PERFORMANCE INDICATORS FOR TOWNSHIP SMES IN THE INFORMAL ECONOMY: A QUALITATIVE STUDY

The sustainable development of tourism destinations relies much on Small and Medium Tourism Enterprises found within Local Government Authorities (LGAs). However, tourism destinations have recently being experiencing an increase of population and social economic activities. This situation creates more demand of the land among stakeholders in particular tourism business. Contrary to lager tourism companies Small and Medium Enterprises(SMTEs) has found to be in a less advantageous position in acquiring land from destination which impairing their growth. Thus, land at the destinations is often regarded as one of the constraints for tourism development. The purpose of this study therefore was to examine the role of Local Government authorities in facilitating land management in tourism destinations particularly considering the effects upon the SMTEs growth. The study was guided by stakeholders’ theory. Using census survey design 232 questionnaires were collected from SMTEs owners/managers at Mto wa Mbu ward in Monduli District. Multiple linear regression was used to determine the relationship between the dependent variable, SMTEs growth and five independent variables. The results strongly confirm the put forward hypothesis “Local government Authorities role in facilitating management of land interests has statistically positive influence on SMTEs growth”, Moreover, five independent variables: land committee, by- law, land allocation, land law and Land policy have statistically significant impact on the growth of small business. Therefore, the theoretical and practical implications of this study refer to stressing the need and important role of LGA’s in managing stakeholders land interests for local tourism that can stimulate the growth of small business within the destination. The study recommends empowerment of Local government Authorities in terms of legal framework to be part in the management regime of local tourism for sustainable development. Keywords: Tourism, SMTEs growth, land policy, Land allocation DOI: 10.7176/JAAS/67-04 Publication date: August 31 st 2020

Over the years, small and medium enterprises (SMEs) have been considered as engines of growth. This has indeed been observed from available survey data from the World Bank and other development institutions. Access to finance has been recognized as a major factor affecting the growth and success of SMEs all over the world. Small and medium enterprises (SMEs) financial constraints limit their investment opportunity and stagnant growth. Therefore, a quest to find a solution to this necessitated the establishment of Development Banks which is saddled with the responsibility of making credit available to SMEs. Hence, the main objective of this study is to examine the impact of Development Bank credit financing on the growth of SMEs. A Survey research design was employed, 398 SMEs were randomly selected from the beneficiaries of Development Bank of Nigeria (DBN) loans. Binary logistic regression was employed to test the stated hypothesis. The estimated logistic regression showed that variables such as (HSBC) which is an increase in sales of the MSMEs and support and service training for SMEs before loans impacted positively and significantly on the profitability of the SMEs given their beta coefficients of (β)=0.570, 0.384 respectively. Their level of significance is shown by their respective p-values and Wald statistics of 0.049, 0.099, 3.889, and 2.7240. These show that the variables are barely significant at 10%. However, all the other variables such as the age of the entrepreneur (AGE), gender of the entrepreneur (GENDER), amount of loan received (AOLR), and proportion of loan utilized (POLU) do not have a significant impact on the profit of the entrepreneurs.

The main, underlying constraint to the growth of Small and Medium Enterprises (SMEs) is a lack of corporate governance (CG) structure (Mahmood 2014). In considering the UK- Department for Business Innovation and Skills report (2012), this constraint is described as one of the fundamental problems holding back the growth of SMEs. The report states it is this lack of leadership and management capability that should be present, to drive performance and enable them to succeed. However, statistics support the indispensable role that SMEs perform in a country’s economy and when the significance of this sector is taken into account, the role that CG and its practices play within SMEs has to be clearly understood (Le Roux, 2010). Due to SMEs survival and growth being dependant on their good business leadership and corporate governance, the ability to lead, manage, and take full advantage of the resources available have, in recent years, been highlighted on global public platforms and the media. It has further been acknowledged, through prior research studies on SMEs that, for a business to be successful, the critical role of leadership and good CG has to be fully understood. The purpose of this paper is to report on South African public perceptions of leadership and corporate governance of SMEs. The study aimed to analyse and evaluate these perceptions towards SME owner/managers and their consequences, on the survival and growth of SMEs. A mixed method approach allowed for qualitative and quantitative techniques in collecting data from individual participants, with primary data collected from nine provinces of South Africa, and 180 participants as the sample. The research instrument consisted of closed-ended, questionnaires made up of 5-point Likert scale responses and 20 questionnaires were distributed to each province. Delivery of the questionnaires was done through email to individual respondents, with follow–up via telephone calls. The research findings indicate that most respondents believed that the growth and survival of SMEs is, due to the lack of business leadership and poor CG. In addition, respondents agreed that SME owners/managers are just average entrepreneurs, as they do not have leadership qualities or skills and that CG does not exist in many SMEs, particularly in South Africa. The paper’s benefit will be to the owners/managers of SMEs, as well as, policy makers and financial agencies for SMEs. It is recommended that further research, with a larger sample size, be drawn from various townships

