Growth Of Small Medium Enterprises Research Articles

Inflation and Small and Medium-Scale Enterprises (SMES) Growth in Nigeria

Small Medium Enterprises (SMEs) are important to the economy because they help achieve macroeconomic goals. This has led monetary authorities to adopt policies that foster SMEs’ development and success. This has made the study focus on Inflation and Small and Medium-Scale Enterprises (SMEs) Growth in Nigeria. The objectives of the study are to examine how inflation rates, interest rates and exchange rates have affected SMEs growth in Nigeria, secondary data that spanned from 2001 to 2022 used for the study analysis were sourced from Central Bank of Nigeria (CBN) and the Federal Office of Statistics (FOS). The variables’ stationarity was tested using unit root tests to test the time series data. Cointegration, Ordinary Least Square (OLS) and Error Correction Model (ECM) were used for analysis. Many diagnostic tests were performed on the study residuals. The interest rate positively and statistically significantly affects Nigerian SMEs’ funding. In contrast, inflation has a negative impact on Nigerian SMEs’ funding. The exchange rate had no effect on SMEs funding, according to the research. The study recommended that the monetary authorities should implement policies to reduce inflation and prioritize SMEs growth in Nigeria by establishing dedicated channels via different financial institutions to provide them with low-interest loans. This will boost their growth and help reduce inflation.

The Impact of English Educational Tourism on the Growth of Local Economy: A Systematic Literature Review

This systematic literature review (SRL) examines the impact of English educational tourism (EET) on the growth of local Small-Medium Enterprises (SMEs). Through a comprehensive search of academic databases and systematic assessment of study quality, a total of 49 studies were selected for inclusion. The studies varied in design, location, and intervention, but all focused on the relationship between English educational tourism and the growth of local SMEs. This SLR focuses on the typology of SMEs in EET, its impact on rural economy and local community empowerment, and SMEs’ challenges in growing their businesses. The findings suggest that English educational tourism can have a positive impact on local SMEs and rural communities, including increased revenue, community empowerment, cultural preservation, and poverty reduction. However, it is crucial to ensure that the benefits of EET are distributed fairly and that local communities are actively involved in the decision-making process to maximize positive impacts and mitigate potential negative impacts. Overall, the results suggest that English educational tourism can be a promising strategy for promoting the growth of local economy, but more research is needed to fully understand the conditions under which this impact is most effective.

The Impact of COVID-19 Pandemic in Nepali Enterprises

The purpose of this study is to assess the scenario of Covid-19 outbreak in Nepali firms and suggest policy-related issues for the survival and growth of small medium enterprises in Nepal. To carry out this research, the firms were identified based on the list published by the business directory, and a total of 500 questionnaires were distributed to these businesses, 404 responses were received. Responses, analyzed under descriptive research design, show that the majority of the small medium enterprises are highly affected by the pandemic and they have faced several difficulties such as decrease in demand, loss of profit, financial problem, etc. The analysis also shows that the number of business activities have been limited, and small and medium-sized businesses, in particular, are at high risk. The paper recommends the government should announce a special plan for businesses in order for them to survive the pandemic and return to normalcy gradually. The evidence shows that in this difficult situation, a company's internal profits can be low and bankers may be reluctant to lend money. As such, the company should actively consider using cash from existing investors.

Interplay between Technological Innovation and Employee Skills in Accelerating Small Medium Enterprise Growth

