Growth Of Small And Medium Enterprises Research Articles

Increasing Sales for Kalitengah Village SMEs Through Effective Digital Marketing Seminars

Kuliah Kerja Nyata (KKN) is a pivotal intramural activity that integrates education with community service, aimed at fostering the Three Higher Dharma. General Background: In the context of Indonesia's economic landscape, Micro, Small, and Medium Enterprises (SMEs) are vital for local economic development but often lack effective marketing strategies. Specific Background: This study addresses the gap in digital marketing knowledge among SMEs in Kalitengah, Tanggulangin, particularly within the Muhammadiyah Branch community. Knowledge Gap: Despite the potential benefits of digital marketing, many SMEs remain unaware of its effective implementation, leading to limited economic growth. Aims: This research aims to evaluate the impact of digital marketing seminars on the growth and sustainability of local SMEs. Results: A survey of 30 SMEs participating in a seminar revealed a 90% participation rate, demonstrating high engagement. Post-seminar analysis indicated significant improvements in marketing strategies and business performance. Novelty: This study contributes new insights into the relationship between digital marketing education and SME development in rural Indonesia. Implications: The findings underscore the necessity of ongoing digital training for SMEs, suggesting that enhanced marketing capabilities can significantly improve the economic resilience of local communities, thereby supporting broader economic development objectives. Highlights: Impact of Digital Marketing: The seminar significantly improved marketing strategies and business performance for local SMEs in Kalitengah. High Engagement: A 90% participation rate indicates strong interest and commitment from the community towards enhancing their business skills. Ongoing Education: The study emphasizes the necessity for continuous digital marketing training to foster economic resilience in rural areas. Keywords: Kuliah Kerja Nyata, Digital Marketing, SMEs, Community Development, Muhammadiyah.

Navigating global horizons: a review of export promotion and foreign market entry strategies for small and medium enterprises (SMEs)

Purpose This study aims to conduct a systematic review of the existing literature on export promotion and foreign market entry strategies for small and medium enterprises (SMEs). Design/methodology/approach This study incorporates systematic literature review by using bibliometric technique and content analysis of 195 scholarly papers published between 2000 and 2024 obtained from Scopus database, using the PRISMA principles and a methodological framework. Findings The use of quantitative analysis has shown dynamic patterns in publication trends, characterized by notable increases in recent years. These trends align with the changing dynamics of the global economy and shifting priorities in international commerce. The study reveals thematic frameworks using author collaboration analysis, word cloud visualizations and a thematic map, providing insights into a significant motor, niche and developing issues that shape the discussion on the international growth of SMEs. Research limitations/implications It offers significant insights that can benefit academics, policymakers and practitioners who are interested in understanding and navigating the intricate terrain of export promotion and market access strategies specifically tailored for small firms. Originality/value To the best of the authors’ knowledge, the study is the first of a kind that presents a systematic examination of the existing body of knowledge on the internationalization of SMEs.

Strategic Management Practices and Performance of Small and Medium-Sized Enterprises in Nairobi County, Kenya

This study aimed to assess the relationship of strategic management practices and the performance of Small and Medium Enterprises (SMEs) in Nairobi County, Kenya. The research was motivated by the significant role that SMEs play in economic development, particularly in reducing unemployment and contributing to the GDP. However, SMEs often face challenges such as limited resources, inadequate technology adoption, and poor strategic planning, which hinder their competitiveness. The study adopted a quantitative approach, targeting 250 top-ranked SMEs in Nairobi. Data collection was conducted using structured questionnaires, focusing on the four strategic management practices: strategy formulation, strategy implementation, strategy evaluation, and strategic control. The results of the study revealed that all the strategic management practices examined had a positive and significant effect on the performance of SMEs. Specifically, strategy formulation had the highest impact, followed by strategic control, strategy implementation, and strategy evaluation. The findings indicated that SMEs in Nairobi County that adopted comprehensive strategic management practices were more likely to experience improved business performance. The study also confirmed the importance of involving all levels of staff in the strategic management process, as it fosters a sense of ownership and facilitates successful implementation. Furthermore, the research demonstrated that superior strategies positively contribute to organizational performance. Based on these findings, the study concluded that strategic management practices are crucial for the growth and competitiveness of SMEs. It recommended that SME managers focus on developing and implementing superior strategies through detailed situational analysis and participatory mechanisms. Additionally, continuous evaluation of strategies was advised to ensure sustained performance improvements. This research contributes to the existing literature by highlighting the specific role of strategic management in enhancing SME performance, particularly in the context of developing economies like Kenya