Small and Medium Enterprises (SMEs) are considered a seed-bed of entrepreneurship and innovation in most emerging economies; nevertheless, SMEs sometimes lack an enabling business climate, which hinders their potential growth. This paper examines the effect of corruption and bureaucracy on SMEs growth in the Kumasi Metropolis of Ghana. The study was a quantitative research, and convenience sampling method was employed to select 373 owners/managers as respondents for the study. Employing questionnaire as its main data collection instrument, the study used Gretl version 3.0 Statistical Software for the analysis of data collected. The results of the study revealed that 1% increase in corruption in the SMEs sector leads to 36.12% decline in SMEs growth (sales and employment), and 1% increase in bureaucracy leads to 28.76% decrease in the growth of SMEs. An interesting outcome of the study was that the excessive bureaucratic bottlenecks in the SMEs sector are implied by corruption. We, therefore, conclude that there is a significant negative relationship between corruption and bureaucracy and SMEs growth. It is, therefore, recommended that the government takes a giant-step to fight corruption in the SMEs sector by ensuring transparency and accountability of public officials and also streamline its systems and activities in the sector to reduce the excessive administrative barriers. The present study adds substantial value to the body of research on SMEs as it is the first research to have considered the joint effect of corruption and bureaucracy on SMEs growth in an emerging economy like Ghana. Published In: Munyoki, Bode (Eds.): Universities, Entrepreneurship and Enterprise Development in Africa - Conference Proceedings 2017. Nairobi, Kenya, 19. July 2017

Small and Medium Enterprises (SMEs) contribute over 70% of jobs, contribute to GDP, aid industrial development, satisfy local demand for services, innovate and support large firms with inputs and services. However, the SMEs in Mombasa County are constantly faced with the threat of failure where three out five fails at infancy. The study investigated the influence of economic factors (taxation, finance access and wages and unemployment) on growth of SMEs in Kenya, in Mombasa County. The specific objectives of the study were; to explore the effect of taxation on growth of SMEs, to find out the effect of Financial Access on growth of SMEs, to determine the effect of wages on growth of SMEs operating, and to evaluate the effect of general unemployment on growth of SMEs operating in Mombasa County. This study employed the institutional theory of growth, the Schumpeter theory of growth and the Endogenous growth theory anchored the study. An explanatory research design was used so as to meet the research objectives. The target population was 54,245 registered SMEs and a sample size of 246 was derived using the Cochran, statistical formula. The list of registered SMEs in Mombasa formed the study population. A Systematic Random Sampling was used from a sample of 246 SMEs was drawn. Data was collected using a structured questionnaire. Multiple regression Analysis technique was the main technique to find the effect of social economic factors on SME growth. to analyze the data using the Statistical Package for Social Sciences with a significance level set at 0.05. Findings showed that SE conditions are just modest level. Correlation results showed that Taxation conditions (r=.344, p=.000), Financial Access (r=.430, p=.000), Wages affordability (r=.241, p=.000) are positively and significantly correlated with SME growth. Regression results showed that SE factors; Taxation conditions (=.268, p=.000), Financial Access ( =.383, p=.000), Wages ( =.182, p=.015) and Unemployment ( = -.170, p=.045) has significance effect on SMEs growth. Conclusions; Socioeconomic can reverse the current trend of high SMEs failure rate. Socioeconomic factors can buck the present trend of a high failure rate among SMEs. The study recommended that the county and national governments should implement measures enhancing tax benefits for SMEs such as utilizing the taxes prudently. Additionally, the SMEs should adopt strategies that enhance internal financial capabilities so as to incase their revenue streams. Moreover, it is recommended the SMEs to have a working and sustainable wage policy that is able to attracts and keeps talented workforce and therefore ensure continued business growth. By using a multi-sectoral approach, both local and national governments should prioritize and focus on short- and long-term policies that lower the rising rates of unemployment.

