Unlocking Sustainability in Informal Micro Enterprises: Capital Access in The Fintech Era

Micro and Small Enterprises (MSMEs) contribute a major share to the regional economy. In recent times, business competitiveness grows precariously making sustainability a problem. This study aims to provide empirical evidence about the relationship between financial technology, literacy, inclusion, and MSMEs’ sustainability in Sleman. This study uses a quantitative approach with Partial Least Square (PLS). Data were collected from questionnaires of 100 MSMEs in Sleman with a convenience sampling technique. The results reveal that financial technology and literacy impose a positive effect on financial inclusion, while financial technology and literacy exert a positive effect on MSMEs’ sustainability. In addition to that, financial inclusion is also found to have a positive effect on mediating financial technology and literacy influence on MSMEs’ sustainability. This study provides input for MSMEs management to increase the use of financial technology to support MSMEs’ sustainability and for the local government to promote financial literacy for MSMEs and enhance financial inclusion which will ultimately advance MSMEs’ sustainability.

Purpose: The main aim of this study was to determine the influence of internal capabilities on the performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia
 Methodology: The research paper adopted a descriptive research design. The target population in this study was undefined given that the number of MSEs in Mogadishu, Somalia operate under no regulatory framework. The researcher used snowballing sampling techniques, where one MSEs was requested to introduce the researcher to another MSE until the sample size of 120 MSEs was reached. The collected data was then subjected to analysis using descriptive and inferential statistics. The researcher included statistical tools such as SPSS and MS Excel to provide a comprehensive description of the data. The findings were presented using tables.
 Findings: The findings revealed that financial, marketing and HR capabilities had a positive and significant influence on performance of MSEs in Mogadishu, Somalia. Where, financial capabilities (β=0.547) had the highest statistical influence, followed by marketing capabilities (β=0.428) and lastly HR capabilities (β=0.415).
 Unique Contribution to Theory, Practice and Policy: The study recommended that owners of Micro and Small Enterprises (MSEs) prioritize investing in skill training and the recruitment of expert professionals to bolster the knowledge base and capabilities of their enterprises. The study findings discuss a deeper understanding of the determinants of MSE performance, and how this knowledge can be translated into targeted actions by business owners, policymakers, and other stakeholders. This not only supports the practical application but also illustrates its value in informing policies that promote the growth and sustainability of MSEs in the region.

This study examines the impact of financial literacy, capital accessibility, entrepreneurial orientation, and market orientation on the growth and sustainability of Micro and Small Enterprises (MSEs) in Palembang. Using quantitative analysis on a sample of 170 MSEs and Structural Equation Modeling - Partial Least Squares (SEM-PLS), the results show that these factors significantly influence the success of MSEs. Financial literacy enhances entrepreneurial thinking and market orientation, while access to capital supports both. This study highlights the importance of improving financial knowledge, increasing access to funding, and adapting to market conditions to foster MSE growth. These insights are valuable for policymakers, financial institutions, and businesses.

This study was conducted in Durame Town, KembataTemaro zone, Southern Ethiopia. The objective of the study is to find out factors that determine growth of Micro and Small Enterprises and to assess current status of Micro and Small Enterprises in terms of employment and capital growth. Out of 148 Micro and Small Enterprises in the study area, 100 Micro and Small Enterprises (MSEs) were selected as a sample using stratified and simple random sampling technique. They were stratified based on the sector they are operating. The data were analyzed using descriptive statistical tools including mean, percentage and standard deviation. The binary logit model was applied to identify determinants of MSEs growth. The study used employment and capital as growth indicators. Growth rate for the two indicators was computed by the change of natural logarithm of employment or capita over the life of enterprise. After calculating growth rate, Micro and Small Enterprises were grouped into two categories growing and non growing. Micro and Small Enterprises which had growth rate < 0 categorized into non growing and Micro and Small Enterprises which had growth rate ≥ 0.The finding of the study shows that out of the total sample 40% of Micro and Small Enterprises are growing and 60% of Micro and Small Enterprises are non growing in terms of employment. In terms of capital 69% of Micro and Small Enterprises are growing and 31% are non growing. The model result indicated that out of 19 explanatory variables, 10 variables were found to be significant in determining Micro and Small Enterprises growth. Factors found to be significant for employment growth were: entrepreneurship training, location of enterprise, motivation of owner, market linkage, access to finance, access to water. Factors found to be significantly influencing capital growth were: education level of owner, motivation of owner, number of owners, initial employment size, social network. Hence, government and non-government organizations that are concerned with the promotion and development of MSEs need to take these factors in to account to accomplish better result and increase the potential contribution of MSEs to the economic growth.

