Medium Enterprise Sector Research Articles

Role of Government in Supporting Entrepreneurship and MSME Development in India

The Micro, Small and Medium Enterprises (MSME) sector has emerged as one of the most vibrant and dynamic sectors of the Indian economy in the last 5 decades. MSMEs not only play an important role in providing large number of employment opportunities at lower capital cost as compared to large industries but also help in industrialization of rural and backward areas, thus reducing regional imbalances, assure a more equitable distribution of national income and wealth. Micro, Small and Medium Enterprises (MSMEs) as ancillary units complement large industries and this sector contributes immensely to the socio-economic development of the country. Khadi is the glorious legacy of our National Freedom Movement and the Father of the Nation. Khadi and Village Industries (KVI) are the two national heritages of India. One of the most important aspects of KVI in the Indian economy is that it generates employment at very low per capita investment. The Ministry of Micro, Small and Medium Enterprises (MSME) in collaboration with the concerned Ministries/Departments, State Governments and other stakeholders by providing support to existing enterprises and encouraging new enterprises, will support the growth and development of the MSME sector including Khadi, Village Industries and Coir Industries. Along with the activities of Micro, Small and Medium Enterprises, the world market has also changed a lot. Today, for businesses to sustain, dynamism and entrepreneurship must continue to function to their full potential. We have seen in the past record of MSME development that, India has been able to achieve high growth of MSMEs in the country, with more emphasis on MSME Entrepreneurship Development programmed.

Mengelola Bisnis Melalui Pemasaran Holistik dan Syariah pada Masa Pandemi Covid-19

The Covid-19 pandemic has had a tremendous impact on many sectors of the domestic economy, especially in the micro, small and medium enterprise (MSME) sector. According to the BI report that MSME exporters are the most affected, which is around 95.4% of the total exporters, then the handicraft and tourism supporting sectors are affected by 89.9%. Meanwhile, the smallest sector affected by the Covid-19 pandemic is the agricultural sector, which is 41.5%. From the entrepreneur side, research data from the Ministry of Cooperatives and SMEs reported that MSMEs consisting of wholesalers and retailers experienced the highest impact of the Covid-19 pandemic (40.92%), followed by MSMEs providing accommodation and food and beverages (26.86%) and the smallest sector is the manufacturing sector at 14.25%. Although MSMEs have a lower impact than large entrepreneurs due to Covid-19, MSMEs as business institutions that play a very important role in improving the economy and making a sizeable contribution to the economic development of the people are still affected by Covid-19. On the other hand, MSMEs have many problems, apart from capital, marketing is one of the problems faced by MSMEs during the Covid-19 pandemic. Understanding marketing concepts both holistically and sharia concepts is important for MSMEs to get out of marketing problems during this Covid-19 pandemic. Holistic Marketing is marketing that prioritizes and considers the entire business entity. Where the holistic marketing concept is based on the development, design and implementation of marketing activities, processes and programs that understand the breadth and interrelationships. As for the holistic marketing concept: Relationship, Integrated, Internal, and Performance. Meanwhile, sharia marketing is marketing that is carried out based on sharia principles and contracts. In addition, according to characteristics of Islamic marketing that must be owned by the marketing team are Rabbaniyyah, Akhlaqiyyah, Al-waqiyyah and Insaniyyah.

Role of big data analytics capabilities to improve sustainable competitive advantage of MSME service firms during COVID-19 – A multi-theoretical approach

The extant literature suggests that digital technologies (big data analytics, artificial intelligence, blockchain) help firms gain a competitive advantage. However, the studies do not focus on the micro, small and medium enterprises (MSME) sector. Moreover, MSMEs face various challenges, including significant supply chain disruption due to the COVID-19 pandemic. Hence, there was an urgent requirement to shift to digital technologies to survive during this difficult time. In the context of MSME, various positive changes are discussed in the recent literature. However, a dearth of studies discusses the role of big data analytics capabilities (BDAC) to gain sustainable competitive advantage (SCA). Our study aims to fill this gap and answer this question – How do BDAC help MSMEs gain SCA? To understand the phenomenon, we receive theoretical support from organizational information processing theory (OIPT) and institutional theory (IT). We develop a conceptual framework that links BDAC and SCA through supply chain coordination, swift trust, and supply chain risk. Additionally, the age and size of the firm are used as control variables. The data is collected from Indian service sector employees of MSMEs, resulting in 497 usable responses. We use PLS-SEM using Warp PLS 7.0 to test the hypotheses. A critical finding is that the BDAC indirectly impacts the SCA. Finally, the other findings, limitations, and scope for future research are discussed.

Analyzing organizational barriers towards building postpandemic supply chain resilience in Indian MSMEs: a grey-DEMATEL approach

PurposeThis study aims to identify the barriers to building supply chain resilience and assess the contextual relationship between them in the Indian micro, small and medium enterprise (MSME) sector for the post COVID-19 era.Design/methodology/approachBarriers to supply chain resilience were extracted from the extant literature and were evaluated using the grey sets and Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach from strategic, tactical and operational business perspectives. The responses from experts on the identified barriers were collected through a structured questionnaire. The prominence-net effect results obtained after the DEMATEL application helped identify the most prominent barriers, their net cause and effect, and their correlation with each other.FindingsA total of 16 barriers to resilience, identified from the literature, were considered for analysis. The findings of the study revealed that the lack of flexibility is the most critical causal barrier to building a resilient supply chain. Lack of planned resource management was also found to be an influential barrier. The study also identified the supply chain design, need for collaboration and technological capability as important factors for the MSME sector to focus on.Research limitations/implicationsThe study is limited to assessing barriers to the supply chain resilience of MSMEs in India. More extensive research may be needed to reveal the global trend.Practical implicationsThe study is significantly important for the MSMEs looking to establish resilient supply chains. Managers can use the findings to identify the weak links in the supply chain for strategic and tactical planning and can take corrective actions.Originality/valueThe study pinpoints the key linkages between barriers that impede MSMEs to make their supply chains resilient and robust to mitigate the impact of future disruptions and adversities. The work may be used by practitioners to further their attention on the significant challenges.

Analisis Meningkatkan Simpan Pinjam Koperasi dan UKM pada Masa Covid-19 di Provinsi Sumatera Utara

Cooperatives are a necessary and important economic institution. Cooperatives are a form of joint effort based on the principle of family to improve welfare. And cooperatives have a goal to increase economic activity. Cooperatives and MSMEs have contributed significantly to regional and national income, especially in the North Sumatra Province. MSMEs play a role in absorbing labor in the distribution of development results. During the COVID-19 pandemic, the majority of the economic sector, especially MSMEs, could not develop and many ended up in bankruptcy and a slowdown in the economic sector in Indonesia with its various derivatives. The Micro, Small and Medium Enterprises (MSMEs) sector which is the most important part of the economic sector that is feeling the impact of the COVID-19 pandemic. During the Covid-19 period, MSMEs experienced various problems such as decreased sales, capital, distribution was hampered, raw material difficulties, decreased production and the occurrence of many layoffs for workers and hunting which later became a threat to the national economy. With the purpose of this research, the analysis is to increase Savings and Loans for Cooperatives and Small and Medium Enterprises (UKM) during the Covid-19 period in North Sumatra Province, this research method is by taking secondary data and interviews, solving problems using qualitative methods from existing descriptions. in the mass media and then concluded by researchers.
 Keywords : Savings and Loans, UKM, Covid 19

Design of Website for Business Enterprises Using a Website Creation Application

The purpose of this research is to utilize information technology in the era of the Covid-19 pandemic in designing websites that are useful in promoting types of businesses for the Micro, Small & Medium Enterprises sector. The method used in this research is descriptive qualitative which focuses on the design process which begins with organizing the concept to the website of the work produced. The result of this research is the design of the Micro, Small & Medium Enterprises website using the wix.com application as a model in designing the website, because the researcher wants to know the process of making a website using the application without losing the design principles and the user interface. So in this study, we can find out the website design process using the wix.com application which is considered easier to use, easy to access, and practical.

HOW THE COVID-19 OUTBREAK AFFECT THE EFFICIENCY OF ISLAMIC RURAL BANKS?

Islamic Rural Banks (BPRS) have an essential function for developing the Micro, Small, and Medium Enterprises (MSME) sector. For the BPRS to exist and not be liquidated, the BPRS needs to maintain its financial efficiency. This study aims to determine the efficiency of a BPRS in East Java. Then, this is to find out what affects the efficiency. Two Stages-Data Envelopment Analysis (DEA) calculate the efficiency. The first stage of data analysis is carried out by assessing the efficiency of the BPRS. The second stage is the analysis of variables that affect efficiency using logistic regression. This analysis also uses the description of the year of the Covid pandemic as a predictor variable. The results of this study found that the BPRS in East Java was categorized as inefficient (inefficiency). However, from the 20 samples used, there are three efficient BPRS based on the average individual BPRS during the 2012-2020 period. Based on logistic regression analysis, it is known that the factors that affect the efficiency of BPRs include Operational Costs and Operating Income, Earning Assets, and the pandemic era.

Digital Marketing Practices Adoption in Micro, Small and Medium Businesses for Inclusive Growth

After China, India has the world’s largest MSMEs (Micro, Small, and Medium Enterprises). According to government estimates, the country has roughly 63.05 million small enterprises, 0.33 million small businesses, and around 5,000 major businesses. The Micro, Small, and Medium Enterprises (MSME) sector of the Indian economy is a vibrant and dynamic sector. It adds to the country’s economic and social development. MSMEs, second only to farming, encourage enterprise and create the most job vacancies at a relatively cheap capital cost. MSMEs now operate in almost every key sector of the Indian economy, including food processing, textiles and apparel, agricultural data sources, leather and cowhide stuff, sports merchandise, plastic items, electro- restorative equipment, and computer software, to name a few. With their devo- tion to modern yield, fares, business, and creation for the Indian and global markets, SMEs play a critical role in the Indian economy. The focus of this study is on existing advertising mediums for SMEs in the administration’s area, as well as the scope of internet marketing. With the passage of time, internet media has grown in importance in marketing, and it may be the ideal vehicle for SMEs to achieve success in marketing.

Availability and Use of Technology Among SME Entrepreneurs in Mumbai and Navi Mumbai

The present research paper discussed the role of information and communication technology (ICT) within the small and medium enterprise (SME) sector in Mumbai and Navi Mumbai. ICT plays a significant role in maintaining business operations and to make businesses globally competitive. SMEs play a very important role in the economic growth and development in an economy and thus, it is important to focus on making them globally competitive with the use of ICT , as use of outdated technology or lack of technology also hampers growth of SMEs in India. The research focused on studying the availability and use of technology by entrepreneurs of SMEs in Mumbai and Navi Mumbai. The use of outdated technology or low level of use is one of the problems faced by SMEs to beat growing competition. SMEs should make use of different ICT tools for increasing competitiveness of their business. This research paper focused on availability and use of technology using structured questionnaire for data collection.

THE WELL-BEING OF MICRO SMALL AND MEDIUM ENTERPRISES’ PRACTITIONER IN COVID-19 PANDEMIC

The Micro, Small, and Medium Enterprises (MSMEs) sector plays an important role in the development of a country, providing massive revenues and employment opportunities. However, the challenges of MSMEs sector are now exacerbated with the situation of COVID-19 due to the business limitation and degrading economic situation. In addition to financial difficulties, there is also the concern on the well-being of MSMEs practitioners which can influence the sustainability of the sector. This research was conducted with the purpose of investigating the level of well-being for MSMEs practitioners. The approach of subjective well-being using Satisfaction with Life Scale (SWLS) and scale of positive and negative experience (SPANE) were implemented in a form of questionnaire. A total of 119 MSMEs practitioners were collected in this study, with their level of well-being investigated, as well as the challenges and innovations experienced during the COVID-19 pandemic. The findings in this study show that the MSMEs practitioners under association support were majority within medium and high levels of well-being, however this study also takes note of practitioners within low-level of well-being. Hence there is the implication challenge to formulate policy intervention to support MSMEs sector which integrate the financial and mental health aspect to maintain the sustainability of the sector.

Saudi Arabia’s small and medium enterprises (SMES) sector post-Covid-19 recovery: stakeholders’ perception on investment sustainability

PurposeThe sound viability of small and medium enterprises (SMEs) positively influences nations’ economic growth. Studies investigating the impact of the Covid-19 pandemic on SMEs in Saudi Arabia (KSA) and how the owners will source for working capital and short-term loans to kick start in the post-Covid-19 recovery are scarce. Hence, this study aims to investigate the perceived negative impact of Covid-19 on SMEs and suggests policy solutions to improve access to finance and investment sustainability for the SMEs owners in the post-Covid-19 recovery via the stakeholders’ perception in KSA.Design/methodology/approachThe paper sourced data from Medina, Riyadh and Alqassim via virtual interviews. The study engaged SMEs owners, government agencies and banks within the covered regions in KSA. The sourced data were analysed via a thematic, and the results were presented in themes.FindingsThe findings show that the SMEs sector plays a pertinent role in KSA gross domestic product growth. But, the recent ravaging of the SME sector by the Covid-19 pandemic was adversely unprecedented, and stakeholders were caught unaware. The paper categorised the perceived impacts into most severe, severe and fairly severe. The findings show that SMEs sector post-Covid-19 recovery will require access to finance-friendly policies to revive the unique sector. This should be supported with an enabling business environment via policies that encourage investment and sustainability to achieve KSA Vision 2030.Research limitations/implicationsThe study is restricted to the impact of the Covid-19 pandemic on SMEs and data collected via virtual interviews across three cities in KSA. Other developing Islamic nations can modify the policy suggestions from this paper to improve their SMEs sectors.Practical implicationsThe significance of a robust SMEs sector to grow the economy has been established. The emerged recommendations from this paper may provide insights to the policymakers and other stakeholders. This will enhance the rebuilding of the SMEs sector across KSA in the post-Covid-19 era.Originality/valueThis study is unique because it investigated the impacts of the ravaging pandemic on SMEs owners and proffered possible solutions for quick post-Covid-19 recovery from the KSA stakeholders’ perspective.

Impact of COVID-19 Pandemic on MSMEs: A Study of Karimnagar District of Telangana State

The COVID-19 pandemic has impacted gravely all the economic activities across the world, and India is no exception. One of the victims and most vulnerable sectors of the Indian economy is the micro, small and medium enterprises (MSMEs) sector because of its size, scale of operations and financial resources. The present study is aimed at assessing the impact of COVID-19 on MSMEs operating in the Karimnagar district of Telangana State and diagnosing the issues and challenges being faced by the enterprises during the pandemic period. The study is an analytical and descriptive type of research in nature and it is based on both primary and secondary data. The primary data were collected from about 120 MSME units in the Karimnagar district by administering a structured and pretested questionnaire. Descriptive statistics along with chi-square and ANOVA were used with the help of SPSS to analyse the data. The study found that two-thirds of the enterprise’s operations were extremely affected and experienced the reduction of orders from the customers, while about 41.7% of the MSMEs’ sales turnover plummeted from 40% to 60% due to virulent virus. Shockingly, the majority of the enterprises i.e., 60% incurred losses, and about 26.7% of the MSMEs decided to scale down or sell their units or shut down the operations due to various issues and challenges such as lack of orders, mounting manufacturing costs, payment of EMIs and statutory expenses. The study suggests that the government should ensure to provide free access to loans, waiver of the interest on EMIs and statutory payments besides relaxing the taxes for some period to revive the MSME sector as it is widely acclaimed as the golden duck of the Indian economy!

