Growth Of Micro Enterprises Research Articles

THE INFLUENCE OF GROWTH OF MICRO SMALL AND MEDIUM ENTERPRISES (UMKM) AND UNEMPLOYMENT ON GROWTH INDONESIAN ECONOMY

This study aims to determine the influence of MSMEs (Micro, Small and Medium Enterprises), and unemployment on economic growth in Indonesia. In this study it was taken only 15 years. This research uses quantitative research methods. This research model uses multiple linear regression. The results of the study Partially the growth of Micro, Small and Medium Enterprises (MSMEs) has a negative and significant effect on Indonesia's Economic Growth. While unemployment has a negative and significant effect on Indonesia's growth. Simultaneously the Growth of Micro, Small and Medium Enterprises (MSMEs) and Unemployment have a positive and significant effect on Indonesia's Economic Growth. The magnitude of the influence of the variables Micro, Small or Medium Enterprises (MSMEs) and unemployment on Indonesia's Economic Growth is 60, 92%. While the rest is influenced by other variables outside the model of 39.08%.

Empowerment of Indonesian MSME Business Performance: An Empirical Analysis of Knowledge Sharing and Innovation


 
 
 
 Abstract
 The wheel of a country's economy is driven by the growth of Micro, Small, and Medium Enterprises (MSMEs). Structural socio-economic changes from MSME business activities can improve people's living standards, such as absorbing jobs, fostering a sustainable business climate, and equal distribution of people's income. Along with the increasing number of MSMEs, business actors are required to strengthen business performance through innovation orientation in the products they produce. Knowledge sharing is one of the competitive advantages built by the company so that MSMEs are guided in carrying out business activities. Acquiring knowledge and skills through collaboration is an effective and efficient effort to innovate in the business environment. This study examines knowledge sharing and product innovation in MSME performance management. The study used a quantitative method of 225 respondents based on purposive sampling criteria. The implementation of Structural Equation Modelling (SEM) with the AMOS 24 statistical tool was applied to test the feasibility of the data and research hypotheses.
 Keywords: Knowledge Sharing; Product Innovation; Business Performance
 
 
 
 

Opportunities and Challenges for Individual Small Businesses

Integration of the rules of the Job Creation Law in terms of encouraging the growth of micro-enterprises in the form of Individual Limited Liability Companies to improve the economy. The type of research used is empirical normative legal research that focuses on field research to obtain primary data, and literature research that serves to complement and support data obtained in the field. The results showed the inequality of perceptions regarding the categories of micro-enterprises and small businesses, because the difference in handling authority between Small Businesses is in the Department of Industry and Trade, while for Micro-Enterprises the authority is in the Office of Cooperatives, Micro Enterprises and Manpower, so there is a need for regulatory integration in a draft regional regulation, to increase economic growth, especially in providing capital assistance by banking institutions for Individual Limited Liability Company Micro Enterprises without the condition of having to attach a deed of establishment of an Individual Limited Liability Company, because these conditions do not exist in the Job Creation Law.

Factors Affecting Growth of Micro and Small Enterprises: A Case of Adola Woyu Town, Guji Zone Oromia Ethiopia

The purpose of this study was to assess the challenging factors for growth of micro and small enterprises in Adola Woyu town. It covers both internal and external environment factors that have potential influences on growth transformation of MSE in town. The study adopted a mixed research approach. The primary data was collected from the member of MSE and concerned officials through written questionnaire and interviews. Data was collected from 212 respondents through those data collection tools. Both probability and non-probability sampling techniques were employed to select sample from targeted populations. MSE in Adola town were classified in five strata namely Trade, Manufacturing; Urban agriculture, Services and construction and sample were drawn from each stratum proportionally. Purposive sampling technique was employed to select interviewers from MSE members as well as from concerned officials. 5-point Likert scale questions were employed to investigate about the factors hinders smooth growth of MSE study area for indepth investigation of respondents’ feeling and believes through this attitudinal scale questions. Both descriptive and inferential statistics were employed for data analysis. Frequency table, percentage, mean and standard deviation from descriptive and correlation and multiple regression were used for analysis. The findings of the study reveal that both internal and external variables have significant effects on growth of MSE in Adola town. Hence, it was recommended that both government and member of MSE should give more attention and watch both internal and external factors to ensure sustainable growth of MSE

