IMPORTANCE OF BREAK-EVEN ANALYSIS FOR THE MICRO, SMALL AND MEDIUM ENTERPRISES

Authors

DOI:

https://doi.org/10.29121/granthaalayah.v8.i6.2020.502

Keywords:

CVP Analysis, Break-Even Point, Medium Enterprises

Abstract [English]

The current behaviour of Small and Medium Enterprises has to face many problems and the survey are predicted, 47 per cent of Small and Medium Enterprises stop trying. One of the causes is that there are still many small and medium businesses, from the beginning of opening their business up to now, they have never carried out an analysis of profit and loss calculations and a comprehensive calculation of how many product units should be made so that the business returns on capital by looking at production factors or resources used. Break-even analysis is a financial tool that helps decide at what stage a company, or new service or product, will be profitable, which is a financial calculation to decide the number of products or services that a company must sell to cover its costs (especially fixed costs). This research paper is the application of the theoretical concepts of CVP Analysis, Break-Even Point a powerful tool for planning and decision making. highlight costs, quantities sold and prices, which are the company's financial information.


 

Downloads

Download data is not yet available.

References

Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020). How are small businesses adjusting to COVID-19? early evidence from a survey (No. w26989). National Bureau of Economic Research.

Velavan, T. P., & Meyer, C. G. (2020). The COVID‐19 epidemic. Tropical medicine & international health, 25(3), 278. DOI: https://doi.org/10.1111/tmi.13383

Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., ... & Agha, R. (2020). The socio-economic implications of the coronavirus and COVID-19 pandemic: a review. International Journal of Surgery. DOI: https://doi.org/10.1016/j.ijsu.2020.04.018

Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: Impact on the Global Economy. Available at SSRN 3562570. DOI: https://doi.org/10.2139/ssrn.3562570

Loayza, N. V., & Pennings, S. (2020). Macroeconomic policy in the time of COVID-19: A primer for developing countries. DOI: https://doi.org/10.1596/33540

Rambo, C. M. (2013). Time Required to Break-Even for Small and Medium Enterprises: Evidence from Kenya. International Journal of Management and Marketing Research, 6(1), 81-94.

Wolmarans, H. P., & Meintjes, Q. (2015). Financial management practices in successful Small and Medium Enterprises (SMEs). The southern African journal of entrepreneurship and small business management, 7(1), 88-116. DOI: https://doi.org/10.4102/sajesbm.v7i1.8

Mbogo, M. (2011). Influence of Managerial Accounting Skills on SME’s on the Success and Growth of Small and Medium Enterprises in Kenya. Journal of Language, Technology & Entrepreneurship in Africa, 3(1), 109-132. DOI: https://doi.org/10.4314/jolte.v3i1.66602

Hanggraeni, D., Ślusarczyk, B., Sulung, L. A. K., & Subroto, A. (2019). The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises. Sustainability, 11(7), 2172. DOI: https://doi.org/10.3390/su11072172

Tyas, E. H., & Naibaho, L. (2019, November). The urgency of entrepreneurship learning in the industrial age of 4.0. In Journal of Physics: Conference Series (Vol. 1387, No. 1, p. 012032). IOP Publishing. DOI: https://doi.org/10.1088/1742-6596/1387/1/012032

Cvetkoska, V. (2016). A survey of the use of operational research in decisions made by micro, small and medium-sized enterprises in Macedonia. Croatian Operational Research Review, 349-365. DOI: https://doi.org/10.17535/crorr.2016.0024

Wiechetek, Ł. (2012). The conception of a time break-even point in information systems implementation in small and medium-sized enterprises. organizacja I ZARZĄDZANIE, 161.

Tyas, E. H., & Sunarto, L. N. (2020). Building Superior Human Resources through Character Education.

Hussain, A. S. M., & Jalal, A. B. M. (2015). Micro-Factors Influencing Site Selection for Small and Medium Enterprises (SMEs) in Saudi Arabia: Al-Hassa area using Analytical Hierarchy Process (AHP) Analysis. European Scientific Journal, 11, 115.

Eneh, O. C. (2009). Developing a holistic marketing approach for micro, small and medium enterprises (MSME) in Nigeria. Sustainable Human Development Review, 1(3), 25-50.

Brave, S. A., & Butters, R. (2011). Monitoring financial stability: A financial conditions index approach. Economic Perspectives, 35(1), 22.