Purpose: Micro and Small Enterprises (MSEs) are important drivers of economic growth and development in Kenya. These enterprises create employment, facilitate wealth creation and form the backbone for private sector growth and expansion. The numerous challenges facing MSEs in Kenya are both internal and external to their operations. Many businesses are characterized by entrepreneurs’ lack of proper entrepreneurial training, lack of marketing capacity and broad operational capacity, lack of business innovation, inadequate business training, lack of motivation for business and pro-activeness. The purpose of the study was to evaluate how entrepreneurial innovation competence influences the growth of micro and small enterprise in Nairobi County. Methodology: The study adopted a descriptive survey design. There were 1,236,907 operating businesses categorized as MSEs in Nairobi County by the year 2020. To select the MSE in all the regions in Nairobi County, cluster sampling techniques was employed, first to identify the various MSEs and clusters relevant to this study. Seventeen clusters were identified according to where they are located. 384 respondents formed the study sample. The selection of the sample from each cluster of the study was through simple random sampling. The study used a questionnaire to collect primary data, which was then analyzed using Statistical Package for Social Sciences (SPSS version 23). Data analysis was done using descriptive statistics, Pearson correlation coefficient and regression analysis. Findings: The findings showed that an increase in Innovation competence would result to increase in growth of micro and small enterprise in Nairobi County. The findings showed that a unit increase in Entrepreneurial Innovation competence would result to an increase of 0.622 units in growth of micro and small enterprise in Nairobi County. The univariate analysis fitted to test the relationship between innovation competence and growth of micro and small enterprises in Nairobi County show that entrepreneurial innovation competence explained 31.2% of the variation in growth of micro and small enterprises in Nairobi County other factors held constant. Unique Contribution to Theory, Practice and Policy: The Theory that underpinned the study was entrepreneurial competency theory. This study recommended that micro and small enterprises should invest in technological innovation to enhance their growth. Investing in the latest software and hardware solutions can help increase productivity, streamline operations, and improve customer service. Additionally, investing in technology can help micro and small enterprises stay competitive in the global marketplace.

Micro and Small Enterprises (MSEs) in DebreBerhan town does not show necessary growth level and some of the enterprises ceased from market in their infant age. Hence, this study conducted with the objective of assessing factors affecting growth of micro and small enterprises in DebreBerhan town. The study has used both descriptive and explanatory research designed. Data for the analyses collected through questionnaire and focus group discussions. The study has used stratified random sampling technique to select 109 MSES from 1511 fond in DebreBerhan town. The study has used correlation and regressions to establish the relationship between variables. Correlation coefficients revealed a significant relationship between the factors and growths of MSEs (current capital). Variables such as initial capital, access of infrastructure, technology use, habit of receiving feedbacks from customer, profitability of business and government motivation are positively influence to growth of MSEs (profit). Hence improving those variables increase growth of MSEs (current capital). Multiple regression analysis has also revealed that 60.6% the variation in response variable (current capital) is explained by predictor variables and improving those variables increase growth of MSEs (capital). The study recommends that MSEs Office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around DebreBerhan town, support the establishment and strength of business development services. Moreover, in order to reduce the influence of factors on growth of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.

