Stimulating collective creativity in fashion small and medium enterprises: towards a resource-sensitive innovation model
Creativity is an essential factor for the success of the fashion industry, but small and medium enterprises often face significant barriers when it comes to systematically developing innovation. Unlike major companies, small businesses do not have dedicated research and development infrastructure and are therefore highly dependent on collaborative and resource-efficient processes. This article discusses the gap in existing systems and proposes a conceptual model to stimulate collective creativity that is adapted to the realities of fashion small and medium enterprises. The model emphasizes resource sensitivity, less formalized management, and measurable results, including product novelty, go-to-market time, and customer engagement. By treating creativity as a collective capability, this study contributes both to theoretical insights into small and medium enterprises innovation processes and to practical guidelines for fashion industry practitioners seeking to increase competitiveness. The study concludes with recommendations for managers, policymakers, and future research on the applicability of the creativity model.
- Research Article
2
- 10.30837/2522-9818.2019.8.097
- Jun 24, 2019
- Innovative Technologies and Scientific Solutions for Industries
The subject of research is the transform processes taking place at Ukrainian small and medium enterprises and development of theirs marketing strategies. The purpose of the work is to study the role of marketing strategies for small and medium enterprises in Ukraine. The article solves the following tasks: analysis of small and medium enterprises functioning in Ukraine; determining the functioning differences between their marketing management and the marketing management of large industrial enterprises; a description of the marketing strategies developed by the small and medium enterprises. Methods of mathematical statistics, theoretical generalization, marketing researches have been used. The following results were obtained: The general situation at the small businesses in Ukraine was analyzed. The state of small and medium business enterprises in the conditions of creation of united communities and their possible entry into territorial clusters as a tool for increasing the competitiveness of some economic entities of the region was considered. The organization differences between marketing management at large industrial enterprises and small businesses were given. Since international partners have repeatedly pointed out the lack of modern economic education at the small and medium enterprises management, the directions for its possible receipt were presented. It was shown that since the concept of marketing in a market economy is the basis of successful entrepreneurial activity, it became required to develop a theoretical and methodological base at the state level in order to take into account the features of small and medium businesses and coordinating the related actions. The ways of developing small and medium enterprises marketing strategies are given. Conclusions. The necessity to increase the innovative potential of small and medium enterprises in Ukraine in the conditions of administrative reform; development of entrepreneurial skills in the persons engaged in this process and development of marketing strategies of the corresponding enterprises has been confirmed.
- Research Article
10
- 10.30525/2256-0742/2018-4-5-40-45
- Feb 11, 2019
- Baltic Journal of Economic Studies
The aim of the article is to study the peculiarities of the financial and credit mechanism of supporting small and medium enterprises in foreign countries with the purpose of identification of key areas for the development of financial and credit support for small and medium enterprises in Ukraine. The subject of the study is the foreign experience of financing small and medium-sized businesses. Methodology. The research is based on a comparison of financial and credit support of small and medium business in Ukraine and in foreign countries. The advantages and disadvantages of different support systems for small and medium-sized enterprises are determined on the basis of an analysis of the specifics of financing small and medium-sized businesses in Germany, the USA, the UK, Italy, Japan, and some other countries. The possibilities and limits of the application of positive foreign experience in this area are determined on the basis of a comparative legal study of certain provisions of Ukrainian legislation. The results of the study showed that the peculiarities of the financial and credit mechanism for supporting small and mediumsized businesses in foreign countries, which were studied, are as follows: the predominance of indirect support methods, provision of state financial help only on a competitive, turnaround, and paid basis; effectively functioning system of state guarantee of loans, which were provided to small businesses by commercial banks (guarantee from 60 to 90% of the loan); creation of a network of special banks, which serve small businesses at different levels; strong financial stimulation for small businesses in their innovation activity; stimulating taxation system and special depreciation procedure; creation of conditions for equal access for all entrepreneurs to information and consulting services (especially on taxation, lending, and insurance issues). Practical implications. The positive experience of financing small and medium business shows that the foreign practice of functioning of the financial and credit mechanism for supporting small business is not based on the fact that, on preferential terms, small enterprises can receive all the necessary financial and credit resources for their development and support small business at all costs. But this practice is aimed to create a favourable economic and legal climate that allows small businesses not only to survive but also to successfully develop. Correlation/originality. A comparative analysis of small and medium business financing systems is the basis for developing the most promising directions for the development of domestic legislation in this field.
