Small Business Management Research Articles

Managerial Skills for Micro, Small and Medium-sized Enterprises (MSMEs)

Abstract Effective managerial skills can play a key role in the internal governance of micro and small businesses in Africa, enabling them to survive, compete and thrive in a dynamic business environment. However, due to the low absorption capacity, many micro and small entrepreneurs and managers lack the necessary managerial skills. We collected data from MSMEs owners and managers in Tanzania to examine the managerial skills required and their effect on business performance based on thematic content analysis and regression analysis. The results show that the managerial skills of MSMEs owners and managers have a significantly positive effect on MSMEs performance, in particular, financial management, marketing, human relations, and entrepreneurial skills were crucial skills in running small businesses successfully. However, financial management, marketing and entrepreneurial skills were the main skills gaps for many MSMEs owners and managers, suggesting that education, mentoring, and training in these areas for MSMEs owners and managers need to be strengthened. This study argues that since young people form the majority of the stakeholders running small businesses, targeted policies and strategies to promote entrepreneurship among young people through entrepreneurial learning and experiences can help instil an entrepreneurial mindset, one of the crucial skills in small business management.

Do start-ups benefit from coworking spaces? An empirical analysis of accelerators’ programs

Open innovation and innovation performance have been widely studied in the literature. However, few studies have examined the impact of openness to different types of external knowledge on start-ups’ innovation performance. Moreover, previous literature could be further complemented by additional investigation into how the coworking spaces provided by accelerator programs may engender informal sources of knowledge that enhance the innovation performance of accelerated start-ups. To address this research gap, we investigate whether start-ups participating in accelerator programs can enhance their innovation performance through information transfer from informal networks provided by business accelerator programs. In order to do so, we draw two-stage data collection data from 113 start-ups accelerated by Italian accelerators from 2013 to 2016 and the response data collected in 2018. Our results reveal that coopetitors, educators, and investors are beneficial for different innovation outcomes of accelerated start-ups. These findings contribute to the innovation management literature, the small business management literature, the literature on accelerators and the coworking spaces literature.

Socio-economic influences on the ease of doing business in the Niger Delta: Evidence from small business owners and managers

Doing business with ease depends on many factors. For Nigeria’s oil-rich Niger Delta region, the ease of starting and running a small-scale business depends on so many factors. This paper aims to leverage the experiences of 103 small business owners and managers to examine the socio-economic factors influencing the ease of doing business in the Niger Delta region. Data collection was via the structured questionnaire administered via Google Form. Data analysis involved simple percentages, mean and ranking. The findings reveal that lack of power supply, getting credit and resolving insolvency are the major hindrances to the ease of doing business in the region. The study recommends setting up effective policies and programmes in the areas of attracting investment to the energy sector. The government should enlighten the masses about National Collateral Registry and its importance to business owners. Keywords: Business, National Collateral Registry, Niger Delta region, World Bank indices;

The Impact of Education and Training on The Success of Small and Medium-Sized Enterprises

Many business management researchers regard the small and medium-sized enterprise sector as the pillar and primary impetus of economic growth, particularly in developing countries. As a result, most governments throughout the world now place a strong emphasis on small business development to spur economic growth. The purpose of this study was to see how education and training affected the success of small businesses. This study uses a qualitative research approach to collect and analyse data. The study’s 20 small business owners and managers in South Africa were selected using a non-probability sampling approach. Data was collected through interviews, and the results were analysed using subject analysis. This study’s findings reveal that a lack of human capital education and training is one of the primary causes of SMEs’ high failure rate, which also explains why these enterprises fail so frequently in most countries. It is evident that small business owners and managers, particularly in most developing nations such as South Africa, should consider spending more on business education and training to gather information that would help them establish unique business strategies.