The Development of SME's in Pre and Post-Pandemic Nigeria: The Role of Banks

This research paper explores how banks have impacted the growth of small and medium enterprises (SMEs) in Nigeria from 1991 to 2021. The review of existing literature discussed the challenges faced by SMEs due to the COVID-19 pandemic, which resulted in disruptions to both demand and supply. These disruptions caused revenue losses and a decrease in market confidence, further worsening liquidity constraints. The study employed a pair Granger causality test to investigate if loans from banks to SMEs influenced SME development over the research period. The variables examined included the proportion of SME contribution to GDP as an indicator of SME progress, bank loans extended to SMEs, the inflation rate (INF), and the exchange rate (EXCR). The findings reveal that neither commercial bank loans nor inflation impacted SME development without any evidence of causation. However, there was a relationship between exchange rates and SME growth. These results suggest a lasting connection between the factors studied. These outcomes recommend strengthening collaboration between the government and commercial banks to increase the share of loans directed towards SMEs for their advancement.

Evaluating effect of Inventory controls on financial performance of Small and Medium Enterprises in Eldoret Town, Kenya

Inventory management is essential for maintaining optimal stock levels and minimizing costs, which ultimately affects a firm's overall financial performance. This study focuses on the impact of inventory controls on the financial performance of small and medium enterprises (SMEs) in Eldoret town. Inventory controls are measured through various dimensions, such as inventory levels, inspection, auditing, and management systems. Previous research has shown that effective inventory management can increase a firm's profitability by reducing unnecessary stock holding costs and avoiding stockouts. To investigate this further, a descriptive research design was employed, and data was collected from 171 SME owners/managers through self-administered questionnaires. Descriptive statistics and regression analysis were used to analyze the data. The results revealed a significant positive relationship between inventory controls and the financial performance of SMEs. Specifically, the inventory controls explained 11.5% of the variance in financial performance. These findings suggest that SMEs that implement efficient inventory management practices tend to experience better financial outcomes. Therefore, it can be concluded that effective inventory control mechanisms are crucial for enhancing the competitiveness and growth of SMEs. Consequently, this study recommends that SME owners implement robust inventory control systems to maximize their financial performance.

Socio-Economic Factors Influencing Growth of Small and Medium Enterprises in Mombasa County, Kenya

Small and Medium Enterprises (SMEs) contribute over 70% of jobs, contribute to GDP, aid industrial development, satisfy local demand for services, innovate and support large firms with inputs and services. However, the SMEs in Mombasa County are constantly faced with the threat of failure where three out five fails at infancy. The study investigated the influence of economic factors (taxation, finance access and wages and unemployment) on growth of SMEs in Kenya, in Mombasa County. The specific objectives of the study were; to explore the effect of taxation on growth of SMEs, to find out the effect of Financial Access on growth of SMEs, to determine the effect of wages on growth of SMEs operating, and to evaluate the effect of general unemployment on growth of SMEs operating in Mombasa County. This study employed the institutional theory of growth, the Schumpeter theory of growth and the Endogenous growth theory anchored the study. An explanatory research design was used so as to meet the research objectives. The target population was 54,245 registered SMEs and a sample size of 246 was derived using the Cochran, statistical formula. The list of registered SMEs in Mombasa formed the study population. A Systematic Random Sampling was used from a sample of 246 SMEs was drawn. Data was collected using a structured questionnaire. Multiple regression Analysis technique was the main technique to find the effect of social economic factors on SME growth. to analyze the data using the Statistical Package for Social Sciences with a significance level set at 0.05. Findings showed that SE conditions are just modest level. Correlation results showed that Taxation conditions (r=.344, p=.000), Financial Access (r=.430, p=.000), Wages affordability (r=.241, p=.000) are positively and significantly correlated with SME growth. Regression results showed that SE factors; Taxation conditions (=.268, p=.000), Financial Access ( =.383, p=.000), Wages ( =.182, p=.015) and Unemployment ( = -.170, p=.045) has significance effect on SMEs growth. Conclusions; Socioeconomic can reverse the current trend of high SMEs failure rate. Socioeconomic factors can buck the present trend of a high failure rate among SMEs. The study recommended that the county and national governments should implement measures enhancing tax benefits for SMEs such as utilizing the taxes prudently. Additionally, the SMEs should adopt strategies that enhance internal financial capabilities so as to incase their revenue streams. Moreover, it is recommended the SMEs to have a working and sustainable wage policy that is able to attracts and keeps talented workforce and therefore ensure continued business growth. By using a multi-sectoral approach, both local and national governments should prioritize and focus on short- and long-term policies that lower the rising rates of unemployment.

