Change Matrix week one assignment
What is change Matrix
CHANGE MATRIX FORM
Revised proposal and doctoral study review submissions must include a completed and signed change matrix
Note, the entries below are sample entries to show elements of a good change matrix entry
Title of Dissertation: Effective Strategies for Getting a Working Line of Credit for Small Businesses
Learner: Solomon Atamaya
Date: September 20, 2020
Chair Confirmation of Review Items Addressed
By providing an electronic signature (typed name), within the space below, the Chair is attesting that the submission meets all Walden University Proposal/Doctoral Study rubric requirements and the previously noted issues have been satisfactorily addressed and are ready for review.
I have verified that the Students original/revised submission meets all review criteria (and for revised editions) has adequately addressed the previous reviews feedback.
Chair: (Dr. Natalie Casale) Date: (Chair insert date that chair verified the change matrix aligned with the proposal/doctoral study)
Please note that papers submitted without the Chairs confirmation will be returned without further review.
Comment Number
Reviewers
Comment
Action taken and why
Original
Revised
Page Number
1.
You should note somewhere in the discussion that start up businesses never can get a loan through traditional financial intermediaries. Banks will not lend without collateral to a new business with no operating history. They want to see a minimum of 2-3 years personal and business tax returns and a solid business plan before loaning money.
Added sentence at end of paragraph
Han, Fraser, and Storey (2009) explored the theory of discouraged borrowers specific to the factors leading a borrower to become dispirited. Following an analysis of data on financing for U.S. small businesses, the researchers indicated that small business owners with riskier businesses were often less likely to apply for bank financing. Also introduced in Han et al.s findings was were the concept of information asymmetry which generally means in that, as bank transparency increased, the owners likelihood of applying for financing increased.
Traditional finance intermediaries are unavailable to start-up businesses, as banks will not lend to businesses with no operating history and no collateral. Instead, lending institutions require a solid business plan and a minimum of 2 years of personal and business tax returns.
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2.
Which? Cite more than one study—you said researchers plural?
Added citations
Some researchers have focused specifically on small business owners characteristics as the chief determinant of borrower discouragement.
(e.g., Han et al., 2009; Kon & Storey, 2003; Levenson & Willard, 2000)
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3.
This is a little ambiguous. Is exploring avenues to acquire financing the strategy itself. If so, be more specific.
Added introduction to sentence
Eggers and Lin (2015) identified one sustainability strategy to be exploring avenues to acquire financing for business continuity and growth.
From a study of existing data on small business owners in the United States and China, Eggers and Lin
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4.
You should discuss prior to this exactly what working capital management is, and why it is so critical to business operational success.
Revised sentence
As such, small business owners need a strategy to obtain a line of credit for working capital to sustain their business.
As such, small business owners who have a strategy to obtain a line of credit for working capital may be able to sustain their business.
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5.
This is very ambiguous. It is not clear what you are trying to say.
Break this up into shorter sentences.
I assume you mean to say something like
Small business owners may use personal funds for working capital needs (this is called paid in capital in accounting, and they may take out additional loans if available. To meet their short term obligations they may extend their payables, downsize their operations, cut staff and renegotiate loan terms with their lenders to try and salvage their business.
Revised sentence
Small business owners may use personal funds for working capital needs (i.e., paid in capital) and could take out additional loans, if available (FRB of New York, 2017). To meet their short-term obligations, they may extend their payables, downsize their operations, cut staff, and renegotiate loan terms with their lenders to try and salvage their business (FRB of New York, 2017).
Small business leaders may use personal funds, take out additional loans, make late payments, downsize operations, cut staff, and negotiate with lenders, possibly failing to meet debt obligations (FRB of New York, 2017).
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6.
What are the implications of these findings? Analysis?
Solomon: I dont see any change
At the time of the Small Business Credit interviews, more than 70% of businesses held outstanding debt, with 20% owing more than $100,000 (FRB of New York, 2017). Moreover, 34% of companies had increased debt levels from the prior year, with 19% of leaders expecting their debt level to rise the following year (FRB of New York, 2017). Business leaders looking for funds expressed needing to finance for business and operating expansion (FRB of New York, 2017).
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7.
Summarize your discussions.
