Medium Enterprise Owners Research Articles

Dampak Self-Management terhadap Mindset Entrepreneurial: Studi Kasus pada UMKM di Kota Pangkalpinang

This study aims to analyze the impact of self-management on entrepreneurial mindset among Micro, Small, and Medium Enterprise (MSME) owners in Pangkalpinang City. This research uses a quantitative approach with a data collection method through a questionnaire involving 100 respondents of MSME owners in Pangkalpinang City. The data obtained were analyzed using Statistical Package for the Social Sciences (SPSS) software to test the validity, reliability, and relationship between self-management variables and entrepreneurial mindset. The results of the analysis show that there is a significant positive impact between self-management and entrepreneurial mindset, with a coefficient of determination of 0,947. This indicates that improving self-management skills significantly contributes to the development of a proactive, innovative, and adaptive mindset among MSME owners. This research is expected to provide deeper insights and policy recommendations for the development of training and support programs that focus on improving self-management skills and strengthening entrepreneurial mindset, in order to improve the performance and competitiveness of MSMEs in Pangkalpinang City.

An analysis of Islamic financing access in Nigeria: perspectives of MSME owners

Purpose Funding difficulties are particularly compounded for Muslim entrepreneurs in Nigeria, owing to the dominance of interest-based financial institutions prohibited in Islam. Thus, this study aims to explore the role of awareness of Islamic finance principles in ameliorating financial deprivation and financial anxiety to increase access to Islamic financing among Muslim entrepreneurs. Design/methodology/approach A quantitative survey method of data collection was used to collect data from a total of 208 micro, small and medium enterprises (MSME) owners based on hand-delivered questionnaires. The data was analyzed using a partial least square structural equation model. Findings The result supports the direct negative impact of relative financial deprivation and the positive impact of awareness of Islamic finance principles on access to Islamic finance. However, awareness of Islamic finance principles could not moderate any of the direct relationship. Practical implications This study implies that financial deprivation is detrimental to access to Islamic finance, but financial anxiety has no significant impact. In addition, policymakers and MSME owners could directly foster access to Islamic finance through awareness of Islamic finance principles, though it could not redirect the negative impact of relative financial deprivation on access to Islamic finance. Originality/value The valuable finding here is that the substantial positive impact of awareness of Islamic finance principles on access to Islamic finance is not enough to redirect the negative effect of relative financial deprivation on access to Islamic finance.

The mediating role of halal supply chain integrity in enhancing performance for halal herbal-based food SMEs

Purpose This paper aims to examine the influence of supply chain management by assessing the relationship between internal and external integration and small and medium enterprises (SMEs) owners’ Islamic practices in enhancing halal supply chain integrity (HSCI) and SMEs’ performance. Design/methodology/approach A total of 176 SMEs were surveyed using a self-administered questionnaire. The sample was selected using convenience sampling from two major halal exhibition events in Malaysia. Structural equation modeling (SEM) was used to analyze the data and test the hypotheses. Findings The findings showed that supply chain integration (SCI), Islamic human capital and HSCI have a significant relationship with SMEs’ performance. It was also found that HSCI mediated the relationship between both SCI and Islamic human capital and SMEs’ performance. Practical implications SME owners or managers should be committed to developing the internal processes within the organization and strategizing to link these processes with the external processes to obtain the full benefits of integration. Furthermore, as the upper management, owners and managers must understand the supply chain challenges, priorities and practices thoroughly, as they are responsible for Islamic business ethics. They should work to provide support to increase religious orientation in the SMEs, as this would likely enhance all other factors. Originality/value This is one of the few types of research to use HSCI as a mediator in halal food studies in addition to improving SMEs’ performance.

