Growth Of Small Enterprises Research Articles

Beyond access to capital: exploring the effect of behavioral biases on the growth of micro, small, and medium enterprises (MSMEs)

Beyond access to capital: exploring the effect of behavioral biases on the growth of micro, small, and medium enterprises (MSMEs)

Influence of Credit Limitations on the Growth of Small Enterprises in Fragile States: The case of Bosaso, Somalia

In recent years, the development of small enterprises has emerged as a vital component of economic growth and poverty alleviation in many countries. This study aimed to investigate the influence of credit limitations on the growth of Small Enterprises in Bosaso, Somalia. To achieve this objective primary data was collected and analyzed employing content analysis and multiple regression analysis. The study revealed that a majority of small enterprises in Bosaso have access to credit, with Microfinance Institutions (MFIs) and banks being the primary sources. However, a significant minority still lacks access to credit, mainly due to weak banking infrastructure and insufficient collateral. Small enterprises face numerous challenges when seeking loans, including insufficient guarantor, Political instability, limited financial infrastructure, high interest rates, and limited collateral. These challenges hinder their ability to access credit, limiting their growth potential. Also, the regression analysis indicated a positive and significant relationship between credit availability and small enterprise growth. Conversely, the access to loan and the cost of credit were found to have negative impacts on growth. On the other hand, Small Enterprises in Bosaso employ various coping strategies to overcome credit limitations, including informal financing, asset-based financing, diversification of income streams, cost reduction measures, and seeking grants or donor funding. Based on these findings, the authors made several recommendations to address the challenges and enhance the growth prospects of small enterprises in Bosaso, Somalia.

Research on the Impact Mechanism of Knowledge Spillover on the Growth of Small and Medium-sized Sports Enterprises

Background and Aim: In recent years, knowledge spillovers and enterprise innovation have become key drivers of the rapid development of small and medium-sized sports enterprises (SMEs) in China. This study conducted a questionnaire survey of 405 employees from SMEs using the snowball sampling method. The study focuses on how knowledge spillovers affect the development of SMEs in the sports industry and verifies the intrinsic links between knowledge spillovers, product innovation, model innovation, learning organizations, and firm growth variables. Materials and Methods: The study utilized SPSS 26.0 and AMOS 26.0 software for EFA and CFA. Additionally, the research hypotheses were tested using structural equation modeling with AMOS 26.0 software. Results: 1) Knowledge spillover, product innovation, model innovation, and learning organization all significantly enhance firm growth. 2)Learning organization, product innovation, and model innovation in SME sports enterprises mediate the effect of knowledge spillover on firm growth. 3)Learning organizations and product innovation, learning organizations, and model innovation in SMEs' sports enterprises jointly mediate the impact of knowledge spillovers on firm growth. 4)The study's results provide an in-depth analysis of how knowledge spillovers affect the development of SMEs through direct and indirect paths. This enriches the theory of sports enterprise development and helps promote enterprise growth. Conclusion: 1) Knowledge spillovers from SMEs directly boost enterprise growth. 2)Knowledge spillovers from SMEs can also indirectly enhance enterprise growth through factors like product innovation, model innovation, and learning organization. 3)Knowledge spillovers can further indirectly facilitate enterprise growth by influencing factors like enterprise learning organization, product innovation, and model innovation.

Analysis of the Role of Digital Marketing in the Development of Micro, Small and Medium Enterprises (MSMEs) in Cibinong District

This study aims to analyze the role of digital development marketing in supporting the growth of Micro, Small, and Medium Enterprises (MSMEs) in Cibinong District. Along with the increasing internet penetration and use of social media, digital marketing has become a strategic tool to increase market reach and competitiveness of MSMEs. The research method used is descriptive qualitative, with data collection through interviews, observations, and literature studies. The results of the study indicate that MSMEs that implement digital marketing are able to increase sales, expand market share, and strengthen product branding. However, there are still obstacles in the form of a lack of digital knowledge and access to technology, especially among micro-scale MSMEs. Therefore, support is needed from the government and related institutions to improve digital literacy and provide infrastructure that supports the development of digital marketing in this region. Overall, the role of digital marketing for MSMEs in Cibinong District is very significant in increasing competitiveness, efficiency, and market reach. However, to maximize this potential, collaborative efforts are needed between MSME actors, the government, and technology service providers so that existing challenges can be overcome properly. This study is expected to be a reference for the development of effective digital marketing strategies for MSMEs in Cibinong District.

