Development Of Small Medium Enterprises Research Articles

Probability of Getting Households Out of Poverty: Empirical Studies in Indonesia

This study aims at analyzing the impact of household characteristics on increasing the chances of households getting out of poverty. Independent variables in this study consist of nine household characteristics (both parents’ education, employment status, and job sector; the family size, location of residence, and social assistance received). The analytical method used is logit regression. The results showed that four out of the nine variables have a significantly positive impact on increasing the chances of getting households out of poverty: residence location, fathers working in non-agriculture sector, mothers working in non-agriculture sector, and mothers working in general. Family size has a significantly negative impact. Thus, the government should promote SME (Small Medium Enterprises) development in rural areas that support agriculture production since it will increase the chances of households escaping poverty.

The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy

PurposeThe purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).Design/methodology/approachThis research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.FindingsThe outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.Research limitations/implicationsNotwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.Practical implicationsThe practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.Social implicationsThis study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.Originality/valueGenerally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.

Financial Literacy Impact on Small-Medium Enterprises Development and Sustainability in Indonesia

Small-medium enterprises (SMEs) in Indonesia are becoming the pillars for the future of Indonesia's economy. Hence SMEs need to thrive and survive in the business world. This research aims to examine the correlation between financial literacy and the sustainability of small-medium enterprises in Indonesia. Financial literacy in Indonesia is low, and it is not considered an essential factor for the sustainability of SMEs. Although the financial literacy percentage in Indonesia is still low, this does not mean that every SME owner in Indonesia is financially illiterate. A qualitative study will be used to process the data. Data are collected through in-depth interviews of 7 SME owners in Indonesia. which then are analyzed qualitatively using the Nvivo application. It is shown that there is a correlation between financial literacy and the development and sustainability of the SME. The findings in these papers are essential information for business people and SME owners in Indonesia that being financially literate significantly impacts their businesses.

Public Policies to Support Entrepreneurship and SMEs Growth: The Case of Libya

This study explored the role of government policies to support entrepreneurship and the growth of Small - Medium Enterprises (SMEs) in the Libyan economy. Due to the current situation of the business in Libya, urgent policies need from the Libyan government to focus on several aspects of SMEs for entrepreneurship and economic growth. Because of these challenges, the objective of this study is to establish a solid foundation for understanding the government's role in promoting entrepreneurship, also creating business for SMEs. The study found some circumstances that promote entrepreneurship and the environment of SMEs in the Libyan economy, such as investigating the impact of various types of recent government policies, identifying difficulties and challenges, improving the higher education system, and analysing Libyan decision-makers perspectives. As a result, the study indicated that Libyan government policies for entrepreneurship play a positive and crucial role in the development and growth of SMEs.

The Development of Small Medium Enterprises and Their Impact on the Ghanaian Economy

The Ghanaian economy is made up of small and medium scale enterprises (SMEs), corporate bodies and multinational companies. They together form the medium through which the economy transacts business activity and grows. The government agenda to make the private sector the engine of growth is mainly driven by the SME sector. The SME sector contributes over 70% of the country’s GDP. SMEs have over the years been very significant to the economic development of most developing countries, especially Ghana. It is a major form of business and a major employer making strong positive impact on the economic growth and GDP in Ghana. This study researches into the operation of the SME development in Ghana, the importance of SME’s to the Ghanaian economy, the challenges facing the sector and makes recommendations as to how to resolve these challenges and the impact to the Ghanaian economy. Data was collected from SMEs from various cross sections of manufacturing, trade, commerce and service industries. The data was collected through interviews, questionnaires, publications and reports. On the average the sector was found to be a major contributor to the GDP, performing very well. Some of the problems faced by the sector were lack of access to credit facility, inefficiencies with their management, inability to capitalize on advanced technology, regulatory and legal constraints. Recommendations are made for the training of the SME owners and managers as well as for the proper registration and structuring of the SME ventures to facilitate access to credit and also meet regulatory requirements.

E-commerce for the Development of Small Medium Enterprises

This study aims to determine the perceived influence of the existence of e-commerce for SMEs and how the development of Small and Medium Enterprises (SMEs) businesses towards e-commerce. This study used descriptive method and literature review with interviews, reading, and quoting. After conducting research on SMEs, it had been proven that with e-commerce, SMEs had become more advanced and increasingly developed. The results of this study were technological advances can be utilized by SMEs to market and develop their business through e-commerce so that many product or service innovations are created.