- Research Article
- 10.31499/2616-5236.3(28).2024.310195
- Aug 23, 2024
- Economies' Horizons
The article analyzes the dynamics of formation and use of small business potential in promotion of socio-economic development of Ukraine. The novelty of the author's approach lies, first, in the focus on the characteristics of the functioning of small and micro-businesses, which allows to reflect the presence of specific trends that qualitatively distinguish the processes of adaptation and development of small business and require differentiation of approaches and theoretical foundations of their regulatory policy. Secondly, by taking into account the ratio of socio-economic efficiency achieved by small and large business, which is interpreted by the authors as a crucial sign of the potential for accelerating economic development that can be ensured by rationalizing the forms of interaction between large, medium and small business. Using the methods of comparative analysis of the dynamics of the contribution of micro, small, medium and large enterprises to the creation of added value and assessing the changes in the ratio of labor productivity at enterprises of different scales of economic activity, the authors substantiate the conclusion about the leading role of small enterprises in ensuring the expansion of factor income creation: it is small enterprises that have increased the scale of value creation, in fact, have become the only center of growth against the background of ten years of stagnation in the groups of large and medium enterprises. The authors also substantiate the dominance of the trend of convergence of the basic indicator of economic efficiency of enterprises of different sizes and interpret this trend as a critically important feature of the small business functioning in Ukraine: in an extremely unstable macroeconomic environment, small businesses are able not only to maintain and even expand their resource potential, but also to approach medium and large enterprises in terms of economic efficiency, in the first place, with the higher competitiveness inherent in this segment of the domestic economy and, accordingly, with more incentives to increase efficiency as a leading factor in the realization of the tasks of business owners
- Research Article
8
- 10.29040/ijebar.v3i03.587
- Oct 1, 2019
- International Journal of Economics, Business and Accounting Research (IJEBAR)
From the results of interviews and preliminary observations that the development of Small and Medium Enterprises is essentially a shared responsibility between the government and society. In order to support the empowerment and development of Micro, Small and Medium Enterprises, especially in encouraging the distribution of credit to Micro, Small and Medium Enterprises in Cibaduyut Urban Village, for the development of Micro, Small and Medium Enterprises in Cibaduyut Village, Bandung, the strategies included in the first Bank Partner Financial Consultants in fostering and mentoring Micro Small Enterprises and Medium prospects who apply for business loans; second, socializing profit sharing or venture capital financing; third Increasing the participation of credit guarantee institutions for Micro, Small and Medium Enterprises and prospects who are faced with collateral requirements. It is expected that with the implementation of the above strategies, Micro, Small and Medium Enterprises will no longer experience difficulties in the submission of business capital loans from Credit Distribution Agencies. From each solution above, it is building and mentoring Micro and Small and Medium Enterprises, prospects who will apply for business loans. The results of the study showed that the community in the Cibaduyut Village with the optimization of the role of the Bank Partner Financial Consultant (KKMB), the requirements and procedures established by the credit channeling institutions, were no longer an obstacle for Micro and Small Businesses in obtaining business capital loans. The success of this approach will be seen from the increasing number of bankable Micro, Small and Medium Enterprises and obtaining business capital loans, and having a Bank Partner Financial Consultant (KKMB) operating on a business (mutually beneficial) basis so that it can finance itself.