THE FINANCIAL LIBERALIZATION POLICY AND ITS IMPACT ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES

The country's development is mainly concerned with the foundation of a stable economy. An efficient financial system is mandatory for the development of solid economy. Small and Medium Enterprises (SMEs) are essential in stabilizing the economy. This is remarkably accurate in emerging economies like Pakistan. The objective of financial liberalization is to facilitate financing access and stimulate investment. However, the impact of this policy on SMEs can vary based on factors such as the regulatory framework, market structure, and institutional support. Therefore, it is crucial to assess the impact of financial liberalization on SMEs to foster inclusive economic growth and shape policy development. The study intends to find whether or not the growth of small and medium enterprises depends upon the government's financial liberalization policies. Using the ARDL econometric method, we find that Shareholder’s Equity is positively associated with SME growth rate, holding other variables constant. Moreover, total assets positively affect the SMEs' growth rate. Financial Development does not have a statistically significant effect on SME growth in the short run. Economic Growth rate positively influences SME growth. External financing changes may not immediately affect SME growth in the short run. The results show that changes in the number of bank branches do not significantly affect SME growth in the short run.

The Effect of Islamic Financing on the Growth of Micro, Small and Medium Enterprises in Indonesia

This study investigates the impact of Islamic financing on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Utilizing a quantitative approach, the research involved 110 MSMEs that have accessed Islamic financing products. Data were collected using a structured questionnaire and analyzed through SPSS version 26, employing correlation and multiple regression analyses. The study focuses on three key growth indicators: profitability, market expansion, and operational efficiency. The results reveal that Islamic financing has a significant positive impact on all three indicators, with the strongest effect observed on operational efficiency. These findings highlight the potential of Islamic financing to promote MSME growth in Indonesia, providing valuable insights for policymakers, financial institutions, and business owners. The study contributes to the growing body of literature on Islamic finance and its role in supporting sustainable business practices.

Transformasi Digital dan Pertumbuhan UMKM: Analisis Dampak Teknologi pada Kinerja Usaha Kecil dan Menengah di Indonesia

This study examines the impact of digital transformation on the growth of Small and Medium Enterprises (SMEs) in Indonesia, focusing on the impact of technology on SME performance. A quantitative approach with a survey method was employed, involving 100 SMEs across various sectors in Indonesia. Data was collected through questionnaires measuring variables such as the use of e-commerce, social media, and management information systems as indicators of digital transformation, and increased revenue, efficiency, and market reach as indicators of SME performance. Multiple linear regression analysis revealed that digital transformation has a positive and significant impact on SME performance. The findings demonstrate that every one-unit increase in the digital transformation variable results in a 1.5-unit increase in SME performance. Furthermore, the study identified factors influencing the adoption of technology by SMEs, such as internet access, digital literacy levels, and government support. The analysis indicates that high internet access and digital literacy, along with strong government support, are crucial factors in increasing technology adoption and maximizing the benefits of digital transformation for SMEs. The study recommends strategies to encourage digital technology adoption by SMEs in Indonesia, including improving digital infrastructure, providing training and mentoring programs, and offering incentive schemes for digitally transforming SMEs.

