Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Supplier's Credit: A Catalytic Force for Entrepreneurial Growth and Community Development

Oko Agha Christopher, Benson Abraham Sunday

Abstract

This paper explores the role of supplier's credit as a financing alternative for entrepreneurs, with a focus on its potential to catalyze entrepreneurial growth and community development. Examining the experiences of entrepreneurs who have utilized supplier's credit to access financing in underserved communities and investigating the impact of supplier's credit on entrepreneurial growth and community development outcomes, the study intends to further examine the experiences of entrepreneurs who have utilized supplier's credit to access financing. Findings suggest that supplier's credit can provide a vital source of funding for entrepreneurs, particularly in underserved underdeveloped rural communities, and can have a positive impact on business growth and job creation. Further findings also identify key factors that influence the effectiveness of supplier's credit in driving community development, including the quality of supplier- entrepreneur relationships, the flexibility of credit terms, and the presence of supportive ecosystem infrastructure. The paper concludes by highlighting the implications of our findings for policymakers, entrepreneurs, and suppliers seeking to leverage supplier's credit as a tool for catalyzing entrepreneurial growth and community development.

Keywords

supplier's creditentrepreneurial financecommunity developmentsmall business

References

: Acs, Z. J., & Audretsch, D. B. (2003). Handbook of entrepreneurship research. Springer. Baumol, W. J. (2010). The microtheory of innovative entrepreneurship. Princeton University Press. Burkart, M., & Ellingsen, T. (2004). In-kind finance: A theory of trade credit. American Economic Review, 94(3), 569-590. Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95-S120. Cumming, D., & Johan, S. (2017). Entrepreneurial finance: A survey of the literature. Journal of Corporate Finance, 43, 441-453. Cunat, V. (2007). Trade credit: Suppliers as debt collectors and insurance providers. Review of Financial Studies, 20(2), 491-527. Ferris, J. S. (1981). A transactions theory of trade credit use. Quarterly Journal of Economics, 96(2), 243-270. Giannetti, M. (2003). Do better institutions mitigate agency problems? Evidence from corporate finance choices. Journal of Financial and Quantitative Analysis, 38(1), 185-212. Ledgerwood, J. (2013). Inclusive finance: Why it matters and how to achieve it. Journal of International Development, 25(6), 761-774. Moyo, D. (2018). Dead aid: Why aid is not working and how there is a better way for Africa. Farrar, Straus and Giroux. OECD (2019). Financing SMEs and entrepreneurs: An OECD scoreboard. Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35-67. World Bank (2020). High-growth firms: Facts, fiction, and policy options for emerging economies

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa