Growth Of Enterprises Research Articles

Can we rest easy under the registration-based IPO reform? Evidence from the Chinese growth enterprise market

The registration-based initial public offering (IPO) system is a pivotal initiative in China’s comprehensive capital market reform, but little is known about its effectiveness. Our study aims to explore the impact of the registration-based IPO reform on enterprises’ environmental, social, and governance (ESG) greenwashing behaviors. Drawing on data from 2,490 enterprises listed on the Chinese growth enterprise market and the main board of the Shenzhen Stock Exchange during 2012-2022, we find that the registration-based IPO reform significantly aggravates ESG greenwashing with an effect of 0.1696. Building upon this evidence, we explore the underlying mechanism. Peer competition and retail investor sentiment play a partial mediating role and become two channels through which the registration-based IPO reform may aggravate enterprises’ ESG greenwashing. Analysts’ attention can alleviate the impact of registration-based IPO reform on enterprises’ ESG greenwashing while management myopia intensifies it, and they both play a moderating role. Moreover, the aggravating effect of the registration-based IPO reform on ESG greenwashing is more pronounced in enterprises belonging to heavily polluting industries, in the Western region, and with low information transparency. Thus, our findings offer new insights into enterprises’ ESG greenwashing behaviors in the context of the registration-based IPO reform.

Microfinance institutions and entrepreneurial activities in Awka south local government area: Evidence from physically challenged persons

Given the need for inclusivity in a bid to curtail multidimensional poverty, hunger, and inequality (as reflected in the Sustainable Development Goals (SDG) 1, 2, and 10 respectively) and in the face of struggles to achieve decent work and economic growth (SDG 8) as well as responsible consumption and production (SDG 12), the main objective of our paper was to determine how microfinance institutions (MFIs) contributed to entrepreneurial successes of physically-challenged persons residing in Awka South Local Government Area (LGA), Anambra, Nigeria. A sample was drawn from the physically challenged community operating business shops and enterprises in Awka South LGA, and descriptive survey research was employed. Copies of a structured questionnaire were distributed and collected on the spot based on the exponential discriminative snowball sampling. Responses were analyzed using pie charts, frequency distributions, and percentages, while the chi-square distribution test was used to test the hypotheses. Our major findings are that, apart from access to loans, the respondents were not aware of other services rendered by microfinance institutions and that they encountered difficulties in accessing credit facilities from MFIs sequel to protocols enshrined in their banking operations. This led to the conclusion that the contributions of microfinance institutions towards the growth of enterprises owned by physically-challenged entrepreneurs in Awka South LGA was suboptimal, although some respondents had successful business startups and scale ups as a result of interventions from MFIs. Our paper, therefore recommends that, in order to build a resilient society, MFIs operating in Awka South LGA should intensify and sustain media awareness on entrepreneurship programmes they offer to physically-challenged persons as well make their services more accessible. Again, the government of Anambra State should adequately sustain entrepreneurial programmes mapped out for physically-challenged persons so that they can become entrepreneurs rather than depend on others for their survival. Keywords: Entrepreneurship, Microfinancing, Physically-challenged, Self-employment JEL Codes: M13, G21, J71, J23, D63

Analysis of tools for evaluating the effectiveness of the personnel adaptation system in the context of the social entrepreneurship

In the context of war and economic instability, social enterprises in Ukraine face numerous challenges, including limited resources and the need for a special approach in the human resources area. These factors make an effective system of employee adaptation crucial for ensuring the stability and sustainable growth of such enterprises. The article aimed to study and analyse the main tools and approaches for assessing the effectiveness of the staff adaptation system in the context of social enterprises. To achieve this goal, the methods of analysis, synthesis and content analysis were used to systematise existing scientific data. The study found that well-organised staff adaptation system helps to reduce staff turnover, increase productivity and engage employees in the social mission of the enterprise. The analysis of scientific works has identified the key factors of successful personnel adaptation under martial law, as well as the main challenges and risks faced by newcomers. The essence of assessing the effectiveness of the adaptation system is revealed, the priority criteria and tools for its evaluation, their advantages and risks are identified. The need for regular assessment of the socio-psychological climate and the level of professional training was justified. The most priority criteria and tools for assessing the effectiveness of the staff adaptation system are highlighted. The objective and subjective results of the assessment are considered, on the basis of which recommendations to improve the adaptation processes in enterprises are developed. The practical value of the study lies in the development of specific recommendations for assessing and optimising adaptation processes in social enterprises, ensuring their stability and success even in conditions of war and limited resources; the results of the study can be used in business opera-tions, particularly in social enterprises of various ownership forms, to improve the efficiency of decisions in the human resources area