The Impact of Financial Literacy, Inclusion, and Access on Msme Growth and Welfare in North Sumatra: A Mediating Role of Business Growth

This study examines the impact of financial literacy, financial inclusion, and financial access on the growth and welfare of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra, Indonesia, with business growth acting as a mediating factor. Using a quantitative research design and Structural Equation Modeling (SEM) analysis, data were collected from 306 MSME operators selected via purposive sampling. The findings reveal that while financial literacy does not have a significant direct effect on MSME growth and welfare, both financial inclusion and financial access significantly enhance business growth and welfare. Furthermore, business growth serves as a mediating variable, amplifying the positive effects of financial inclusion and access on MSME welfare. The results indicate that MSMEs benefit from better access to formal financial services, such as credit and insurance, which facilitates business expansion and improves the overall welfare of business owners. However, the lack of significant impact from financial literacy suggests that practical financial education initiatives should be paired with improved access to capital and market opportunities. This study highlights the need for integrated policy efforts to enhance financial literacy, expand financial inclusion, and provide easier access to credit to foster MSME growth and welfare in North Sumatra.

Effect of Asset Reduction on Growth of Small Enterprises in Busia County, Kenya

Purpose: The primary aim of the study was to establish the effect of asset reduction on growth of small enterprises in Busia County, Kenya. Methodology: Descriptive and explanatory research designs were used in the study. The research targeted 220 management employees of licensed small enterprises operating in Busia County in Kenya. A census was carried out on all management employees in the department because the number was small. Therefore, all 220 management employees of licensed small enterprises operating in Busia County were included in this study. The drop-and-pick method was used by the investigator to manage the surveys. The research collected primary data using a structured questionnaire. The study supervisor reviewed the instrument and suggested any required changes to ensure content validity. Reliability was evaluated using Cronbach alpha, the author evaluated the trustworthiness of the data tools. Descriptive and inferential statistics were generated. Data was captured using tables. Results: Regression of coefficients showed that there is a positive and significant effect of asset reduction and growth of small enterprises. Conclusion: The study recommended that small enterprises should do replacement of long-term assets since this will enhance their growth. Further, Small enterprises should ensure they often modernize their assets since this enhances the small enterprises' internal operation efficiency and growth. However, firms should not concentrate on disposal of assets since it plays no role in firm growth.

An Exploration of Entrepreneurs’ Socio-economic Situation and Its Impact on Micro and Small Businesses in South Andaman

This study aims to investigate the socio-economic conditions of entrepreneurs that influence the growth of micro and small enterprises (MSEs) in the South Andaman District. In this study, a scheduled questionnaire-based survey research design was used, and a sample of 344 small business owners was collected for analysis. The data were processed using SPSS, and chi-squared test was applied for statistical analysis. The study’s findings revealed that factors such as entrepreneurs’ business experience, income levels, the number of working employees and ownership of house property significantly impact the growth of enterprises in the island region. However, factors like business location and sector of enterprises were found to be statistically insignificant in determining MSEs’ growth in the island region. The study suggests that policymakers and local administrations should enhance support for micro, small and medium-sized enterprises in island regions by implementing policies such as island capital investment subsidies and island transport subsidies for MSEs. As a result, small businesses play a pivotal role by contributing to local employment, production and investment opportunities in the island region.

Factors affecting the growth of small and medium Enterprises in Luangnamtha Province

The purpose of this study is to study the operating conditions and factors affecting the growth of small and medium enterprises in LuangNamtha Province. which uses descriptive study methods, surveys, and questionnaires to collect data from small and medium-sized enterprise operators who have registered enterprises at the Department of Industry and Trade in LuangNamtha Province according to the law in the number of 233 business units using basic statistics such as average value and standard deviation and analyzed with an ordinary least squares regression model. The results of the study found that most of the business operators are males aged between 37-43 years old, have a high degree of specialization, and have previous experience in the service sector, which a business is owned by a single Lao person. The registered capital of the business is less 100,000,000 kip, it is a source of funds for the family, there are between 5-20 people, the duration of the business operation is less 5 years, the customer group is in the province, the business is mainly in the commercial sector, but the performance is not good compared to last year. Such as, revenue and net profit decreased. The importance of factors affecting the growth of small and medium-sized enterprises in LuangNamtha province is very important. The factors affecting the growth of enterprises include four factors that have a relationship in the same direction, such as leadership factors affecting the growth of enterprises with a statistical significance level of 0.1, strategic decision-making factors affecting the growth of enterprises with a statistical significance level of 0.05, financial factors affecting the growth and stability of enterprises with a statistical significance level of 0.01 and 0.1, respectively, and marketing factors affecting the stability of the enterprise with a statistical significance level of 0.1.