Past statistics have shown that among five SMEs start-ups, three of them dissolve before a lifespan of five years. There are numerous factors that affect SMEs growth among them technology and employee skills. It would be important to consider the influence of technology and employee skills on the growth of SMEs. This study investigating the inter play between technological innovation and employee skills in accelerating the Small Medium Enterprise (SMEs) growth. A descriptive research design was applied to implement the study targeting a total population of 174 firms. This study employed stratified random sampling technique to categorize the firms in to three different sections of interior design firms, interior decoration firms and architectural firms as they show different heterogeneous characteristics. A sample of 54 respondents was selected from the population using simple random sampling. Questionnaires were the main primary data collection instruments. A pilot study was used to confirm content validity of the data gathering instruments while the Cronbach’s coefficient alpha was used to establish reliability. Quantitative data collected was analyzed using descriptive statistics and expressed as percentages and frequencies. Chi square test was conducted to test the relationship between the independent and dependent variables. Besides, regression analysis was done to determine the extent to which the independent variables influenced SMEs growth. Inferential statistics was tested at 95% confidence level and p-value ≤ 0.05. The chi square results indicated that employee skills were significantly associated with SMEs sales (χ2=9.000, p=0.03), profits (χ2=20.700, p=0.002) but not net assets (χ2=3.706, p=0.282) and number of employees (χ2=2.753, p=0.427). Further, technological innovation was significantly associated with SMEs sales (χ2= 8.322, p=0.040), profits (χ2=9.584, p=0.022) net assets (χ2=13.846, p=0.004) but not the number of employees (χ2=0.800, p=0.722). Further, the regression analysis indicated that a unit rise in technological innovation would result in 0.756 whereas a unit increase in employee skills would cause 0.352 unit increase in growth of SMEs. The study concluded that technological innovation and employee skills are associated with growth of Interior Design SMEs in Nairobi County. This study recommends that SMEs should enhance their technology to facilitate innovation of new products hence spur their growth. Likewise, SMEs should enhance their employees’ skills to expand their growth.

Public Policies to Support Entrepreneurship and SMEs Growth: The Case of Libya

This study explored the role of government policies to support entrepreneurship and the growth of Small - Medium Enterprises (SMEs) in the Libyan economy. Due to the current situation of the business in Libya, urgent policies need from the Libyan government to focus on several aspects of SMEs for entrepreneurship and economic growth. Because of these challenges, the objective of this study is to establish a solid foundation for understanding the government's role in promoting entrepreneurship, also creating business for SMEs. The study found some circumstances that promote entrepreneurship and the environment of SMEs in the Libyan economy, such as investigating the impact of various types of recent government policies, identifying difficulties and challenges, improving the higher education system, and analysing Libyan decision-makers perspectives. As a result, the study indicated that Libyan government policies for entrepreneurship play a positive and crucial role in the development and growth of SMEs.

Analysis of Product Strategy to The Business Growth of Small Medium Enterprises

A study has been conducted to examine the product strategy in relation to business growth among small medium enterprises in Setu District, East Jakarta, Indonesia. This study was critical since the small medium enterprises have limited access to gain understanding about marketing aspects of products. This study contributed to the understanding of product strategies importance that will lead to the business growth, specifically for the small medium enterprises. The study conducted by qualitative method of convenient sampling of twelve informants who was selected based on the criteria of informant. The results of this study showed that product quality has contributed to the increase sales. Meanwhile, the less various items of the product have to be considered since there might be new sellers penetrate the market existed.

Sustainable Tourism Destination Assessment as a Baseline for Tanjung Kelayang Tourism Development

Tourism is a complex and prominent sector in Indonesia that involved many stakeholders. Led by the success story of Bali tourism development which able to grow beyond all expectation, helping to improve public and private infrastructure, including the birth and growth of small-medium enterprises, led the Indonesian government to distribute and spread the development all over Indonesia through Ten New Bali concept. One of these is Tanjung Kelayang, located in Belitung Island. Despite Bali success stories, negative impacts of Bali tourism development on environmental sustainability appeared, such as land-use change, soil and water degradation, pollutions, waste mismanagement, etc. Reflected from Bali negative tourism impact, this paper will identify and analyse Tanjung Kelayang tourism development as a New Bali using sustainable tourism destination criteria to create baseline data. A qualitative approach using both primary data by on-site observation and in-depth interview with related parties, and secondary data by identifying the Local Official Tourism Development Master Plan (RIPPARKAB) year 2014 and other studies in regards with Tanjung Kelayang tourism development by using GSTC-D V2 as a tool to reflect sustainability commitment was occurred on this paper. The result of compliance shows that only 19% for Sustainable Management, 4% for Socio-Economy Sustainability, 11% for Cultural Sustainability, and 0% for Environmental Sustainability. Thus, it shows the gap of Tanjung Kelayang tourism development in regards with sustainable destination concept. Hence, a commitment, communication, and cooperation from all related parties is necessary to be in place to achieve a sustainable tourism destination development in Tanjung Kelayang.

Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region

The growth and failure of small and medium enterprises has been a topic of discussions world over among policymakers and researchers. This study was guided by the following objectives: to examine the contributions of small medium enterprises (SMEs), to determine the challenges affecting small medium enterprises, to examine how financial inclusiveness supports the growth of small medium enterprises, and to establish the relationship between financial inclusion and growth of small medium enterprises. The study used a cross-sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SME growth. The study further also revealed that the cost of acquiring and servicing financial services is high; there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure, and risk averse. The cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

The Relationship between Democratic Leadership Style and SMEs Growth in the Top 100 SMEs in Kenya

The study sought to investigate the relationship between democratic leadership style and small medium enterprise growth in the top 100 KPMG SMEs in Kenya. A causal research design was employed to investigate the relationship between the independent variable with key constructs being orientation towards teamwork, innovative and creative, delegation of responsibilities and transparency and the dependent variable constructs being workforce growth, sales growth and return on assets. From a target population of 553 owners and Managers of the top 100 KPMG SMEs of 2013 using Stratified random sampling technique a sample of 227 was obtained. The study relied on primary data that was collected using closed-ended questionnaires. Data was analysed using Pearson’s correlation, multiple regression and chi-square techniques. The study findings established that democratic leadership style and SME growth had a strong positive association (r =0.713, p = 0.021 (p< 0.05); the null hypothesis was rejected and alternative hypothesis accepted since the p value was less than alpha =62.146; df. = 52; p= 0.000(p<0.0.) The study concluded that democratic leadership style affected the overall performance of an organization as the employees found satisfaction in their work which positively affected their creativity and innovativeness which in turn affected the overall success and growth of the organization. It was recommended that leaders of SMEs should include employees in the decision-making process in order to facilitate growth of the enterprise.

PENGARUH AKSES KEUANGAN TERHADAP PERTUMBUHAN UKM DENGAN LITERASI KEUANGAN SEBAGAI VARIABEL MODERASI

This examination means to decide how the role financial literacy in moderating the relationship of access to finance and growth. The area for this exploration held in Denpasar. The quantity of tests taken is 100 small medium enterprise (SMEs), with a likelihood inspecting methods are basic irregular examining. Information examination in this investigation utilized the Partial Least Square (PLS) approach. PLS is a condition model for Structural Equation Modeling (SEM) in view of parts or variations. This examination is to get results which expressed that the access to finance has a positive and significant effect on growth of SMEs. Financial literacy has a positive and significant effect on growth of SMEs. Financial literacy moderates the relationship between access to finance and growth of SMEs

Technology Innovations toward Sustainable Growth of Small Medium Enterprise (SMEs): Aftermath COVID-19 Pandemic

Small and medium enterprises (SMEs) are vital to the economic growth of developing nations, due to the major segment of commercial activities that are conducted by such SMEs. However, the spread of the COVID-19 pandemic has severely affected supply and demand for SMEs as a result of worldwide lockdowns and restriction policies implemented in the effort to cull the outbreak of the virus. These restrictions, including the temporary closure of physical businesses and limited travel, have significant consequences towards sustainability in the growth of SMEs. SMEs must contend with challenges including decreased commercial opportunities, interruptions in the supply chain and human resources issues. In the face of these barriers, the evolution of the existing business models by adopting technology innovation can assist SMEs in establishing novel strategies to lay a foundation for future sustainable growth. Thus, the current study proposes a conceptual framework for a new business model which adopts technology innovation tools, namely the internet and web, big data analysis and artificial intelligence (AI). All these tools are adopted in alignment with the Technology Acceptance Model (TAM). This framework is vital in raising awareness regarding the role of technology innovation in rejuvenating the business operations of SMEs in order to ensure sustainable growth and survival in the wake of the COVID-19 pandemic.

