Growth Of SMEs Research Articles

Conceptual framework for assessing the impact of financial access on SME growth and economic equity in the U.S

Conceptual framework for assessing the impact of financial access on SME growth and economic equity in the U.S

The Accelerator State

China is creating an “accelerator state” through a multi-layered system to identify and fast track the growth of high-tech SMEs in strategic sectors. Certified high-tech SMEs enjoy unique advantages, most notably privileged access to public and private financing. An analysis of the “Little Giants” program—a central feature of the accelerator state—proves that selected firms are indeed benefiting from enhanced financing. The study also reveals flaws in its selection process. The implications for foreign actors are significant. The accelerator state aims to replace imports in key value chains, which poses a direct challenge to foreign firms. The blurred lines between state support and market forces in the scheme also make it more difficult for foreign governments to track distortionary practices and enforce fair competition.

Koperasi dan Akselerasi UMKM di Kota Balikpapan

Cooperatives and the acceleration of SMEs in Balikpapan City play a significant role in advancing the local economy. Through the cooperative model, SMEs gain access to business capital, training, joint marketing, and collective purchasing, enabling them to compete effectively in a competitive market. Collaboration among cooperatives is key to success, while the utilization of digital technology accelerates SME growth. Support from the local government and the private sector is crucial in stimulating growth and innovation in this sector. Despite facing various challenges, cooperatives and SMEs in Balikpapan have great potential to continue to grow and become drivers of an inclusive and sustainable economy at the local and regional levels

Empowering Entrepreneurial Ecosystem: A Conceptual Paper on Exploring the Impact of Government Support on SMEs in Malaysia

SMEs continue to be a backbone for the development and growth of the economy in countries around the world. The success of SMEs depends on the effectiveness of EEs. One of the components of EEs that may contribute to the success of SMEs is government support. This paper proposes a conceptualization of the impact of government support (EE component), particularly on financial support and business support for SMEs in Selangor, Malaysia. This conceptual research provides important suggestions for researchers to assess the impact of government support on SME’s business performance and also offers valuable insight for policymakers and other stakeholders to effectively design the initiatives that could enhance the growth and development of SMEs.

The Impact of Strategic Leadership on the Advancement of SMEs in Rwanda

Small and medium-sized enterprises commonly referred to as SMEs are important in the 21st century research since they have stood out as the core players in ensuring economic growth, innovation and job creation in the 21st century's rapidly evolving global economy. The study was carried with the general aim of examining the impact of strategic leadership on the advancement of SMEs in Rwanda. The specific objectives of the study were: to examine the extent to which strategy formulation and planning influences the advancement of SMEs in Rwanda; to establish how strategic communication influences the advancement of SMEs in Rwanda; and to find out the influence of strategy evaluation of the advancement of SMEs in Rwanda. The study adopted a descriptive research design. A total of 500 headers of the SMEs in Kigali Rwanda classified as manufacturing, processing and service SMEs were chosen and a sample size of 150 used with a response rate from the questions used in data collection being 135 translating to 90% return rate. Results indicated that as the per the regression model, it is indicated that 25.8% (R2 =0.568) advancement on SMEs in Rwanda can be explained by a combined effect of the three variables of strategic leadership including strategic formulation/planning, strategic communication and strategic evaluations. This is clear indication of a strong predictive power of the independent variables of the dependent variable SMEs advancement. More narrowly, Strategy Formulation and Planning (B = 0.285, p < 0.001) significantly influenced SME development when controlling for a co-efficient of R2 =.306, suggesting that by optimizing their planning practices an increase in such operations is causally related to greater performance of SME. This factor explained 30.6% of the total variance in SME progression. SME Advancement was likewise influenced significantly by Strategic Communication (B = 0.337, p < 0.001) having the highest Beta borrowed value of 0.353 as summarized in Table 9. Better communication practices (defined as clear, consistent messaging and stakeholder engagement) explain 35.3% of the variation in SME growth and development. SME: Strategy Evaluation (B = 0.391, p < 0.001) had the highest effect in SME advancement with Beta value of 0.376 This means that being continually evaluated and corrected according to performance indicators are one of the significant factors in SME success. It was the most powerful predictor of SME advancement, explaining 37.6% of variance in SME advancement. When the hypotheses were tested, the conclusions were made that: H1: There is a significant relationship between strategy formulation and planning and the advancement of SMEs in Rwanda. Result: Accepted (B = 0.285, p < 0.001). Also, as per H2: There is a significant relationship between strategic communication and the advancement of SMEs in Rwanda. Result: Accepted (B = 0.337, p < 0.001). Finally, H3: There is a significant relationship between strategy evaluation and the advancement of SMEs in Rwanda. Result: Accepted (B = 0.391, p < 0.001). Based on these research findings, the study recommends that SMEs in Rwanda should invest in comprehensive strategy formulation processes, implement effective communication systems, continuously evaluate their strategic initiatives, and adopt innovative technologies to enhance their competitiveness and ensure sustainable growth in a rapidly evolving business environment.