Small and medium enterprises (SME) play a very important role in our day to day lives; they drive a countries economy, shape the world’s economy and as a result make life easier, as a matter of fact flourishing organizations show how well a developing nation is doing. The purpose of this study was to uncover the effects of strategic management Practices on growth of Small and medium enterprises in Kitui south sub county. The study assessed the effect of corporate governance, strategic planning, corporate social responsibility and innovation and technology on growth of Small and medium enterprises in Kitui south sub county. The study is grounded on agency theory, resource-based theory, stakeholder theory and innovation diffusion theory. The study adopted a descriptive research design. The target population was owners and employees of Small and medium enterprises operating in Kitui south sub county. The sample frame for the study was drawn from Small and medium enterprises operating within Kitui south which are 418 registered SME’s. From this a sample size of 83SME’s was chosen using simple random sampling technique. To facilitate the process of data collection, questionnaires which contain structured and opened ended questions, were issued to the respondents and informal interviews was also conducted so as to ensure data accuracy. The data collected was then analyzed using descriptive and inferential statistics with Statistical Package for Social science (SPSS) and Microsoft Excel as tools of analysis. The data analysis involved tables, charts, frequency distribution charts, percentages, regression analysis and standard deviations and the data was presented inform of tables and figures. The study findings revealed that, all the four elements of strategic management practices considered in the study that is; Innovation and Technology (IT), Strategic Planning (SP), Corporate Governance (CG), Corporate Social Responsibilities (CSR), explain about 47.6% of the growth of small and medium enterprises in Kitui South Sub County, as represented by the Adjusted R Square coefficient of multiple determinant = 0.476. The study further found that innovation and technology had the greatest influence on growth of SME’s in Kitui county, it iterates that corporate governance has a positive influence on and that there is a strong relationship between corporate social responsibility and growth of SME’s. Based on the results of the study, it is recommended that SME owners should consider having a well written down strategy for their SME to grow and their CSR activities to be enhanced in order to have a positive influence on the growth of the SME and business. This study recommends that further research be carried out targeting the small owner-managed companies as well as other organizations in Kenya to enable generalization of findings.

Small and Medium Enterprises (SMEs) are crucial in global economic growth, job creation, and innovation. However, many SMEs, particularly in developing regions, continue to face challenges that hinder their growth, and the contribution of social resource orchestration to SME growth has not been adequately investigated. This systematic review synthesises the research stream to clarify the impact of social resource orchestration on SME growth and its mechanisms. The studies were evaluated using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. Results indicate that most studies were conducted in the Global South, particularly in Africa and Asia. The studies consistently highlight the importance of social resource orchestration in shaping SME growth. Social networks, including relationships with customers, partners, and financial institutions, positively influence various SME outcomes, such as business growth, innovation, and economic performance, with effect sizes showing moderate to strong positive associations. However, direct links to SME growth were implied rather than explicitly stated. This analysis signals that while social networks are valued for improving performance metrics, the pathway to sustained growth through social resource orchestration requires further research. Addressing this gap could clarify how specific orchestration strategies support SMEs' growth.

Background: This study investigates the influence of intrinsic motivational factors for small and medium enterprise (SME) growth in the eThekwini District Municipality in South Africa (SA). Aim: It examines whether self-motivation of business owners operating in the furniture manufacturing sector has an influence on SME growth. Setting: Of the 127 SMEs operating in the eThekwini District Municipality, 112 participated in the study representing 88% of the target population. Methods: Descriptive, chi-square and correlative analyses were used to test the two objectives. That is, to determine the influence of self-motivation of business owners for SME growth, as well as to establish the intrinsic motivational factors that stimulate creativity for SME growth. Results: The study revealed that the intrinsic motivational factors of business owners do influence SME growth in SA. These factors include exerting effort for business growth interest, finding new solutions to business problems to achieve growth, growing business for recognition, belief to produce the desired outcomes, taking responsibilities for business expansion, the need for advancement, and growth aspiration that enables the business owner to take risks in order to grow the business. Conclusion: The outcome is that a self-motivated business owner has the ability to grow the business. The study provides valuable data relating to intrinsic motivational factors. Such factors are the enablers of creativity and business growth. It provides initial baseline data upon which to base future work.