Pengaruh Literasi Keuangan dan Self Efficacy Terhadap Perilaku Keuangan yang Dimoderasi Gender pada Owner UMKM di Desa Gintung Kerta

The focus objective this study is to find out The manner in which financial literacy and independence influence the financial behavior of small and medium enterprise (MSME) owners. in Gintung Kerta village which is gender moderated. This research is quantitative. This research involved the owners of 138 MSMEs in Gintung Kerta village, with a sample of 103 of them. Data was collected using a purposive sampling method. Questionnaire via gform and multiple regression analysis were used. The results of the study show that financial literacy significantly influences the financial actions of MSME owners in Gintung Kerta village, while self-efficacy also influences the financial behavior of MSME owners in Gintung Kerta village. Financial literacy and self-efficacy have a significant simultaneous influence on the financial behavior of MSME owners in Gintung Kerta village. Gender is unable to influence The impact of financial conduct on financial literacy among MSME owners in Gintung Kerta village. Gender is unable to influence self-efficacy on financial behavior among MSME owners in Gintung Kerta village

Guilt-Minimisation, Religiosity and Tax Non-Compliance Intention: A Study of Small and Medium Enterprise Owners in Malaysia

Guilt-Minimisation, Religiosity and Tax Non-Compliance Intention: A Study of Small and Medium Enterprise Owners in Malaysia

SME Owners' Willingness to Adopt Renewable Energy Technologies for Socio-Economic Development: A Perspective for Policy Decision Makers

This study investigates the willingness of small and medium enterprise (SME) owners and farmers in the rural Khairpur district of Sindh, Pakistan, to adopt clean energy initiatives (CEIs) in the agricultural sector. The research applies the Theory of Planned Behavior (TPB) to evaluate eight hypotheses related to attitudes, subjective norms, and perceived behavioural control (PBC) factors influencing the adoption of CEIs. Data was collected from 108 participants, and IBM SPSS was used for analysis. Key factors such as production quality, seasonal expenses, peer influence, market demand, and switching costs were examined. The results indicate that attitudes toward CEIs, such as improved production quality, lower seasonal expenses, and peer influence, positively impact the willingness to adopt CEIs. However, government policies and the diffusion of technologies were found to have an insignificant effect. The study concludes with policy recommendations aimed at facilitating the broader adoption of CEIs in agriculture to promote socio-economic development.

Empowering Muslim Women Micro, Small, and Medium Enterprises (MSMEs) Owners through Working Capital Loan (KUR)

Empowering Muslim Women Micro, Small, and Medium Enterprises (MSMEs) Owners through Working Capital Loan (KUR)

Increasing the Income of SMEs in Indonesia through the Power of Quality and Education

This study explores the impact of product quality and the educational level of small and medium enterprise (SME) owners on SME income in Sidoarjo Regency, Indonesia. Using a quantitative approach with survey data from 52 SMEs, the analysis via SMARTPLS4 reveals that both product quality and education significantly influence SME income. The findings suggest that enhancing product quality and investing in education can lead to higher SME income, providing valuable insights for SME owners and policymakers to support economic growth in the region. Highlight: Impact: Product quality and education level significantly influence SME income. Method: Analyzed 52 SMEs in Sidoarjo using SMARTPLS4. Recommendation: Improve product quality and education to boost SME income. Keyword: SMEs, product quality, education level, income, Sidoarjo Regency

The Influence of Perceived Usefulness on Adoption of Mobile Money Services Among Small and Medium Enterprises in Tanzania: A Case of Njombe Town Council

Mobile Money Services play a key role in aiding financial inclusion for unbanked Small and Medium Enterprises. Despite the fact that Mobile Money Services were introduced long ago in Tanzania, most Small and Medium Enterprises hesitate to adopt Mobile Money Services. This study focused on assessing the influence of perceived usefulness on the adoption of Mobile Money Services among Small and Medium Enterprise in Tanzania. Perceived usefulness included attributes such as time-saving, effectiveness, performance, and business control. A total of 351 respondents (comprised of Small and Medium Enterprises owners and their workers) were administered a well-structured questionnaire. The Statistical Package for the Social Sciences was used to analyse data using both multiple liner regression and binary logistic regression. Results showed that perceived usefulness has a strong influence on the adoption of Mobile Money Services among Small and Medium Enterprises. Additionally, both perceived usefulness attributes, when combined, contribute to the adoption of Mobile Money Services among Small and Medium Enterprises. The study recommended that the government develop policies to ensure the availability and accessibility of mobile money services within the economy's financial system.

