Location Of Enterprises Research Articles

Determinants of Micro and Small Enterprises Growth: The Case of Durame Town, Kembata Tembaro Zone, Southern Nations and Nationalities and Peoples Region, Ethiopia, 2016

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.

Location of International Business Activities: Integrating Ideas from Research in International Business, Strategic Management and Economic Geography

Introduction John Cantwell 1. MNEs as Border-Crossing Multi-Location Enterprises: The Role of Discontinuities in Geographic Space Sioerd Beugelsdijk and Ram Mudambi 2. Location and the Multinational Enterprise: a Neglected Factor? John H. Dunning 3. The Economic Geography of the Internet Age Edward E. Leamer and Michael Storper 4. International Entrepreneurship and Geographic Location: an Empirical Examination of New Venture Internationalization Stephnmie A. Fernhaber, Btree Anitra Gilbert and Patricia P. McDougall 5. Global Cities and Multinational Enterprise Location Strategy Anthony Goerzen, Christian Geisler Asmussen and Bo Bernhard Nielsen 6. The Hassal Factor: an Explanation for Managerial Locational Shunning Andreas Schotter and Paul W. Beamish 7. Regulatory Environments and the Location Decision: Evidence from the Early Foreign Market Entries of New-technology-based Firms Regis Coruderoy and Gordon Murray 8. Location and the Multinational Enterprise John Cantwell

Do Urban Social Enterprises Benefit from Agglomeration? Evidence from Four UK Cities

Pinch S. and Sunley P. Do urban social enterprises benefit from agglomeration? Evidence from four UK cities, Regional Studies. This paper examines the relevance of clustering theory for an understanding of the location of social enterprises (SEs). This is accomplished through an analysis of the extent to which managers of SEs in four major UK cities perceive themselves to benefit from agglomeration effects. The paper concentrates on two broad sets of agglomeration processes: the first is Marshallian externalities and Porter's cluster processes; and the second set includes urbanization economies and local institutional relationships. The study suggests the key benefits of agglomeration to SEs are that it enables access to demand for SE goods and services together with institutional support, funding and commercial contracts, as well as access to both formal and informal networks that can provide a wide range of knowledge and mutual support. It was, however, difficult to find direct evidence to support the importance of the Marshall–Arrow–Romer (MAR)-type spillovers related to labour market pooling, the efficient procurement of indirect inputs or localized knowledge spillovers.

Energy-Efficient Models of Sustainable Location for a Vehicle Inspection Station With Emission Constraints

Transportation facility or automotive service enterprise location is an interesting and important issue. To improve transportation efficiency, many researchers have addressed the traditional facility location allocation (FLA) problem, e.g., the FLA problem with the minimum transportation cost or the maximum obtained profit. However, with the improvement of saving energy awareness and the enhancement of environmental concerns, energy efficient and low carbon emission should be considered as key factors influencing the FLA problem. To handle this issue via a more practical method, this work proposes a sustainable location issue for an automotive service enterprise. That is, by taking the vehicle inspection station as a typical automotive service enterprise and an example, this work presents new energy-efficient models of its sustainable location with carbon constraints. An artificial fish swarm algorithm is proposed to solve the proposed models. Some numerical examples are given to illustrate the proposed models and testify the effectiveness of the algorithm.

The Impact of Trade Liberalization on Micro Enterprises: Do Banks Matter? Evidence from Indian Manufacturing

AbstractThis paper looks at the impact of trade liberalization on micro enterprises with differential access to banks. I use Indian data on rural micro enterprises employing less than ten workers in the manufacturing sector to find that trade liberalization, measured by a fall in the tariff, is associated with a larger increase or a smaller decrease in output, capital–labour ratio and labour productivity in districts with a larger number of bank branches per capita. Evidence is consistent with strong complementarities between trade liberalization effects, and the economic dynamism and access to financial intermediation associated with greater bank presence in the enterprise's location. The study underscores that trade liberalization can be beneficial to micro entrepreneurs under certain conditions and emphasizes reallocation resulting from trade liberalization. The study hence highlights the role for development policy in exploiting gains from trade.

Role of Modern Factors in the Process of Choosing a Location of an Enterprise

Decisions on locating enterprises in an area are complex and involve an in-depth analysis of many factors. Apparently, traditional factors which are often identified with cost-related factors are not the standard or a sole basis for choosing a location for an enterprise. New factors continue to emerge as a result of the current technological progress and development of the society. They are often referred to as modern factors and they accompany the birth of new businesses which respond to contemporary consumer needs and create new products and services. In principle, a location decision is influenced by many factors, classified both to traditional (classical) factors and to modern factors. Furthermore, the literature offers a distinction between hard and soft factorsi.e. measurable and non-measurable factors, having a different weight in a decision-making process. Their impact is dependent on the type of business and a size of an enterprise and the stage of decision-making. It is common that the human factor, related to decision-makers’ characteristics and motives, plays an important role in the decision-making process. The factor is rather difficult to measure. This paper discusses and identifies the importance of the modern factors, with a particular emphasis of the personal aspect of the decision-making process in matters of location of enterprises.

