Growth Of Small Enterprises Research Articles

Impact of Public Policies on the Growth and Development of SMEs in Kogi State, Nigeria

This study examined the impact of public policies on the growth and development of Small and Medium Enterprises (SMEs) in Kogi State, Nigeria, using a mixed-methods approach. The descriptive survey design collected quantitative data from SME owners and policymakers, while the documentary research design analyzed secondary data from government reports and policy documents. The target population included SME owners, managers, and policymakers, selected due to their direct experience with policy implementation. With approximately 895 registered SMEs in Kogi State, the study utilized primary data collection and multiple linear regression analysis was used to test the hypotheses at a 5% level of significance. Findings indicated that monetary policy (MP) has a strong positive correlation with entrepreneurship growth and a statistically significant effect on SME development. Findings revealed that monetary policy (MP) has a positive yet strong correlation with entrepreneurship growth. Findings also show that monetary policy has a highly statistically significant effect on the growth of Small and Medium Enterprises in Kogi State, Nigeria. The study reveals that government policies are the major challenges that affect SMEs' growth and development in the global competitive environment. The findings further show that this factor has a significant impact on SMEs' growth in Kogi State, Nigeria. To mitigate policy-related challenges, the study recommended that SME management adopt effective strategies, such as adapting to subsidy regimes and other government policies that affect business operations. The research underscores the need for policymakers to consider SME-friendly regulations to foster sustainable business growth in Kogi State and Nigeria.

Soft skills in action: Enhancing entrepreneurial growth through commitment and bricolage strategies

Limited resources have always been critical for the sustainability, growth, and development of micro and small enterprises. Understanding how the available limited resources can be best utilized during adverse conditions seems essential. Accordingly, this study attempts to understand key factors enhancing entrepreneurial bricolage (EB) among micro and small entrepreneurs, leading to better growth aspirations (GA). The study gathered a sample of 280 micro and small entrepreneurs from December 2024 to January 2025 through online and in-person visits to their business locations. Data were analyzed with the help of partial least square-structural equation modeling (PLS-SEM). The study has reported that commitment (COM) and soft skills development (SSD) are positively and significantly correlated with EB, and EB positively and significantly influences GA. Furthermore, EB mediates the relationship between COM, SSD, and GA. However, COM reveals no direct connection with GA, but SSD reports a positive connection with GA. The study provides theoretical and practical implications for policymakers, stakeholders, and academic researchers. Acknowledgment This work was supported by the Deanship of Scientific Research, Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Saudi Arabia [Grant No. KFU251164].

Financial Inclusion through Priority Sector Lending: A Study on the Credit Delivery and Growth of MSMEs in India

Financial inclusion is a critical driver of inclusive economic growth, particularly in developing economies like India, where access to formal financial services remains uneven. This study examines the role of Priority Sector Lending (PSL) as a strategic tool for achieving financial inclusion and fostering the growth of Micro, Small, and Medium Enterprises (MSMEs) in India. The Reserve Bank of India (RBI) mandates Scheduled Commercial Banks (SCBs) to allocate a specific percentage of their Adjusted Net Bank Credit (ANBC) to priority sectors, including MSMEs, which are pivotal to economic development, employment generation, and poverty alleviation. This research explores the impact of bank lending under PSL on the growth of MSMEs across different sectors and regions. Using the secondary data the study provides a comprehensive assessment of the effectiveness of PSL in promoting financial inclusion for MSMEs. The findings reveal significant regional and sectoral disparities in the access to and utilization of PSL funds, highlighting the need for targeted policy interventions to address these gaps. The study also underscores the importance of supplementing PSL with non-credit support mechanisms, such as financial literacy, infrastructure development, and regulatory simplification, to enhance the overall impact on MSME growth. The insights derived from this research offer valuable recommendations for policymakers and financial institutions to optimize PSL policies, ensuring more equitable and sustainable economic growth through enhanced financial inclusion of MSMEs. Keywords: Financial Inclusion, Priority Sector Lending, MSMEs, Bank Lending, Economic Growth, RBI, India.