Assessing the Impact of Social Media on SME Performance Using Structural Equation Modelling

Social media technology plays a crucial role in boosting productivity and competitiveness within various industries. It has made a substantial impact on the growth and vitality of small and medium-sized enterprises (SMEs) in the global economy. Through the utilization of social media technologies, SMEs can efficiently reach markets and interact with stakeholders while keeping costs to a minimum. As a result, the purpose of this study is to investigate the factors that influence SMEs' adoption of social media and the subsequent impact on their performance. The research team conducted a comprehensive study on the difficulties encountered by Small and Medium Enterprises (SMEs), considering various aspects such as technology, organization, and the environment. To gather data for the investigation, a survey with predefined answer options was administered. By adopting a quantitative methodology, the researchers analyzed 395 responses using structural equation modelling from industries such as Pharmaceutical, Automobile parts components, Electronics, IT solution Provider, Logistics, Financials, Khadi, Ceramics and glass product in Jharkhand. The results suggest that social media is becoming increasingly important for SMEs. By focusing on studying the innovative use of social media, managers and decision-makers in SMEs can improve their performance. However, Business performance refers to how well an organization achieves its goals and objective, typically measured through Sales, Brand Awareness and Customer Relationship. Additionally, incorporating social media into their operations acts as a positive mediator between technology, organization, environment, and SME performance. This research also highlights the advantages of using social media for organizations and provides insights into the motivations behind investing in this digital platform. It will help SME owner/Manager to improve marketing practices via social media adoption.

A Conceptual Framework for Sustainable Business Growth in Small and Medium Enterprises

A Conceptual Framework for Sustainable Business Growth in Small and Medium Enterprises

Promoting financial inclusion for SMEs: Leveraging AI and data analytics in the banking sector

Financial inclusion is crucial for the growth and sustainability of small and medium-sized enterprises (SMEs), which are significant contributors to economic development and job creation. However, traditional banking models often fall short in serving the unique needs of SMEs due to perceived high risks and insufficient credit history. Leveraging artificial intelligence (AI) and data analytics, the banking sector can transform its approach to financial inclusion, offering tailored financial products and services that cater specifically to SMEs. AI and data analytics enable banks to analyze vast amounts of data from diverse sources, including transactional histories, social media activity, and market trends. This holistic view of an SME's financial health and business potential allows for more accurate risk assessment and credit scoring. Machine learning algorithms can identify patterns and predict creditworthiness, enabling banks to extend credit to SMEs that may have been overlooked by traditional models. Additionally, AI-driven insights facilitate the development of customized financial products, such as flexible loan terms and dynamic interest rates, that align with the cash flow cycles and operational realities of SMEs. Automated processes and AI-powered chatbots enhance customer service, providing SMEs with timely support and financial advice, thereby improving their banking experience. Data analytics also play a critical role in fraud detection and prevention, ensuring the security of transactions and building trust among SME clients. By continuously monitoring and analyzing transaction data, banks can quickly identify and mitigate fraudulent activities, protecting SMEs from financial losses. Moreover, AI and data analytics support the creation of financial literacy programs tailored to the specific needs of SMEs, empowering business owners with the knowledge and tools to make informed financial decisions. This educational aspect is vital in fostering a sustainable financial ecosystem for SMEs. In conclusion, the integration of AI and data analytics in the banking sector holds significant promise for promoting financial inclusion among SMEs. By providing more accessible, customized, and secure financial services, banks can support the growth and success of SMEs, ultimately contributing to broader economic development and financial stability.