A Trend Analysis of Growth and Development of Micro, Small and Medium Enterprises (MSMEs) in India

The Micro, Small and Medium Enterprises (MSMEs) review the policies and programmes and make suitable recommendations regarding the promotion and development of products and services to meet the demands of the domestic as well as global marketing. The ministry of MSMEs sector organizes and implements various schemes focusing on financial assistance, technological assistance as well as upgradation, infrastructure development, skill development and training, enhancing market assistance of MSMEs. An overview of the MSMEs Sector, the organizational structure of the Ministry of MSMEs., role of the office of Development commissioner, setting up of National Board for MSMEs as well as recent developments in MSMEs – are depicted in this article.

Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case study analysis

Strategic scaling initiatives and client networking dynamics for small and medium-sized enterprises growth: a comprehensive case study analysis

Role of Microfinance Institutions in Growth of Micro and Small Enterprises in Kebridehar City, Ethiopia: A Case of Rays Microfinance Institution

This study investigated the influence of microfinance institutions (MFIs) on the development of micro and small enterprises (MSEs) in Kebridehar City Administration. The objective was to assess the role of MFIs in the growth of MSEs, specifically focusing on aspects such as loan provision, financial skills training, role modelling and savings mobilisation. The researchers collected data from 170 MSEs that utilised the services of MFIs, using both secondary and primary sources. Descriptive and inferential statistics were employed to analyse the data, revealing that loans, financial skills training, savings mobilisation and role modelling all had a significant impact on the growth of MSEs in the city. This study enhances our understanding of how these factors contribute to the development of MSEs.

Implementing data-driven financial management systems in SMEs: A case review approach

The adoption of data-driven financial management systems has become increasingly vital for the growth and sustainability of small and medium-sized enterprises (SMEs). This review explores the implementation of such systems through a case review approach, analyzing their impact on financial decision-making, operational efficiency, and overall business performance. SMEs often face challenges in managing their financial processes due to limited resources, inefficient manual methods, and a lack of real-time data insights. Data-driven financial systems, leveraging automation, artificial intelligence (AI), and analytics, offer a solution by streamlining these processes, enhancing accuracy, and improving decision-making. The review examines three SMEs from different sectors manufacturing, retail, and services that have implemented data-driven financial systems. Through qualitative interviews, financial data analysis, and performance assessments before and after system implementation, the research identifies key improvements in cash flow management, profitability, and financial reporting. Each case highlights how automation and real-time data access have led to more strategic financial decisions, reduced costs, and operational efficiency. The findings suggest that data-driven financial systems not only increase financial transparency but also provide a competitive advantage by enabling SMEs to make informed decisions quickly. However, the review also identifies barriers to implementation, such as technical expertise, costs, and employee training, emphasizing the need for tailored solutions based on company size and sector. The review concludes by discussing future trends in financial technology adoption among SMEs and offers recommendations for facilitating successful integration. This research contributes to the understanding of how data-driven financial management can drive sustainable growth in SMEs. Keywords: Data-Driven, Financial Management, SMEs, Review.

Analysis of the Influence of Social Capital, Innovation, and Market Orientation on the Growth of Micro and Small Enterprises in the Special Region of Jakarta

This study examines the effects of social capital, innovation, and market orientation on the growth of Micro and Small Enterprises (MSEs) in the Special Capital Region of Jakarta. Using a quantitative research approach, data were collected from 160 MSEs through a structured questionnaire, and the relationships between the variables were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results reveal that all three factors—social capital, innovation, and market orientation—significantly contribute to the growth of MSEs. Innovation was identified as the most critical factor, followed by social capital and market orientation. The findings highlight the importance of fostering innovation, adopting market-oriented strategies, and leveraging social networks for the sustainable growth of MSEs. This study provides valuable insights for entrepreneurs and policymakers on how to support the development of MSEs in competitive urban environments.