Pemanfaatan Media Sosial Instagram Dalam Meningkatkan Hasil Penjualan Angkringan Pojok Sate Taichan Jl. Letjend Suprapto Kota Bengkulu

This research aims to explore how Pojok Sate Taichan business on Jl. Letjend Suprapto, Bengkulu City utilizes Instagram social media to enhance sales performance. This qualitative study employs an inductive thinking approach to understand the reality of the subject matter. The subjects of this study are the operators of Pojok Sate Taichan on Jl. Letjend Suprapto, Bengkulu City. The object of the study is the utilization of social media by the operators of Pojok Sate Taichan on Jl. Letjend Suprapto, Bengkulu City. The findings reveal that Pojok Sate Taichan in Bengkulu effectively utilizes Instagram's Story and Reel features, resulting in a significant increase in daily sales by 39-50% and daily revenue by 15-20%. A comparison before and after using social media indicates a perceived increase in sales results by up to 133% and revenue by approximately 80% for the business operators. Therefore, the effective integration of Instagram social media by Pojok Sate Taichan on Jl. Letjend Suprapto, Bengkulu City has positively impacted the growth of SMEs, such as increased sales, revenue, and opportunities for investment and further expansion.

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

The impact of administrative efficiency on SME Growth and Sustainability

enterprises (SMEs). This review examines the relationship between efficient administrative processes and the long-term success of SMEs, emphasizing how streamlined operations, resource management, and decision-making can enhance business performance. SMEs often struggle with limited resources, resulting in operational bottlenecks and inefficiencies that hinder their capacity to scale and sustain growth. By improving administrative efficiency through the adoption of technology, organizational restructuring, and optimized processes, SMEs can achieve greater productivity, reduce costs, and make informed decisions that promote sustainability. The review employs a case study approach, analyzing SMEs across different sectors—manufacturing, retail, and services to demonstrate the tangible benefits of administrative efficiency. The research includes qualitative interviews, operational data analysis, and performance evaluations before and after implementing efficiency-enhancing measures. Key findings highlight improvements in areas such as time management, cost reduction, and customer satisfaction, all contributing to accelerated growth and competitive advantage. Additionally, the study explores how administrative efficiency supports sustainable practices, such as resource optimization and risk management, leading to long-term business viability. Despite these advantages, challenges such as resistance to change, lack of skilled personnel, and financial constraints pose barriers to achieving administrative efficiency in SMEs. The review concludes by offering practical recommendations for overcoming these challenges, including investing in digital tools, employee training, and organizational restructuring. Ultimately, the research underscores the importance of administrative efficiency as a critical factor for SME growth and sustainability, providing insights for policymakers, business owners, and managers aiming to enhance the operational performance of small businesses in a competitive market.