Socio-Economic Influences on the Ease of Doing Business in the Niger Delta: Evidence from Small Business Owners and Managers

Doing business with ease depends on many factors. For Nigeria’s oil-rich Niger Delta region, the ease of starting and running a small scale business depends on so many factors. This paper leverages the experiences of 103 small business owners and managers to examine the socio-economic factors influencing the ease of doing business in the Niger Delta region. Data collection was via the structure questionnaire administered via Google form. Data analysis involved simple percentage, mean and ranking. The findings reveal that lack of power supply; getting credit and starting a business are the major hindrance to the ease of doing business in the region. The study recommends setting up effective policies and programs in the areas of attracting investment to the energy sector. The government should enlighten the masses about National Collatery Registry and its importance to business owners. There is also the need to embark on reforms targeted at restructuring the various indicators in the region to ensure the ease of doing business

Оценка интеллектуального капитала организации в условиях цифровизации

Development of intellectual capital is becoming increasingly important due to the impact of digitalization and development of the digital economy. The review of domestic and foreign studies made it possible to conclude that there are problems in existing approaches to the assessment of intellectual capital at the present stage. As the main drawback of foreign studies, one can note concentrating on the narrow aspect of the impact of investments in intangible assets on the performance of an organization with an emphasis on the use of methods of mathematical statistics. As the main drawback of the research of the Russian scientists, there can be noted their excessive theoretical interest, abstract and fragmented concepts of the knowledge economy and intellectual capital as its key resource. There appears a need to clarify the indicators for assessing intellectual capital, which will make it possible to more effectively implement managerial influences on the processes of its development. Under the influence of digitalization trends the development of intellectual capital is undergoing changes, and in order to improve the effectiveness of its management, it is necessary to take into account the change in the composition of assessment indicators. There has been found the need to improve the methodology for assessing intellectual capital, allowing to take into account the nature of changes in the process of its development in the digital economy. A review of modern views on the essence of the phenomenon of intellectual capital and digitalization trends was made. The specifics of the formation of elements of intellectual capital under the influence of the identified features of digitalization has been determined. The composition of indicators for assessing the formation of intellectual capital elements in accordance with digitalization trends has been specified. Based on the results of a survey of managers of small and medium-sized businesses in the Primorsky Kray, the modified methodology was assessed for the possibility of its practical application. The results obtained can be used to form an idea of what processes it is currently expedient to manage in the first place in order to increase the efficiency of the company’s management systems.

Increasing the competitiveness of the development of small enterprises based on the formation and spread of digital business processes

The subject of the study is the theoretical and practical aspects of the development and improvement of the competitiveness of small enterprises on the basis of the formation and spread of digital business processes in domestic small businesses of various fields and types of activity. The purpose of the article is to establish the main types and manifestations of digital business processes in small businesses, their content and competitive advantages, features of organization and management to increase the competitiveness of the functioning and development of small enterprises. The methodological basis of the article is the main methodological provisions of enterprise economics; problem-targeted approach; methods: system-structural analysis and synthesis, historical and monographic, statistical and economic. Results of the article. The competitive advantages of digitalization of business processes in small businesses have been established (optimization, productivity improvement, saving labor, money, etc., unification, improvement of the quality of products and services, etc.). It was determined that this allows us to predict their total distribution in the future. The main types of digital business processes were characterized and the addition of new ones (operations with cryptocurrencies) was substantiated. Manifestation formats, effectiveness and strategic development priorities for the future were developed. Field of application of results. The conclusions and results of the article can be used by small enterprises in the organization of business processes on the basis of digitalization; in the implementation of marketing technologies in the conditions of e-commerce; in strategies for increasing competitiveness. They will be useful in the educational process of economic specialties of institutions of higher education, in the scientific work of students, graduate students, and teachers. Conclusions. In the structure of modern social and industrial and economic activity at the level of small enterprises, digital business processes are gaining more and more importance. They are formed both in traditional activities and in the latest digital economy. However, in any case, they relate to both the main and auxiliary activities; all links of reproduction; provide significant savings due to optimization of the organization, automation, lack of need for premises, equipment, additional employees; reduce the number of errors and other negative manifestations of personal factors and thus work to increase the overall competitiveness of small businesses. Therefore, in the future, their unification by spheres of activity (food production, fashion industry, IT development, etc.) and introduction into the practice of small business management will be of great importance.

Industry 4.0 and micro and small enterprises: systematic literature review and analysis

ABSTRACT Industry 4.0 technologies are a trend in the organizational environments of Micro and Small Enterprises (SMEs). Identifying which technologies need to be implemented to assist the value chain is a challenge for many Micro and Small Business managers. The objective of this study was to identify the relationships between Industry 4.0 technologies and Micro and Small Enterprises. To achieve this, a systematic literature review and content analysis were conducted. A total of 60 articles from the sample were coded, using selection criteria designed to find relevant studies in the domains of Industry 4.0 and Micro and Small Enterprises. Thus, 16 Industry 4.0 technologies were identified, as well as nine possible barriers to implementing them, and eight performance outcomes after adoption in such enterprises.

The Contradictory Role of Corruption in Corporate Innovation Strategies

This study considers the influence of the work experience of Russian top managers on the willingness to stimulate innovative processes in companies, including using at a certain stage some corruption schemes to bypass bureaucratic barriers.Using a logit model based on enterprise surveys carried out by the World Bank, data on managers of small and medium-sized businesses were analyzed.It was revealed that the presence of "corruption competencies" has a positive effect on the innovative activity of enterprises in developing countries. This effect is due to the fact that corruption in such countries acts as a mechanism to reduce transaction costs associated with innovation. The level of corrupt activity of managers increases as they accumulate experience due to the high degree of bureaucratization and the weakness of institutions, which turn into time and financial costs for enterprises. In the short term, corruption can accelerate the development of innovation, but cannot serve as a permanent tool in this regard, since its long-term consequences turn out to be extremely negative.

Competitive analysis: a determinant in Freshood Express Store expansion strategy

Learning outcomes The learning outcomes of this study are as follows: 1) identifying challenges confronting small businesses in emerging markets using the SWOT framework; 2) the application of the Porter’s five forces model in analysing industry dynamics for small businesses; and 3) evaluating business expansion decisions using the force field analysis framework. Case overview/synopsis Freshood Express Store was a convenience store owned and managed by Mr Cuthbert Tsikira. Freshood Express Store operated grocery convenience stores in partnership with a government-owned fuel retailer in Zimbabwe. It operated two grocery convenience stores in Harare and Bindura. Its business environment was a complex and highly competitive industry with large retailers such as OK supermarkets and TM-Pick n Pay. These large retailers enjoyed massive discounts from powerful suppliers, which enabled them to charge low prices in the market. However, Freshood Express Store, as a small business, sourced their stock from the same suppliers on a cash basis. The playing field was thus uneven. In early 2021, Freshood Express Store was offered two sites to open new establishments. These two sites were more than 200 km out of Harare, the major supplier hub for Freshood Express. In addition, large retailers had existing operations in the two proposed sites, thus adding serious competition. The dilemma confronting Mr Tsikira was as follows: Could he direct limited resources to existing establishments or new markets? He wanted a sound business analysis of the attractiveness of the proposed two markets before making a management decision to invest resources. The case focuses on the need to perform industry analysis before making strategic decisions. The use of the Porter’s five forces model and the force field analysis model to validate decisions after an industry analysis is the high point of the case. Complexity academic level This case study can be used to teach the environmental analysis topic in emerging markets in the small business management course. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

Ambidexterity Behavior of Creative SMEs for Disruptive Flows of Innovation: A Comparative Study of Indonesia and Taiwan

Disruptive innovation forces small-business managers to innovate by carrying out exploitation and exploration activities simultaneously. This ambidexterity is crucial to the survival of today’s businesses, especially small and medium-sized enterprises (SMEs). In the organizational structure of SMEs, the manager and owner play an essential role in determining the business orientation. This study examined the influence of SME managers’ social networks on the organization’s ambidexterity and its impact on the firm’s innovation performance. This study used two moderating variables in the form of two internal factors in respect to managers: how proactive they are and their commitment to innovation. The study population was drawn from SMEs in the creative manufacturing sector in Indonesia and Taiwan, with a total sample of 224 SMEs, including 101 from Indonesia and 123 from Taiwan. The analytical technique was the PLS-SEM, conducted by the Smart-PLS software version 3.3.6: Hamburg, Germany. The results supported the construction in both countries. The results of the multiple-group analysis show that the SMEs in Indonesia exhibited greater ambidexterity, commitment to innovation, and innovation performance than those in Taiwan.

Penerapan SIA aplikasi IT Zein Akunting dalam bisnis UMKM pengusaha muslim se-Jawa Tengah

The Badan Pusat Statistik in 2019 noted that Indonesia's population reached 268.5 million consisting of 181.35 million people of productive age. This shows that Indonesia has very high human resources. However, the number of human resources is not commensurate with the availability of job opportunities, especially with the occurrence of the Covid-19 pandemic at the beginning of 2020 which has an impact on all sectors of people's lives. In this pandemic era, many young people are entrepreneurs of MSMEs. Many challenges must be faced, both internally and externally, one of which is knowledge of the application of Accounting Information Systems. Zein Accounting was created to meet the need for accounting information that is relevant, reliable, complete, timely, easy to understand, and verifiable. The Zein Accounting application also has a very important role in assisting decision making in the management of small businesses for service or trade MSMEs. The results of the research test show that the accounting information system variable has a value of tcount < ttable where 0.583 < 1.676 with a significance level of 0.000 <0.05 so it can be stated that the accounting information system has a significant effect on the performance of MSMEs. Then, it is also shown that the variable of using accounting information has a positive and significant effect on the success of MSEs in Muslim entrepreneurs throughout Central Java. This means that increasing the use of accounting information in the business activities carried out will increase the success of MSMEs..

The mediating effect of knowledge management on talent management and firm performance in small and medium enterprise in Uganda

PurposeThis study examines the mediating effect of an effective knowledge management (KM) in the relationship between talent management (TM) and organizational performance. This study was operationalized among the small and medium enterprises (SMEs).Design/methodology/approachA cross-sectional survey design was used to collect data from a sample of 260 SMEs business. The data collected was analyzed using correlations and hierarchical regression to test the mediating effect of KM on the relationship between TM and firm performance.FindingsThe findings show that KM mediates the relationship between TM and firm performance. They also suggest that TM contribute to enhancing performance through improvements in KM.Research limitationsThe sample used in the research is not representative of all the SMEs operating in Uganda. This limitation presents the challenge of generalising and we therefore suggest caution when interpreting the results. We note the challenge of a skewed sample. For instance, most of the respondents to our study were confined to tailoring and design and metal and fabrication sectors. The skewed sample is a notable limitation of the research. The study was limited to Uganda only hence it did not capture information relating to other geographical settings, which may limit the effectiveness of the findings therein.Practical implicationsBased on the findings of the study, the managers of the SME can use the study results to develop strategies and interventions that can enable their firms to improve on their performance even in the harsh economic environment through adopting positive practices such as KM.Originality/valueThis paper contributes by filling a gap in HR management and SMEs literature, in which empirical studies on the relationship between TM and firm performance have been limited until now. This may create better research opportunities for cross-disciplinary papers that should be done by human resource, small business management and KM scholars.

Exploring Organizational Improvisation through the Experience of Small Business Managers

Improvisation is an important organizational resource for dealing with unforeseen events, recurrent events typical of times of crisis, such as the Covid-19 pandemic. To analyze the phenomenon of organizational improvisation (OI) with regard to the heuristics used to achieve it, as well as its results in the business context, the narrative interview technique was used in this study to interact with 28 managers and owners of small businesses. Forty-one episodes of OI were described by the informants and analyzed using the content analysis technique. From these analyses, five categories of outcomes of OI episodes were identified, four positive and one negative. The application of seven creative tactics associated with the OI episodes in question was also evident: adaptation, copy, exaptation, frugal innovation, improvement, new combination, and nonaptation spandrels. In terms of results, emphasis is placed on the description and analysis of two episodes of OI associated with the category of Strategic Repositioning of the organization, a phenomenon that was hitherto identified in the literature as rare but possible. As for the seven creative tactics that were identified, they provided evidence that the Adaptation construct used in some OI frameworks is incomplete and restrictive in terms of possible actions.

Управление финансовыми рисками на предприятиях малого бизнеса

The current stage is characterized by the intensification of integration processes and globalization processes, thereby causing high turbulence of the environment, which has a significant impact on the economy of the country and all its participants, respectively. This carries significant risks to small businesses, which is the main driver in the development of the economy. And these risks are mainly related to the financial component. Financial risks largely reflect market risks. They require competent and effective management, as well as minimizing the degree of possible negative impact. The purpose of the study is to study financial risk management in small businesses, which makes it necessary to study both theoretical approaches to understanding financial risks and practical approaches to risk management at the present stage. The object of the study is small business enterprises of different regions, but of the same field of activity. The main methods used in the article are the comparative method (used in comparing some indicators of different small businesses), the analytical method, the coefficient method (using accounting financial reporting data) and some others. Research results: an analysis of the financial risks of several enterprises related to small business entities was carried out, which gives an understanding of the current situation in the field of entrepreneurship, the ability of competent management and the need for support.

Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

In today's dynamic and competitive business world, small and medium-sized enterprises require strategic planning as a business tool. The purpose of this study was to determine requirements that a small business must meet to successfully implement a strategic business plan. The study employs a qualitative research approach for collecting and analysing data. A non-probability sampling method was used to select the 20 small business owners and managers who participated in the study. The data collection was done through the conduction of interviews and thematic analysis was carry out to analyse the data. The findings demonstrate that strategic business planning helps small businesses in analysing their existing contexts, examining how current trends could affect them, and determining best practices to overcome potential barriers to success. The study equally portrays those small businesses that implement strategic business planning into their operations have a higher chance of success than those that do not.

The Effect of Quality Management System on Small Business: A Case Study of Somalia

An effective quality management system (QMS) is the foundation of a quality organization, and while many small organizations may not have substantial resources to invest in quality management, it may still be done successfully. Effective QMSs are rigorous procedures that may continuously raise the economic and quality value of products and services. They work to improve the customers' experiences, which is critical for a small business's client retention. The goal of this article is to present a systematic technique for implementing a quality management system in micro and small businesses in Somalia. The purpose of this study is to look at the challenges that lead to the implementation of quality management in small businesses; therefore, to find out how to implement quality management in SMEs

The Impact of Trust, Knowledge Sharing, and Affective Commitment on SME Innovation Performance

Small and medium-sized enterprise (SME) performance can enhance SME sustainability and competitiveness. This study aims to examine the impacts of trust, knowledge sharing, and affective commitment on SME innovation performance. The present study will contribute to current knowledge by providing factors affecting SME innovation performance in the context of Indonesia and pandemic crises. The present study uses regression analysis by surveying 56 small business owners or managers in West Sumatra, Indonesia. It was found that trust, knowledge sharing, and affective commitment are related to SME innovation performance. Therefore, it is a moment to renew commitment to innovate by promoting trust and collaboration even during difficult situations.

The impact of education and training on the success of small and medium-sized enterprises

Purpose Many business management researchers regard the small and medium-sized enterprise sector as the pillar and primary impetus of economic growth, particularly in developing countries. As a result, most governments throughout the world now place a strong emphasis on small business development in order to spur economic growth. The purpose of this study was to see how education and training affected the success of small businesses. Methodology: This study uses a qualitative research approach to collect and analyses data. The study’s 20 small business owners and managers in South Africa were selected using a non-probability sampling approach. Data was collected through interviews, and the results were analyzed using subject analysis. Findings: This study’s findings reveal that a lack of human capital education and training is one of the primary causes of SMEs’ high failure rate, which also explains why these enterprises fail so frequently in most countries. It is clear that small business owners and managers, particularly in most developing nations such as South Africa, should consider spending more on business education and training in order to gather information that would help them establish unique business strategies. Originality/Value: The impact of education and training on the success of small and medium-sized enterprises.

Impacts of Entrepreneurial Openness and Creativity on Company Growth.

Entrepreneurs as individuals are the main drivers of entrepreneurship and possess distinct personality characteristics. The study focused on entrepreneurial openness and creativity on the entrepreneurial level relative to business growth. Hypotheses were developed and empirically tested in structural equation models using survey data obtained from SMEs’ entrepreneurs in three countries. This study adds to what is known about entrepreneurship and small business management in terms of normative research on firm growth by empirically examining the relationships between the entrepreneurial openness, creative personality, and creativity of the entrepreneur and growth of the company. Moreover, the study develops refined internationally comparable measures of entrepreneurial openness, entrepreneur creativity, and a creative personality. An entrepreneur’s openness and creative personality may be essential for their creativity. The entrepreneur’s creativity may be a vital element of company growth in some countries.