ANALYSIS STRATEGIC ENTREPRENEURSHIP MODEL IN BOGOR CITY CULINARY SMEs

The growth of SMEs in Bogor city creates intense competition and requires businesses to be more strategic by utilizing business opportunities and seeking competitive advantage by adopting a strategic entrepreneurial model. The purpose of this study was to identify the management of strategic entrepreneurship in culinary SMEs in Bogor City and analyze the influence between the elements of input, processes, and output of the strategic entrepreneurship model. This research used descriptive analysis and the SEM-PLS method. The implementation of strategic entrepreneurship in Bogor City culinary SMEs has been in an excellent performance. It is based on the average results of each variable more than 3.4, which is categorized as very good. The results of SEM-PLS analysis showed that the environmental factors, organizations, and individuals influenced the orchestration of resources and strategic entrepreneurship affected the output of creating competitive advantage and creating wealth and benefits for individuals, organizations, and society. Keywords: competitive advantage, culinary, opportunities, strategic entrepreneurship, small medium enterprise (SMEs)

Fostering Economic Growth in Frontier Markets: Perceptions in The Tunisian Post-Arab Spring


 The need for economic reform is at the heart of the criticism for many frontier economies. Fostering entrepreneurship and identifying business opportunities generate paths for job creation and economic growth. Given the underlying tensions that led to the Arab Spring, our study focuses on the one country that is considered to be a post-Arab Spring success story and explores the Small-Medium Enterprise (SME) business environment in Tunisia. Perceived changes in the SME environment in Tunisia were examined qualitatively via in-depth personal interviews with 21 Tunisian economic experts. Analysis of the interview data followed the thematic analysis approach. Our findings indicate that social reforms and the development of financing alternatives should be paramount for the growth of SMEs and the economic success of frontier markets. Additionally, educational reform and communication to foster entrepreneurial behaviour and effective managerial practices are required to ensure that current and future generations are prepared to engage successfully in the formal economy. Although our research focused on a single frontier market economy, we believe these findings are generalizable to many emerging economies. The findings should hold considerable policy implications due to the nature of the reforms suggested. There are popular and business press articles about the post-Arab Spring and stories about Tunisia’s Jasmine Revolution; however, increased scholarly focus on entrepreneurial efforts post-Arab Spring in Tunisia will further solidify the intersection of economic gain and human development.

Innovation Strategy of Small Medium Enterprise (SME) Through Public-Private Partnership in Depok City

The rapid growth of SMEs in Depok City is not accompanied by the increase in the capacity of the SMEs itself, especially in terms of innovation. The limited resources that SMEs have, can be supported by the existence of public-private sector partnerships. This research is a qualitative research with data collection techniques through interviews, observation, and literature study. The results show that public-private sector partnerships in Depok City have not been successful in increasing the capacity of SMEs to innovate. This is because the partnership is limited to providing infrastructure and focuses on increasing temporary income. Therefore, the public-private sector partnership should focus on more technical assistance in increasing added value to ensure business continuity for a longer period.