Multivariate Gini-type discrepancies

Measuring distances in a multidimensional setting is a challenging problem, which appears in many fields of science and engineering. In this paper, to measure the distance between two multivariate distributions, we introduce a new measure of discrepancy which is scale invariant and which, in the case of two independent copies of the same distribution, and after normalization, coincides with the scaling invariant multidimensional version of the Gini index recently proposed in [P. Giudici, E. Raffinetti and G. Toscani, Measuring multidimensional inequality: A new proposal based on the Fourier transform, preprint (2024), arXiv:2401.14012 ]. A byproduct of the analysis is an easy-to-handle discrepancy metric, obtained by application of the theory to a pair of Gaussian multidimensional densities. The obtained metric does improve the standard metrics, based on the mean squared error, as it is scale invariant. The importance of this theoretical finding is illustrated by means of a real problem that concerns measuring the importance of Environmental, Social and Governance factors for the growth of small and medium enterprises.

The Effectiveness of Bank Indonesia's SME Development Strategies, Policies, and Support in Financial Technology

This study aims to assess the effectiveness of strategies, policies, and support offered by Bank Indonesia for the growth of Small and Medium Enterprises (SMEs) in the Financial Technology (FinTech) sector. Using qualitative methods, thematic analysis, and frequency analysis, this study highlights the existing gaps in research on institutional support for SMEs during the digital era, especially within the Indonesian framework. A significant contribution of this research is the detailed exploration of SMEs' perspectives on the support they receive, focusing on areas such as infrastructure, digital literacy, and regulatory frameworks. Findings show that SMEs are generally positive about Bank Indonesia's initiatives, despite challenges in technical, administrative, and networking aspects. In addition, this research proposes actionable recommendations for Bank Indonesia and other relevant bodies to improve FinTech infrastructure, increase awareness and education, and revise regulations to better facilitate SME development. In addition, this research lays the groundwork for future longitudinal and comparative analyses to measure the long-term impact of Bank Indonesia's policies and to create predictive models that can pinpoint important elements that influence the use and success of digital payment solutions among SMEs. In addition to offering policy insights for Indonesia, this research also contributes to the broader global context by understanding the role of institutional support in advancing SMEs in the FinTech industry.

Driving sustainability entrepreneurship in Indonesian batik MSMEs: The role of sustainability orientation and government support

As a traditional Indonesian craft, batik holds immense cultural significance and economic potential. The COVID-19 pandemic has caused a significant decline in the growth of batik micro, small, and medium enterprises (MSMEs) in Indonesia. This study aims to investigate the role of sustainable orientation and government support in encouraging sustainable entrepreneurship within this sector. The data were obtained using purposive sampling of 32 MSMEs and 89 respondents, including owners, managers, and senior employees. Data analysis was done using the Structural Equation Modeling – Partial Least Square (SEM-PLS) method. The results reveal that economic factors have the greatest influence on the development of sustainable entrepreneurial businesses. While social and environmental considerations also play a role, they are secondary to economic issues. In addition, the study reveals that a strong sustainability orientation, characterized by a balanced emphasis on economic, social, and environmental dimensions, as well as supportive government policies, significantly encourages sustainable entrepreneurship. This orientation motivates businesses to adopt long-term perspectives, prioritize sustainable resource use, and consider the social impact of their operations. It also highlights practical strategies for policymakers and entrepreneurs to integrate sustainability into traditional industries. Therefore, this study contributes to the ongoing discourse on sustainable entrepreneurship, which offers insights into harnessing cultural heritage for economic advantage globally post-pandemic. AcknowledgmentThe author gratefully acknowledges the financial support provided by the Directorate of Research, Technology, and Community Service under the auspices of the Directorate General of Higher Education, Research, and Technology, Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia. This article was funded through the Higher Education Excellence Applied Research Program under contract number 009/SP2H/PT-L/LL7/2023.