Enterprise and Classical Factors of its Location on the Market

The literature provides many definitions of the word “enterprise”. To put it simply, it is a legally, organizationally and economically independent unit engaged in an economic activity. A frequently defined goal of an enterprise is to generate profits by satisfying consumer needs. One of the key factors which determine an appropriate implementation of such enterprise's mission is its convenient location in the business area. This paper will focus on classical theories of the enterprise location being an important factor of entrepreneur's decisions when choosing the right place for their business. The leading classical theories were described in Spatial Management by A.Weber, A. Lösch, A. Predohl and others. They concentrate on traditional factors of a location as transport and labor cost and availability of or proximity to raw materials. The authors made an attempt to find practical application of factors specified in the paper by analyzing locations of Polish construction enterprises.

Choice of Locations by Foreign Investors: Motives for and Factors of Starting a Manufacturing Activity (the Example of Selected Factories in Poland)

The choice of a location is one of the most important decisions taken by an enterprise, both at start-up and at other stages of its life cycle involving a relocation of activity or a spatial fragmentation of the chain of value-added generation. The choice of a location by an enterprise is also of great significance for the development of the region selected, its economic and social structure, and the pattern of its spatial links. That is what makes the choice of a location one of major research problems in socio-economic geography, and in particular in its sub-discipline – industrial geography, with its scope of research embracing issues in location theory and factors of the location of enterprises and industrial plants.This paper offers an analysis of the location factors of selected factories – affiliates of international corporations, in terms of their strategic decisions of expansion onto markets abroad in the form of foreign direct investment (FDI). For international corporations, the choice of a new place of economic activity is closely connected with global advantages of conducting business at the international scale and with motives for their internationalisation.

Factors Considered in Location of Construction Enterprises in the Małopolska Region

This paper focuses on the relationship between distribution of construction enterprises in the Małopolska Region and two location factors – intensity of entrepreneurship of the local population and the potential sales market. The authors analysed both factors on the basis of spatial variation of the factors: entrepreneurial activity of residence and cubage of buildings admitted to use. It was established that no straight dependence between these two aspects existed. Conclusions from the analysis form the basis for continuation of the research with the attempt to identify important factors which decide about location of construction enterprises.

INVESTMENT ATTRACTIVENESS MEASUREMENT OF THE REGIONS VERSUS GENERAL LOCATION OF THE ENTERPRISES

The objective of the study is to analyze regions’ potential investment attractiveness and its influence on the location of enterprises. The analysis was based on a secondary study carried out regionally in 2012 for the year 2010. Spearman's rank correlation coefficient was applied in the study regarding the connection between potential investment attractiveness and enterprises’ location, measured by the number of located entities per 10 thousands residents. Correlated variables confirmed the existence of a positive connection between the variables hypothesis.

Determinants of Profitability of Polish Rural Micro-Enterprises at the Time of EU Accession

Abstract Rural micro-enterprises are an important factor in sustainable rural development in post-transitional Eastern Europe. This paper deals with determining the key factors influencing profitability in rural micro-enterprises in Poland. The research design was based on a questionnaire survey of 300 rural micro-enterprises in the food-processing sector in rich and poor Polish provinces. The analysis carried out in this study is centered around the Polish EU accession in May 2004. Similar to other related studies, our results show that EU accession was not perceived as a major change by rural Polish micro-entrepreneurs and that the EU related factors were not significant determinants of their profitability. However, our results also show that the success of the rural food processing micro-enterprise in Eastern Europe is most related to its owner/manager and enterprise characteristics. For the owner/manager the most significant determinants are his/her age and risk-taking as the main motive for establishing an enterprise. The enterprise characteristics that determine the profitability include enterprise location within a region with competitive situation, enterprise size (being a sole trader or family enterprise), IC T advancements in enterprise and the fact whether the enterprise has any certificates for its products. The results have significant implications for the researchers and policy-makers and can become a basis for preparing relevant enterprise support policies in post-transitional Eastern Europe