Bridging the Urban-Rural Divide: Exploring the Potential of Smart Technologies for Rural Micro-Enterprises in Yogyakarta City, Indonesia

The proliferation of smart technologies is revolutionizing the global business environment, offering growth and competitiveness opportunities for micro-enterprises facing resource, market access, and infrastructure challenges. Yogyakarta City, Indonesia, presents a diverse case, with both urban and rural areas experiencing varying technology adoption and infrastructure. Rural micro-enterprises in Yogyakarta grapple with issues like insufficient human resources, limited internet access, and technological barriers. This study aims to investigate the role of smart technologies in fostering the growth and competitiveness of micro-enterprises in the rural areas of Yogyakarta City, Indonesia, by identifying the key challenges and opportunities related to technology adoption and infrastructure development. To investigate the role of smart technologies in fostering the growth and competitiveness of micro-enterprises in rural areas of Yogyakarta City, Indonesia, a qualitative research method can be employed. This approach allows an in-depth exploration of participants' experiences, perspectives, and contextual factors influencing technology adoption. Through a qualitative study analysis on rural micro-enterprises in Yogyakarta City, Indonesia, the findings reveal limited awareness and misconceptions about smart technologies, inadequate infrastructure and connectivity, a lack of skilled workforce, financial constraints, insufficient government support, and cultural resistance to change as key challenges impacting the adoption of smart technologies, which underscores the need for targeted interventions to foster growth and competitiveness in these businesses.

Assessment of Factors Affecting the Growth of Small and Micro Enterprise: A Case Study of Eastern Wollega Zone Selected Three Woredas

Micro and Small Scale Enterprise play a crucial role in economic development and social well-being both in developing and developed world. The aim of SME development and the provision of SME services are to enable the entrepreneurs to take advantage of market opportunities and improve the access to skill development opportunities that strengthen entrepreneurial capabilities (UNIDO. 2002). As part of the industrial sector, SMEs are increasingly becoming popular and important in the Ethiopian economy as they would play a decisive role in contributing to employment generation, poverty reduction and the opening of wider distribution of wealth and opportunities (HK HAILU, 2010). In Ethiopia, SMEs Sector is the second largest employment- generating sector following agriculture. In East Wollega zone the majority of the residents are engaged in micro and small enterprise, specifically on trade, service, construction, urban agriculture and manufacturing.

Practical Validation in a Neutrosophic Environment of the NEBS Methodology for the Optimization of SME Financing through Machine Learning

Micro and small enterprises (MSEs) have generated great opportunities for the growth of countries in the Latin American region. Unfortunately, as a result of the global crisis caused by the Sar-Cov-2, MSEs were severely affected. The main objective of this investigation is to validate in a practical way in a neutrosophic environment the use of a predictive Machine Learning technique that demonstrates the probability of the return on investment that a candidate investor will obtain with respect to a given business plan. With them it is expected that the investor can make the decision to finance a MSE, with the positive decision will close gaps in the growth of micro and small enterprises in Peru. The research is descriptive and predictive, with a research design of post-test only and control group. Neutrosophic TOPSIS was used as a technique. NEBS turns out to be efficient for the applicability of Machine Learning by obtaining statistical evidence to accept the hypotheses proposed for the finance sector in micro and small en-terprises in Peru. The results showed that the use of Machine Learning is validated, and its implementation increases the amount of financing obtained, decreases the evaluation time of requirements, reduces the number of complaints, and increases the number of formal sources used. Machine Learning research should be continued due to the complexity of this technology, which is con-stantly evolving.…