The Influence of Sharia Economic Law on the Growth of Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era

The Influence of Sharia Economic Law on the Growth of Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era

Financial Technology Innovation and Business Growth of Small and Medium-Scale Enterprises in Port Harcourt, Rivers State, Nigeria

This study empirically examined the relationship between financial technology (FinTech - proxied by Internet Banking and Mobile Payment) innovation and business growth (proxied by productivity and operational efficiency) of Small and Medium-Scale Enterprises (SMEs) in Port Harcourt. The study was underpinned by the theory of Technology Acceptance Model (TAM) and the Diffusion of Innovation Theory (DIT). The study adopted a cross-sectional research design and the population was the 1016 registered SMEs in Port Harcourt with a sample size of 287. Spearman’s Rank Correlation and Partial Correlation were used to test the five hypotheses that guided the study. The findings showed a positive and significant relationship exists between financial technology innovation and business growth. Based on these findings, the research concluded that financial technology innovation is a business solution and a formidable management strategy that SMEs can deploy to improve their business growth. It recommends therefore that SMEs who want to improve their business growth should invest more in FinTech innovations such as Internet banking and mobile payment, as these digital solutions have a significant impact in improving productivity and operational efficiency (business growth).

Digital Finance, Research and Development Investment, and Corporate Green Technology Innovation

The development of digital finance is anticipated to alleviate the dilemma of corporate green technology innovation. This study selects manufacturing enterprises that are publicly listed on the Shanghai and Shenzhen stock exchanges as well as the Growth Enterprise Market in China, as research samples, of which the data spans from 2011 to 2020. An empirical research using a matched dataset of this period demonstrates that the growth of digital finance has a significantly positive impact on the promotion of green technology innovation in Chinese manufacturing companies. This result remains valid even after conducting rigorous testing to ensure its reliability and taking into account the potential influence of endogeneity. Moreover, this promoting effect exhibits heterogeneity due to differences in enterprise size and property rights. In the future, governments, financial institutions, and enterprises should collaborate to promote the improvement of digital finance infrastructure, bolster policies and financial support for enterprise green technology research and development (R&D) investment, and effectively foster the improvement of corporate green technology innovation capabilities.

Price deregulation and investors’ IPO speculation: Evidence from Chinese registration system reform

This study assesses the impact of market-oriented reforms of the Chinese initial public offering (IPO) system on investor speculation. The empirical results reveal that the registration-based IPO system reform expedites the release of investor sentiment and curbs speculation in the post-IPO period. The registration reform in the Sci-Tech Innovation Board (STAR market) is more effective than that in the Growth Enterprise Market (GEM), and the long-term effects surpass the short-term effects. Further tests indicate that greater institutional (individual) investor participation is the reason for higher (lower) reform efficiency; as investor sentiment increases, the dampening effect of the registration system reform on speculation decreases. Our study confirms the importance of market-oriented reform and provides implications for implementing efficient reforms in emerging markets with high levels of manipulation and speculation.

Organizational Technology Policies and the Growth of Micro and Small Enterprises in Nairobi City County, Kenya

This study sought to establish the influence of establish the influence of organizational technology policies on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on organizational technology policies and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Resource Based theory. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that organizational technology policies and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically, MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommends that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effectively utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platform that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

How does a fair competitive environment facilitate the growth of private enterprises: A quasi-natural experiment based on the antimonopoly law

This study examines the impact of the Chinese antimonopoly law on the growth of private enterprises, addressing the broader economic context where fair competition is essential for fostering private sector expansion. Employing a difference-in-differences (DID) methodology and analyzing data from 2006 to 2019, this study reveals that the enforcement of the law has enhanced the growth of private firms primarily by reducing financial constraints and increasing the financing costs for highly monopolistic corporations. The results suggest that stringent enforcement of the antimonopoly law will significantly alleviate financial difficulties and stimulate the growth of private firms, thereby achieving high-quality economic development.

Barriers to social enterprise growth in developing countries: proposition of a multilevel approach