The learning model and the development of small medium enterprises in Indonesia

The purpose of this study is to describe how the learning process is based on the value of “gotong royong” that occurs in the SMEs community in order to face the challenges of high competition in the current era of globalization. Gotong royong is a principle of reciprocity. This means that it does not aim to get money or other materials but it is a hope that when needed there are those who help in the community of gotong royong.This study applied a qualitative method using case study approach. This study was conducted in the SMEs community consisting of 43 members in various business in Malang of Indonesia. The data were gathered through indepth interview, observation and a group discussion. The learning process that occurs between the community members who are members of the community raises the value of gotong royong (mutual cooperation) in accordance with the vision and mission carried out. With this spirit of gotong royong, it can overcome the difficulties together to advance together in the face of globalization. From the learning model produced, it can be used as literature for policy holders such as the cooperative and community service agencies in developing the community based on the cultural perspective of gotong royong that is characteristic of Indonesian. The essence of this cultural value is a driving force for common progress which is the philosophy of the development of the people economy.

Analysis of Small Medium Enterprises Export Inhibiting Factors Subsector Teak Craft Industries in Blora Regency

The export development of SMEs was faced with various obstacles that could hinder Small Medium Enterprises (SMEs) from exporting. These obstacles could come from internal and external SMEs. The purpose of this study is to analyze the effect of Knowledge Barrier (KB), Resource Barrier (RB), Procedure Barrier (PB), and Exogenous Barrier (EB) on Export Barriers (HE) for SMEs in the teak craft industry subsector in Blora Regency both partially or simultaneously. This research is quantitative study using observational data methods, questionnaires, and literature studies. The number of samples was 43 respondents who have been experienced in export activities. This study used multiple linear regression analysis. The results show that the coefficient of determination (R2) in this study shows the influence of the variable Knowledge Barrier (KB), Resource Barrier (RB), Procedure Barrier (PB), and Exogenous Barrier (EB) on Export Barriers by 61.7%, while the remaining 39.3 % evidence by other variables not present in this study. Meanwhile, the results of the F test show that simultaneously the variables of KB, RB, PB, EB have a significant affect on Export Barrier. Furthermore, partially, KB and PB variables affect but not significantly on export barriers. Meanwhile, the regression equation for the variables KB, RB, PB, EB was HE = 0.017 - 0.046KB + 0.299RB - 0.110PB + 0.688EB . Based on the results of the study, from the four variables studied, the Exogenous Barrier (EB) variable was the most dominant variable affect the export barriers to SMEs in the teak craft industry subsector in Blora Regency

Internet of Things for Smart City. A Case Study: SMEs Project in Sleman Regency

IoT improves the proficiency, precision, and viability in activities and the board of such development ecosystem targeting and ensuring a high caliber of life and animating advancement procedure of organizations. A smart city has been created by setting up cutting edge business-drove development in joint with government and companies to give a solid start business condition, sensible charges, and minimal effort to live and to work together. This paper summarizes the role of IoTs for Small Medium Enterprises in Sleman Regency, divided into 2 categories: development and marketing. This particular study contributes to the strategy of IoTs development for Small Medium Enterprises’ project.

Prioritizing important factors for the successful of halal food standard practice in Small Medium Enterprises

The purpose of this research is to prioritize the factors that is important for the successful of halal food standard practice in food manufacturing small medium enterprises (SMEs). This study employed a non-probability convenience sampling method for collecting data. The main instrument for data collection is using a structured questionnaire. The respondents of this research is halal-certified SMEs in Solo Raya. A partial least square structural equation model (SEM-PLS) was applied to test the proposed structural model. Subsequently, the importance-performance map analysis (IPMA) was performed to prioritize the critical success factors that need special attention by SMEs’ managers intending to adopt halal standard in their daily food production. Finding of this research revealed that employee involvement has a positive and significance impact to the halal food standard practices in food SMEs. Another factors, namely management support and customer focus have also a positive impact but not statistically significant. Findings from IPMA indicate that SMEs should focus on the employee involvement. The findings of this study are beneficial not only for SME’s manager but also for government institution responsible to the development of SMEs.