Global cities and multinational enterprise location strategy

We combine the concept of location derived by economic geographers with theories of the multinational enterprise (MNE) and the liability of foreignness developed by international business scholars, to examine the factors that propel MNEs toward, or away from, “global cities”. We argue that three distinctive characteristics of global cities – global interconnectedness, cosmopolitanism, and abundance of advanced producer services – help MNEs overcome the costs of doing business abroad, and we identify the contingencies under which these characteristics combine with firm attributes to exert their strongest influence. Consistent with these arguments, our analysis of a large sample of MNE location decisions using a multilevel multinomial model suggests not only that MNEs have a strong propensity to locate within global cities, but also that these choices are associated with a nuanced interplay of firm- and subsidiary-level factors, including investment motives, proprietary capabilities, and business strategy. Our study provides important insights for international business scholars by shedding new light on MNE location choices and also contributes to our understanding of economic geography by examining the heterogeneous strategies and capabilities of MNEs – the primary agents of economic globalization – that shape the nature of global cities.

The hassle factor: An explanation for managerial location shunning

This study investigates the widely overlooked phenomenon of multinational enterprise (MNE) location avoidance, utilizing a multi-method research design and data on 131 foreign investment locations. It complements economic-choice-based location research by adding contextual dimensions at the country level that matter to managers personally, and affect decisions at the firm level. We provide a connection between international business research, the behavioral stream in economic geography, and the microfoundations stream in the strategic management literature. The results suggest that, in addition to traditional location choice criteria (including investment potential, internationalization strategy, and various geographic and psychic distances), foreign location decisions in MNEs are influenced by how troublesome it is for managers to travel to or live in certain places. An 11-item measure composed of travel inconveniences shows a significant negative moderating effect on the relationship between foreign direct investment potential and investment intensity. The effect is stronger for non-resource-seeking industries. We call this phenomenon the “hassle factor”.

농촌지역 기업유치 잠재력과 실현방안 모색

본 연구는 농촌문제의 근원이 일자리 부족에 따른 과도한 인구유출에서 비롯되고 있다는 문제의식 하에 효과적인 농촌지역 기업유치방안 모색을 위해 수행되었다. 연구결과는 우선 기본적으로 2가지 방향에서 접근되어야 할 것임을 일러주고 있다. 첫째는 보다 종합적인 안목에서 적극적으로 접근하여야 할 필요성이 있다는 것이고, 둘째는 농촌지역 기업유치 대상으로 대기업을 우선적으로 고려하여야 할 것임을 제시하고 있다. 이어서 본 연구는 농촌지역 기업유치를 위한 3가지 실질적인 지원정책 실천방안을 제시하고 있다. 첫째는 기업하기에 좋은 인프라를 농촌지역에 구축하는 문제에 정책적 노력이 집중되어야 할 것임을 지적하고 있다. 둘째는 농촌지역에 입지유치를 위한 경제적 지원을 보다 강화하여야 할 것이다. 셋째는 농촌지역 자치단체로 하여금 적극적인 기업유치 활동을 전개하도록 실효적인 지원시스템을 강구하여야 할 것임을 제시하고 있다. This study aims to find the effective policy devices for attracting enterprises in rural areas. In the first place, the result of this study suggest two directions fundamentally as follows: Firstly, the government works on more positive lines and from more integrated viewpoint. Secondly, it give the first consideration to the big-enterprises for attracting enterprises in rural areas. Next, the study suggest three practical policy implements also. First, the government put an emphasis on construction favorable infra structure to enterprises's activity. Second, it is necessary to strengthen the economic supports for location of enterprises in rural areas. Third, the rural self-government make effort strongly to develop the activity to attract enterprises.

Innovative Management of Finance and Marketing at Enterprises in Poland

The purpose is to examine and present the possibilities and results of implementation of innovative solutions in the two functional, different from each other, but interdependent areas of management: finance and marketing management. The analysis concerns enterprises in the Polish market.The empirical investigation carried out in mid-2009 on the nation-wide sample of 608 enterprises, selected by the method of purposive sampling, taking into account the following stratification criteria: enterprise size, branch and location. The surveys were carried out by the method of direct interview with managers of top management. The article identifies the scale and range of implementation of innovative solutions in finance and marketing management as well as effects of this process for enterprises’ competitiveness.The conclusions provide knowledge that may be useful for the staff managing enterprises, interested in raising their competitiveness and improvement of management procedures, seeking knowledge on new solutions in this respect and oriented at implementation of innovative solutions in managerial processes. Recipients may also be representatives of institutions of the business environment supporting activities of enterprises as regards formation of the competitive position and optimisation of the processes of management, including proinnovative institutions.Due to the rapidly changing economic reality and the need for continuing adjustment of ever intensifying processes of competition, managers need knowledge on the use of innovations in the management processes. In the article, based on the unique findings, there are shown the possibilities of implementation of innovative solutions in the sphere of finance and marketing. There are also shown benefits that activity in this respect may yield.