- Research Article
1
- 10.33558/jrak.v10i2.1737
- Aug 30, 2019
The government realizes that the development of micro and small enterprises is still hampered by financing that is more expensive than conventional financing. The potential of micro, small and medium enterprises in Indonesia is inseparable from banking support in lending to micro, small and medium enterprises. Access to Islamic banking is arguably still limited compared to conventional banking. This makes micro, small and medium enterprises players sometimes choose financing from conventional banks compared to Islamic financial institutions, this can be realized through continuous synergy between Islamic banks and Islamic cooperatives. Islamic cooperatives in various regions are financial inclusion locomotives to deepen sharia-based micro, small and medium enterprises in Malang. Sharia-based micro, small and medium enterprises are micro, small and medium enterprises that only want to be served by Islamic financial institutions. So that the need to empower sharia micro, small and medium enterprises is currently very important, through entrepreneurial orientation and financial inclusion it is expected that it will increase the empowerment of Sharia micro, small and medium enterprises based on Islamic boarding schools in the city of Malang. The research objective is to improve the role of Islamic Financial Inclusion and Entrepreneurship Orientation to empower Sharia micro, small and medium enterprises in Malang City. This study uses the path analysis model. And the type of data used are primary and secondary data taken from respondents, namely Sharia micro, small and medium enterprises and Sharia Cooperatives. Based on the results of the study it was explained that Financial Inclusion of Islamic Cooperatives did not influence the empowerment of micro, small and medium enterprises. While the entrepreneurial orientation affects the empowerment of Islamic micro, small and medium enterprises in Malang. If financial inclusion is carried out well, which is supported by high entrepreneurial orientation, this will increase the empowerment of micro, small and medium enterprises.
- Single Book
9
- 10.3362/9781780445861
- Jan 1, 1991
Foreword ix Sergio C. Trindade, Executive Director, United Nations Centre for Science and Technology for Development (UNCSTD) Introduction 1 A. S. Bhalla Part I: Favorable Policies and Programs 13 1. Centralized versus Decentralized Policy Toward Small and Medium Enterprises 17 John Marcum 2. Technological Policy for Small and Medium Enterprises: The Canadian Experience 29 Paul Dufour 3. Technology Policy for Small and Medium Enterprises in The Netherlands 47 Walter Zegveld 4. Technological Transformation of Small and Medium Enterprises in China 55 Guan Ze-wen et al. 5. Technology Promotion Programs for Small Enterprises: The Philippine Experience 67 Quintin G. Tan vi Contents Part II: Building Technological Capabilities 79 6. Innovations and Small Producers in Developing Countries 83 A. S. Bhalla 7. Building Indigenous Technological Capability Through Foreign Assistance to Small/Medium Enterprises 101 J. M. Hekland 8. A New Approach to Innovation in Traditional Industries: The Italian Experience 109 Danielle Mazzonis and Mario Pianta 9. Building Technological Capability of Finnish Small Industry Through Risk-financing 127 Veikko O. Vuorikari 10. Technological Transformation of Small Enterprises in Zhejiang Province, China 139 Wu Tianzu 11. Technological Characteristics and Change in Small Industrial Enterprises in Guangdong Province, China 153 Guan Ze-wen et al. 12. Management and Technological Capabilities of Malaysian Small and Medium Enterprises: Constraints and Potential 167 Ahmad Zahdi Bin Jamil and Rahimah Bt. Md. Said 13. Development of Design and Manufacturing Capabilities in a Small Nigerian Company 175 Sam Chukwujekwu Part III: Institutions and Infrastructure 183 14. Nurturing Microenterprises and Technological Innovation through Business Incubation Process 187 Rustam Lalkaka and Hu Ping 15. Institutions for Promoting Technological Modernization of Indian Small Enterprises 203 C. V: S. Ratnam 16. Technical and Managerial Extension Services for Korean Small and Medium Enterprises 213 Kyung Tae Lee Contents vii 17. Cooperation between Research and Educational Institutions and Small Enterprises in China 221 Cai Liyi 18. Infrastructural Requirements of Information Technology and Small and Medium Enterprises 233 Karl Ganzhorn The Seminar Report 247 Select Bibliography 271 Index 275 Notes on the Contributors 283
- Research Article
1
- 10.52184/msrmr.v11i01.27
- Jun 26, 2020
- M.S. Ramaiah Management Review
Pandemic: Pandemic refers to Covid-19 declared by the WHO on March 11, 2020. Market structure: Market structure is defined as the various systems, procedures that exist amongst the micro, small, and medium scale enterprises who are engaged in commercial activity by buying and selling products or services, and carrying out trade, generating wealth, and are a subsect of overall macro level economy. Structural change: Structural change is a complete shift in the basic ways a market operates. In this case, the functions and operations of micro, small and medium scale enterprises. Structural changes happened in business as a result of internet usage, online payments, GST to name a few. Structural damage: Structural damage is the harm that has happened and is happening to the markets, in this case, the micro, small and medium scale enterprises, which impairs the value usefulness, or normal functioning of the enterprises. Micro Small and Medium Enterprises (MSMEs): Government of India (GoI)’s Jun 2020 definition of MSME is adopted for this study and they are as follows: • Micro enterprises are those that have Rs 1 Crore investments and Rs 5 Crore turnover. • Small enterprises are those that have Rs 10 Crores investments and Rs 50 Crores turnover. • Medium enterprises are those that have Rs 50 Crores investments and Rs 250 Crores turnover.