Proposed Business Strategy for Small Medium Enterprises (SMEs) (Case Study: Rimbang SMEs of Clothing Industry)

Rimbang is one of Small Medium Enterprises (SMEs) of Clothing Industry that provides kids professional uniforms in Bandung, Indonesia. At present, as the growth of SMEs continues to increase and with the presence of marketplace platforms become one of the causes of the decline in product sales over the last three years, namely in the years 2017, 2018 and 2019.
 This research was conducted to develop the most suitable strategy based on existing internal and external factors. The results of internal factors analysis demonstrate the strength of reputation and good relationship and weakness in the form of a product type that is seasonal and easily emulated. The results of external factors analysis show the opportunity of online sales and future integration and threats in the form of potential newcomers and higher competencies. Analysis results are used to formulate strategies using SWOT Analysis, TOWS Matrix and Porter's Generic Strategy.
 The proposed strategy is the Cost Leadership Strategy and Forward Integration as a strategy used to improve and develop existing business strategies and marketing strategies. These strategies are done by developing limited resources, implementing effective value chain activities and conducting product marketing directly to end consumers through online and offline sales.

Effect of micro finance bank on the growth of small and medium enterprises in Nigeria

Microfinance banks are key to the growth and development of small and medium enterprises most especially in the wave of turbulence and unfavorable business environment, this is due to the fact that they provide short term facilities to SMEs. The study examined the relationship between micro finance bank and the growth of small medium enterprises in Nigeria. The descriptive survey design was adopted for the study. The population of the study consists of 100 selected SME’s operators within Wuse business area Abuja, Simple random sampling technique was use to arrive at a sample size of 100. In other to address the objective of the study, structured questionnaire was employed as the research instrument used to obtain relevant information from 100 respondents and were all filled and returned. Descriptive statistics, cross tabulation and simple linear regression were used to analyze the data collected. Findings revealed that micro finance banks domestic fund transfer services contribute to the growth of small and medium enterprises, this is revealed by the regression result (Beta =0.500; P = 0.000 < 0.05). Also, the study also discovered that repayable loans provided to small medium enterprises enhances the development of their businesses as revealed by the regression result (Beta = 1.074; P 0.000 < 0.05). The study concludes that there exists a positive relationship between micro finance bank and small medium enterprises. The study recommends that customers and beneficiaries of micro finance loans should avoid default in the repayment of loans. Furthermore, Microfinance banks should avoid charging high interest and much collaterals when granting loans.

Strategies for Developing Sustainable and Competitive Cluster For Handycrafts –Based Small Medium Enterprise (SME)

The SME Assist concept was formulated in August 2009 in line with the philosophy of university-industry engagement. Small Medium Enterprises (SMEs) are important economic driving force in many countries. Previous researches show that efforts taken by various parties and governments of different countries have helped improve and transform SMEs to be competitive in the fast changing global economy. In Indonesia specifically in Bogor regency, West Java, there are different models or approaches adopted and implemented by various parties. However, competitiveness of SME remains an area of concern. For Handycrafts-based SME, in order to meet these expectations and fulfil their contributions to the development process, it is absolutely important that they have high productivity. It is essential that these industries provide productive and remunerative employment and, for their survival and growth, offer products and services at competitive quality and price. The Handycrafts-based SME has a potential to develop in Bogor Regency which is located in tourism area and divided into Villages (Cilember, Leuwimalang, Cisarua, Cibeireum, Kopo and Jogjogan) in Cisarua District.
 Handycrafts is the dominant cluster that can generate earning sources and give role of economics which is very significant. Unfortunately, the existence of the Handycrafts-based SME is not as good as most people expected, because there are many constraints faced. In the mean time, the infrastructure and access information concerning capital, technology, management and marketing are limited. Therefore, it is essential to formulate strategy to develop handycrafts-based SME based on internal and external factors. The objectives of this research are to identify the characteristics of handycrafts-based SME in Bogor Regency to have actual conditions, and to analyze the SME’s internal-external environment and to select the alternative strategies for development .
 The development strategies of handycrafts-based SME are proposed according to external and internal factors. These factors influence and determine the development dynamic and growth of handycrafts-based SME. The combination of strength and weaknesses together with external situation will determine the development posibility of SME. The score analysis method was used to analyze the internal external environment used for generating strategy using analytical Hierarchy Process (AHP) method. Hierarcy decisions was based on interpretation of secondary data concerning external and internal factors which influence the growth of SME and early discussion with experts from the SME entrepeneurs, academics, and local government. The prioritation of alternatives strategy was determined synchronization of literature and opinion of expert responder, then the result was processed with AHP.
 The results of this research show that the characteristics of handycrafts-based SME in Bogor Regency are: using traditional management, simple record-keeping administration, having local market and regional sale, utilize local or regional raw material, perform continous production system, having good quality awareness, using self or family capital resource, utilize simple equipments and technology and also having good innovation capability. According to the score assessment of AHP, the main strategy for the development of handycrafts-based SME in Bogor Regency is give more or better attention for policy formulation and based on socialpreneurship. This strategy means that the government policy should enhance or at least not constraining the development of handycrafts-based SME. The policy should also accommodate the necessity of all stakeholders related to handycrafts-based SME