Strategies for Developing Sustainable and Competitive Cluster For Handycrafts –Based Small Medium Enterprise (SME)

The SME Assist concept was formulated in August 2009 in line with the philosophy of university-industry engagement. Small Medium Enterprises (SMEs) are important economic driving force in many countries. Previous researches show that efforts taken by various parties and governments of different countries have helped improve and transform SMEs to be competitive in the fast changing global economy. In Indonesia specifically in Bogor regency, West Java, there are different models or approaches adopted and implemented by various parties. However, competitiveness of SME remains an area of concern. For Handycrafts-based SME, in order to meet these expectations and fulfil their contributions to the development process, it is absolutely important that they have high productivity. It is essential that these industries provide productive and remunerative employment and, for their survival and growth, offer products and services at competitive quality and price. The Handycrafts-based SME has a potential to develop in Bogor Regency which is located in tourism area and divided into Villages (Cilember, Leuwimalang, Cisarua, Cibeireum, Kopo and Jogjogan) in Cisarua District.
 Handycrafts is the dominant cluster that can generate earning sources and give role of economics which is very significant. Unfortunately, the existence of the Handycrafts-based SME is not as good as most people expected, because there are many constraints faced. In the mean time, the infrastructure and access information concerning capital, technology, management and marketing are limited. Therefore, it is essential to formulate strategy to develop handycrafts-based SME based on internal and external factors. The objectives of this research are to identify the characteristics of handycrafts-based SME in Bogor Regency to have actual conditions, and to analyze the SME’s internal-external environment and to select the alternative strategies for development .
 The development strategies of handycrafts-based SME are proposed according to external and internal factors. These factors influence and determine the development dynamic and growth of handycrafts-based SME. The combination of strength and weaknesses together with external situation will determine the development posibility of SME. The score analysis method was used to analyze the internal external environment used for generating strategy using analytical Hierarchy Process (AHP) method. Hierarcy decisions was based on interpretation of secondary data concerning external and internal factors which influence the growth of SME and early discussion with experts from the SME entrepeneurs, academics, and local government. The prioritation of alternatives strategy was determined synchronization of literature and opinion of expert responder, then the result was processed with AHP.
 The results of this research show that the characteristics of handycrafts-based SME in Bogor Regency are: using traditional management, simple record-keeping administration, having local market and regional sale, utilize local or regional raw material, perform continous production system, having good quality awareness, using self or family capital resource, utilize simple equipments and technology and also having good innovation capability. According to the score assessment of AHP, the main strategy for the development of handycrafts-based SME in Bogor Regency is give more or better attention for policy formulation and based on socialpreneurship. This strategy means that the government policy should enhance or at least not constraining the development of handycrafts-based SME. The policy should also accommodate the necessity of all stakeholders related to handycrafts-based SME

Modified Carroll’s pyramid of corporate social responsibility to enhance organizational performance of SMEs industry

Research questions/issuesThe study seeks to examine Carrolls’ pyramid model in small-medium enterprises (SMEs) as an effective business strategy for organizational performance enhancement in industry of developing country which is in the initial phase of Industry 4.0 advance. The Corporate social responsibility (CSR) pyramid is important tool for fostering environmentally-sustainable manufacturing by having green manufacturing processes, green supply chain management, and green products and holds that firms should engage in relevant decisions, actions, policies and practices that simultaneously fulfill all component parts: ethical, legal, economic, philanthropic and environmental. Research findings/insightsOrganizational innovation as a mediator and corporate image as a moderator were incorporated in the modified conceptual model of Carroll’s pyramid. 888 valid responses from Small medium enterprises (SMEs) professionals in Pakistan manufacturing sector were collected, and then the structural equation modeling (SEM) based multivariate and conditional process modeling approaches were employed to conduct the investigation. Results demonstrated that the dimensions of modified Carroll’s pyramid of CSR have an affirmative and positive impact on the organizational performance of industrial SMEs if they were properly addressed in their innovation strategies. The findings further concluded that organizational innovation and corporate image are the significant mediator and moderator respectively between the dimensions of Carroll’s pyramid of CSR and the organizational performance that further enhance the organization performance and productivity in terms of ethical and sustainable business development and overall bottom line in the light of industry 4.0 approach. The outcomes confirmed that the inclusion of Industry 4.0, Cleaner Production, and Circular Economy concepts in the SME sector provides a synergistic business opportunity that intent to payback towards sustainable development by improving environmental management, production efficiency, and socially sustainable development for SMEs. Theoretical/academic implicationsThis study provides empirical support for the modified Carol’s pyramid in industrial SMEs following Industry 4.0 approach. As such, it suggests new avenues of research for both the Industry 4.0 literature, as well as for the studies in CSR and organizational performance perspective. Practitioner/policy implicationsOutcomes of this study suggest the senior managers of SME in industrial sector that implementing the modified CSR model would be an innovative and competitive business strategy in industry, which can effectively improve the organizational performance in terms of ethically, ecologically, and economically through organizational innovations and allows to foster Industry 4.0 development.

