Impact of Financing Techniques in Maintaining Profitability of Problem-Ridden Small Scale Bakery Industry; A Study on Selected Bakeries of Sylhet District

Abstract

The survival of small scale bakery industries depends on the profitability of their operation. As the industry is mainly labor intensive and need comparatively smaller capital, so the survival of such industry has a good impact on the national economy. The researchers analyzed the scale of operation; start up expenditures of different options, financing techniques, utilization of trade credit and capital turnover of 15 samples industrial units of different scales selected by stratified sampling techniques to get the insights of the problem of profitability and survival. The data were collected through a structured questionnaire and distributed among respondents. The collected data were processed through simple statistical and financial tools and techniques. From the analysis it is clear that the attitude of entrepreneurs must be changed from conservative to aggressive in financing to facilitates production and marketing, in utilization of trade credits to facilitates operation and in adopting managerial tools and techniques to ensure the profitability and survival.