Kenya is among the world’s nations affected by HIV/AIDS with the virus claiming 600 people per day. The most endangered are the young people of the age bracket of 15-49 years who own/managers and employees of the Micro and Small Enterprises (MSEs). The pandemic has negatively impacted on the successful management of MSEs in Kenya. This study was carried out to determine the relationship between the knowledge on HIV/Aids and safety measures taken by MSEs in Gikomba market, Nairobi, Kenya. AIDS was recognized in 1984 and by 1995, 73,179 HIV/AIDS deaths related cases had been reported in Kenya. Presently, it is estimated that about 2.2 million Kenyans are infected with HIV/AIDS, while 1.5 million have already died from the virus. However, this figure has gone dawn to 1.6 million. The sectoral impact of HIV/AIDS studies done so far has tended to lean on health, education, military, communications, information and agriculture. Little work has been done to investigate the effects of HIV/AIDS on MSEs’ management despite its importance in the economic development and its contribution to the Gross Domestic Product (GDP) in Kenya. MSEs contribute 18% to the GDP in Kenya. The research was conducted using descriptive survey design to establish the relationship between the variables in the study of large group of individuals by studying a small group. The study used interview guide and questionnaires for data collection to achieve the desired objectives. The findings have showed that the deaths caused by either HIV/AIDS or its related immunodeficiency illnesses were common among the owners/ managers of MSEs at Gikomba market as attested by 80% on the entrepreneurs interviewed. The effects of HIV/AIDS on MSEs was found to be 93.3% of the about entrepreneurs interviewed. These effects were seen through loss of profits to meet expenses on HIV/AIDS ailments, contributions to medical bills, drug expenses, food supplements, absenteeism from work, psychological trauma, stigmatisation and deaths. The study also showed that 100% of owners/managers of MSEs are very much aware of HIV/AIDS and its effects but failed to manage it through behaviour change. It was concluded that the effects of HIV/AIDS on MSEs in terms of increased costs of running their businesses was due to cost of medical bills, burial expenses, drugs and food supplements, reduced productivity and absenteeism from work. The knowledge and awareness of HIV/AIDS, influence decisions and measures taken by MSEs owners/managers to control, manage and plan for the future of their businesses. The study has recommended measures that can be taken to control and manage the HIV/AIDS among the MSEs to reduce the effects including continued effort on awareness campaign among MSEs, change of policy and approach towards combating HIV/AIDS and direct involvement of MSEs owners/ managers and their employees in the campaign against HIV/AIDS pandemic. Keywords: HIV/AIDS pandemic, Management of micro and small enterprises (MSEs) Gikomba market, Nairobi, Kenya

This chapter explores the impact of the changes in the labor market on a vital segment of its participants, namely the informal operators: both small business entrepreneurs and wageworkers hired informally. The main emphases of the chapter are: to study the change in the role of informal micro- and small enterprises (MSEs) and the prevalence of informal wageworkers in the Egyptian labor market in 2006 as compared to 1998; and to assess the impact of the new policies, laws, and procedures on the informality status. The gender differential is taken into account throughout the analysis. The research aims to test a number of hypotheses about the development of the micro- and small enterprise (MSE) sector in Egypt over the period spanning from 1998 to 2006. In regard to women's involvement in micro- and small enterprises, it is noted that the females' share among the self-employed and employers community in Egypt increased by 0.9 percentage points during the period in question, from 15.3 percent in 1998 to 16.2 percent in 2006. It could not be established whether the level of education obtained affected the performance and efficiency of these MSEs.