The Way to Improve the Risk Management and Control Ability of Small-medium Port Enterprises

Li, J., 2020. The way to improve the risk management and control ability of small-medium port enterprises. In: Yang, Y.; Mi, C.; Zhao, L., and Lam, S. (eds.), Global Topics and New Trends in Coastal Research: Port, Coastal and Ocean Engineering. Journal of Coastal Research, Special Issue No. 103, pp. 213–216. Coconut Creek (Florida), ISSN 0749-0208.The major decision risks of small-medium enterprises are investment and financing risks, and the risk control of small-medium enterprises by themselves and regulators at all levels has become a prominent problem. How to do a good job in supervision, review and risk control, establish and improve the risk control mechanism, and give full play to the positive influence and role of small-medium enterprises in China's socialist market economy has become the current society the main task of preventing financial risks. Based on the analysis of the current situation of the development of small-medium enterprises in the current stage of socialism, the author further explores the specific measures of the investment and financing risk management, which promote the further improvement of the level of economic development in China.

Development of small medium enterprises of maize processed food products as a locomotive of Gorontalo District’s economy

This study aims to analyze the development of small medium enterprises (SMEs) of maize processed product as a locomotive of Gorontalo District’s economy. Primary and secondary data were used for this study. Data were analyzed descriptively and regression analysis was conducted to analyze the effect of the components of production costs on the selling prices of maize processed food products and the effect of selling prices on SMEs revenues. The results of the study found that the potential for development of SMEs of maize processed food products in Gorontalo District is quite prospective because human resources and raw materials were still cheap and easily obtained. On the demand side, maize processed products are also relatively high on demand. Maize processed product has been an alternative substitute for pastries which are always served by Muslims on religious observances. In increasing the competitiveness of maize processed products, it is necessary to pay attention and make raw material costs and labor costs efficient. Those two cost components have a significant effect on the selling prices of maize processed food products.

Strategies of Developing for Competitive Agribusiness Small Medium Enterprises (SMEs) in Rejang Lebong Regency

Small and Medium Enterprises (SMEs) has a large potential for economic progress in Indonesia, But lately, its development experienced fluctuations due to various factors. Among them is the absence of the best strategy formulation for the development of Agribusiness UMKM. one of the potential SMEs of Agribusiness in Indonesia is Rejang Lebong Regency, especially its superior MSME products. The purpose of the research were to identify the characteristic SMEs of Agribusiness in Rejang Lebong, to analyze the internal and external factors of SMEs of Agribusiness and to create competitive SMEs of Agribusiness, and to formulate a competitive SMEs strategy.
 The data was conducted by giving questioner to 30 SMEs of Agribusiness, and deep interview to 5 experts.. The selection of SMEs and experts in this research was conducted using non probability method. While, the collection of data was conducted by purposive sampling technique. Data processing method was using strategy formulation analysis that consist of IFE, EFE,IE, SWOT, and AHP using expert choice software.
 The results of the study show that the most influential factors in the development of Rejang Lebong's competitive agribusiness SMEs at the highest level of actors are related services, the goal with the highest weight is to improve the competitiveness of MSMEs and weighting alternative strategies is to improve the quality of products and create new variations. and create membership programs such as special discounts, and facilitate access for new customers with purchases through technology-based bookings such as the internet, social media. While product packaging innovation by changing the packaging appearance becomes more attractive, product quality assurance and halal certification, comprehensive partnership between elements such as trainings, seminars and procurement of production technology, institutional strengthening and assistance in the use of marketing technology in navigating the disruption era.

A Study on the Adoption of Software as a Service (SaaS) in Online Business SMEs in Sri Lanka

The purpose of this study is to investigate the factors that influence the adoption of Software as Service (SaaS) at Small Medium Enterprises (SMEs) that have adopted online business in Sri Lanka. Prior studies have shown that SMEs significantly benefit due to the adoption of SaaS. The research sough to explain the adoption of SaaS using Awareness, Trust, Cost, Top Management Support, Complexity and Relative advantage. Conceptualization of this researcher’s variables and their interrelationship have been supported by theory of Diffusion of Innovation (DOI) of Rogers’ (1962) and Technological Organizational and Environmental (TOE) Framework of Tornatzky and Fleisher (1990). The study was conducted among 250 randomly selected SMEs adopting online business using questionnaires addressed to managerial and ICT professionals who were capable of making ICT decision at SMEs under study. However only 224 questionnaires were returned with complete data required for the purpose of analysis. The study employed principal component analysis to reduce the data and employed Ordinary Least Square (OLS) to test the relationship between the variables. It is found that Cost (CT), Complexity (CX) and Relative Advantages (RA) are having significant impact on SaaS adoption in SMEs in Sri Lanka. This study extends the existing body of knowledge by providing empirical support for explaining SaaS adoption by SMEs in Sri Lanka. The finding will help various parties engaging in promoting the adoption of SaaS among SMEs with the view of SMEs’ development in Sri Lanka. On this basis, the researchers are able to recommend firstly, that SaaS is playing a significant role for the development of SMEs in this area of study and finally, that software vendors, policy makers, technological consultants and application developers intend to adopt SaaS should consider the validated model tested in this research study.