The Role of market development strategy on the performance of manufacturing small and medium enterprise owners in southwest Nigeria

The manufacturing sector's performance is crucial to the development of an economy. The ability of small and medium enterprises (SMEs) to plan their growth strategy is instrumental to attain high performance. The fundamental concept used in this study is the Ansoff matrix model. Hence, this study examined the role of market development in the performance of SMEs. 384 copies of questionnaires were distributed among the manufacturing SME owners and managers in Southwest Nigeria of which 361 copies were retrieved and analyzed. Structural Equation Modelling (SEM) was used for the analysis. The results indicated that market development has a significant effect on SME’s performance. The path coefficients of 0.81, 0.76, 0.80 and 0.85 revealed a large degree of relationship between market development and customer satisfaction, market share, profitability and service quality respectively. According to the statistical analysis, market development has a high predictability for service quality (73.5%) followed by profitability (65.3%), market share (58.7%), customer satisfaction (65.8%) and profitability (65.3%). The implications are that when SME owners enter a new market apart from their existing market and can attract more customers to serve, it will in turn increase the satisfaction of their customers and improve their perceived quality leading to an increase in financial returns as well as an increase in the portion of the market that they control. This study recommends that the management of manufacturing SMEs should venture into new geographical areas with the appropriate development of new market segments and the creation of new distribution channels.

Analisis Penerapan Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK EMKM) pada Usaha Mikro Kecil dan Menengah (UMKM) di Kec. Kualuh Selatan Kab. Labuhanbatu Utara

The aim of this research is to analyze the application of accounting based on SAK EMKM to UMKM in South Kualuh Selatan, North Labuhanbatu Utara. This research was conducted using qualitative methods with a descriptive approach and the application of recording financial reports based on SAK EMKM with primary and secondary data taken from UMKM in South Kualuh Selatan, North Labuhanbatu Utara. Data collection techniques in this research used observation, interview and documentation techniques and the analysis techniques used were data reduction, presentation and drawing conclusions. The research results show that the majority of Micro, Small and Medium Enterprise Owners (UMKM) understand SAK EMKM. Information in financial reports is still presented very simply and manually. The difficulties faced by UMKM players are the lack of training courses on financial reports and SAK EMKM by practitioners, lack of time, they assume that financial reports are difficult to understand, and low awareness of improving financial reports in accordance with SAK EMKM.
 Keywords: SAK EMKM, Financial Report Recording System, UMKM

Exploring Small Medium Enterprise (SME) owners’ resources for resilience

Resilience can be defined as the aptitude to recover from unexpected events and sustain an acceptable level of competence. In contemporary times, it is irrefutable that every form of business and company must possess resilience. Some businesses, especially Small and Medium Enterprises (SMEs), are not as robust and will fold under pressure. Certain owners experienced failure due to their insufficient awareness, which hindered their ability to demonstrate resilience. Moreover, the insufficiency of financial resources and limited access to necessary assets significantly contribute to the ineffectiveness of business activities. This study aims to explore how the resources of SME owners add to the resilience of businesses. The most common sources of resilience amongst the owners appear to be a combination of adaptation and social support. Regarding owners’ adaptability, most business owners make efforts to adjust to the prevailing circumstances due to the occurrence of crises and disruptions in business operations. This study identified a range of social support mechanisms available to owners within diverse organizational structures. These mechanisms include support from individuals external to the company, social interactions with newly acquainted individuals, as well as internal and external relationships with individuals within the organization and potential collaborators if required. The study used purposive sampling, specifically targeting a limited sample size of five SME owners in Kedah. The structured interview serves as the primary method for collecting data. Subsequently, the textual data was transcribed to facilitate analysis through a coding procedure. Therefore, themes will be employed to link certain facts.