ANALISISA DIGITAL MARKETING “NGE LIVE YUK” TERHADAP PENJUALAN PRODUK UMKM TINJAUAN MENGGUNAKAN METODE SYSTEMATIC LITERATURE REVIEW

This study uses the Systematic Literature Review (SLR) method to analyze the effect of digital marketing on the sales growth of Micro, Small and Medium Enterprises (MSMEs). From a review of 19 articles published between 2019 and 2024, this study consistently shows that digital marketing strategies, such as the use of social media platforms and other digital marketing techniques, play an important role in increasing brand awareness, consumer interaction, and sales conversions of MSMEs. Optimization of information technology infrastructure has also been proven to increase the effectiveness of digital marketing strategies in MSMEs. These findings have significant implications for industry players and parties related to MSMEs, emphasizing the importance of strategic implementation and management of digital marketing for sustainable business growth and competitive advantage in today's digital era.

Study on the influence of preferential tax policies on the financial performance of small and medium-sized ceramic enterprises in Jingdezhen

In recent years, small and medium-sized enterprises (SMEs) have played a vital role in the rapid development of China's economy, significantly contributing to economic growth, employment, and innovative development. In response to the financial challenges faced by SMEs, the government has implemented a series of preferential tax policies aimed at promoting their development. Jingdezhen, a city renowned for its historical significance in the ceramic industry, prioritizes the growth of small and medium-sized ceramic enterprises. However, the impact of these preferential tax policies on the financial performance of small and medium-sized ceramic enterprises in Jingdezhen remains to be explored. This paper addresses this critical issue by analyzing the influence and mechanisms through which preferential tax policies affect the financially healthy development strategies of Jingdezhen's ceramics sector. Grounded in demand management theory, tax incentive theory, and the optimal tax system, this research employs statistical analysis to examine the implementation of tax preferential policies for SMEs. It finds that tax reductions in Jingdezhen have significantly decreased operating costs for enterprises, fostered innovation in research and development, optimized the business environment, and contributed to stable growth in the scale of market participants.This study identifies several issues in the process of municipal tax reduction and fee reduction in Jingdezhen, including the need for further optimization of tax reduction and fee reduction policies, inadequate implementation by tax authorities, and insufficient understanding of these policies among taxpayers. To address these challenges, this paper proposes enhancements to the overarching design of tax reduction and fee reduction policies, aims to elevate the legal framework governing tax incentives, and advocates for a coherent and continuous policy system. Furthermore, it emphasizes the importance of synchronizing the implementation of tax reduction and fee reduction policies, improving the information management and collection processes, establishing a new collection and management framework, strengthening policy outreach, and optimizing tax service delivery.

Islamic Banking Financing Growth of Small and Medium Enterprises (SMEs) In Zaria, Kaduna State Nigeria

The study aimed to examine the relationship between Islamic banking and the growth of Small and Medium Enterprises in Zaria, Kaduna State. Nigeria. Specific Objectives were to determine the relationship between Islamic banking and profitability; to examine the relationship between Islamic banking and market share; and to find out the relationship between Islamic banks and return on investment of Small and Medium Enterprises in Zaria, Kaduna State, Nigeria. The study adopted correlational and cross-sectional research designs. The study used primary data collection through the use of questionnaires. Questionnaires, both structured and unstructured were designed with snares to check validity and reliability, a sample size of 217 respondents given a study population of 500 respondents was selected using Krejcie and Morgan table. Findings reflected that there was a strong positive relationship between Islamic banking and profitability by a correlation coefficient(r) of 0.871 which is statistically significant since the p-value (0.000) < 0.01. Findings revealed that there is a moderate positive relationship between Islamic banking and profitability as this was evidenced by a correlation coefficient(r) of 0.525 which is statistically significant since the p-value (0.000) < 0.01. The study concluded that there is a significant positive relationship between, there is a significant positive relationship between Islamic banks and the return on investment of Small and Medium Enterprises in Zaria, Kaduna State, Nigeria, and there is a significant positive relationship between Islamic banks and the return on investment of Small and Medium Enterprises in Zaria, Kaduna State, Nigeria. The study recommended; that the relationship between Islamic banks and Small and Medium Enterprises growth should be studied in another important town in Nigeria. There should be aggressive marketing of Islamic bank products to reach out to the populace beyond the business owners. Islamic should organize regular meetings with business owners to educate them on risk-taking that can hinder their growth. Keywords: Islamic Banking, Small and Medium Enterprises (SMEs), Profitability, Return on Investment (ROI), Zaria, Kaduna State