The Benefits and Challenges of the Gig Economy: Perspective of Gig Workers and Small Medium and Micro Enterprises (SMMEs) in South Africa

Digital work, otherwise referred to as 'gig' work, is heralded as a useful strategy that could help bridge the unemployment rate in South Africa by connecting job seekers and business organisations across the global spectrum. The purpose of this paper was to explore the benefits and challenges of the gig economy on SMMEs in South Africa. In this study, an interpretive research paradigm was followed to explore the benefits and challenges of the gig economy in the SMMEs in South Africa. Semi-structured focus group interviews were conducted with 20 participants, consisting of thirteen gig workers (n=13) and seven business organization employees (n=7). The data collected were thematically analysed with the aid of NVivo v12 software (QSR International Pty Ltd, 2015). The participants held the view that the gig economy can promote business growth and economic inclusion, and help organisations better manage their resources. While gig work offers some advantages, the participants highlighted concerns surrounding the lack of clear policy, occupational vulnerability, precarity, platform-based work, and the risks of gig work. The study suggests that gig work is critical to advancing the growth of Small, Medium, and Micro Enterprises (SMMEs) in South Africa.

Government policies and growth of micro, small and medium enterprises in India

Micro, Small and Medium Enterprises (MSMEs) play a significant role in the development of Indian and world market economies. MSMEs are the larger creator of employment all over the world. In developing countries like India, MSMEs are the agent of social and economic growth of the country and the large employment-producing sector after the agriculture sector. In the field of entrepreneurship policy making is a very complex process. Government policy affects entrepreneurial activity. People’s attitudes toward entrepreneurship, regional development, trade, the nature of the labour force, government interference and prevailing MSMEs are the factors which are affected by government policy. The growth of MSMEs is the responsibility of the government because they helped in poverty alleviation by providing employment to a larger section of the country. This paper is an attempt to evaluate the performance of MSMEs in India and the government policies for the development of MSMEs. This study is based on secondary data collected from various resources such as Reports of the MSME ministry and RBI, journals, books, etc.

ASSESSMENT ON THE IMPLEMENTATION OF BARANGAY MICRO BUSINESS ENTERPRISES ACT OF 2002 RELATIVE TO THE PROFITABILITY OF FOOD BUSINESSES IN VICTORIA, LAGUNA

Barangay Micro Business Enterprise (BMBE) law was enacted in 2002 in the Philippines to promote the growth of small and micro-enterprises in the food industry by providing tax incentives and simplified business registration procedures. This study aimed to analyze the effectiveness of BMBE implementation in the food industry, its impact on business profitability, and identify areas for improvement. A survey was conducted on 30 BMBE-registered sole proprietor food businesses in Victoria, Laguna, using a quantitative research method. The findings showed that the BMBE Act of 2002 has benefited micro- enterprises in the food industry, helping them reduce labor costs, comply with regulations, improve their financial status, and allocate more resources for economic expansion and growth. The study highlights the importance of government support for small businesses and suggests targeted interventions or support programs. The researcher recommends further research and promotion of BMBE registration, consistent and effective implementation, and guidelines for monitoring and evaluation.

Digital transformation and competitiveness in Peruvian small business

Digital transformation has become fundamental to improving the competitiveness of microenterprises worldwide, and Huancayo, Peru is no exception. By adopting digital technologies, microenterprises can improve their operational efficiency, expand their market reach and enhance their abilities to make informed decisions. They have therefore found innovative ways to adapt to changing market conditions, such as incorporating information technologies, online sales, use of social networks and home delivery. Despite this, many microenterprises struggle to survive due to lack of access to financing and adequate government support. This study aimed to analyze how individual, group and organizational factors influence the digital transformation of microenterprises and its impact on their competitiveness. The research was carried out in a sample of 80 multi-sector microenterprises, using a non-probabilistic and cross-sectional research design of a quali-quantitative and explanatory nature, using SEM-PLS. The results of the study indicate a positive relationship between individual, group and organizational factors and digital transformation, as well as with the competitiveness of microenterprises. The coefficients of determination (R2) obtained were 0.8897 and 0.7931 for digital transformation and competitiveness, respectively, indicating a predictive ability in both cases. These findings are of great use to policy makers, business owners and researchers interested in fostering the growth and development of microenterprises in emerging economies.