- Research Article
- 10.18184/2079-4665.2019.10.2.166-181
- Jul 5, 2019
- MIR (Modernization. Innovation. Research)
Purpose: to study the significance of small and medium enterprises for the functioning of the modern Russian transaction sector.Methods: the paper used General scientific research methods: analysis and synthesis, abstraction, generalization. The study used a comparative method and elements of economic analysis. The article also uses a graphical method of presenting information. The study was carried out on the basis of official statistical data provided by the Federal State Statistics Service of Russia.Results: to achieve this goal, the article solves the following tasks: 1) A review analysis of the current state of the domestic transaction sector based on the study of statistical data on the activities of Russian enterprises and organizations. This formed the basis for further research. 2) Analyzed indicators of small and medium enterprises in the transaction types of economic activity. This made it possible to identify their role in the functioning of the transaction sector. 3) Studied the statistical indicators of the financial condition of small and medium organizations of the transaction sector, which showed the problems of their activities.Conclusions and Relevance: currently, the transaction sector is a significant part of the domestic economy. This is evidenced by a General analysis of the statistical characteristics of the activities of Russian enterprises and organizations. At the same time, the majority of enterprises engaged in transactional activities have a private form of ownership. The study of the activities of small and medium enterprises showed that today more than half of them work in the transaction areas. In this regard, small and medium businesses can be considered an integral and very important part of the modern transaction sector. The flagship of the transactional activity in the business environment is small businesses. Their indicators significantly exceed the corresponding values of medium organizations. In addition, the main role of small enterprises is due to the immanent properties of small-scale companies. Nevertheless, the analysis of indicators of the financial condition of small and medium enterprises of transaction activities revealed their weak business and commercial efficiency, the presence of problems of solvency and financial stability. This threatens not only the viability of enterprises, but also the efficient functioning of the transactional sector. In this regard, there is a need to develop and conduct systemic activities aimed at supporting the development of Russian small and medium enterprises, as well as stimulating the development of the entire domestic transaction sector, consistent with the general strategy of economic development of Russia.
- Research Article
4
- 10.51594/ijmer.v5i2.444
- Feb 16, 2023
- International Journal of Management & Entrepreneurship Research
The study examined social media marketing strategies adopted by SMEs for their business survival in Delta State, Nigeria. The research population consists of all 3,976 registered SMEs with the Small and Medium Enterprises Development Agency of Nigeria, Delta State office (SMEDAN). Three hundred and ninety-eight (398) registered Small and Medium Enterprises in Delta State were used as sample which represents ten percent (10%) of the total number of registered SMEs which is in line with keilinger recommendation of sample study. A self structured questionnaire was used for data collection titled "Social Media and SMEs Questionnaire" (SMAPSMEQ). Data were analyzed using the descriptive and inferential statistics. The simple percentage, frequency count, mean and standard deviation were used to analyze the data received via research questions. Pearson Product Moment Correlation was used to test the three hypotheses. Findings shows that there exists a significant relationship between the impact of cause marketing strategy and customer’s loyalty among Small and Medium Enterprises, as an increase in the cause marketing strategy of SMES also leads to a corresponding increase in their customer’s loyalty and vice versa. A statistically significant relationship exist between the adoption of relationship marketing as social media marketing strategy and customer’s patronage among Small and Medium Enterprises in Delta State, which implies that maintaining a good relationship with its customers will have positive influence on the customer’s patronage, encourage mutual relationship, cheaper customer acquisition of Small and Medium Enterprises. Findings also shows that there exist a significant relationship between the adoption of scarcity marketing as social media marketing strategy and the volume of sales among Small and Medium Enterprises in Delta State, which means that if a good scarcity marketing strategy is maintained by a Small and Medium Enterprises, their volume of sales would also be positively affected. Based on the findings, it was recommended that small and Medium Scale Enterprises should give adequate attention to improving their cause, relationship and scarcity marketing strategies by setting up unit committees in their organization to see that these objectives are achieved. Small and Medium Enterprises Development Agency of Nigeria, Delta State office (SMEDAN) should continually encourage Small and Medium Scale Enterprises to uphold the use of these business strategies by using them as benchmark for raising the standard of their Enterprises across Delta State.