Linking financial ecosystem and the growth of young SMEs: evidence from Spanish regions

AbstractThis study analyses the effect of the financial ecosystem on the growth of young firms at the regional level. This subject is relatively new in entrepreneurial finance research since most of the previous studies have failed to consider all the alternative sources of external financing to which young firms have access. This study highlights the relevance of alternative resources and actors in the financial environment beyond traditional banks, such as crowdfunding, business angels, peer-to-peer lending, accelerators, incubators and venture capital. Specifically, our research incorporates a proxy of the development of the financial ecosystem based on survey data from the Global Entrepreneurship Monitor (GEM). Moreover, our investigation uses a sample of young small and medium-sized enterprises (SMEs) representing every Spanish region between 2008 and 2015. The empirical analysis applies panel data methodology. The results show that the growth of young enterprises depends on developing a regional financial ecosystem, evidencing that better access to external finance favours the growth of young firms. This relationship is even more relevant among early-stage firms, which suggests that firm age moderates the relationship between the regional financial ecosystem and the growth of young SMEs.

New Product Development Strategy and its Impact on MSME Growth: A Bibliometric Analysis

This study provides a comprehensive analysis of the research landscape surrounding New Product Development (NPD) strategies and their impact on the growth of Micro, Small, and Medium Enterprises (MSMEs). Through a bibliometric analysis using VOSviewer, key themes and trends were identified, including the centrality of SME growth, the critical role of finance and government policy, the importance of resilience in response to external shocks like COVID-19, and the strategic focus on marketing and competitive advantage. The findings suggest that tailored financial products, supportive government policies, and an emphasis on digital transformation are essential for enhancing SME growth. Additionally, fostering an innovative and customer-oriented business culture is crucial for maintaining a competitive edge. These insights provide practical implications for policymakers, business leaders, and financial institutions, emphasizing the need for a comprehensive approach to supporting SME development in dynamic market environments.

Community-led Economic Resilience: Fostering SME Growth through Financial Education

Community-led Economic Resilience: Fostering SME Growth through Financial Education

Government policy towards small and medium tourism enterprises in Indonesia: Proposal for development and increasing regional revenue

The small and medium tourism enterprises sector has experienced a decline in Indonesia’s economic conditions in recent years. This research aims to advise stakeholders regarding factors that must be considered and included in future policy formulation. The research methodology is a mixed method supported by the N-Vivo computer program, interview studies, and FGD. This research focuses on four tourism provinces in Indonesia. The research results using thematic analysis identified 133 codes, 19 categories, nine core themes, and one impact theme. This research’s novelty highlights that government policy’s effects on tourism SME marketing are not significant due to weak support. Apart from that, partnerships and collaboration between the central regional government and tourism SMEs are the main factors determining their development at the regional level. This research concludes that government intervention and support in encouraging the growth and sustainability of tourism SMEs are necessary. The Government must promote collaboration between tourism SMEs because increasing the number of tourists is crucial, as well as encouraging sustainable marketing practices and simplifying regulations. The recommendation is that the Government immediately simplify regulations, expand partnerships and collaboration, and promote innovation in tourism SMEs. By implementing these recommendations, policymakers can create an environment that supports the development of tourism SMEs, allowing the tourism sector to increase GRDP.

Driving SME growth and learning effectiveness: The role of analyzer orientation, learning capability, and innovation

This study, drawing on the Knowledge-Based View (KBV) and Contingency Theory, explores how analyzer strategic orientation, learning capability, technical innovation, administrative innovation, and SME growth and learning effectiveness are interrelated. Analyzing cross-sectional data from 407 founders, cofounders, and managers of trade and service SMEs in Vietnam’s Southeast Key Economic Region through PLS-SEM, the research demonstrates that analyzer orientation positively impacts both technical and administrative innovation, thereby bolstering SME growth and learning effectiveness. However, learning capability does not significantly impact technical innovation or growth and learning effectiveness. Instead, learning capability negatively affects administrative innovation. Notably, technical and administrative innovations act as mediators between analyzer orientation and SME growth and learning effectiveness. The study provides practical insights tailored for SMEs navigating dynamic market environments like Vietnam, enriching theoretical understanding of SME strategic management within the trade and service sector.