The Impact of Environmental Regulation on the Growth of Small and Micro Enterprises: Insights from China

Small and micro enterprises (SMEs) make important contributions to economic development, innovation, and employment in every country. The increasingly strict environmental regulations have become a global trend, but the empirical literature that evaluates the impacts of environmental regulations on the SMEs’ growth based on their observational data is extremely rare. This study aims to investigate how city-level environmental regulations in China affect the SMEs’ growth, with a focus on identifying lag effects, heterogeneous impacts across regions/enterprise types, and the mediating roles of technological innovation and policy support, using unbalanced panel data from 2007 to 2016. Using a dynamic panel model and entropy-weighted assessment, the results show the following: (1) Stricter environmental regulations significantly impede SMEs’ growth, with this effect persisting for up to two years. Robustness tests confirm the stability of these findings. (2) Despite the overall negative impact, our analysis reveals that environmental regulations can stimulate SMEs’ growth by promoting technological innovation and increasing policy support. (3) Heterogeneity analysis shows that the regulatory effects vary by region, ownership structure, and tax status, with the most adverse impacts observed in private firms, small-scale taxpayers, and businesses outside the Yangtze River Economic Belt. These findings highlight the need for differentiated regulatory approaches to balance environmental objectives with SMEs’ growth. The study is limited by its focus on data from 2007 to 2016, not considering recent policy shifts, and may have limited generalizability to economies with decentralized environmental governance.

Electronic payment system and the growth of small and medium scale enterprises in Nigeria

Electronic payment system does not mean a total elimination of cash, but financial environment that minimizes the use of physical cash by providing alternative channel for making payment. The objectives of this study include; to identify the challenges those have hindered the adoption of e-payment system by small and medium scale enterprises, to investigate if e-payment system in any way enhanced the growth on small and medium scale business enterprises and finally to determine whether the Small and Medium Scale Enterprises in Idah Federal Constituency of Kogi State, Nigeria possess the requisite facilities and skill for e-payment transactions. The survey was carried out through the administration of questionnaire on owners and operators of small and medium scale businesses in the study area to ascertain whether the small and medium scale enterprises have started utilizing electronic based payment in their day to-day payments and business activities through Point of Sale Terminals (POS). GSM, Mobile Banking, and Automated Teller Machine (ATM) card. Descriptive statistic and t-test method of analysis are used to test the hypothesis. From the result of the study, it was revealed that e-payment system significantly increases growth of SMEs in Idah federal constituency. This signifies that an efficient and modern payment system positively correlated with economic development and it is a key enabler to economic growth. Keywords: Electronic Payment, Growth, SMEs, Nigeria.

Poverty alleviation for coastal communities through tourism development: a case study of Kulon Progo Regency

ABSTRACT This study examines the impact of tourism development on the welfare and poverty alleviation of communities in Kulon Progo Regency, a coastal region located in the southern part of Java, Indonesia. Poverty reduction is the primary objective of the 17 targets outlined in the Sustainable Development Goals (SDGs). By harnessing the potential of natural tourism and local culture, tourism development is anticipated to be an effective tool for boosting community income through the growth of Micro, Small, and Medium Enterprises (MSMEs). The research employs both qualitative and quantitative methods, including in-depth interviews, participatory observation, and surveys with tourism managers and MSME actors at Glagah Beach and Congot Beach. The findings indicate that tourism has a significant role in increasing income and creating new employment opportunities for coastal communities. However, challenges persist, such as limited access to financial institutions and technology, as well as inequalities in the distribution of economic benefits. Additionally, government support in the form of training and financial assistance remains uneven and requires further enhancement. This study underscores the need for a more inclusive and sustainable approach to tourism development, one that involves all stakeholders to ensure equitable distribution of economic benefits. The recommendations include improving access to financial services and technology, strengthening MSME training programs, and upgrading supporting infrastructure in tourist areas. These findings offer valuable insights for the formulation of more effective policies aimed at poverty alleviation and economic empowerment for coastal communities in Kulon Progo.

