Financial Performance Of SMEs Research Articles

The Influence of Financial Literacy and Financial Behavior on the Financial Performance of SMEs: A Regression Analysis Study in Indonesia

The method used in this research is the regression analysis method with the variables used, namely Financial Literacy (X1), Financial Behavior (X2) on Financial Performance (Y). This research uses quantitative methods and uses a sample of 118 respondents who are SME owners spread throughout Indonesia. The research uses SPSS software to assist in data processing. From the results of this research it can be concluded that the t test results obtained a significant value for the financial literacy variable of 0.019 and a regression coefficient value of 0.209. The significance value <0.05 and the positive regression coefficient value indicate that financial literacy has a positive effect on financial performance . The results of the t test obtained a significant value for the financial behavior variable of 0.005 and a regression coefficient value of 0.200. The significance value <0.05 and the positive regression coefficient value indicate that financial behavior has a positive effect on financial performance. These findings also show that financial literacy has a positive effect on the performance of SMEs and financial behavior has a positive effect on the financial performance of SMEs in Indonesia

Investigating the influence of digital transformation, budgeting and budgetary control on the financial performance of SMEs

The study delves into the challenges and opportunities SMEs face in South-West Nigeria, focusing on the transformative impacts of digitalization, big data analytics, customer experience enhancement, and stringent budgeting controls on their financial performance. The research analyzes data from 825 SMEs through Partial Least Squares Structural Equation Modelling (PLS-SEM) analyze the data. The findings indicate that digital transformation significantly boosts customer experience, big data analytics, and budgetary controls. Enhanced customer experience and effective big data utilization reciprocally improve budgetary control processes, which are crucial for financial performance. The study reveals the mediating roles of customer experience and big data analytics in the relationship between digital transformation and budgeting control, highlighting the interconnectedness of these factors. Financial efficiency also emerges as a significant moderator in the nexus between budgetary control and financial performance, underscoring its influence on economic outcomes. This research proposed initiatives such as investments in customer relationship management systems, personalized services, and streamlined communication channels to create positive customer experiences that, in turn, positively influence budgeting outcomes.

The Impact Of Cashless Payments On Smes’ Financial Performance In Mount Lebanon

Cashless payments are one of the innovations playing a significant role in business strategy. However, in Lebanon, the economic and financial crisis has forced SMEs to primarily use cash as a mode of payment, leading to numerous issues affecting their financial performance. To overcome these challenges, companies are seeking to adopt cashless payments outside the banking sector to better control their finances and adapt to rapid technological advancements. This study aims to examine the impact of cashless payments on the financial performance of SMEs in Mount Lebanon, highlighting the factors affecting the adoption of this payment method. A survey was conducted with the leaders of 183 SMEs in the region, and the results of multiple regression analysis, carried out using SPSS software, confirmed the significant impact of electronic payments on the financial performance of SMEs in the region. Specifically, mobile money and E-transfer have a significant positive relationship with financial performance. Furthermore, the study identified that competition, risks, and ease of use are the behavioral intention factors that affect the adoption of cashless payments. Consequently, leaders must adjust their strategy by integrating cashless payments to improve their financial performance.

The Impact of Accounting Practices on the Financial Performance of SMES in Somalia

The Impact of Accounting Practices on the Financial Performance of SMES in Somalia

Green Technology Innovation and Its Impact on Financial Performance with the Moderation of Green Image and Green Subsidies in SMEs in Depok City

This study aims to explore the impact of green technology innovation on the financial performance of SMEs in Depok City, Indonesia. With a focus on green process and product innovations, the research also examines the moderating effects of green image and green subsidies. The study employs Structural Equation Modeling (SEM) to analyze data collected from 387 SMEs, offering insights into the complex relationships between these variables. The results reveal that green process innovation significantly influences green product innovation, which in turn, positively impacts financial performance. The mediating role of green product innovation underscores the importance of integrating process and product innovations for financial success. Additionally, the study finds that a strong green image enhances the positive relationship between green product innovation and financial performance, highlighting the importance of environmental branding. However, contrary to expectations, green subsidies do not significantly moderate the relationship between green product innovation and financial performance.

Improved urban road network and small and medium enterprises’ financial performance: Evidence from Tanzania

This study assessed the impact of improved urban road network on financial performance of Small and Medium Enterprises focusing in Dodoma, Tanzania. The study employed a cross sectional research design where by a sample of 89 SMEs from the selected three wards in Dodoma city was used to draw the conclusion. Qualitative data collected through questionnaires were analyzed using content analysis while quantitative data analyzed using descriptive statistics and multiple regression analysis. The key findings from the study include: i) accessible roads to customers toward SME were having positive influence to SMEs performance ii) market accessibility by customers and consumers was the key factor in improving SMEs financial performance in Dodoma city and lastly, an effective time management and improved transportation of goods and services were positive related to the amount of sales revenue generated by SMEs. The conclusion is drawn to improve the urban road networks as among of the key factors in improving the performance of SMEs in Dodoma city by increasing sales and profit. It is therefore recommended that, the government and other stakeholders in the construction sector should continue to improve urban road networks and start offering basic business and financial management skills which would enable SMEs owners to make informed investment decisions as well as enhance their entrepreneurial skills which will facilitate in recognizing and exploiting the available business opportunities.