Entrepreneurial Behaviour in Choosing Capital Alternatives in MSMEs and Investment Trends in Indonesia

This study explores entrepreneurial behaviors that influence the decisions of SME owners in choosing financing alternatives and investment trends in Indonesia. Through quantitative study using questionnaire, this aiming to provide insights into the factors influencing the selection of financing sources and investment tendencies among SMEs. The findings reveal that entrepreneurial behaviors such as risk tolerance, financial knowledge, long-term vision, and adaptability significantly influence the decisions of SME owners in selecting funding sources. Additionally, investment trends in Indonesia also play a crucial role, with SMEs tending to choose financing alternatives that align with their business growth needs. This research contributes significantly to understanding how entrepreneurial behaviors interact with external factors such as investment trends in the context of SMEs in Indonesia. The practical implication highlighting importance of a better understanding of the dynamics of financing decisions among SMEs and how governments and relevant institutions can support SME growth through a better understanding of financial needs and preferences to a small—medium sized business owners. The condition where workers shift from agriculture to industry often occurs with the advent of industrialization.

Enhancing operational scale in SMEs through coopetition: Insights from the Portuguese ornamental stone industry

This study explores whether coopetition enhances scale determinants for SMEs, focusing on a case study in the Portuguese Ornamental Stone sector. The findings show that transitioning to coopetition networks positively impacts scale determinants in this sector. These improvements highlight coopetition's potential to drive operational efficiency, resource optimization, and market responsiveness, aligning with Sustainable Development Goals (SDGs) 8, 9, and 12. However, the study's limitations include a specific focus on Portuguese SMEs and a limited data collection period, indicating the need for broader and longer-term research. Future research should extend to different sectors and regions, incorporate a broader range of KPIs, and consider external factors affecting coopetition outcomes. This would provide a more comprehensive understanding of coopetition's role in fostering sustainable growth and innovation in SMEs. This research contributes to theory by leveraging S-D Logic and open innovation to enhance coopetition, showcasing their practical application in SMEs.

Market Linkages and Growth of Small and Medium Enterprises: Insights from County Government Support Programs

Small and medium enterprises suffer from inability to grow their markets and growth was curtailed by years of existing in the narrow markets at inception. This study sought to assess how market linkages offered by the county government affect the growth of SMEs in Laikipia East Sub-County, Kenya. This proposed study adopted a descriptive survey design and targeted 1200 registered SMEs in Laikipia East Sub-County who have had contact and engagement with the County Government of Laikipia via the Laikipia County Enterprise Development fund. A sample of 291 SMEs was calculated from which data was collected from the founders using a questionnaire. Data was then analysed using descriptive and regression analysis for quantitative data with the help of Statistical Package for the Social Sciences and content analysis for qualitative data. The study found that most of the respondents indicated that they were helped to get new customers to a small extent by the county government. Regression analysis showed that market linkages were statistically significant, F(1,289)=110., p<.001 explaining 77.4% of the variance in SME growth. The study concluded that market linkages offered by the county government also significantly affect the growth of SMEs in Laikipia East Sub-County, Kenya. It was recommended that county governments ought to assist SMEs in marketing their products & services. Training programs in conjunction with institutions of higher learning on marketing and digital marketing strategies can enhance SMEs' capabilities in marketing. The findings of this study have significant implications for the Kenya Micro and Small Enterprises Policy. The significant role of market linkages in SME growth indicates a need for the policy to enhance strategies that facilitate market access.

