3.

0 RESEARCH QUESTION,AIM AND STUDY OJECTIVES

3.1 Research Question

What are the factors that affect the financial performance of Solomon Islands Small Business
Enterprise Centre. (SISBEC)
3.2 Aim

The study aimed at examining the factors that affect financial performance of Solomon Islands
Small Business Enterprise Centre (SISBEC) in Honiara.

3.3 Study Objectives

1. To determine whether access to financing affects financial performance of SISBEC

2. To find out the effect of infrastructure on financial performance of SISBEC.
3. To investigate the influence of Management skills on financial performance of SISBEC.
4. To explore the effect of Policy environment on financial performance of SISBEC
5. To outline recommendations in addressing the issues affecting the financial performance of
Solomon Islands Small Business Enterprise (SISBEC).

4.0 Study Methodology

4.1 Introduction

This chapter described the techniques and procedures used in conducting the study. It comprised of
the description of the study design , study population, , methods of data collection and method of
data analysis Plan.

4.2 Study Design

This study will be quantitative in nature and will use descriptive case study research design. This
design is suitable as it allows an in-depth study of the factors affecting financial performance

of SMEs in Honiara. . According to Kothari (2004), a case study involves a careful and

complete examination of a social unit, institution, family, cultural group or an entire

community and embraces depth rather than breath of the study. A descriptive case study

is also advocated the study adopted a descriptive research design which according to

Orodho (2003) involves collecting information by interviewing or administering a

questionnaire to a sample of individuals. It is a method that drills down, rather than cast
wide. The case study provided the researcher with in depth information, which assists in

meeting the objectives of the study.

4.3 Study Population

The study used probability sampling method when collecting data. The most effective sampling
technique was stratified random sampling which was one of the sampling techniques under
probability sampling.

During data collection the targeted population for the study were the managers/administrators of
the SME’s, they were picked randomly from each strata to provide information on how
organizational factors have influence and impacted growth and performance of their company.

The study used probability sampling method when collecting data. The most effective sampling
technique was stratified random sampling which was one of the sampling techniques under
probability sampling. During data collection the targeted population for the study were the
managers/administrators of SISBEC they were picked randomly from each strata to provide
information on how organizational factors have impacted growth and
sustainability of their company (Cooper and Schindler, 2003).

4.4 Data Collection Method

Primary data was collected through the administration of questionnaires. This will be collected using
semi-structured questionnaire which comprised of both open and closed ended questions. The
questionnaire was based on a 5-point Likert scale. This scale was used to quantify responses on
items in the questionnaires. The 5-point Likert scale was adopted for the predictor and the predicted
variables. This scale was selected so as to ensure that respondents make a definite choice rather than
an inclination to a neutral response.

The questionnaire designed in this study comprised of four sections: Determine whether access to
financing affects financial performance of SISBEC, Determine the effect of infrastructure on
financial performance of SISBEC, Investigate the influence of Management skills on financial
performance of SISBEC, and Determine the effect of Policy environment on financial performance
of SISBEC in Honiara.
 4.5 Data Analysis Plan

4.5.1 Study Variables

4.5.1.1 Dependent Variable

4.5.1.2.0 Independent Variable

Variable Type Operational definition Measurement

scale
Socio-Demo Variables

 Age of person -Age as in years recorded Interval

 Education level -As per recorded Ordinal
 Gender -As per recorded Nominal
-Age as in years recorded Interval
 Age of Company
Inadequate SMEs
 Low Supply -Low financial performance Norminal
 Lack of Accounting Business -Low education level Norminal
Skills -Poor Recruitment of staff. eg.
 Poor marketing skills Recruit relatives not well educated Nominal
(wantok business)

Nominal
 Lack of working experience
Majority of staff were university
graduates without experience.

5.0 Ethical Consideration

Ethical considerations of this study will comply with the Code of Ethical Conduct for Research.
The researcher at all times has the duty to identify the ethical issues that are important in the
research and to act ethically at each stage of the research, as ethical issues may emerge and change
during the process of the research. The rights of all participants will be taken into consideration and
the participants will be assured that the researcher will take all conceivable steps to protect privacy
and confidentiality issues. An ethics application will be submitted to the Solomon Islands Health
Research & Ethics Review Board. (SHRERB) to ensure that this research fully complies with the
requirements of the SHRERB code of ethical conduct for Research.