Optimizing financial performance: The interplay between financial management and accounting information systems in Yemeni SMEs

This study aims to explore the moderating effect of accounting information systems (AIS) on the relationship between financial management (FM) and its dimensions (working capital management, financial reporting, and non-current asset management) on the financial performance (FP) of small and medium enterprises in the Republic of Yemen. The study used a quantitative model approach, with data collected via a cross-sectional questionnaire to evaluate the connections within the proposed model. The data was collected from a sample of 287 individuals from SMEs according to the cluster method and analyzed with structural equation modeling (SEM) using SmartPLS software. The results revealed that financial management (non-current asset management and financial reporting) positively and significantly affects financial performance. On the contrary, there is no effect of working capital management on financial performance. More importantly, accounting information systems do not moderate the relationship between financial management and financial performance. The results of the study provide theoretical and practical implications for SME managers on how financial management dimensions and accounting information systems work together to enhance the level of financial performance in SMEs. The interaction between financial management practices and accounting information systems can empower SMEs to make more informed financial decisions. By leveraging this interaction effectively, businesses can optimize resource allocation, investment strategies, and risk management processes.

Pengaruh Tenaga Kerja Terhadap Pendapatan UMKM, Modal Sendiri, dan Kredit Usaha Rakyat (Studi Kasus di Kecamatan Sekupang Kota Batam)

This study aims to ascertain the effects of employment, capital, and private enterprise on the revenue of MSMEs in Batam City. Quantitative procedures are employed to carry out this research since the research data is presented as numbers and is analyzed using statistics. The total number of MSMEs in Sekupang Regency is the study population, while 286 MSMEs in Sekupang Regency are used as research samples. The Unknown Populations Approach method was used to calculate the number of samples in the study population while selecting the sample population for this study. The t test's findings suggest that Batam City's MSME income is favorably influenced by own capital (X1) and KUR, while business income in Batam City is positively influenced by KUR (X2). While the number of employees is only statistically significant, it has a positive effect on the profits of SMEs in Batam City. While the quantity of employees is only statistically significant, it has a positive effect on the financial performance of SMEs in Batam City. However, it can be deduced from the f test results that own capital, labor, and individual company loans all concurrently have a significant and beneficial effect on MSME revenue in Batam City.

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

The Impact of E-commerce on Organizational and Financial Performance in SMEs: Evidence from Saudi Arabia

The impact of innovation on the financial performance of SMEs after the COVID-19 pandemic

The impact of innovation on the financial performance of SMEs after the COVID-19 pandemic

Effect of Cost Accounting Techniques on Financial Performance of Small and Medium Enterprises in Kigali, Rwanda

The global economy’s highly advanced period has an impact on the increasingly harsh economic competition that happens. Cost accounting, with its marginal costing technique, assists management in profit planning. Despite the cost accounting processes put in place for a majority of manufacturing organizations, commercial success is slow and insignificant. As a result of poor performance, several industrial enterprises have even gone bankrupt. The general objective of this study was to examine the effect of cost accounting techniques on financial performance of small and medium enterprises in Kigali, Rwanda. The study used descriptive research design. The target population consisted of 393 small and medium enterprises operating in the industry sector in Kigali City. A sample size of 393 was. Descriptive and inferential statistics was used to analyze the data. Results of the study were that there was a statistical significant effect of cost accounting techniques (absorption costs, marginal costs, budgetary control costing) on financial performance of SMEs as evidenced by findings strong positive correlation coefficients additionally multiple linear regressions measured how much variability in the dependent variable (that is, Financial Performance of SMEs in Kigali City) the predictors (absorption costing, marginal costing, and budgetary control) accounted for. This implied that use of cost accounting technique explained about 88.2% of the variation of financial performance of SMEs in Kigali City.It was therefore concluded that continual use of cost accounting techniques (absorption costing, marginal costing and budgetary control) helps in decision making, to achieve high standard of accounting procedure, leads to cost effective procurement, save cost, increase profit margin, increase business growth and among others. The study therefore recommends that SME’s owners are encouraged continual use of cost accounting techniques. The SMEs owners also have to provide special training to the employees on cost accounting and accounting to enhance the employees’ performance. Government of Rwanda should also encourage SMEs to work professionally so that even those which left behind of keeping accounting records they can adapt them.