Government strategy to revive SMEs from post-COVID-19 collapse: Analysis of economic improvement for lower class communities in Jakarta, Indonesia

This research aims to determine the strategy of the Jakarta Provincial Government in increasing the resilience and growth of small and medium enterprises (SMEs) within a collaborative governance framework post-COVID-19. This study explores the effectiveness of SMEs and facilities in accessing financing and fostering collaborative partnerships between SMEs, government agencies, and financial institutions by utilizing USAID’s Theory of Change (TOC). This research uses a qualitative approach supported by in-depth interviews and Focus Group Discussions to enrich the insights of SME stakeholders, large companies, and SME actors and assess the impact of their roles. The results of this research highlight the critical role of SME Cooperative Banks (SCB) in improving SMEs’ access to credit and financial services, including collaborative governance frameworks and partnerships between SMEs, government agencies, and banks, which were identified as necessary to improve policy coherence and encourage conducive SME business environment conditions. The main findings of this research underscore the importance of the SCB model, demonstrating its potential to improve SME resilience and economic sustainability. This SCB model enriches the TOC indicators introduced by USAID. The study identifies gaps in digital infrastructure and market access that hinder SME growth and recommends targeted interventions to address these challenges. This study shows that SCB offers a promising pathway to increase the resilience and growth of SMEs in Indonesia, especially if accompanied by effective collaborative governance strategies. These initiatives can encourage inclusive economic development and strengthen the role of SMEs as drivers of the local economy. Recommendations include expanding the SCB model to other regions, encouraging digitalization, facilitating market access, advocating for a supportive policy framework, and integrating these strategies to advance the principles of USAID’s Theory of Change, fostering sustainable SME development and economic resilience.

M&A contractual innovation in SME sector: the effect of valuation adjustment mechanism clause on SME growth

Identifying and effectively managing growth models for small and medium enterprises (SMEs) poses a significant challenge for entrepreneurs. Prior research has indicated that the dominant model is an acquisition-led growth strategy. Our paper introduces a novel acquisition growth model for SMEs in China, which incorporates the use of valuation adjustment mechanism (VAM) clauses in M&A contracts. We thoroughly analyze the financial implications of this innovative model on SME growth, the specific SME profiles that favor this approach, and the prevalent types of VAM clauses adopted by these SMEs. All hypotheses were rigorously tested using primary data from Chinese public SME companies. The results reveal a positive financial impact of VAM clauses in M&A contracts on SME growth. It was found that SMEs with lower equity concentration or smaller holdings are more likely to adopt the VAM Clauses Model, and the inclusion of equity payments as compensation in the VAM clause is highly common in practice. These findings hold significant implications for both theoretical research on SMEs and the practical strategies of entrepreneurs.

Venture Capital Investment and Growth of Small and Medium Enterprises (SMES) In Bayelsa State, Nigeria

The paper explored the impact of venture funding on the growth of Small and Medium Enterprises (SMEs) in Bayelsa State, Nigeria. Specifically, it investigates the effects of different venture capital financing methods, the cost of venture capital, and venture capital management support on sales growth within the SME sector. Using a survey research design, data was collected from 300 registered SMEs in Bayelsa State. Primary data was gathered through questionnaire instruments and analyzed using descriptive and inferential statistics. The findings, revealed through regression analysis, indicate that capital financing positively affects SMEs' sales growth, while the cost of capital also exerts a positive influence on sales growth. However, management support exhibits a negative effect on sales growth within SMEs. These results underscore the significance of venture capital financing mechanisms in fostering the growth of SMEs in Bayelsa State, Nigeria, while also highlighting potential areas for improvement in venture capital management practices to better support SME development.

