Business Performance Of Small Enterprises Research Articles

The Impact of Business Uncertainty on the Performance of Small Enterprises During the Economic Crises in Sri Lanka

Small enterprises often regarded as the backbone of economies, are currently confronted with unprecedented challenges due to the uncertain conditions arising from the COVID-19 pandemic and subsequent economic crisis in Sri Lanka. Therefore, the study attempts to assess the impact of uncertainty in the business environment on the business performance of small enterprises in Sri Lanka during the economic crisis. The study is a deductive and explanatory approach in quantitative design. The primary data was collected for a structured questionnaire from 185 owners of small enterprises in Kalutare district, Sri Lanka. The data was analyzed by using Partial Least Square Structural Equation Modelling. The results revealed that demand uncertainty, supply uncertainty, price uncertainty, policy uncertainty, and behavioral uncertainty have negatively affected business performance while technological uncertainty does not have a significant impact on business performance. Thus, the study empirically exposed that the business performance of small enterprises is severely blocked by business uncertainty during the economic crisis. Therefore, small enterprises should plan business activities to make rational business decisions based on reliable information to achieve better business performance by avoiding uncertainty during the economic crisis.

The Impact of Intellectual Capital on Business Uncertainty and Business Performance of Small Enterprises: With Special Reference to Galle District in Sri Lanka

The Impact of Intellectual Capital on Business Uncertainty and Business Performance of Small Enterprises: With Special Reference to Galle District in Sri Lanka

Effect of Entrepreneurial Orientation on the Performance of Small Enterprises

Several studies have revealed the importance of the entrepreneurial orientation (EO) concept in improving firm performance since its inception. However, because of the complications that small businesses face, there are still concerns about whether EO can improve their performance. This study investigated the effect of EO on the performance of small enterprises in Abuja, Nigeria. The objective of the study is to specifically assess the effect of the dimensions of EO viz. autonomy, innovativeness, proactiveness and risk-taking on the business performance of small enterprises in Abuja. The study made use of a survey research design to target a population of 2750 small enterprises in Abuja. Using the Taro Yamane formula, a sample size of 349 was obtained. Of the questionnaires randomly issued to the small enterprises, 338 were completed and returned representing a 96.84% response rate. The questionnaires contained closed-ended questions that were rated on a 5-point Likert scale. The data was then analysed using descriptive statistics and multiple linear regression. Arising from the result, the regression model was significant at 0.000 with the calculated value greater than the critical value (16.910>2.399), hence, the null hypothesis was rejected. It was concluded that, overall, EO has a significant effect on business performance. However, of the dimensions tested, autonomy is insignificant, while innovativeness, proactiveness and risk-taking are significant. The study recommends that entrepreneurial development initiative that aims at building the EO dimensions of small enterprises should focus on innovativeness, proactiveness and risk-taking, rather than autonomy.

Relational Contract, Asset Specificity and Business Performance: An Empirical Investigation of Small Enterprises in Seethawaka Divisional Secretariat Division in Colombo District, Sri Lanka

This study explores the effect of relational contracts on asset specificity and business performance of Small Enterprises (SEs) in Sri Lanka. The study used primary data gathered from 197 SEs in Seethawaka Divisional Secretariat Division in Colombo District using a structured questionnaire survey. Partial Least Square - Structural Equation Modelling was used to analyze the data. Empirical results show that relational qualities positively influence business performance and asset specificity. Further, asset specificity and business performance have a positive association. Also, asset specificity acts as a mediator by improving the relationship between relational contract and business performance. Therefore, the business performance of SEs can be enhanced by organizing network formation programs such as seminars and conferences to create strong relationships with exchange parties that encourage asset specificity.

Financing and Success/Performance of Small Businesses in Serbia

Financing represents a general problem for small enterprises with numerous constraints. Defining the problem of research will eliminate the answer to the following research question: Does the financing of small enterprises, based on the volume and structure, determine business performance, i.e., success? As well as the overall problem orientation of this research, motivation is related to the analysis of business performance, i.e., success of small enterprises in relation to the nature of financing small businesses. It has to be defined 'The idea is to identify and define the role of financing as a factor of competitiveness and performance in small business operations, as the general objective of the paper. Lack of financial resources is one of the most common causes of failure of small enterprises. The main hypothesis is: There is a significant correlation between the volume and structure of sources of financing and the performance of small enterprises. Data: Secondary data from the reference databases (Serbian Business Registers Agency) for 2018, which include 150 cases, serve as the relevant basis for the realization of the research within the adequately set area of the research. Tools will be used to study the relationship, i.e., connectivity of selected research variables based on regression analysis in the frame of parametric quantitative procedures. Business performance variables, measured by indicators of profit and revenue growth, with variables of volume and structure of financing as is equity and % of equity as a structure; measures like time in business, total revenue, total number of employees, represent the size and age of business. Findings point to the conclusion that the volume of financing as well as the participation of own capital contribute to the business performance of small enterprises, which is measured by the most relevant variables in terms of profit and total revenue. Contribution: Based on the facts presented, we can say that all research assumptions have been confirmed, and the presented research results are significant and representative for future managerial practice of small businesses. The key contribution of this research is identification of an optimal financing structure for business performance of small enterprises.