Small and medium enterprises (SMEs) are seen as a vehicle for employment generation, wealth creation, economic growth and development in countries that have a sound investment climate. SMEs, account for approximately one-third of GDP, over 50% of the value added, 99% of the share of total registered enterprises, and represent 60% of total employment in the Czech Republic. In the light of this background, the paper explores the influence of some macroeconomic variables on SMEs growth in the Czech Republic for the period 1995–2013. In order to assess the impacts of these critical macroeconomic variables (e.g., rate of unemployment, economic growth, credit provided by the financial sector) on SMEs growth, we employed an econometric technique. Our findings suggest a concave relationship between unemployment and SMEs growth in the Czech Republic. More precisely, it signifies that beyond a turning point, unemployment is likely to slow down SMEs growth in the country. Our results further hint at a positive relationship between economic growth and SMEs growth. However, our empirical estimates showed an insignificant relationship between domestic credit provided by the financial sector and SMEs growth in the country. The government of the Czech Republic should continue to provide an enabling investment climate and support for bolstering a sustainable SMEs development within the country. Similar to the extant literature, we have also implored the Czech government to do more with regard to the provision of easier access and affordable credits/loans to SMEs. We have also called for the reduction of bureaucratic bottlenecks that might have to do with SMEs legislations in the country.

We investigate whether firms have incentives to retain their status as small and medium enterprises (SMEs) to benefit from various SME policies. To examine this issue, we use the exogenous changes in the SME Basic Act in Japan. The SME Basic Act describes aims of SME policies in Japan, which involve enhancing the growth of SMEs using policy. The Act also contains the requirements and definitions of SMEs that are the target of the policies. Only firms that satisfy the definitions of SMEs under the SME Basic Act can participate in the SME policy programs in Japan. The requirements regarding capital stock in the SME Basic Act were changed in 1999. By focusing on the change in the requirements for capital stock as an exogenous event, we show that firms are less likely to increase their capital stock so that they can continue to satisfy the requirements that retain their status as SMEs. Furthermore, firms that increase their capital stock increase their size. As firms have a disincentive to increase capital stock so that they can keep their SME status, this indicates that the SME requirements are significant constraints on firm growth. Many studies show that individual SME policies (such as R&D subsidies and public credit guarantees) stimulate firm growth and activities that are consistent with the aim of these SME policies. Although the purpose of the SME Basic Act is the enhancement of the growth of SMEs, we show that the requirements under this law impede the growth of SMEs.

PurposeThe purpose of this paper is to establish the moderating effect of financial literacy in the relationship between access to finance and growth of small and medium enterprises (SMEs) in developing economies. Thus, this study seeks to establish whether financial literacy moderates the relationship between access to finance and growth of SMEs in a developing economy like Uganda.Design/methodology/approachCross-sectional research design was used in the study and data were collected from 169 SMEs located in Jinja and Iganga central markets. ModGraph (excel programme) was used to test for the moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies.FindingsThe findings reveal a positive and significant moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies. In addition, financial literacy and access to finance also have significant and positive effects on growth of SMEs in developing economies.Research limitations/implicationsThe study collected data from only SMEs located in Uganda, and there is an opportunity to test this finding in other developing economies. Furthermore, the findings from the study are based on quantitative data collected through use of semi-structured questionnaires. Besides, the study was purely cross-sectional; hence, it ignores the characteristics of SMEs, which could be investigated using a longitudinal study design.Practical implicationsThe study highlights the importance of financial literacy in promoting access to finance, which is necessary for the growth of SMEs in developing economies. Owners of SMEs could attend financial literacy programmes provided by entrepreneurial skill development organizations to enable them to acquire financial knowledge and skills to make wise and better financial decisions and choices.Originality/valueThe study contributes to existing international entrepreneurship literature by indicating the moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies. The study shows that for SMEs to access finance to grow there is a need for financial literacy that promotes effective and efficient use of loans/credits. SMEs in developing economies need financial literacy, which helps them make wise financial decisions and choices before accessing financial services like loans.

Owing to the growing inability of the state to provide employment for citizens globally, SME growth now appeals to many people as the solution to employment generation and by implication, economic growth and development. Flowing from the capabilities based view (CBV) theory, this study investigated SME competitiveness and employment creation to explain how SME competitiveness can contribute to national income through employment creation using SME growth as a mediator. The design was a cross-sectional survey of 93 respondents from SMEs in Nigeria. The study used a structured questionnaire to collect the research data and used structural equation modelling to analyse the data. The results indicate that product innovation and product differentiation have significant relationships with employment generation owing to their capacity to enhance SME growth. Secondly, SME growth mediates the relationship between SME competitiveness (product differentiation, innovation and imitation) and employment generation. This study differs from previous ones through its use of product line, innovation, differentiation, and imitation in a single framework to operationalise SME competitiveness as well as the mediation of the relationship between SME competitiveness and employment generation with the growth rate of SMEs. In addition, the study makes a theoretical contribution through the use of a firm’s activity based capabilities to demonstrate its competitiveness.