PurposeThe purpose of this study is to investigate the hybridity of social enterprises (SEs) by examining the barriers to growth they face at the individual, organizational and institutional levels. Through this investigation, the study aims to contribute to our understanding of hybrid SEs and advance knowledge in the field.Design/methodology/approachThis exploratory study uses Gioia’s grounded theory method to analyze qualitative data from 16 interviews conducted with established SEs, dissolved SEs and consulting centers in Vietnam.FindingsSEs do have barriers to growth that distinguish them from traditional enterprises. Hybrids face barriers to growth at individual, organizational and institutional levels. This study offers a theoretical framework and provides the process model of SE barriers to growth. The SE growth process demonstrates the complex and dynamic interplay of specific components within two groups: organizational capacities and the SE ecosystem elements. This highlights the roles of various actors and institutions within the ecosystem in enhancing organizational capabilities and removing barriers to SE growth, extending knowledge of the SE, barriers to growth and the ecosystem literature.Research limitations/implicationsThis paper has two main limitations. First, it is an empirical research conducted in a specific context, so the results may not be universally applicable. Second, it has a qualitative approach, which has limitations in comparing differences among different groups, such as hybrids versus traditional enterprises. However, these limitations also open numerous possibilities for further research directions. For instance, future research could apply this theoretical framework to conduct surveys in diverse contexts and use quantitative analysis to further examine the model of hybrid constraints.Originality/valueThe findings of this paper contribute to a more holistic understanding of barriers to growth facing SEs, which is an under-researched topic in the Vietnamese context. This paper offers a theoretical framework of barriers and the process of growth, providing potential recommendations for practitioners seeking to support SEs in addressing their unique challenges, and suggests avenues for further research in this area.

Government Subsidies and IPO Firms’ Short-Term Excess Returns: Evidence from China

AbstractAs an important tool for local governments to intervene in the listing process in their jurisdiction, the implementation effect of government subsidy has been quite controversial. This study examines the pricing mechanism of Initial Public Offerings (IPO) within China’s macro institutional environment. The period from April 2012 to December 2015 was selected as the sample observation period, with companies listed on Growth Enterprise Market (GEM) as the study objects. By focusing on IPO firms’ short-term excess returns, the multiple linear regression model and propensity score matching method (PSM) were applied to evaluate the actual impact of local government intervention through financial subsidies during the listing process. The results show that government subsidies improve IPO firm’s short-term excess returns. This promotion effect is more significant in state-owned enterprises rather than in private enterprises. Moreover, the implicit window guidance weakens the promotion effect of government subsidies on the short-term excess returns. Further, the more government subsidies the IPO firms receive, the worse their long-term performance will be. The findings demonstrate that local governments employ financial subsidies to expedite the listing process within their jurisdiction, thereby facilitating IPO companies in generating short-term excessive returns while simultaneously impeding the normal production and operation. The conclusion enhances theoretical understanding regarding high underpricing, while also offering investors a novel approach to interpreting government subsidy information and assessing IPO firm’s earnings sustainability.

Peranan Nomor Induk Berusaha (NIB) Sebagai Legalitas Usaha Bagi Pertumbuhan Bisnis UMKM Tape Semen Bu Suwarti

A country's economic growth can increase because of the important role of Micro, Small and Medium Enterprises (MSMEs). Micro, Small and Medium Enterprises (MSMEs) are productive economic enterprises that were born as one of human activities to fulfill their daily needs. This research discusses the role of the Business Identification Number (NIB) in the context of business legality to support the business growth of Micro, Small and Medium Enterprises (MSMEs). The focus of this activity is the UMKM Semen Tape Bu Suwarti, a tape producer in Semen Hamlet, Musir Kidul Village. This MSME assistance work program is carried out using several methods including surveys, observations, interviews and discussions, as well as mentoring. The stages in this activity begin with socialization regarding the importance of NIB ownership for business legality and assistance in making NIB. The existence of NIB can help to increase transparency in the business world by making it easier for the government to monitor and enforce laws related to business licensing and regulations. In this way, NIB not only simplifies the business process, but is also an important step in supporting the growth of MSMEs as a sector of the Indonesian economy.

The Effect of Financial Support, Creativity, and Regulatory Environment on the Growth of MSMEs in Depok and Bogor Cities, West Java

This study looks at the financial assistance, innovation, and regulatory environment as key determinants of the growth of Micro, Small, and Medium-Sized Enterprises (MSMEs) in the West Javan cities of Depok and Bogor. A structured questionnaire survey was used to gather data from MSME owners and operators using a quantitative research approach. The data was analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The findings show a strong correlation between financial assistance, innovation, the business climate, and MSME expansion. Increased MSME growth is linked to better financial support, innovative ideas, and a supportive regulatory framework. These results highlight the significance of addressing a variety of issues in order to promote the expansion of MSMEs and offer insightful information to stakeholders, policymakers, and company owners who wish to assist in the growth of the MSME sector in the area.