Pengaruh Inovasi Produk, Literasi Keuangan, dan Akses Pembiayaan terhadap Pertumbuhan UMKM di Indonesia

This study investigates the impact of product innovation, financial literacy, and access to financing on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach was employed, involving 180 MSME owners and managers. Data were collected through a structured questionnaire using a 5-point Likert scale, and the analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results show that all three factors—product innovation, financial literacy, and access to financing—positively and significantly influence MSME growth, with product innovation having the strongest effect. These findings highlight the importance of fostering innovation, enhancing financial literacy, and improving access to financing as key strategies for promoting MSME growth. The study offers valuable insights for policymakers and business practitioners to support MSMEs' sustainability and competitiveness in emerging markets like Indonesia.

The Impact of Tax Incentives on the Growth of Small and Medium-Sized Enterprises: A Comparative Study Based on Industry

Tax incentive policies have been widely used as a crucial tool to promote the development of Small and Medium-sized Enterprises (SMEs), but their effectiveness varies across different industries and policy types. This study utilizes a comprehensive panel dataset from 2015 to 2023 to investigate the impact of Value-Added Tax (VAT) and income tax incentives on the growth of SMEs in China. Through fixed effects model analysis, we find that both VAT and income tax incentives significantly enhance SMEs' sales revenue and total asset growth. However, the magnitude of these effects differs substantially across industries, with high-tech and information technology service industries benefiting the most. Our industry comparison analysis reveals that the effectiveness of tax incentives is closely related to industry-specific characteristics, such as research and development (R&D) intensity and capital requirements. These findings provide key empirical evidence for optimizing SME tax policies and suggest that a more nuanced, industry-specific approach to tax incentives is needed. This study not only contributes to the literature on SME growth and tax policy effectiveness but also offers important insights for policymakers to refine SME support systems in the context of rapid technological change and economic transformation.

Impact of Microfinance on Micro Enterprises: A Study with Reference to Growth and Financial Literacy of Small Enterprises

Impact of Microfinance on Micro Enterprises: A Study with Reference to Growth and Financial Literacy of Small Enterprises

The Islamic Financing on Macroeconomic Stability in Indonesia

The objective of this study is to examine the function of Islamic finance in fostering macroeconomic stability in Indonesia. Specifically, it will scrutinize the stability of Islamic banks, its effects on micro, small, and medium enterprises (MSMEs), and its impact on economic growth and inflation. Employing a qualitative research approach, data were gathered by means of document analysis, encompassing books, scholarly publications, and institutional reports. The results demonstrate that Islamic banks, which employ profit-sharing and asset-backed financing structures, have higher levels of stability in comparison to conventional banks, therefore mitigating the likelihood of financial catastrophes. Islamic finance has profoundly facilitated the expansion of MSMEs by offering cost-effective, interest-free lending, therefore augmenting their productivity and economic contributions. Furthermore, Islamic finance promotes consistent economic expansion by prioritizing investments in tangible assets in industry areas such as agriculture and manufacturing. Although it suppresses speculative activity, its effect on inflation is inconclusive, as further growth of micro, small, and medium enterprises (MSMEs) may have upward influence on pricing. In conclusion, the study highlights that Islamic finance contributes to Indonesia's macroeconomic stability by strengthening Islamic banks, promoting MSME development, and fostering balanced economic growth. The data shows a consistent rise in the contribution of MSMEs to Indonesia's GDP from 57.08% in 2017 to 61.90% in 2022, underscoring their increasing significance in the national economy. This upward trend highlights the growing role of MSMEs in economic development.