 Keywords: Social Media Marketing, SMEDAN, SMAPSMEQ, SMES, Strategies and Survival.
- Research Article
- 10.4018/ijsem.2012070104
- Jul 1, 2012
- International Journal of Sustainable Economies Management
Transnational operation of Chinese small and medium enterprises is an inevitable trend of enterprise’s survival and development under the condition of economic globalization. Currently, transnational operation of Chinese small and medium enterprises exist many issues needed to be addressed due to a lack of effective theories and on the basis of analysis of “comparative advantage,” “Internalization advantage,” and “The advantages of geographical location” of China’s medium and small enterprises, trying to propose “compromise” theories of transnational operation of Chinese small and medium enterprises, and empirical analysis, followed by discussion on the countermeasures of transnational operation of Chinese small and medium enterprises.
- Research Article
- 10.32843/infrastruct56-26
- Jan 1, 2021
- Market Infrastructure
The article considers the essence and evolution of small and medium enterprises, identifies the levels and mechanisms of support for small and medium enterprises, explores the tools to support small and medium enterprises, substantiates institutional measures to ensure the priority of support for small and medium enterprises. It is investigated that in many developed countries the main purpose of supporting small and medium enterprises is not to directly subsidize enterprises or provide them with financial resources, but to create favorable conditions for comfortable functioning of small and medium enterprises and facilitate access of small and medium enterprises to borrowed resources (primarily through the implementation of warranty programs). In the countries with the most developed level of small and medium-sized enterprises, regulatory practices are minimized: the system of regulation of small and medium-sized enterprises is simplified and the norms imposed on small and medium-sized businesses, both in the manufacturing and trade sectors, are revised. It is substantiated that support for small and medium-sized businesses in Europe is provided at the regional, national and supranational levels. The policy of supporting entrepreneurship in Europe is implemented through the activities of states and through special programs implemented under the auspices of the EU. At the state level, business support in many European countries is carried out through the development and implementation of targeted programs of financial, economic, personnel, technical, information assistance to small and medium-sized businesses. Most states create special reserves to support small and medium-sized businesses through subsidies, soft loans, grants, and so on. Along with creating favorable conditions for the functioning of small and medium-sized businesses, the state develops special support programs aimed at ensuring equal development of all regions. All EU countries help small and medium-sized businesses to access sources of funding, using a variety of levers. In particular, some countries, such as the Netherlands, provide loan guarantees.