Industrial Temperature Monitoring System Design Based on ZigBee and Infrared Temperature Sensing

In the industrial field, long running of the equipment easily leads local temperature of the equipment to rise. This is a security risk. For this problem, we have designed a set of remote wireless temperature monitoring system. Based on ZigBee technology, we have a remote wireless networking temperature monitoring of a lot of equipment scattered in various locations of factories and enterprises. The system uses infrared temperature sensor TS118-3 gathering temperature information. After a signal conditioning circuit, we use a wireless RF single-chip CC2530 wirelessly transmitting the temperature of the measured target to the receiving node. The receiving node uploads the data to a computer by RS232.PC software displays real-time temperature information.

Local search algorithms for the problem of competitive location of enterprises

This article deals with the mathematical model that generalizes the known problem of location of enterprises and is represented in the form of the problem of bilevel mathematical programming. In this model two competitive sides sequentially locate enterprises, and each of the sides strives to maximize its profit. As optimal solutions of the investigated problem, optimal cooperative and optimal noncooperative solutions are considered. The method is suggested for calculating the upper bounds of values of the goal function of the problem at optimal cooperative and noncooperative solutions. Simultaneously with the calculation of the upper bound, the initial approximate solution is set up. Algorithms of the local search for improving this solution are suggested. The algorithms involve two stages: at the first stage the locally optimal solution is found, while at the second stage the locally optimal solution relative to the neighborhood called the generalized one is found. The results of computational experiments demonstrating the possibilities of the suggested algorithms are displayed.

Expected Injury Cost Indices on Finnish Farms

Annually, more than 6000 work-related injuries occur on Finnish farms. One-fourth of these injuries are classified as severe, resulting in considerable economic losses to agricultural enterprises and the national economy. The injury rate among farmers is more than twice that among all employees on average. This study aimed to identify the risk factors that should be considered when targeting interventions, thus improving their cost-effectiveness. The expected injury cost (EIC) risk index method, which combines the probability of injuries with their severity and costs, was implemented. The potential risk factors included the type of agricultural operation, worker characteristics (gender, age), agricultural work tasks performed, and the geographical location of the farm enterprise. Crop production emerged as the type of agricultural operation with the highest risk index (1.12). The lowest risk index was in sheep and goat husbandry operations (0.35). The risk index was higher for men compared to women (1.11 vs. 0.77). The highest risk age group was farmers from 55 to 59 years of age (1.36). Farmers under 40 (0.17 to 0.89) and over 65 years old (0.70) had the lowest injury risks. No evidence was found that dangerous regions are concentrated in certain geographical parts of the country. The most common agricultural work tasks in which injuries occurred were the repair and maintenance of machinery and equipment, the transportation and relocation of animals, and milking. These accounted for more than one-third of all compensated work injuries in 2005. The identified risk factors could be considered when setting priorities in injury prevention and resource allocation.

The Geographic Concentration of Enterprise in Developing Countries

A nation's economic geography can have an enormous impact on its development. In Thailand, we show that a high concentration of enterprise in an area predicts high subsequent growth in and around that area. We also find spatially contiguous convergence of enterprise with stagnant areas left behind. Exogenous physiographic conditions are correlated with enterprise location and growth. We fit a structural, micro-founded model of occupation transitions with fine-tuned geographic capabilities to village data and replicate these salient facts. Key elements of the model include costs, credit constraints on occupation choice, and spatially varying expansion of financial service providers.

Determinants of the Locational Decisions of Informal Sector Entrepreneurs in Urban Zaria

This paper examines the factors that determine the locational decisions of small-scale informal enterprise promoters in urban Zaria. The paper relied on data obtained through the administration of structured questionnaire that was designed to gather information on the relative importance of the locational factors considered by entrepreneurs in making decisions of the enterprise location. For the purpose of this study, Zaria area was divided into seven neighborhood clusters and three clusters were purposively selected for indepth study. The three selected neighborhoods have high density of informal activities. The first step in the survey was the identification of the small-scale informal enterprises in the selected clusters. A purposive sampling technique was adopted in selecting the sampled informal enterprises. The data was analyzed using descriptive statistics, Kruskal-Wallis non parametric test and Spearman Rank correlation matrix. The results indicate that proximity to family was the most critical factor (Mean = 2.83) that entrepreneurs consider in making their locational decisions. The results further indicates that proximity to family members was positively correlated with entrepreneur’s residence (rho = 0.406, p < 0.001). The implications of this result is crucial for urban planning because the location of informal enterprises in residential areas poses serious environmental challenge and disamenity effects to residential clusters that were not designed for industrial activities.