Purpose: The purpose of the study was to establish how entrepreneurial motivation competence influences the growth of micro and small enterprise in Nairobi County. Micro and Small Enterprises (MSEs) are important drivers of economic growth and development in Kenya. These enterprises create employment, facilitate wealth creation and form the backbone for private sector growth and expansion. The numerous challenges facing MSEs in Kenya are both internal and external to their operations. Many businesses are characterized by entrepreneurs’ lack of proper entrepreneurial training, lack of marketing capacity and broad operational capacity, lack of business innovation, inadequate business training, lack of motivation for business and pro-activeness. Methodology: The study adopted a descriptive survey design. There were 1,236,907 operating businesses categorized as MSEs in Nairobi County by the year 2020. To select the MSE in all the regions in Nairobi County, cluster sampling techniques was employed, first to identify the various MSEs and clusters relevant to this study. Seventeen clusters were identified according to where they are located. 384 respondents formed the study sample. The selection of the sample from each cluster of the study was through simple random sampling. The study used a questionnaire to collect primary data, which was then analyzed using Statistical Package for Social Sciences (SPSS version 23). Data analysis was done using descriptive statistics, Pearson correlation coefficient and regression analysis. Findings: The findings showed that an increase in Innovation competence would result to increase in growth of micro and small enterprise in Nairobi County. The findings showed that a unit increase in Entrepreneurial Motivation competence would result to an increase of 0.639 units in growth of micro and small enterprise in Nairobi County. The univariate analysis fitted to test the relationship between motivation competence and growth of micro and small enterprises in Nairobi County show that entrepreneurial motivation competence explained 29.9% of the variation in growth of micro and small enterprises in Nairobi County other factors held constant. Unique Contribution to Theory, Practice and Policy: The Theory that underpinned the study was entrepreneurial competency theory. This study recommended that micro and small enterprises should have a strong mission and vision that is shared with all employees. This will help to create a shared sense of purpose and ensure that everyone is working towards the same goal. Investing in training and development will help to increase employee motivation.

Purpose: The purpose of the study was to establish how entrepreneurial motivation competence influences the growth of micro and small enterprise in Nairobi County. Micro and Small Enterprises (MSEs) are important drivers of economic growth and development in Kenya. These enterprises create employment, facilitate wealth creation and form the backbone for private sector growth and expansion. The numerous challenges facing MSEs in Kenya are both internal and external to their operations. Many businesses are characterized by entrepreneurs’ lack of proper entrepreneurial training, lack of marketing capacity and broad operational capacity, lack of business innovation, inadequate business training, lack of motivation for business and pro-activeness. Methodology: The study adopted a descriptive survey design. There were 1,236,907 operating businesses categorized as MSEs in Nairobi County by the year 2020. To select the MSE in all the regions in Nairobi County, cluster sampling techniques was employed, first to identify the various MSEs and clusters relevant to this study. Seventeen clusters were identified according to where they are located. 384 respondents formed the study sample. The selection of the sample from each cluster of the study was through simple random sampling. The study used a questionnaire to collect primary data, which was then analyzed using Statistical Package for Social Sciences (SPSS version 23). Data analysis was done using descriptive statistics, Pearson correlation coefficient and regression analysis. Findings: The findings showed that an increase in Innovation competence would result to increase in growth of micro and small enterprise in Nairobi County. The findings showed that a unit increase in Entrepreneurial Motivation competence would result to an increase of 0.639 units in growth of micro and small enterprise in Nairobi County. The univariate analysis fitted to test the relationship between motivation competence and growth of micro and small enterprises in Nairobi County show that entrepreneurial motivation competence explained 29.9% of the variation in growth of micro and small enterprises in Nairobi County other factors held constant. Unique Contribution to Theory, Practice and Policy: The Theory that underpinned the study was entrepreneurial competency theory. This study recommended that micro and small enterprises should have a strong mission and vision that is shared with all employees. This will help to create a shared sense of purpose and ensure that everyone is working towards the same goal. Investing in training and development will help to increase employee motivation.