A Review of the Impact of the National Micro Small and Medium Enterprise Policy on Youth Employment and Enterprise Development: A Case of the Small Medium Enterprises Development Agency of Nigeria

A Review of the Impact of the National Micro Small and Medium Enterprise Policy on Youth Employment and Enterprise Development: A Case of the Small Medium Enterprises Development Agency of Nigeria

SMEs Development Strategy for Competitive and Sustainable Typical Local Snacks of Banten Province

Small Medium Enterprises (SMEs) for snacks in Indonesia currently has a good growth rate on one hand; but on the other hand, its level of competition is also quite high. Growth in sales volume of the Indonesian snack industry, both in modern and traditional markets in 2012, was recorded at 10-15 percent far beyond the growth of other manufacturing industries. However, the level of competition in the snack industry is also relatively high. Business people in the snacks sector do not only compete with fellow local business people but also with imported products, both legal and illegal. Currently, Banten Province is indeed not known as a culinary destination with a variety of distinctively local foods. The growth of the food industry in Banten Province is not as rapid as other manufacturing industries. However, in Banten, some types of food produced in small and medium scales (SMEs) are also known. Therefore, efforts to develop and empower typical local snack SMEs in Banten Province needs to be conducted to be able to increase its competitiveness in facing the globalization era and the ASEAN free market in 2015. The purpose of this reseach is to map the performance profile of Banten typical local snack SMEs and to provide recommendation on SME development strategies for competitive and sustainable Banten typical local snacks. The research method used combines the descriptive research method, IPA (Importance Performance Analysis), and SWOT analysis. The performance level measurement for Banten typical local snack SMEs is based on stakeholder perceptions on the condition of the existing 16 attributes compared to the perception on the development expectation of each of these attributes. Results of SWOT matrix mapping puts the products of Banten typical local snack SMEs in quadran II. The strategy prioritized is the quality attribute maintenance strategy for superior products, as well as product diversification to expand market share, competitiveness, and sustainability of Banten typical local snack SME products.

Perumusan Strategi Pengembangan Industri Kecil Menengah Topeng Malangan

Topeng Malangan is one of potential cultural products developed to preserve culture and bring revenue for stakeholder in Malang. This study aims to identify internal and external factors affecting the existence of small medium enterprise (SME) Topeng Malangan and formulate its development strategy. The identification of problem and factors is done by focus group discussions (FGD) involving businessmen, cultural observer, academician, regional government and researchers. The results of FGD is then analyzed and developed by using SWOT matrix in order to determine formula of SME development strategies. To sharpen the strategy more effective in implementation, the analysis using IFAS and EFAS matrix is conducted. The result is final formula for SME Topeng Malangan development strategy that is more focused on strategy SO (Strength - Opportunities); which is the utilization of strength organization of SME Topeng Malangan for taking advantage of opportunities.

Prospek Pengembangan Usaha Keripik Pisang di Bandarlampung

This study conducted to formulate a possible scenario in the future (prospective strategic). The scenario is based on conditions that may occur in the future toward on the key factors that influence the development of banana chips industry in Bandarlampung. This study aimed to: (1) identify the factors that influence the development of banana chips Small Medium Enterprises (SMEs) industry in Bandarlampung, and (2) determine the formulation of banana chips SME development strategy in Bandarlampung, and (3) determine the operational recommendations for the development of banana chips SMEs in Bandarlampung. The analysis tool is the Prospective Analysis to predict the possibilities that occur in the future and prepare a strategic action needs to be done and see if changes are needed in the future. The studied showed that the critical success factors of banana chips business development in order to increase market share and become a superior product in Bandarlampung are (1) technical capability, (2) managerial skills, (3) access to information, (4) the production process, and (5) availability of raw materials. Formulation of enterprise development strategies carried out by combining the results of stakeholder analysis and a prospective analysis, to generate an optimistic scenario for the development of banana chips in Bandarlampung. Operational recommendations for the development of banana chips in Bandarlampung prepared using a prospective analysis: (1) increase the technical ability of entrepreneur, (2) increase the managerial skills, (3) increased access to information, (4) modern processes for production, and (5) increasing the availability of raw materials.