Exploring The Relationship Between Entrepreneurial Networking, Entrepreneur Leadership, Innovation capability, and MSMEs Performance

This research aims to determine the role of entrepreneurial networks, entrepreneur leadership, on innovation capabilities and MSME performance. The sampling technique used purposive sampling, obtaining a total of 247 samples of MSME owners in the culinary sector in Bojonegoro City. Research data was analyzed using SEM techniques with AMOS software. The research results show that entrepreneurial networking has a positive effect on the innovation ability and performance of MSMEs. Meanwhile, entrepreneurial leadership has no effect on the innovation ability of MSMEs, but has a positive influence on MSME performance. The implications of this research are that the development of entrepreneurial networks can be a crucial factor in enhancing innovation capabilities and performance for Micro, Small, and Medium Enterprises (MSMEs) owners in the culinary sector in Bojonegoro City. Additionally, entrepreneurial leadership also plays a significant role in improving the performance of MSMEs, even though it does not have a direct influence on innovation capability. Therefore, in the effort to enhance the performance of MSMEs in the culinary sector, MSME owners should consider expanding their entrepreneurial networks and strengthening entrepreneurial leadership.

Analysis of organizational culture and e-commerce adoption in the context of top management perspectives

Objectives: The aim of this study is to examine the factors influencing e-commerce adoption (ECA) among SMEs and evaluate its impact on their business performance. The research employs a mixed-methods approach, combining quantitative surveys and qualitative interviews with small and medium enterprises (SMEs) owners and managers across diverse industries and geographical locations.Methods: The analysis involved collecting and scrutinizing data from various organizations to provide a quantitative understanding of the relationship between organizational culture and ECA perceptions among top management. The factorability of the collected data was tested using the Bartlett’s test of sphericity and the Kaiser-Meyer-Olkin (KMO) test, which are commonly used to assess the appropriateness of data for factor analysis.Findings: This work underscores the importance of acknowledging the role of culture in ECA and emphasizes the significance of further research and strategies for fostering a culture that promotes and supports e-commerce within enterprises. Finally, barriers of ECA and Influencing and user satisfaction factors are identified and the conceptual framework of factors influencing ecommerce adoption in SMEs (Service sector) of ASSAM is developed.Novelty: Applying these tests specifically to the context of ECA in SMEs is a novel application.

CSR performance practices and COVID-19 – a qualitative study of SME owners in UAE

PurposeThe purpose of this paper is to examine the corporate social responsibility performance among small and medium enterprise (SME) owners in the United Arab Emirates (UAE) before and during COVID-19. This study shows insights into the barriers that could affect the CSR performance practices of UAE SMEs, and related implications are discussed in the study.Design/methodology/approachThis study used a longitudinal qualitative research design. The research comprised 30 interviews from 15 SME owners that were studied prior to and during the pandemic. The 15 interview participants are the sole owners of these SMEs and are Emirati citizens. They were identified through personal contacts and referrals.FindingsStudy findings show that there was a clear shift during the pandemic to place more focus on employees. CSR performance practices are dominated by strategies for caring for the environment and employees. During the pandemic, the priority was paying employees at least a portion of their salary despite financial hardships and ensuring their health and well-being. Prior to the crisis, the key barrier to the implementation of CSR performance practices was a lack of knowledge. During the pandemic, barriers identified included uncertainty and financial constraints. Furthermore, all the owners believe that big corporations should be more socially responsible and SMEs should be the recipients of CSR practices. Lastly, the owners expressed their belief in the values of transparency, integrity, commitment, efficiency and responsibility.Originality/valueThis study is a novel attempt to gain an in-depth understanding of CSR among SMEs in the UAE in the context of a pandemic. It looks specifically at the performance practices pursued by SME owners in the UAE before and during the COVID-19 crisis.