Development Online Training Media to Improve the Digital Marketing Competence of MSME Medan

The development of online media training for digital marketing training for small and medium enterprises (SMEs) in Medan aims to increase understanding and skills in digital marketing strategies to improve competitiveness and business sustainability in the digital era. The advantages of online media training include ease of access, cost efficiency, and scalability that allows reaching more participants simultaneously. The implementation of online media training is expected to increase participants' knowledge and skills, improve the quality of SME products and services, and increase the effectiveness of digital marketing. The research findings show that online media training provides benefits in improving the competitiveness and business growth of SMEs in Medan. Recommendations include wider promotion, periodic evaluation, development of relevant content, and expert involvement to continue to enhance the positive contribution of online media training in improving SMEs' competencies in digital marketing.

Evaluation of critical success factors for successful implementation of Lean Six Sigma in Small and Medium Enterprises (SMEs) in India

ABSTRACT This research delves into the landscape of India’s small and medium-sized enterprises (SMEs) sector, which plays a pivotal role in the nation’s economic progress. The challenges for SMEs include limited access to financial resources, constrained reserves, and the competition posed by more giant corporations. To comprehend the obstacles hindering the development and sustained growth of Indian SMEs, it becomes imperative to formulate policies and strategies. Recognising the latent potential of SMEs to foster innovation, create employment opportunities, and contribute significantly to overall economic growth becomes paramount. SMEs form the backbone of various economies, including India’s, and comprehending the sector’s challenges and opportunities in a changing commercial milieu assumes critical importance. In the context of India, this study explores the catalysts driving transformations in the corporate sphere, encompassing factors like globalisation, technological strides, evolving consumer preferences, and governmental regulations. Furthermore, it highlights the hurdles and opportunities confronting SMEs in this scenario – challenges related to securing funding, acquiring talents, adopting advanced technologies, and penetrating new marketplaces. Incorporating the perspective of Lean Six Sigma for its capacity to enhance efficiency and quality can significantly enrich this research. Lean Six Sigma’s relevance to the factors lies in its potential to streamline operations, reduce waste, and improve overall processes. Integrating Lean Six Sigma principles into the discourse could provide invaluable insights into India’s SME sector, offering guidance to policymakers, CEOs, and stakeholders in making informed decisions that facilitate the growth and progression of this vital sector.

THE EFFECT OF MICROFINANCE BANK LOAN ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA

This paper evaluates the impact of microfinance bank loans on small and medium enterprises (SMEs) in Osun State, Nigeria. The SMEs encounter major difficulties when trying to obtain financing, which hampers their growth and contributions to the economy. Microfinance banks are crucial as they provide essential financial services tailored for SMEs, facilitating economic growth. A descriptive survey design was used so as to collect data from 150 randomly selected SME operators across various sectors in the Osun State. The findings show that microfinance loans significantly enhance SME performance leading to increased productivity, employment, and business expansion. However, high-interest rates & stringent loan conditions present substantial challenges that hinder optimal loan utilization. Study concludes that while microfinance bank loans positively influence SME growth, addressing these barriers could improve effectiveness & sustainability in SMEs. Enhancing loan terms could boost microfinance banks role in fostering long-term economic improvement in the region. This study empirically links the microfinance bank loans to SME performance, contributing to the literature on SME financing and economic development in Nigeria.