Informal finance is a crucial financing method for small and micro enterprises (SMEs) in most developing countries. Interest rate risks (IRS) should be a vital component of SMEs' informal finance strategies (IFS), and public health emergencies (as COVID-19) is likely to modify IFS due to increased liquidity risks for SMEs. This article examines the relationship between IRS and IFS and its moderated effects by COVID-19. The study develops a structural equation model of SMEs' IFS to investigate SMEs' IFS, the causal relationship between IRS and SMEs' IFS, mediator effects of SMEs' corporate financial status and regional financial and economic conditions, and moderating effects of SMEs' variables. The empirical data is from Wenzhou, China, distributed between 2016 and 2021. The study concludes that IFS will continue to be a financing technique for Chinese SMEs, even if it may have a deterrent effect due to COVID-19. Additionally, there is a strong positive causal association between IFS and SMEs' IRS, as well as moderator and mediator effects. Recommendations for government policy include clarifying the connection between SMEs' IFS and influencing variables, providing scientific and methodical analysis tools for evaluating factors impacting SMEs' IFS, and encouraging the optimization and upgrading of SMEs' IFS.

Micro and small enterprises (MSEs) have failed to achieve set objectives of generating sustainable growth and employment. The growth and survival rate of micro and small-sized enterprises (MSEs) in Kenya has been one of the major concerns of the policy makers, practitioners and scholars. The high failure rate among small and medium enterprises businesses in Kenya has created an urgent need to identify strategies that will improve their levels of performance. The strategy and entrepreneurship literature suggests that an entrepreneurial competitive strategy improves firm performance, but empirical results are mixed. This study investigated how entrepreneurial competitive strategies: innovativeness, risk-taking and competitive aggressiveness), affect performance of MSEs in Kenya. In doing so, the study examined the moderating effect of external environment on these relationships. The objectives of the study was to determine: the influence of innovativeness, risk taking propensity, competitive aggressiveness, moderating influence of external environment on performance of micro and small enterprises of Dairy MSEs in Nyeri County. The study used a descriptive survey design. The study was anchored on Resource Based Theory, Diffusion Innovation Theory and Entrepreneurship Theories. The target population will be all the managers/Owners in the 146 Dairy MSEs in Nyeri, County Kenya. The study adopted two sampling designs namely stratified and simple random sampling design. The sample size will comprise of 146 respondents. The study used questionnaires to collect primary data. Pilot test was done to three respondents in three Dairy MSEs to refine the research instruments. Content validity was determined by experts. The reliability of the instrument was tested using Cronbach's Alpha coefficient. A Cronbach's coefficient alpha of .80 or higher was adequate in this study to allow the instrument for data collection. Data analysis was carried out using descriptive statistics. To establish the overall relationship between the independent and dependent variables in the conceptual framework. The study identified and recommended the factors that influence entrepreneurial innovation strategies on performance of dairy micro and small enterprises in Nyeri County, Kenya. These were replicated in areas with similar agro ecological zones facing similar challenges. The study found that entrepreneurship product innovation, process innovation and market innovation had a positive and significant influence on the performance of dairy micro and small enterprises in Nyeri County, Kenya. The study concluded that product innovations helps in developing improved versions of existing products in a market, enhancing the functionality or desire for an item by taking consumer feedback to make improvements or discovering additional features and technology to add. Innovative processes typically describe changes to how a company manufactures a product or performs a transaction, so it can yield better results and profits. The concept of marketing innovation identifies a framework for strategies to make important changes in a product/service, function, price, etc. to achieve higher business objectives such as attracting customers, enhancing image and gaining competitive advantages. The study recommended that the organization should determine its objectives first by being clear with their product goals. Understand its market at all times including its customers and competitors so as to understand what else is going on within its market segment. The organization should adopt new technology to increase efficiency and effectiveness such as automation tools that automates the manual tasks in a given process. The organizations can go for rebranding to match their marketing content to a new product or process the company is selling or using. Retain existing customers to help when selling innovative products.