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

Is Sustainable Entrepreneurship Profitable? ESG Disclosure and the Financial Performance of SMEs

Exploring the relationship between sustainable supply chain and sustainable development goals on the financial performance of SMEs

Exploring the relationship between sustainable supply chain and sustainable development goals on the financial performance of SMEs

The mediating role of sustainable supply chain management on entrepreneurship strategy, social capital and SMEs’ financial and non-financial performance

Research related to entrepreneurial strategy variables, financial and non-financial performance, social capital and supply chain management in SMEs has not been widely carried out in Indonesia. The purpose of this study is to analyze the relationship between entrepreneurial strategy on financial and non-financial performance, social capital on financial and non-financial performance and sustainable supply chain management on financial and non-financial performance in SMES. The research method is quantitative with the online survey method. The data collection method is by distributing online questionnaires to 690 SMEs owners in Indonesia determined by simple random sampling. The questionnaire is designed using a Likert scale of 7. Data processing used structural equation modeling with SmartPLS 3.0 software tools. The results of data processing show that entrepreneurship strategy (ES) had a positive and significant effect on sustainable supply chain management (SSCM), social capital (SC) had a positive and significant effect on sustainable supply chain management (SSCM), entrepreneurship strategy (ES) had a positive and significant effect on SMEs financial and non-financial performance (SFNFP), social capital (SC) had a positive and significant effect on financial and non-financial performance (SFNFP) and sustainable supply chain management (SSCM) had a positive and significant effect on financial and non-financial SMEs financial performance ( SNFFP).

The effect of debt financing on the financial performance of SMEs in Zimbabwe

The effect of debt financing on the financial performance of SMEs in Zimbabwe

Assessing the impacts of a firm’s reputation on the financial performance of SMEs- Evidence from selected Literature.

Financial performance has been the beckon of growth of most SMEs worldwide as such there is a growing need to improve small and medium-sized enterprises’ (SMEs) reputation to gain more financially and to be highly competitive. For this reason, this study reviewed 25 articles referenced in Web of Science and Scopus journals using a systematic literature review to explain the impacts of reputation on SME firms’ financial performance. The author identified differences in theoretical models in the articles and conceptualize them summarily based on the outcome. Articles were selected from 2018 to 2022. The resultant effect of this review asserts that business reputation significantly influences SMEs’ financial performance, and it is mediated by leadership. However, profitability reduces if SME leaders concentrate more on investment in reputation as acclaimed by some CEOs. This research will leverage more studies in the field of SME performance and reputational management factors. It will give guidance to future researchers thematically.
 Keywords: Corporate reputation, financial performance, SMEs, leadership, Corporate social responsibility, intangible Asset Management, management, and systematic review

SMEs and patents: Is it worth it? A longitudinal analysis of the patent-performance relationship

In response to scepticism about the benefits of patenting in small firms, this paper provides new evidence on the relationship between financial performance in SMEs and patents, distinguishing between applications and granted patents. Empirical analyses show that firms with a patent application still pending five years after the filing date report higher sales than comparable firms who have not filed. Yet, we also find that the monopoly rights attached to granted patents do not result in higher sales than simply filing for a patent. This analysis leads us to infer that the activities performed during the patent application process improve firm knowledge stocks and absorptive capacity, in turn promoting performance above and beyond the status quo. SME managers should find in this study solid empirical evidence supporting well-informed decision-making over patenting.

Evaluation of the Influence of Cost of Credit on the Financial Performance of SMEs in Juba County, South Sudan

Evaluation of the Influence of Cost of Credit on the Financial Performance of SMEs in Juba County, South Sudan

An Empirical Evaluation of Information Sharing's Impact on Profitability; Evidence from the Solar Sector

The role of online marketing is significant. Businesses strive to maximize their profit, and there are low-budget but efficient digital solutions for this aim. Social media sites are not just a connection point but also a great surface to collect information regarding products and/or companies. Even though these free opportunities are often used, websites are the „classical” standalone digital surfaces used for marketing purposes. SEO (Search Engine Optimization) provides various techniques to improve the companies' websites' SERP (Search Engine Result Page). In addition, it could provide even statistically proven financial benefits. The current study analyzes the SEO’s influence on the financial performance of SMEs in the solar sector. The nationwide study based on the Kruskal-Wallis test revealed the importance of connecting social media sites to the company's website. The proper Social SEO results in significantly higher after-tax profit. Regarding the first contentful paints (first feedback to the browser about the website loading), the Pearson correlation coefficients showed up moderately strong, positive, significant relationships with many financial indicators.

Profiting from the digital integration of the value chain and digital competencies: does open innovation matter for manufacturing SMEs?

ABSTRACT Drawing from a resource-based view of the firm, this study investigates the effect of the level of digital integration in value chain (DIVC) activities and digital competencies (DCs) on the financial performance of SMEs, differentiating between firms that embrace open innovation (OI) and those that do not. We test our hypotheses on a sample of 348 manufacturing SMEs based in Tuscany (Italy). The results show that the level of DIVC positively influences firm performance, while the impact of DCs is not significant. Furthermore, SMEs that pursue OI perform better than those who do not pursue it, but only when the level of DIVC is low. The managerial and academic implications and avenues for future research are discussed.