Design Science for Networks Designing: A Service-Dominant Logic Approach

This research explores the dynamics of coopetition among Small and Medium Enterprises (SMEs) during digital transformation, using Design Science Research (DSR) anchored in Service-Dominant (S-D) Logic. It examines the integration challenges of manufacturing SMEs into digital supply chains, highlighting the critical role of coopetition—a blend of competition and collaboration—in driving sustainable growth in this essential sector. Prompted by a consensus on reducing SME vulnerabilities, the study underscores the need for a resilient framework, especially given an 85% attrition rate in digital networks where only a minority, often supported by giants like Amazon and Microsoft, succeeds long-term. The proposed framework focuses on leveraging technology to enhance SMEs' competitiveness, innovation, and growth. This study contributes to academic discourse by suggesting future research directions, such as defining value creation in coopetition networks and assessing the impact of innovative artefacts, but also reveals the potential of coopetition networks as platforms for mutual value creation. This research enriches scholarly discussions on coopetition in the digital age and offers strategic guidance for SMEs navigating digital transformation, aiming to prepare European SMEs for upcoming challenges and opportunities.

Factors Affecting the Growth of SME Sales in the Tourism Sector of Tanjungpinang City

The aim of research is to determine the influence of e-payment, makloon, and sales promotion on sales growth of SMEs in the tourism sector in Tanjungpinang. The research involved a sample of 91 respondents using the slovin technique. The method used in this research is a quantitative method. The research object consists of small and medium enterprises (SMEs) operating in the tourism sector in Tanjungpinang City. Data collection wa carried out through respondents filling out questionnaires. The research results indicate that partially, e-payment has a significant impact on sales growth, makloon (outsourcing) influences but not significantly on sales growth, and sales promotion significantly influences sales growth. Simultaneously, it is shown that e-payment, makloon, and sales promotion collectively have a simultaneous impact on sales growth.

Navigating the Entrepreneurial Landscape: A Qualitative Exploration of SME Success Factors

This research aims to comprehensively analyze the critical success factors influencing small and medium enterprises (SMEs) through a qualitative exploration of existing literature and empirical studies. The study investigates key determinants such as access to finance, market conditions, regulatory environment, technological advancements, entrepreneurial capabilities, innovation, strategic planning, adaptability, and leadership qualities. Using a systematic literature review methodology, various sources including academic journals, industry reports, and case studies were analyzed to understand the interplay and relative importance of these factors across different contexts. The findings reveal that access to finance significantly impacts SME growth and innovation, emphasizing the role of supportive financial frameworks. Moreover, market orientation and adaptive capabilities emerge as crucial for SMEs to navigate competitive landscapes and capitalize on market opportunities. Innovation and strategic planning are identified as drivers of SME competitiveness, facilitating differentiation and sustainable growth. Leadership qualities, particularly transformational leadership, are shown to enhance organizational performance and foster innovation cultures within SMEs. The study contributes a nuanced understanding of SME success factors, offering insights for policymakers and entrepreneurs to develop targeted strategies that promote SME resilience and sustainability in dynamic global markets.

Degree of Influence of Rural Communities in the Emergence and Growth of Small and Medium Enterprises in Samar Island, Philippines

This study endeavored to determine the degree of influence of rural communities in the emergence and growth of Small and Medium Enterprises (SMEs) in Samar Island, Philippines. The study is a descriptive survey that utilized structured survey questionnaires and personal interviews with the respondents. The result of the study indicated that the community variables influenced the emergence and growth of SMEs in the rural communities. While the economic factors strongly influenced, the socio-cultural, demographic, bio-physical and politico-legal factors influenced the emergence and growth of SMEs in the rural communities. The common problems that hinder the rural communities from influencing the SMEs toward their emergence and growth were focused on the negative attitudes and values of the people in the community which are attributed to people’s lack of unity and cooperation, laziness, crab mentality, lack of self-discipline, over dependence on others, vices, lack of concern for the development of the community.