Microfinance, A Lifeline for Micro Industries in Pakistan: A Comparison of Governmental and Non-Governmental Microfinance Programs

The association of microfinance and entrepreneurship is increasingly recognized as a tool for the socio-economic development of dawdling regions. By contrast, most of the studies on the micro level have primarily focused on poverty alleviation and spending of loans on living standards and reached conflicting findings. Evidence on the impact of microfinance on entrepreneurial development in different regions has conflicting results. There is growing academic interest in geographical variations and a consensus that geographical disparities exist. This paper investigates the impact of microfinance programs offered by government and non-government organizations on the profitability, employment and sales growth of microenterprises operating in Pakistan. Using a sample of borrowers (treatment group) and respondents on the waiting list (control group) operating microenterprises, we provide evidence that the impact on the profitability of microenterprises is positive, with a higher mark for NGO borrowers. Moreover, the study's novelty compares the microenterprise industry and the findings that using loans in service sector business makes individuals more likely to move from a low-wage labourer to a more profitable entrepreneurship status. Our findings will help policymakers and academics identify the most relevant intervention areas.

Growth of Youth-Owned Micro and Small Enterprises in Kigali City, Rwanda: What is the Role of Government Entrepreneurial Interventions?

Micro and Small Enterprises are major players in the wealth of nations, and therefore various entrepreneurial interventions were launched for boosting the economies and standards of living by creating employment opportunities and profits. However, these MSEs have experienced some problems which lessen their growth. The objective of the research was to investigate the effect of government interventions on the growth of youth-owned MSEs in Kigali City, Rwanda. The study was anchored on the resource-based view, Gibb’s support theory, adoption theory, and growth of a firm theory/ Explanatory and descriptive research designs were adopted. The sample was 154 respondents drawn from three districts of Kigali city with a population of 252 youth-owned MSEs. Data was collected using a questionnaire and analyzed using multiple linear regression analysis. The study concludes that entrepreneurial training, access to credit, technology-based online social media, and market access effectively influenced the growth of MSEs in Kigali City, Rwanda. The study recommended that government entrepreneurial interventions should be effectively factored into policy-making and program implementation for sufficient growth of MSEs. MSEs should adopt technology-based online social media to market their products to the global market beyond the Rwanda boundary. Moreover it’s an effective management tool for customer relations for online business.

SOCIAL NETWORKING RELATIONSHIPS AND DIGITAL MICROENTERPRISE GROWTH IN THE INFORMAL SECTOR: THE MEDIATING ROLE OF INDIVIDUAL ENTREPRENEURIAL ORIENTATION

This paper aims to examine the role of social networking relationships in growing an informal sector digital microenterprise and the mediating effect of individual entrepreneurial orientation (IEO). Using data from 248 digital microenterprises in the informal sector of Senegal, this study utilizes multiple regression and Hayes process macro Model 4 to show that social networking relationships are positively associated with online informal microbusiness’ growth and IEO. It further reveals that IEO is related to digital microenterprise growth and partially mediates its link with social networking relationships. This study contributes to the social capital literature by showing that social relationships with external entities can provide resources to buffer against infrastructure and resource deficits and other growth challenges found in developing countries. It also extends the literature on IEO by facilitating a deeper understanding of individual entrepreneurial behaviors that can help transform resources from social networking relationships into growth in an informal digital environment.

