepare a cash flow statement for each accounting period. There are two approaches available under the standard the direct method which shows the operating cash receipts and payments summing to the net cash flow from operating activ ities, and the indirect method which identifies the net cash flow via reconciliation to operating profit.(Wood F,2002)Credit Creation2.15 Definition of Credit CreationThe BNET business dictionary defines credit creation as the collective ability of lenders to make money available to borrowers. Credit creation is the multiple expansions of banks demand deposits. Banks advance a major portion of their deposits to the borrowers and keep smaller parts of deposits to customers on demand. The tendency on the part of commercial banks to expand their demand deposits as a multiple of their excess cash reserve is called creation of credit.2.16 Functions of Financial Intermediation in Credit CreationFinancial intermediation is the process of channelling funds between those who wish to lend or invest and those who wish to borrow or require investment funds. Financial intermediaries act as principal, creating new financial assets and liabilities. They do not act solely as agents, charging a comm ission for their services. (The Monetary and Financial System-CIB/BPP Publication 1993 Edition)Any institution standing between the ultimate provider of funds and the ultimate user of funds is engaged in financial intermediation. There are many types of institutions and other organisations that act as intermediaries in matching firms and individuals who need finance with those who wish to invest. These institutions also provide other services which are non-intermediary services like financial advisory services, fund management services and advice to undertakers and mergers provider by merchant banks. Some of the organisation that acts as financial intermediaries is as follows2.16.1 Clearing Banks this bank participate in system which simplifies daily payment so that all the thousands of individual customer payments are reduced to a few transfers of credit between the banks. They offer various accounts to investors and provide large amount of short to medium-term loans to the busine ss sector and the personal sector. The work of these institutions can best be understood through a consideration of the main items in their balance sheet.2.16.2 Clearing Bank Liabilities The money from the banks responsible comes chiefly from their customers sight and time deposits- mostly current and deposit accounts with which most people are familiar. An important additional item relates to certificates of deposit. These are issued generally for a medium amount of 50,000 and a maximum of 500,000 with an initial term to maturity of from three months to five years.Clearing Bank Assets Customers money is re-lent in a variety of ways. The main aim of the bank is to have a range of lending instruments of varying terms so that money can be recovered quickly and yet, at the same time, earn the maximum return.2.16.3 Investment Banks / Merchant BanksThe investment banks or Merchant banks have some functions that they undertake2.16.3.i Financial Advice to Business FirmsFew manufacturing o r commercial companies of any size can now afford to be without the advice of a merchant bank. Such advice is necessary in order to obtain investment capital, to invest surplus funds, to guard against takeover, or to take over others. Increasingly, the merchant banks have themselves become activity involved in the financial management of their business client and have had an influence over the direction these affairs have taken.2.16.3.ii Providing Finance to BusinessMerchant banks also compete in the services of leasing, factoring, hire-purchase and general lending. They are also the gateway to the capital market for long-term funds because they are likely to have specified departments handling capital issues as issuing houses.2.16.4 Foreign TradeA lot of merchant bank are active in the promotion of foreign trade by providing marine insurance, credits, and assistance in appointing foreign agents and arranging foreign payments. Merchant bank is essentially in the general business of creating wealth and of helping those who show that they are capable of successful business enterprise. It is expected that merchant banks will operate without the large branch network necessary for a clearing bank, they work closely with their clients and be more ready to take business risk and promote business enterprise than clearing bank.2.16.5 Building SocietiesThese take deposits from the household sector and lend to individuals buying their own homes. They have recently grown rapidly in the UK and now provide many of the services offered by clearing banks. Over the years many have converted to banks.2.16.6 Finance Companies/Houses Providing medium-term instalment credits to the business and personal sector. These are usually owned by business sector firms or by other financial itermediaries.2.17 Services Provided by Financial InstitutionsFinancial institutions are organisations that provide services in connection with one or more of the following-Financial intermediation, lin king ultimate providers of funds with ultimate users and creating new financial assets in the process.Exchanging financial assets on behalf of their customers, that is acting as brokers or agents for clients.Exchanging financial assets for their own accounts proprietary dealers, as they are termed.Helping to create financial assets for their customers, and then selling these assets to others in the market underwriting new share issues, for exampleProviding investment advice to others, example to people seeking a personal pension or to firms on mergers and takeovers.Fund management- managing the whole or part of a pension fund, for example some large non-financial companies have their own financial subsidiaries. In the United Kingdom Ford Motor Finance and Mark and Spencer Finance Se