A framework for the analysis of the SME sector in the Republic of Moldova in the context of entrepreneurship development

Recognizing that entrepreneurship is an important driver of economic growth, employment, innovation and productivity, increasingly arouses the interest of theorists and practitioners in identifying both the entrepreneurial level and the premises and conditions that would ”measure” the complexity of entrepreneurship. In this context, the objective of this research is to review the literature on the evaluation of entrepreneurship and the development of a conventional ”framework” for the analysis of the small and medium enterprises (SME) sector in the Republic of Moldova in the context of entrepreneurship development. The following methods and techniques were used in the research process: desk research, critical analysis and generalization of specialized literature, analytical materials, rankings and international databases. The research resulted in the development of a ”framework” for the analysis of the SME sector in the Republic of Moldova in the context of the entrepreneurship development, based on foreign experience in the field and the main sources of documentation on SME and entrepreneurship policies, such as: a series of statistical data and information on the activity of SMEs produced by the public authorities of the Republic of Moldova, reports and studies in the field of entrepreneurship, prepared by international organizations (World Bank, World Economic Forum etc.)

Digital Marketing Produk Usaha Mikro, Kecil, dan Menengah Lurik Mozaik

During COVID-19, the micro, small and medium enterprise (MSME) sector was the most affected. Many MSMEs went out of business due to failing to adapt to these conditions. MSME Batik Lurik Mozaik Sumberadi Sleman Yogyakarta is one of the MSMEs affected and needs digital marketing assistance in marketing. This service method is carried out through several stages. The preparation stage was conducted through observations, interviews, and focus group discussions (FGD) to get an initial assessment. After that, the implementation, monitoring and feedback stages were also held. This service program has succeeded in increasing the knowledge of Lurik Mozaik MSME managers regarding digital marketing and repackaging by 85%. The implication is that MSME Batik Lurik Mozaik Sumberadi Sleman can expand its marketing network and focus on developing digital-based marketing quality.

Green Human Resource Practices: A Sustainable Approach To Increase Employee Performance

The research is explanatory about Green Human Resource Management (GHRM) and its Impact on Employee Performance in Pakistan's Small Medium Enterprise sector. PLS Software has been used for statistical research analysis, discriminant validity, loading factors, average variance executor, composite reliability, predictive value, and bootstrapping value from 308 small-medium enterprises (SME) employees. Data has taken as a questionnaire through Google form. The empirical study has explained the positive relationship of Green (HRM) to Employee Performance in SME sector. The previous studies have also determined about positive relation of these variables. Recruitment, training and reward have been selected and explained in research and have clear objectives of the investigation. The results showed a positive relationship between GHRM and employee performance. The finding of this paper has several implications for government officials and policy makers of SME sector to provide the framework to support employee green behavior.

Strategi Penjualan Produk Olahan Singkong (Sampeuin) di Pandemi Covid-19 di Kabupaten Karawang

Indonesia experienced a drastic economic downturn during the COVID-19 pandemic. The Micro, Small and Medium Enterprises (MSME) sector is the economic sector that is affected. Researchers analyzed from SWOT on the marketing of Sampeuin cassava processed products and determined marketing strategies for Sampeuin cassava processed products in the Covid-19 pandemic. This research was conducted on cassava processing SMEs. In this study, researchers used qualitative research methods. Based on the analysis of the "Sampeuin" cassava processing business using a SWOT (Strength, Weakness, Opportunity, Threat) analysis, there is a use of cassava as a processed food ingredient. Cassava which has many benefits for the human body is processed into "Sampeuin" which is used as a business opportunity in the snack food sector. Since the advent of social media, many business owners have used social media to do business.

Developing a circular economy: An examination of SME’s role in India

In a large developing country such as India where much of the small and medium enterprise (SME) sector is not yet fully organized and often receives limited support through government improvement programs, the journey to become integrated into a circular economy (CE) may seem impossible. This paper describes the foundations for establishing a CE in SMEs in India based on a culture that focuses on less waste more recycling, reusing, repurposing and repairing of parts and products. But much of this is done in an unorganized and informal way, without a long-term vision or strategy in place. We draw on the socio-technical system (STS) theory to explain how social, technical and environmental features influence CE. Based on a qualitative inquiry, we provide evidence from four exemplar SME companies in their transition to a CE covering issues such as motivation, strategy/practices and the challenges/hurdles faced. Using micro-level insights from STS theory, we then elaborate on various enablers and drivers that can be adopted by managers, policy-makers and industry associations in helping SMEs move toward a CE paradigm.