Entrepreneurial Competencies and Performance of Women-Owned Micro and Small Agribusiness Enterprises in Bomet County, Kenya

Entrepreneurship is becoming more widely recognized as a key driver of economic development, efficiency, innovation, and employment, as well as a key component of economic dynamism. Entrepreneurial competencies have contributed to the growth and expansion of most women-owned micro and agribusiness enterprises in. The women-owned Agribusiness has field is developing rapidly and widely to include entrepreneurs who are committed to solving societal problems. However, despite numerous government policies aimed at boosting women-owned micro and agribusiness enterprises in Kenya, the growth rate of such businesses has remained low. This has over time been attributed to various challenges women encounter in the course of their economic empowerment. The research aimed achieve the following specific research objectives; to analyze the effect of savings mobilization on the success of women-owned micro and small agribusinesses; to evaluate the effectiveness of entrepreneurship training on the success of women-owned micro and small agribusinesses; to analyze the impact of market research on the success of women-owned micro and small agribusinesses; and to analyze the effect of financial accessibility on the success of women-owned micro and small agribusinesses. The study targeted 381 women operating their agri-businesses enterprises in Bomet County, Kenya. From a total of 381, the researcher randomly selected 79 women-owned enterprises in Bomet County. Quantitative data were gathered mostly using a questionnaire with no open-ended questions. The results were analyzed with both descriptive and inferential statistics. Frequency and percentage breakdowns, as well as inferential statistics such as regression analysis, were employed. The outcome was showed in tables and charts. The study outcome revealed an existing positive and significant correlation between financial accessibility, entrepreneurship training, market research and savings mobilization and performance of women-owned enterprises. These results suggest that greater availability of bank loans has facilitated the growth of many small and micro-sized agricultural enterprises owned by women in Bomet County. The study found that having easy access to capital was crucial to the success of both new and existing enterprises. The study concluded that women micro and small agribusiness enterprises conduct market research to assess customer needs. The study concluded that the women micro and small agribusiness enterprises has diversified revenue sources to enhance savings. It is possible to provide a recommendation based on the results that, Bomet County Women micro-entrepreneurs should register their establishments and observe regulatory necessities to reduce turbulences of their business processes. For this will boost the chances of obtaining financing from financial organizations and women groups. The women of Bomet County should also dedicate significant time and effort to developing a clear purpose and goal for their micro-businesses.

Conceptual Framework of the Impact of Social Media Adoption by Selected MSMEs in Zimbabwe

Changes in the environment affect the growth of Micro, Small and Medium Enterprises (MSMES). Thus, MSMEs have to adopt innovative ways to grow and contribute meaningfully to the economy. A number of studies have been carried out on the adoption of social media by Small and Medium Enterprises (SMEs) worldwide but empirical evidence for MSMEs in the ICT and light engineering sector is still a dearth. This paper, therefore proposes a conceptual framework based on Technology Organization and Environment (TOE) and Diffusion of Innovation (DOI) frameworks to examine the impact of social media adoption by selected MSMEs in Zimbabwe to enhance their growth. The framework suggests four key factors that influence social media adoption and hence improve business performance. The key factors are generalized to 1) owner manager characteristics, 2) social media diffusion, 3) the organization’s size and characteristics and 4) the environmental factors such as competition and regulatory framework. Empirical testing to validate the conceptual framework is needed to help MSMES from all sectors to effectively use social media applications in order to enhance growth.

PENGARUH INKLUSI KEUANGAN SYARIAH TERHADAP PERTUMBUHAN USAHA MIKRO KECIL DAN MENENGAH DI BANK ACEH SYARIAH SUTOMO KCP KOTA MEDAN

This study aims to determine: 1). Knowing the effect of Islamic financial inclusion on the growth of micro, small and medium enterprises at Bank Aceh Syariah Sutomo KCP Medan City, and 2). Analyzing the efforts made in accelerating access to Islamic finance to encourage micro, small and medium enterprises to grow. This research is a survey research. The population in this study is the customer user of the Sharia Bank Sutomo KCP Medan City. The sampling technique used purposive sampling with a total sample of 10 people. The data collection technique uses a questionnaire that has been tested for validity and reliability.The data analysis technique used is simple regression. The results of this study indicate that: 1). Islamic financial inclusion has an effect on the growth of micro, small and medium enterprises mediated by Sharia Bank Sutomo KCP Medan City, the indirect effect significance.2). In this study, the data fulfills a normal distribution. The results show that Islamic financial inclusion has an influence on the growth of micro, small and medium enterprises.