- Research Article
- 10.4314/ngjsd.v14i2.16
- Oct 30, 2024
- NG Journal of Social Development
This study was carried out to investigate the analysis of the impact of strategic management on the business performance of selected small and medium enterprises in south-south Nigeria.. The study is anchored on resource based and the contingency – based theories. The population of the study comprised of 1200 owners of small and medium enterprises while the sample size is made of 300 owners and operators of small and medium enterprises of the selected small and medium enterprises operating in south-south Nigeria through the aid of Taro Yamane’s formula multiple regression analysis was used to analyze the data generated. It was discovered that, strategic management has a significant positive impact on the level of competition,enterprises effectiveness, financial performance and market share of small and medium scale enterprises in south-south Nigeria. The study therefore concluded that strategic management has significant impact on Business performance in south-south Nigeria. Based on the findings and conclusion of the study, it was recommended that for small and medium scale business to succeed, it has to have a real and noble plan which will enhance the growth of their businesses, ensuring that small and medium scale businesses have vision of what they hope to achieve, proper implementation of business strategy, and small and medium enterprises in Nigeria acquiring more knowledge on the application of strategic management
- Research Article
- 10.33245/2310-9262-2022-172-1-96-108
- Jun 24, 2022
- Ekonomìka ta upravlìnnâ APK
The subject of scientifc research is the scientifc and practical principles of development of various types of agricultural enterprises in Ukraine. The purpose of the article is to substantiate the conceptual directions of production in small, medium and large agricultural enterprises in the war and postwar period. The data of the State Statistics Service of Ukraine, regulatory acts of Ukraine and the scientifc research (abstract-logical, system approach, monographic, statistical-economic method) were used. Based on the retrospective analysis of agricultural enterprises production efciency, the key areas of economic activity of large, medium and small agricultural enterprises are identifed. In the conditions of wartime and the further postwar period, when a signifcant decline in investment activity is expected, agricultural production will be oriented towards more labor-intensive and less capital-intensive types of agribusiness, in particular in small and medium agricultural enterprises. In agricultural enterprises there is a different share of working capital in the total value of assets. In small enterprises, the capital structure is dominated by working capital, while in large – fxed capital and capital security is 3-4 times higher than in other types of enterprises in the branch. Based on this, in a state of war and the risk of capital investment in the industry, the most economically advantageous is the situation in small and medium enterprises, where the best rates of return on investment and rates of return. It is proved that for large agricultural enterprises it is necessary to determine the economic vectors of their development in the short and medium term. In particular, to diversify agribusiness and combine the development of crop and livestock production, to diversify sales channels to the external food market, and to focus on the domestic consumer market. Also, these companies need to pay attention to the production of biofuels, other energy resources and more. Based on the analysis of capital investment in various types of agricultural enterprises, the directions of investment in agricultural machinery and equipment are substantiated (they can be moved quickly in case of the military front approach). Such investment and reproduction processes can be traced in small and medium enterprises, in contrast to large enterprises, which have invested a lot in the construction of production and logistics facilities. Small, medium and large forms of entrepreneurship in agribusiness should take their place in the economy of rural areas. The study has generalized the conceptual directions – strategic landmarks of social and economic development of various types of agricultural enterprises for the future period are. Key words: entrepreneurship, agricultural enterprise, farming, food security, employment, economic efciency, capital investments.
- Research Article
3
- 10.35774/sf2021.03.080
- Jan 1, 2021
- WORLD OF FINANCE
Introduction. The article analyzes trends, the current state of bank lending to small and medium-sized businesses in Ukraine and banking products and programs to assist small and medium enterprises, which are provided by individual state-owned banks. Conclusions on the current situation are substantiated and the directions of development of bank lending to small and medium business in Ukraine are determined. Purpose of the article is to analyze the current state of bank lending to small and medium enterprises in Ukraine, to identify the problems in this area, and develop practical and methodological recommendations for improving the work of banking institutions in the field of small and medium business lending. Methods. Statistical methods, methods of analysis and observation were used to classify small and medium enterprises, study the current state of bank lending to small and medium-sized businesses in Ukraine. Statistical and graphical methods are used to process and summarize statistical data and display them in tables and figures. On the basis of the dialectical method of cognition, banking products and programs of assistance to small and medium enterprises in Ukraine are generalized. The generalization of the results was used in formulating conclusions on the trends and current state of bank lending to small and medium-sized businesses in Ukraine. Results. The study of trends in the development of business structures in Ukraine shows that the current economic and financial woes caused by the COVID-19 pandemic have put the small and medium business sector in extremely difficult financial conditions. The reasons for the decline in bank lending to small and medium-sized businesses are analyzed. Banking products and programs of assistance to small and medium enterprises in Ukraine, which are provided by some state-owned banks, are considered. The main directions of intensification of lending by banking institutions of small and medium enterprises in Ukraine are substantiated. Perspectives. Against the background of problems associated with lending to small and medium enterprises, of particular interest are the development and implementation of new credit technologies, innovative projects, development of new banking products and services for small and medium enterprises.