Improving Small Business Performance: The Role of Entrepreneurial Intensity and Innovation

The Small and Medium Enterprise is currently getting more attention from the Indonesian government as the contribution of this sector to the regional and national income has increased. Though the government is providing a lot of attention as well as facilities to the small businesses in the manufacturing sector, they face intense competition. Thus, the small enterprises need to ensure that they achieve good business performance. This research aims to investigate the role of entrepreneurial intensity and innovation in improving the performance of small businesses in Indonesia. For this purpose, one hundred and eighty-six small business owners participated in the survey. The data was analyzed using Structural Equation Modelling. The hypothesis results show that entrepreneurial intensity and innovation have a proven role in business performance of small enterprises. Entrepreneurial intensity in particular, significantly impacts innovation and exploration. And innovation is crucial for business performance. The results imply that to increase business performance, the owner and the manager also need to raise their entrepreneurial spirit, as it can enhance their willingness to explore and use their business experience to do more innovation activities. The more innovation is done by the company; the business performance is more likely to improve.

The impact of social media on the business performance of small firms in China

ABSTRACTIn the present research, the researchers conducted an empirical study on the impact of information from social media on the business performance of small enterprises in China. Findings indicate that the information regarding government and industry policies has a significant impact on business performance. In addition, gender and education of entrepreneurs have moderating effects on the impact of information to business performance.

Brand Equity and Business Performance in Family and Non-Family Mexican Small Business

Brand equity is a topic that has been analyzed and discussed recently by scholars and researchers in the field of marketing. It is also considered as one of the most successful business strategies which allows enterprises, especially small ones, not only to survive in a highly globalized and competitive market bust also to attain a significant increase in their level of business performance. Moreover, the equity of the brand has commonly been studied from the perspective of big enterprises so there are few investigations focused in the analysis of these variables in small companies. This is why the objective of this empirical research is the analysis and discussion of the effects of equity of brand in business performance in small enterprises from a country with an emerging economy, as it is the case of Mexico. The results obtained show that equity brand in products and services of small enterprises have a positive, significant effect in the level of business performance.

Brand Management and Business Performance in Mexican Small Business

Brand management is a relatively new topic in marketing literature and it is considered by several researchers, academics and professionals, as one of the most important business strategies that allow not only a significant growth of the business performance of small enterprises, but also their continuity in the market where they participate. Similarly, brand management has also been analyzed and discussed at the core of enterprises and there are relatively few investigations that focus on small enterprises, and there are even less researches carried out in developing countries. For these reasons, the main goal of this empirical research is the analysis and discussion of the effects of brand management on the level of business performance in small enterprises, by using a sample of 300 small firms and by implementing a model of structural equations of second order, that can provide a deeper understanding of the current relation between brand management and business performance. The results obtained show that brand management has a positive and significant in the level of business performance in small enterprises.

노동소득분배율이 소상공인 경영성과에 미치는 영향

노동소득분배율이 소상공인 경영성과에 미치는 영향

Teaching KAIZEN to small business owners: An experiment in a metalworking cluster in Nairobi

In recent years, managerial capital has received attention as one of the major determinants of enterprise productivity, growth, and longevity. This paper attempts to assess the impacts of a management training program on the business performance of small enterprises in a metalworking cluster in Nairobi, Kenya. A previous study of this cluster observed that while several enterprises had successfully expanded operation, the majority had been experiencing declining profits due to increasing competition with imported products and with new entrants in the cluster. Based on the observed differences in management between successful and less successful enterprises, we designed a management training program featuring the basics of KAIZEN, an inexpensive, commonsense approach to management emphasizing the reduction of wasted work and materials, for the less successful enterprises. Although our initial intention was to use this training program as a randomized experiment, we had to abandon randomization and allow every business owner interested in the program to participate in it, due to circumstances beyond our control. This paper finds that business owners operating smaller enterprises tended to be self-selected into training participation. The training effects combined with the self-selection effect, which we estimate with panel data, were statistically significant and particularly stronger on profits than on sales revenues, while other training programs that did not teach KAIZEN had positive effects on sales revenues, not profits. As a result, the participants caught up with and overtook the non-participants in terms of average sales revenues and average profits, respectively.

INNOVATION AND BUSINESS PERFORMANCE IN SMALL ENTERPRISES: AN ENTERPRISE-LEVEL ANALYSIS

This paper explores links between developed innovations and business performance in small enterprises with fewer than 50 employees. It also examines how performance has changed over time during a period of five years. The empirical evidence is based on two quantitative datasets describing innovation and business performance in 145 small enterprises in 2005–2009. The study makes a contribution to academic literature by providing a detailed view of the differences in performance across innovation types. The results suggest that during the period of five years, non-innovators have been the best performing enterprises in terms of operating earnings and return on investments while radical innovations can be connected with sales growth. During the recession, the less vulnerable enterprises have been non-innovators and innovators characterised by the high diversity of developed innovations. Applying these results helps small business owners to consider what is the nature and timescale for getting return on innovations.