The Impact of Islamic Financial Inclusion on Micro-Enterprises Capital: The Case of Sumedang Regency

Financial inclusion is essential, especially for small and micro-enterprises who often experience issues accessing financial institutions. This inclusion aims to eliminate all financial barriers, including price and non-price, to public access to financial services to reduce societal inequality. This study aims to analyze the effect of Islamic financial inclusion on the capital growth of micro-enterprises in the Sumedang Regency. Employing descriptive analysis and SEM-PLS on primary data with 100 respondents from micro-enterprises who used financial services, the results show that respondents' average Islamic financial inclusion was 59 percent, above the national level. It also found that Islamic financial inclusion had a positive effect on the development of micro-enterprise capital, which indicates that people classified in the micro-business group have broad access to Islamic financial products and services might increase business capital. In addition, the influence of Islamic financial inclusion and mentoring variables on positive capital development means that any increase in the value of Islamic financial inclusion and mentoring will increase capital development.

The adoption of artificial intelligence powered workforce management for effective revenue growth of micro, small, and medium scale enterprises (MSMEs)

Artificial intelligence (AI) has been used in various industries to provide innovative and intelligent features in micro, small and medium enterprises (MSMEs). Big industries started adopting AI for their HR and workforce management (WFM) activities, however, past literature suggests a lack of AI adoption in MSMEs. In the ongoing pandemic, a large number of job loss is reported in the literature. Thus, artificial intelligence-powered intelligent workforce management (WFM) may be critical during or post-pandemic to manage the huge employment in MSMEs. In this study, we develop and test a conceptual framework based on three areas where AI-powered WFM adoption for MSMEs revenue development has been highlighted. These are (a) risk management (workforce), (b) business and marketing, and (c) information exchange. Six hypotheses have been proposed and tested using structural equation modelling (SEM) with responses from 307 employees. According to the research findings, all of the offered hypotheses are significant. The findings suggest to MSME decision-makers that AI-powered WFM may help revenue growth, workforce risk reduction, intelligent business and marketing, and thoughtful, innovative, and safe information exchange. MSMEs are required to use AI in the information sharing that help in workforce risk management, business and marketing, and intelligent workforce management that scale-up the economic growth.

Influence of Equity Financing on the Growth of Micro, Small and Medium Enterprises. A Critical Literature Review

Purpose: Greatest potentials in driving economies of the developing countries such as Kenya are within the Micro, Small and Medium Enterprises sector which account for almost over 90% of the businesses in these countries. The overall objective of this study was to examine influence of equity financing on the growth of micro, small and medium enterprises. A critical literature review
 Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps.
 Findings: The researcher concludes that MSMEs financed by the venture capitalist that were under study experienced growth in both financial and non- financial aspects as well as in the managerial practices. This study reaffirms the correlation between MSMEs growth in any economy and poverty or lifestyle degradation. The economic impact of venture capitalist has been realized by MSMEs in sales, profit and asset upsurge.
 Unique Contribution to Theory, Policy and Practice: The study recommends that government owned venture capital firms need to be privatized to serve entrepreneurs better. The youth and women development funds which should be venture capital funds but are not as interest is paid by borrowers and no monitoring of businesses should be privatized to become a true venture capital fund to serve young entrepreneurs better. MSMEs using equity financed capital should be given tax concession to attract other SMEs financed by financial institutions. This will open an avenue for their growth after which they will be big industries. This study has shown that the influences of equity financing have been seen and felt and so more businesses should be encouraged to use this type of finance for economic development.