Assessment of Entrepreneurial Ecosystems and SMEs’ Growth in Ilorin Metropolis, Kwara State

SMEs often face resource constraints, ranging from financial capital to human resources and market access. Understanding how entrepreneurial ecosystems facilitate resource allocation and address these constraints is crucial for enabling sustainable growth. This study therefore investigated the impact of entrepreneurial ecosystems on firms’ growth, with a focus on SMEs operating in Ilorin metropolis, Kwara State. A cross-sectional survey research design and a quantitative data gathering method were used in this study. Three hundred and forty-three (343) SMEs make up the study's sample size, which was chosen to represent the 3124 SMEs that are registered with the Kwara State Board of Internal Revenue and pay taxes totaling one hundred thousand naira or more. Standard multiple linear regression analysis was employed to analyze the data obtained from the administration of a structured survey questionnaire. Findings of the study revealed that entrepreneurial ecosystems through access to capital, entrepreneurial support infrastructure and talent and knowledge exchange have significant impact on SMEs growth. The study concluded that entrepreneurial ecosystems constitute the bedrock upon which SMEs thrive and catalyze economic growth. By providing startups with the necessary resources to invest, innovate, and expand, access to finance plays a pivotal role in fueling entrepreneurial activity, job creation, and economic growth. The study recommended among others that, programs and initiatives aimed at improving financial literacy among entrepreneurs, empowering them to make informed decisions about financing options and investment opportunities should be invested on and implement policies and initiatives that promote diversity and inclusion within the financial ecosystem, ensuring equitable access to finance for women, minority entrepreneurs, and underserved communities.

Peran Faktor Pengaruh Dinamika Organizational Commitment: Mengentaskan Melemahnya Eksistensi UKM Kuliner di Bogor

This research aims to identify and analyze the role and influence of the determinants of organizational commitment dynamics on the continued existence of culinary SMEs in Bogor; against the identified background of the weakening of its existence. Using mixed methods, this study randomly selected 210 samples using SEM (Structural Equation Modeling) and AHP-FAHP (Analytical Hierarchy Process-Fuzzy Analytical Hierarchy Process) analysis techniques. The research results show that perceived organizational support, creativity and employee work motivation are determining factors that have a significant influence on organizational commitment, which ultimately contributes to the resilience and growth of culinary SMEs in Bogor.

Impact of digital marketing on the growth of SME manufacturing businesses in Kosovo

This paper aims to investigate the impact of digital marketing on the growth of manufacturing SMEs and the impact of business size and managers’ capability of using digital marketing tools as the most effective technique to communicate directly with clients. SPSS statistical software is used to process the data collected via the questionnaire instrument during the interviews with SME manufacturing managers and business owners. For the verification of statistical hypotheses, the respective patterns of linear multiple regression are constructed. The findings show that the use of digital marketing tools has a positive impact on the growth of annual business turnover. The impact of digital marketing on increasing employee numbers and business size is seen as positive, especially when it is associated with increasing levels of education among managers and owners of manufacturing SMEs. These results imply that manufacturing businesses need to use digital marketing tools and develop capabilities that enable them to increase their business in size and be financially competitive. This work extends the development of a different and comprehensive framework to understand how manager competencies and digital marketing tools affect manufacturing companies.

Impact of Development Bank’s Credit Financing on Small and Medium-Scale Enterprises Performance

This study examined the impact of Development Bank Credit Financing (DBCF) on the performance of small and medium enterprises, employment generation growth, financial asset growth and profit growth in Nigeria. A survey research design was employed; 398 SMEs were randomly selected from the beneficiaries of DBCF loans. Descriptive analysis was conducted, and binary logistic regression was employed to examine the impact of DBFC on SMEs. The result showed that the DBCF Amount of Credit Loan Received (ACLR) positively impacted the growth of SMEs, given their beta coefficients of 0.510 and 0.765, respectively. Their respective p-values and Wald statistics of 0.001, 0.001 and 14.050, 13.486 show their significance level. However, it was discovered that there is no significant impact of DBCF on the profit growth of SMEs in Nigeria. The average monthly tax payment (AVMTL) made by the micro, small and medium enterprises (MSMEs) was established to negatively impact on SMEs profit. The coefficient (β) = - 1.004 (100.4%) showed that a unit change in the AVMTL while holding other variables constant led to about 1.004 unit decline in the logit, SMEs profit. Specifically, it means MSMEs profit will decrease by the exact amount of what is paid as tax.