Strategic Competency and Growth of Aquaculture-Based Small Enterprises in Kenya

Purpose: This study evaluated the role of strategic competency on growth of aquaculture based small enterprises in Kenya. Methodology: The study adopted descriptive research design using mixed methods approach. The target population was 600 fish farmers in Nyeri County, Kenya. The study utilized purposive sampling to select fish farmers within Nyeri County, then cluster sampling to identify fish farmers in their various sub-counties. Simple random sampling was then utilized to select respondents for the study. A self-administered questionnaire was used to collect data from the respondents. A pilot study was conducted to test validity and reliability of the questionnaire. Data analysis was done using Statistical package for Social Scientists (SPSS). Regression analysis and chi-square were used to test for significant associations between the dependent and independent variables. The findings were presented in frequency tables, pie charts, bar graphs and scatter diagrams in the final report. Findings: The findings indicated a positive statistically significant relationship on strategic competency and its effect on growth. Further, regression analysis of the results established that strategic competency was found to account for 5.8% of the variation in the growth of aquaculture-based small enterprises in Kenya. 94.2% of variation in the growth of aquaculture based small enterprises in Kenya is explained by other factors outside the model. Unique Contribution to Theory, Practice and Policy: Based on the study findings, the sector should sustain government and NGO support by subsidizing input costs, promoting cottage industries, and employing trained extension officers. In addition, the management should facilitate knowledge sharing through farmer excursions and disseminate information on region-specific fish farming techniques. Lastly, it should develop public-private partnerships to coordinate markets and reduce post-harvest losses through a demand-driven approach.

The Impact of Microfinance Institutions on the Growth of Umkm: a Case Study of Baitul Maal Wa Tamwil (BMT) at Al-Amin Mosque, Deli Serdang

This study aims to analyze the impact of Baitul Maal wa Tamwil (BMT) at Al-Amin Mosque, Deli Serdang, on the growth of Micro, Small, and Medium Enterprises (MSMEs). Using a mixed-method approach through quantitative surveys and qualitative interviews, this study examines changes in indicators of turnover, business assets, workforce, and profitability of MSMEs before and after receiving financing from BMT. The results of the study indicate that BMT financing services have a positive impact on MSME growth. Average turnover increased by 60%, business assets increased, and 40% of respondents were able to employ additional workers. In addition, business profitability also increased significantly. However, this study also found several obstacles, such as low financial management capabilities and limited market access. This indicates the need to strengthen technology-based service innovation and coaching programs to support the sustainability of MSMEs. This study concludes that BMTs play a strategic role in empowering the local economy through sharia-based microfinance services. The results of this study provide recommendations for the development of similar MFIs to support MSME growth more effectively and inclusively.