FINANCIAL LITERACY, INFORMALITY, AND SMALL BUSINESS OPERATIONAL PERFORMANCE IN ZIMBABWE

Introduction: The exponential growth of small and medium enterprises (SMEs) in many developing economies is a well-documented phenomenon in business literature. However, research indicates that the expansion of most SMEs is hindered by financial illiteracy and high levels of informality, posing significant challenges to their performance and long-term sustainability. Concerns arise from the fact that only a small fraction of these enterprises successfully transition into larger firms. This study sought to address these issues by investigating the levels of financial literacy among 120 SMEs operating in Harare and Bindura, taking into account the pervasive informality within the sector. The research also aimed to evaluate the relationship between financial literacy and SME operational performance. Methods: Employing a quantitative approach within an explanatory research design, data collection was facilitated through a structured questionnaire. To capture the diverse landscape of SMEs operating in an informal context, both purposive and convenience sampling methods were utilized to select participants for the survey. Descriptive and inferential analyses were conducted using SPSS software. Results: The findings of the study revealed a significant positive impact of financial literacy on SME operational performance, indicating that advanced financial literacy can contribute to enhanced business outcomes. Moreover, the research observed an improvement in financial literacy within SME operations, evidenced by increased awareness and application of financial management skills. Conclusion and suggestion: The study recommends that efforts to promote financial literacy among SMEs should be intensified through advanced financial education initiatives, awareness campaigns, and enhanced financial inclusion strategies. Financial service providers are encouraged to play a proactive role in supporting SME growth by investing in financial awareness programs, funding educational initiatives, and actively engaging SMEs in key economic policy frameworks. Ultimately, SMEs are urged to fully embrace financial literacy as a fundamental pathway for achieving sustainable growth and long-term business success amidst the challenges of informality.

The Impact of Capital Structure on Performance in SMEs: The Saudi Parallel Financial Market

This study aims to analyse the effect of corporate capital structure on the financial performance of small and medium enterprises (SMEs). Despite the importance of SMEs for economic growth and technology advancements and the vital role of capital structure on financial performance, there is a scarcity of studies that investigate SMEs. This study focuses on SMEs that were listed in the Saudi Parallel Market (Nomu) for the period of 2017–2022. To the best of our knowledge, this is the first study that examines this relationship for Saudi SMEs. Our research utilises secondary data and employs descriptive statistics and Pooled OLS regression analyses. This study finds that the firm’s capital structure impacts its financial performance. In particular, we find that there is a positive significant relationship between total debt and return on equity. However, when we distinguish between long-term and short-term debt, we find that positive effect is mainly attributed to long-term rather than short-term debt. This study employs several robust tests. Based on the findings of this study, the authors provide several practical recommendations for corporate boards, executives, decision-makers, and regulators whose interest is the growth and sustainable performance of SMEs. KEYWORDS corporate finance, financial performance, leverage, Nomu exchange, Saudi firms, shareholder’s equity

The Revival of SMEs in Indonesia from the Impact of the Covid-19 Pandemic

This research examines the revival of Small and Medium Enterprises (SMEs) in Indonesia amidst the Covid-19 pandemic. This pandemic presents major challenges and is a catalyst for unprecedented change in the SME sector. This article aims to identify and analyze the main factors that play a role in the resilience and growth of Indonesian SMEs during and after the pandemic. Utilizing quantitative data and qualitative interviews, this research reveals that digital transformation and government stimulus play an important role. The research results show that SMEs that use digital marketing show good adaptability and growth, and benefit from the shift in consumer behavior to online platforms. The Indonesian government's fiscal support, by assisting struggling SMEs, enables business continuity and recovery from the impact of the pandemic. The study concludes with policy recommendations to maintain the growth and resilience of SMEs, emphasizing the importance of digital inclusion, easy access to financial institutions, and community support networks. The impact of this research is significant for policymakers, business leaders, and community developers aiming to protect the SME sector from future crisis

Environmental practices and the growth of small and medium agro-processing enterprises in Uganda

The study investigated the relationship between environmentally sustainable practices and the growth of agro-processing small and medium enterprises (SMEs) in Uganda. Aquantitative methodology was used to gather information from 367 respondents from agro-processing SMEs in Greater Kampala Metropolitan Area (GKMA) in Uganda. The study findings suggest that environmental practices regarding energy conservation, waste reduction and water conservation have a positive and significant relationship to the growth of agro-processing SMEs. As a result, the study suggests and recommends an environmental sustainability model that can be used by small and medium-sized agro-processing businesses in the GKMA. This is expected to improve the growth of agro-processing SMEs in Uganda thus adding to the conversation about sustainability in the Ugandan agro-processing industry as a whole.