Synthesize and summarize. What does it all mean?
Added a sentence at the end
Types of external funds pursued included a line of credit, credit card, equity investment, trade credit, leasing, and factoring, with 86% of leaders applying for business loans or lines of credit (FRB of New York, 2017). Among the applicants who sought financing, 76% received some credit and 40% received the full amount.
The findings indicates the sustainability of small businesses in the United States depends on creditors and other external lenders.
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8.
What does this have to do with the prior paragraph?
A past working relationship may be a component of a successful application for financing.
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9.
What were they? One of the ways to demonstrate subject matter mastery is to discuss/analyze/summarize the findings from the studies you are reviewing. Some other tips below:
From a review of company documents and data analysis from semistructured interviews with six business owners, Smith identified six themes regarding successful strategies the participants used.
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10.
Analysis.
Scholars have looked beyond bank financing to uncover other means for small business owners to sustain operations beyond 5 years (e.g., Brooks, 2019). Three small business owners participated in face-to-face, semistructured interviews to discuss strategies they used for business continuity (Brooks, 2019). Data analysis indicated five themes, including sufficient start-up funding, access to private lenders, and business owners motivation and awareness (Brooks, 2019).
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11.
Information asymmetry is only 1 of a myriad of reasons small businesses are denied loans.
When lenders tighten access to credit because of information asymmetry
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12.
They cannot ease loan constraints but they can and do negotiate better, less restrictive loan covenants. You should be familiar with these.
small business leaders need a workable strategy to ease loan constraints
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13.
Sounds good but what does this mean in your words? Analysis?
Strategically, visionary leaders understand the business needs, identify initiatives, and set directions for business growth (Simon-Moya & Revuelto-Taboada, 2015).
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14.
You should discuss doing a SWOT Analysis, and a Porters 5 Forces analysis
By carefully assessing the companys current state and future outlook, small business leaders can improve their odds in acquiring the desired funds.
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15.
Explain why please. Why does information asymmetry limit financial institutions?
Information asymmetry limits financial institutions in providing external financing because of a high transaction cost (Njeru et al., 2013). Should bank leaders decide to issue the loan, they will do so at a higher interest rate because of the information asymmetry risk (Caporale & Gil-Alana, 2016); therefore, small business owners need to have a good credit history to secure loans when they need working capital. Small businesses are more vulnerable to market conditions than are large corporations (Sahin et al., 2011).
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16.
Elaborate. Explain findings in detail.
To explore the concept of credit rationing, Ata et al. (2015) looked at 77 manufacturing firms that applied for a corporate loan in 2013. Logistic regression and discriminant analysis enabled an evaluation of the credit reasoning of lenders, with firms falling into either the credit-rationed and noncredit-rationed category.
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17.
The requirements are straight forward but often missed in the Participants heading. Consider the explanations in the following table.
Not clear feedback/ direction; no changes made
Participants section
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18.
This heading is an extension of the Nature of the Study. The first paragraph of the Nature of the Study required a description of and justified the methodology. Here you will extend that discussion by providing more information and additional resources. Be sure to include at least three sources for each decision you make.
Nature of the Study section
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19.
2.5 Research design: A vital prerequisite for a valid qualitative study is having a plan to ensure data saturation. Data saturation in qualitative research ensures the validity in a qualitative study similar to a statistically valid sample in a quantitative study. See more on data saturation in the Population and Sampling heading below.
How to Use Three Sources
Specifically stating three sources is one way to make it clear to the reviewers that you have mapped to the Rubric. However, what the reviewers are looking for is that students have done the required reading to justify the choice of research design that will best assist collecting data to answer the research question. Rather than list name-date, name-date, name-date repeatedly, one would synthesize the concepts into one cohesive whole supported by sources in a somewhat indirect manner. For example:
Case studies are the preferred strategy researchers employ when asking how or what questions (Amerson, 2011; Andrade, 2009; Yin, 2009). These types of studies identify operational links among events over time (Andrade, 2009; Baxter & Jack, 2008; Yin, 2009). Case studies may be exploratory, explanatory, or descriptive and may involve one organization and location or multiple organizations and locations for a comparative case study (Amerson, 2011; Stake, 1995; Yin, 2009).
Research Design section
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