- Conference Article
3
- 10.2991/iiicec-15.2015.2
- Jan 1, 2015
Formation and evolution of enterprises’ competitive relationship are not independent with each other, so that enterprises have complex relationship such as mutual initiation, interference and transformation. This complex relationship appears as complex network relation. In order to study competitive relationship between enterprises, this paper selects some financial enterprises as samples and studies financial enterprise’s business type, business scale and structure property of network model, so as to study competitive relationship between financial enterprises. Introduction At present, domestic financial enterprises have uneven development, namely, large and medium-sized foreign enterprises and joint ventures with advanced technology provide high-level service and comprehensive financial management service for customers, while small private enterprises have poor technical equipment and backward management. With development of international economic integration, the market has higher requirements for financial enterprises. The following problems need to be urgently settled: how to regulate healthy development of China's financial market, how to adopt intensive and large-scale development way, and how to improve international competitiveness of financial enterprises. 1 Definition of Competitive Relations between Financial Enterprises In researching financial enterprise’s competitive relationship, niche overlap is an important concept to describe competitive relations between enterprises. Competitive relationship will appear when enterprises target at same market or customer. Niche overlap shows that two enterprises have mutual substitution effect in the market, so that their performance competition is mutual. Belonging to circulation service industry, financial enterprise provides products which serve finance and have characteristics of spatial distribution. Competitions between enterprises are mainly reflected in competitions of provided service’s business types and operation regional scope. If enterprises target at same market or customer in business types and regional scope, so that enterprises will have competitive relationship. In addition, due to different locations of different enterprises, competitions will show different degrees of intensity, and competition between enterprises in same area will be more intense than that between enterprises located in adjacent regions. This article defines competitive relationship between enterprises from two aspects of financial enterprise located in the same region and adjacent areas. 2 Sample Selection of Financial Relationship and Explanation of Computation Example Figure 1 is flow chart which describes construction process of network model in competitive relationship between financial enterprises in Kunming. ij e represents edge connecting two financial enterprises: when ij e =0, enterprise i and enterprise j have no competitive relationship; when ij e =X, enterprise i and enterprise j have competitive relationship. In BCRN model, the value of X is 1; in WCRN model, the value of X is edge weight, which is calculated according to formula (1). Taking International Industrial Informatics and Computer Engineering Conference (IIICEC 2015) © 2015. The authors Published by Atlantis Press 6 financial enterprise with node of no. 1 in 2009 as an example, table 2 provides basic information of financial enterprises. Step1: Determine whether two enterprises have same business type, if they have no same business type, ij e =0; otherwise, move on to step2. Step2: Classify financial enterprises by turnover referring to transportation enterprise’s classification standard in national Interim Provisions on Standards for Medium and Small Enterprises. Step3: according to enterprise’s latitude and longitude, calculate straight-line distance between enterprises by converting Gauss projection. Step4: Determine whether two financial enterprises are small enterprises. If both of them are small and medium enterprises with straight-line distance of less than 15 km, ij e X = ; otherwise, ij e =0. Step5: Calculate shortest distance between enterprises connected by road network using Floyd algorithm. Step6: (1) Determine whether two enterprises are not large enterprises. That is, two enterprises are medium-sized enterprises, or one of them is a medium-sized enterprises, and another is small businesses; (2) If two enterprises are not large enterprises with straight-line distance of less than 30 km, ij e X = , otherwise; (3) Determine whether distance between two enterprises along road network is less than 50 kilometers. If distance is less than 50 kilometers, ij e X = ,otherwise ij e =0. Step7: (1) Determine whether one of the two enterprises is a large enterprise; (2) If there is a large enterprise, and straight-line distance between two enterprises is less than 45 kilometers, ij e X = ,otherwise; (3) Determine whether distance along the road is less than 100 km, if distance is less than 100 kilometers, ij e X = , otherwise ij e =0.