In the context of Nigeria, where the average lifespan of businesses is limited to approximately five years, addressing and overcoming challenges has become a critical imperative. This study underscores the pivotal role of business diagnostics in supporting the growth and sustainability of businesses, particularly Small and Medium Enterprises (SMEs), in Nigeria. Specifically, it investigates how SMEs in Nigeria employ diagnostic tools, such as SWOT analysis, to discern their strengths, weaknesses, opportunities, and threats. Utilizing a qualitative research methodology, the study employs a structured, open-ended questionnaire as the primary data collection instrument, with a sample of fifteen strategically chosen SMEs participating in a specialized course at a business school. Purposive sampling ensures diversity among the selected SMEs, enriching the depth of the collected data. The structured, open-ended questionnaire allows participants to express their perspectives, facilitating in-depth responses freely. Thematic analysis is applied to identify patterns and insights within the qualitative data, providing nuanced answers to the research questions. The findings underscore that business diagnostics significantly contribute to the effective management and growth of SMEs in Nigeria, illuminating the potential for increased economic development through improved SME performance. Incorporating the results, the study sheds light on the varied experiences and perspectives of SMEs with business diagnostics, offering a rich and contextualized exploration of the subject matter. Meaningful recommendations derived from the study's findings, contribute to the body of knowledge on effective business diagnostics for SMEs in Nigeria.

This study investigates the impact of government sustainable programs on the growth of small and medium enterprises (SMEs) in Nigeria amidst the COVID-19 pandemic. It employs a survey methodology to study the developmental factors of SMEs in Nigeria. The study population consisted of 580 registered SMEs in the Wuse business district in Abuja, with a sample size of 130 respondents. Questionnaires were distributed to the above respondents, out of which 100 fully submitted their responses. To achieve the objectives of the current study, hypotheses were tested and analyzed by using a multiple linear regression model. The findings revealed that survival funds have a considerable influence on the growth and sustainability of SMEs in Nigeria. It was also discovered that free business name registration has a major influence on the growth of SMEs. Moreover, it was found that government incentives are significant to maintain the sustainability of SMEs. Furthermore, the study concluded that SMEs performed effectively well with the aid of government sustainable programs. These intervention programs take the form of an intervention strategy which is an essential part of the current study’s objectives. These include survival funds, free business registration, and government incentives. The current research provides a significant knowledge of structured progressive programs for the policymakers and aids future planning.
 Keywords: government sustainable programs, intervention programs, small and medium enterprises (SMEs), survival funds, sustainability

This study explores the effect of financial literacy on the growth of small and medium enterprises (SMEs) in Masvingo, Zimbabwe, aiming to enhance understanding of how financial skills impact business performance. It has four main objectives: assessing the financial proficiency of SME staff in budgeting and debt management; examining the relationship between these skills and SME growth; identifying skill gaps that hinder development; and offering actionable recommendations to improve financial literacy. The research addresses a significant gap in existing literature regarding financial literacy’s role in SME success in Zimbabwe, providing insights for policymakers, financial institutions, and business development organizations. This study adopts a positivist paradigm, emphasizing objective, empirical data collection through quantitative methods to investigate the impact of financial skills on the growth of SMEs in Masvingo. Utilizing a descriptive survey design, data were collected from 233 SME owners and employees via self-administered questionnaires, with analysis focused on correlations between financial skills and business growth outcomes. The results show a divide in perceptions regarding financial skills’ impact on growth: 48% recognize a positive influence while 51% perceive little to no effect. This discrepancy suggests varying opinions on financial literacy’s significance or indicates that other factors such as access to capital or market conditions may play a more prominent role in determining business growth. Enhancing financial literacy could improve decision-making and contribute to long-term success. There is a general recognition of the importance of financial skills in driving SME growth, significant areas for improvement exist across budgeting practices, debt management, investment decisions, and tax strategies. Addressing these gaps through enhanced financial literacy and training could foster better decision-making and support sustainable business development.