Regulatory and Policy Arrangement of The Textile Industry and National Textile Products for Clothing Resilience

This article discusses the challenges and prospects in the national textile industry. As an important industry in economic development, the textile industry needs regulatory support and strategic policies to overcome several upstream and downstream obstacles. From the upstream industry, TPT includes the fiber industry, spinning, and yarn, knitting, stamping, and finishing, while downstream, it includes the apparel industry. Through the right policies, the textile industry is expected to be able to absorb labor, support national economic growth, and realize clothing resilience. This research uses empirical juridical research methods through tracing and studying secondary data in the form of laws and regulations, academic manuscripts, policy recommendations, and scientific papers of experts in the cybersecurity and empowerment of the small and medium enterprises sector. Secondary data are obtained through Library Research from printed and electronic library materials. Doctrinal research is needed to understand the legal norms that are currently in force (Law in the Book) through a statute approach and a conceptual approach (Conceptual Approach). The results showed that some of the obstacles to the textile industry include limited transportation and electricity infrastructure, low quality of human resources, and access to financing, which is still narrow. For this reason, regulations and policies are needed to guarantee the financing of the textile industry, as well as innovation support for research institutions and related institutional cooperation—notably the Indonesia Central Bank (B.I.) and Financial Services Authority.

INVESTMENT AND EMPLOYMENT GENERATION IN MICRO-ENTERPRISES OF NORTH KARNATAKA: AN ANALYSIS IN REGISTERED MANUFACTURING AND SERVICE MICRO-ENTERPRISES

The micro-enterprise sector is an economic engine that creates employment opportunities in developed, developing, and underdeveloped countries. It has a different range of manufacturing products and services and lower capital than large industries. In India, MSMED Act, 2006, reveals the investment level is higher in the micro manufacturing sector than in the microservice sector. According to the ministry of MSME, the microenterprise industry accounts for 97 per cent of the total employment in the Micro, Small, and Medium Enterprise sectors. In the case of the employment level of micro-enterprises, which sector creates more work, whether the manufacturing or service sectors? The present study attempted to compare the investment and employment generation level between registered micro manufacturing and service enterprises and examine association between investment and employment level in registered micro manufacturing and service enterprise sector in North Karnataka. The researcher collected secondary data from the District Industries Centres (DIC) in five districts of North Karnataka. 385 samples out of 10,270 micro enterprises listed given by DICs selected by Slovin’s formula have been categorised using the stratified random sampling method. The researcher used a non-parametric Mann-Whitney U-test and Spearman’s rank correlation to analyse the data. The researcher found that there is a significant difference in investment as well as employment generation level between manufacturing and service micro-enterprises. There is a positive and significant association between investment and employment level in the micro manufacturing enterprise sector but a negative and not significant association between investment as well as employment level in the microservice enterprise sector.

Հայաստանի Հանրապետությունում փոքր և միջին ձեռ­նարկա­տիրության զարգացման միտումներն ու առանձ­նահատկությունները/PECULIARITIES AND TRENDS OF SMALL AND MEDIUM ENTERPRISES DEVELOPMENT IN THE REPUBLIC OF ARMENIA

SME sector has a significant impact on the countries’ economic development and provides tangible social economic results leading to regional development. Acknowledging the crucial role of SME sector in countries’ development, the paper aims at identifying the main trends and issues of the sector strategy development and making corresponding suggestions for its further development. Specifically, different theories and models have been outlined in the paper regarding the development of small and medium enterprises sector, the determinants of efficiency in SMEs, conceptual framework of factors affecting SMEs development, etc. The data have been gathered and analyzed taking into consideration the peculiarities and trends of small and medium enterprises development in the Republic of Armenia, the obstacles and, meanwhile, prospects and main directions of the sector development. Corresponding recommendations have been made based on the conclusions, results and findings of the study which is directed to contribute to the future development of small and medium enterprises in the Republic of Armenia.