Commitment Competency and Growth of Aquaculture-Based Small Enterprises in Kenya

Purpose: This study evaluated the influence of commitment competency on growth of small enterprises in Kenya. Methodology: The study adopted descriptive research design using mixed methods approach. The target population was 600 fish farmers in Nyeri County, Kenya. The study utilized purposive sampling to select fish farmers within Nyeri County, then cluster sampling to identify fish farmers in their various sub-counties. Simple random sampling was then utilized to select respondents for the study. A self-administered questionnaire was used to collect data from the respondents. A pilot study was conducted to test validity and reliability of the questionnaire. Data analysis was done using Statistical package for Social Scientists (SPSS). Regression analysis and chi-square were used to test for significant associations between the dependent and independent variables. The findings were presented in frequency tables, pie charts, bar graphs and scatter diagrams in the final report. Findings: The findings indicated that commitment competency and growth had weak inverse linear statistical relationship. The study concluded that fish farmers are already aware of the many hurdles involved in fish farming but they remain resilient in doing what it takes to achieve the goals set for their fish farms. It is not the lack of commitment on their part that contributes to the stagnating or declining of their businesses. Instead, other challenges such as lack of crucial inputs such as reliable and quality feeds, quality fingerlings, adequate water, lack of business management knowledge, lack of market accessibility and capital contribute to the dismal performance of their businesses. Unique Contribution to Theory, Practice and Policy: The government and NGOs should provide subsidized inputs and promote cottage industries to enhance aquaculture value chains. In addition, extension officers should be equipped with resources like water testing kits, and water harvesting should be encouraged in water-scarce areas.

Operation Research — The Influence of Venture Capital on the Growth of E-Commerce Listed Enterprises

Venture capital (VC) is essential for the growth of small and medium enterprises (SMEs) in developed e-commerce countries. SMEs play a crucial role in the economic development of both developing and developed countries. This paper proposes the influence of VC on the growth of e-commerce in SMEs using the propensity score matching (PSM) method. PSM is defined as the statistical analysis of observational data, where a statistical matching method attempts to evaluate the impacts of a treatment or policy. The experimental results show that the effect of e-commerce on SMEs who received VC financing experience improves the performance of employment growth and sales. Our findings reveal that VC significantly enhances employment rates and sales performance in e-commerce sectors. The study underscores the critical role of VC in driving innovation and growth within SMEs, providing valuable insights for investors and policymakers aiming to foster economic development.

Regulating Digital Finance for Small and Medium Enterprises Growth: Lessons From Thailand and Malaysia

Regulating Digital Finance for Small and Medium Enterprises Growth: Lessons From Thailand and Malaysia

The Effect of Financial Behavior, Financial Technology, and E-Commerce Adoption on UMKM Income Growth: A Case Study of 'Baku Timba Fest,' Jayapura City

This study investigates the influence of financial behavior, financial technology, and e-commerce adoption on the income growth of micro, small, and medium enterprises (UMKM) participating in the "Baku Timba Fest" in Jayapura City. Using purposive sampling, data were collected from 30 respondents through questionnaires. Employing a quantitative research method, classical assumption tests and multiple linear regression analyses were conducted. The findings reveal that financial behavior significantly impacts income growth. Although financial technology and e-commerce adoption exhibit a positive relationship with income growth, their effects are not statistically significant. Furthermore, collectively, all three variables significantly influence UMKM income growth. These results highlight the need for targeted strategies to enhance financial behavior and effectively leverage technology for sustainable income growth among UMKM.

PENGARUH MINAT WIRAUSAHA DAN SELF EFFICACY TERHADAP KINERJA UMKM DI BENGKAYANG

Performance is an important thing that must be considered in the growth of Small and Micro Enterprises (MSMEs). This study aims to identify and analyze the effect of entrepreneurial interest and self-efficacy on the performance of MSMEs in Bengkayang City. This research is quantitative research with a survey approach. Questionnaires were used in collecting data on 58 MSME players in Bengkayang City who were included in the culinary, service, basic food and clothing businesses. The variables studied included entrepreneurial interest, self efficacy and MSME performance. The data analysis technique uses multiple regression tests using SPSS as an analytical tool to determine the effect of entrepreneurial interest and self efficacy on MSME performance. The results showed that entrepreneurial interest had no effect on performance while self efficacy had a positive effect on performance. The results also showed that entrepreneurial interest and self efficacy together had an effect on the performance of MSMEs in Bengkayang City. The higher the entrepreneurial interest and self efficacy, the higher the performance of MSMEs.

Social capital and the growth of small informal enterprises in Khulna City of Bangladesh

Social capital and the growth of small informal enterprises in Khulna City of Bangladesh