Genie Enterprise Resource Planning for Small Medium Enterprises Implementing Single Page Web Application

The exponential growth of Small Medium Enterprises (SMEs) in Indonesia has led to the greater competition among them. However, their business processes are often inefficiently managed, which increase the cost of operation. The current Enterprise Resource Planning system could address the problem, but the price is relatively expensive for current condition of SME in Indonesia. The problem continues when the business operation run in different places, where data inconsistencies reduce operation efficiency. Cloud-based ERP is a possible solution, but it is relatively slow to fully maximize the benefit. Therefore, new affordable solution with remote access, which use less internet bandwidth is needed to answer problems in implementing ERP. This study aims to analyze the problem and use the findings to provide a prototype that could address the existing problem. Through implementation of various technologies such as Single Page Application, Gzip Compression, and Webpack Module Bundler, the author successfully developed the prototype of ERP system. Several tests, including compatibility test and user acceptance test were performed to evaluate the prototype. Although this prototype has not been able cover the whole modules, the test results showed a satisfactory result in terms of accessibility and basic functionality.

Factors Affecting Economic Performance of SMEs in Mongolia

The performance of Small Medium Enterprises (SMEs) play important role in economic development of a country, and it has been widely discussed that SMEs are the driving engine of economic development. In other words, by growth of SMEs, economy will be diversified, private sectors will be strengthened, unemployment will be decreased, technology and production will be improved. For SMEs in order to grow, sustainable economic performance is needed. The aim of this study is to identify the main factors affecting the economic performance of SMEs in Mongolia, make recommendation to improvement of the economic performance so that SMEs in Mongolia further influence the growth. This study uses data collected from World Bank Enterprise survey, and will use quantitative method to analyze the factors affecting the economic performance. The result of the study will be helpful for SMEs to orient itself and for policy makers. Keywords: Small & Medium Enterprises (SMEs), Mongolia, Economic Performance DOI : 10.7176/EJBM/11-21-16 Publication date :July 31 st 2019

Barriers and Possibilities of Implementation of Customer Relationship Management on Small and Medium Enterprises by Womenpreneurs

In Indonesia, Customer Relationship Management (CRM) is commonly used by large companies. Small Medium Enterprises (SMEs) are managed traditionally despite the growing amount of transactions. The growth of SMEs in Indonesia is not supported by CRM expertise. This study aims to analyze the implementation of CRM at the level of SMEs in the field of fashion managed by womenpreneurs in West Java. This research uses a descriptive method. The unit of analysis in this study was womenpreneurs engaged in fashion industry in West Java; 200 womenpreneurs were recruited using proportional random sampling. The results reveals that technology-based CRM is the most difficult to develop in construct. CRM by womenpreneurs does not use information technology, but it emphasizes on people and the process. Developing technology-based CRM is the best way to facilitate womenpreneurs in expanding their business.