Assuring the Sustainability and Growth of Small and Medium-Sized Manufacturing Enterprises in Botswana: An Exploratory Study

This paper explored the factors that impact the sustainability and growth of small and medium-sized manufacturing enterprises in Botswana. A self-administered structured questionnaire was used to survey 348 owners/managers of small and medium-sized manufacturing enterprises (SMEs) in the South Eastern District of Botswana. Descriptive and inferential statistics were generated from the gathered data using the Statistical Package for Social Sciences (IBM SPSS Version 27.0). findings revealed that entrepreneurial factors, firm-specific factors and exogenous factors impacted the growth and sustainability of manufacturing firms in Botswana. In addition, government policies and guidelines, innovation and creativity, human capital development, access to finance, financial management skills and managerial skills were also confirmed as significantly contributing to the growth and sustainability of manufacturing small and medium-sized enterprises in Botswana. Key recommendations derived from these findings include the need for policymakers in the government of Botswana and private sector partners to upskill owners/managers of manufacturing enterprises on business planning, financial management, financial literacy, quality management, and market research skills. Furthermore, efforts should be accelerated to promote products manufactured in Botswana to regional and global markets.

Users' Technology Capabilities and the Growth of Micro and Small Enterprises in Nairobi City County, Kenya

This study sought to establish the influence of establish the influence of user's capabilities on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on user's capabilities and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Technology Acceptance Model (TAM. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that user's capabilities and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommend that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effective utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platforms that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

Повышение инновационной активности российских промышленных предприятий в условиях цифровой трансформации

The article emphasizes the importance of innovative activity growth in Russian industrial enterprises in the context of digital transformation. The purpose of the study is to analyze the main problems of industrial enterprise development in modern conditions and identify promising areas for innovative activity growth in industrial enterprises. The main methods of conducting the research were the methods of analysis, comparison, statistical methods, tabular methods, decision-making, logical reasoning, etc. The main problems of the development of Russian industrial enterprises in the context of geopolitical turbulence are studied. The authors emphasize the importance of innovation activity in industrial enterprises as the main condition for their growth and development. The analysis of the level of innovative activity of enterprises in the federal entities of the Russian Federation was carried out, which made it possible to obtain precise data on the participation of enterprises in innovative developments by region. The assessment of the share of innovative goods, services, and works in the total volume of production was carried out. The essence and directions of digitalization in industry are defined. The indicators of digital technologies’ use in various industrial enterprises (medium and large) are given, depending on the size and number of employees. The main innovative technologies used in the Russian market were studied. The foreign experience in the field of innovation in the context of digital transformation is analyzed. Promising directions were developed to increase the innovative activity of Russian industrial enterprises in digital transformation, which is aimed at creating favorable conditions for the development and growth of economic entities. The authors of the article emphasize the complexity of the approach for the solution of innovative activity growth in industrial enterprises, which comprises combining joint efforts by the heads of the organization, representatives of regional authorities, and the state.

Effect of Human Resource Management Practices on the Growth of Small and Medium Scale Enterprises in Kaduna State

This study examined the effect of human resource management practices on the growth of small and medium scale enterprises in Kaduna state. The study employed descriptive survey design while primary data was used through the administration of structured questionnaire as the source and method of data collection for the study respectively. The population of the study comprises of one hundred and fifty (150) staff from the various SMEs in Kaduna state. The adjusted sample size of the study was computed to be 120 participants using Taro Yamane formula for sample size computation through the use of census as the sampling technique of the study. The data obtained from the respondents were presented using frequency tables, percentages and linear regression (Pearson Correlation). The findings from the study revealed that the independent variables proxied by recruitment and selection, training and development, motivation and remuneration jointly have significant effects on the growth of SMEs in Kaduna State. It is therefore, concluded that human resource management practices is a good driver of SMEs growth in Kaduna State. Therefore, it is recommended that employees who offer the same level of inputs with respect to skills, efforts, qualifications, experience, should be entitled to equitable outcomes in terms of pay, promotion, job security, and opportunity for advancement. Most importantly, additional inputs and outstanding performance should entitle an employee to additional rewards. This study underscores the need for government at all levels as well as the Non-Governmental Organizations to come up with a blue-prints designed at empowering the Small and Medium Scale Business Enterprises in terms of survival funds, recruitment, training, remuneration, and overall human resource management practices with a view to drastically unemployment among youths in Kaduna State, and Nigeria at large.