Naibaho, L. (2019). The Effectiveness of Number Head Together Strategy on Improving Students’english Achievement at XYZ School. International Journal of Research-Granthaalayah, 7(10), 362-370.

Sintha, L. (2019). Bankruptcy Prediction Model of Banks in Indonesia Based on Capital Adequacy Ratio. Journal of Finance and Banking Review, 4(1), 8-16.

Batkovskiy, A. M., Semenova, E. G., Trofimets, V. Y., Trofimets, E. N., & Fomina, A. V. (2017). Statistical simulation of the break-even point in the margin analysis of the company. Journal of Applied Economic Sciences, Romania: European Research Centre of Managerial Studies in Business Administration, 12(2), 558.

Constandache, N. (2011). The Break-Even Point and the Leverage Effect–Instruments for Assessing the Economic and Financial Risk. Acta Universitatis Danubius. Œconomica, 7(6), 20-33.

Březinová, M. (2013). Representative indicators in process management monitored by small and medium-sized business in the south bohemian region. Finance a výkonnost firm ve věde, výuce a praxis.

Laitinen, E. K. (2011). Extension of break-even analysis for payment default prediction: evidence from small firms. Investment management and financial innovations, (8, Iss. 4), 96-108.

Nadeak, B., & Naibaho, L. (2019). Managing Lecturers’ Competence Development at Universitas Kristen Indonesia.

Sharma, K. D., Pathania, M. S., & Lal, H. (2010). Value chain analysis and financial viability of agro-processing industries in Himachal Pradesh. Agricultural Economics Research Review, 23(347-2016-16944), 515-522.

Nadeak, B., & Naibaho, L. (2020). The Effectiveness of Mastery Learning Technique on Improving Students’ability in Completing English National Examination. International Journal of Research-Granthaalayah, 8(2), 57-62. DOI: https://doi.org/10.29121/granthaalayah.v8.i2.2020.184

Onyango, L. (2018). An analysis of the effect of crowdfunding platforms in enhancing the financing sources for micro, small and medium enterprises (MSMEs) in Kenya (Doctoral dissertation, Strathmore University).

Sintha, L., Primiana, I., & Rahman, N. S. (2016). Bank health analysis based on risk profile, earnings and capital. Актуальні проблеми економіки, (7), 386-395.

Adamu, Y. (2018). Impact of Micro, Small and Medium Enterprises (Msmes) on Economic Growth In Nigeria: 1999-2017. JOS, 181.

Rola-Rubzen, M. F., Gibbs, J., Gabunada, F., Burritt, R., Altangerel, D., Rubzen, B., ... & Carter, A. (2011). Growing businesses in the desert: Case studies of Australian desert micro, small and medium enterprises.

Sintha, L. (2019). Model Earning Dalam Prediksi Kepailitan Bank. Journal of Banking and Finance, 1(1), 1-9.

Niu, E., Saediman, H., & Surni, S. (2016). Break-Even Analysis of Poultry Egg Production in Rural Area in Southeast Sulawesi. Binus Business Review, 7(3), 227-232. DOI: https://doi.org/10.21512/bbr.v7i3.1501

Joubert, P. (2004, June). Constraints and challenges of small and medium enterprises (SMEs') in Swaziland: a case analysis. In International Council for Small Business: 49th World Conference, Johannesburg, South Africa, June (pp. 20-23).

Naibaho, L. (2019). The Integration of Group Discussion Method Using Audio-Visual Learning Media Toward Students'learning Achievement on Listening. International Journal of Research-Granthaalayah, 7(8), 438-445.

Tahir, F. A., & Inuwa, F. U. (2019). An empirical investigation of the factors affecting micro, small and medium scale enterprises performance in Borno State, Nigeria. International Business Research, 12(4), 30-39. DOI: https://doi.org/10.5539/ibr.v12n4p30

Sintha, L. (2018). Financial Performance Banking Model in Indonesia Before and After Implementation of PBI No. 13/1/PBI/2011: Risk Profile Bank Regional Development. KnE Social Sciences, 937-951.

Downloads

Published

2020-07-10

How to Cite

Sintha, L. (2020). IMPORTANCE OF BREAK-EVEN ANALYSIS FOR THE MICRO, SMALL AND MEDIUM ENTERPRISES. International Journal of Research -GRANTHAALAYAH, 8(6), 212–218. https://doi.org/10.29121/granthaalayah.v8.i6.2020.502