Purpose: The ability of businesses to integrate information technology in their operations has been found to be an integral driver to their success. Through information technology, firms can utilize technological innovations to strengthen the uniqueness of their products in the market thus enhancing their competitive advantage. However, with limited evidence in the local context especially among the micro and small enterprises which continue to face a continuous decline, it warrants the study to assess how strategic technological innovations have been embraced among the small and micro enterprises and the role the innovations have played in enhancing the competitive advantage of the enterprises. Specifically, the study will examine the influence of enterprise’s IT Capabilities on competitive advantage among Micro and Small Enterprises (MSEs); determine the influence of Technological resources on competitive advantage among Micro and Small Enterprises (MSEs); explore the influence of adopted new technologies on competitive advantage among Micro and Small Enterprises; and establish the influence of Technological Processes and Products (TPP) on competitive advantage among Micro and Small Enterprises (MSEs) in Nairobi County, Kenya. The objectives will be anchored on dynamic capabilities theory, Schumpeter theory of innovation, technology acceptance model and diffusion theory of innovation. Methodology: Using a descriptive research approach, the study will collect and analyse both qualitative and quantitative data. This data was obtained from 386 micro and medium enterprises in Nairobi Central Business District, drawn from a population of 11,245 MSEs registered by the Nairobi City County in the CBD. A questionnaire was the main instrument of data collection, which was pilot-tested for validity and reliability. The collected data was analyzed using descriptive and inferential statistics. Findings: The findings were presented using frequency tables and graphs. In conclusion, the findings emphasize the critical role of technology in driving market expansion, customer engagement, and operational efficiency. The study highlights the importance of strategic support and intervention to address technological adoption challenges. By encouraging technological development and integration, policymakers and other stakeholders can assist MSEs in improving their operations, boosting the economy of Nairobi County. Investing in technological education and infrastructure is essential for MSEs to optimally benefit from TPP in the contemporary digital economy. Unique Contribution to theory, policy and practice: Training and development on how MSEs can use the platforms effectively, online marketing and selling needs to be promoted to help MSEs build their capacities. Therefore, when equipped with the appropriate knowledge and tools, the policymakers can help the MSEs to adopt e-commerce and increase their market access and productivity.

Purpose: This research aims to examine financial literacy, digital literacy and financing preferences influences toward micro and small enterprises (MSEs) performance
 Design/methodology/approach: This research used quantitative method and SmartPLS were employed to test the hypotheses
 Findings: financial literacy and digital literacy has significant positive influence to MSEs performance. External financing has negatively significant influence toward performance. Financial literacy is positively significant to internal financing.
 Research limitations/implications: Due to limitations of response rate, this research model for external financing preferences results limited adjusted r-square. We suggest that next research can expand the samples, and variables.
 Practical implications: This research implies that MSEs need literacy supports to get reliable information about market access, analyzing financial performance and budget, government policies which affect their financial condition, from universities and governments as policy-maker. 
 Originality/value: There were limited studies which examining MSEs performance for surviving in crisis period. This research provides data about financial literacy, digital literacy and financing preferences to enhance MSEs performance.
 Paper type: Research paper

Most of the processing industry's business actors in the Pasuruan Regency are micro and small enterprises (MSEs). The COVID-19 pandemic primarily affects MSEs, particularly those without business legalities. Some halal and quality food regulations need to be followed. This study aimed to map the halal, safe, and quality of MSEs in the food industry. Surveys, interviews, and Focus Group Discussions (FGD) were used in this method. According to the findings, food industries increased the added value of local ingredients while also creating jobs in rural areas. Robusta coffee powder products had patents and geographical indications in this regency. Processed fish had halal certificates, becoming local brands. Most of the MSEs' processed foods are halal but not certified. The MSEs' knowledge of halal and qualified materials, including food additives, is minimal. Internal audits by MSEs of halal control points (HCP) and critical control points (CCP) are not conducted periodically. Halal and safety food policies have yet to be applied in many MSEs. Halal certification in MSEs is still less than 5%. Sanitation hygiene and good handling practices (GHP) in several MSEs must be improved. The support from Indonesian Ulema Council (MUI), Nahdlatul Ulama (NU), Muhammadiyah, universities, Halal Product Guarantee Agency (BPJPH), and Local Government has yet to be integrated. Integration and collaboration are expected to improve MSEs' food industry knowledge, skills, attitude, and integrity.