The Influence of Entrepreneurial Orientation and Customer Relationship Management on MSME Competitiveness

Competitive advantage is realized through continuous sustainability (sustainable competitive advantages), so new strategies must be designed. The strategy designed will certainly be able to dominate both the old market and the new market. The main aim of this research is to analyze the influence of entrepreneurial orientation and customer relationship management on MSME competitiveness. This research uses a literature and field design with a causal associative approach. This study uses a research instrument test consisting of validity and reliability tests. The quantitative analysis consists of a normality test, regression test, hypothesis test, correlation test, and coefficient of determination. Data analysis confirms that entrepreneurial orientation and customer relationship management have a significant effect on MSME competitiveness. The implications of research on entrepreneurial orientation and Customer Relationship Management (CRM) on business competitiveness can provide valuable insights for Micro, Small, and Medium Enterprises (MSME) owners and related parties. Research on entrepreneurial orientation and CRM can help MSMEs develop more targeted business strategies. They can understand how innovation and customer relationship management can be key drivers of their business competitiveness.

Fostering perceived wealth among SMEs through green business: unveiling the mediating influence of consumers' green attitude

PurposeThis research aims to determine the impact of green business (GB) on the perceived wealth of small and medium-scale enterprises (PWSMEs). The study also analyses the mediating role of a green attitude in this relationship.Design/methodology/approachA questionnaire based on a comprehensive literature study was used to develop a scale for measuring GB parameters. A survey involving 400 small and medium enterprise (SME) owners and managers across India was conducted. Regression analysis is used to determine the impact of GB on PWSMEs, and mediation analysis is used to explore the role of green attitude in this relationship.FindingsThe study reveals that GB components such as intent, processes, measurement, communication and capacity building have a positive impact on perceived wealth and green attitude. The association between perceived wealth and GB aspects is moderated by a green attitude, with the indirect effect being more significant than the direct effect.Practical implicationsTo improve customers' green attitudes toward buying goods and services, small and medium enterprises (SMEs) should develop a technique to implement GB aspects into their overall strategy. This will undoubtedly improve the performance of SMEs.Originality/valueThis study adds to the body of knowledge on GB by emphasizing the benefits that SMEs can get from implementing GB practices, thereby improving their performance in markets such as India.

Encouraging SMEs performance through entrepreneurial intentions, competencies, and leadership: serial mediation model

PurposeThe study aims to investigate the effect of entrepreneurial leadership (EL), competencies (ECs) and intentions (EIs) on enterprise performance (EP) via entrepreneurial resilience (ER) and risk-taking propensity (RTP).Design/methodology/approachData were collected from 403 early-stage small and medium enterprise (SME) owners in Pakistan at two-time intervals and were analyzed using AMOS 22.FindingsAll predictors (i.e. EIs, EL and ECs) positively affected EP and ER, except for EL and ER. Furthermore, RTP and ER were serially mediated in linking EIs and ECs with EP but could not establish a link between EL and EP.Research limitations/implicationsThe findings reveal that the Pakistani government and business owners must focus on SMEs’ sustained development and prioritize ECs.Originality/valueThis paper is unique in nature, as understanding EIs, EL and ECs in a holistic framework has never been tested before in relation to EP.

Model for Forecasting Tax Compliance Behaviors for Small and Medium Enterprises Owners Based on Owning Tax Knowledge

Objective: This article aims to develop a conceptual framework of tax knowledge that can help analyze and discuss how it affects tax compliance and proposes a predictive model to better understand taxpayer behavior and compliance levels by seeking to assess the importance of different types of tax knowledge. Method: This study follows the interpretive paradigm and utilizes a qualitative approach to gain a deeper understanding of individuals' perceptions and attitudes in different contexts. The research data was gathered by reviewing pertinent literature and data from previous studies found in academic databases like Scopus, Taylor and Francis, and Emerald. Keywords such as “taxpayer knowledge or “tax knowledge” and related concepts were used in the search. The systematic literature review concentrated on tax legal, procedural, and general knowledge to formulate a proposed tax literacy framework. Results: The proposed tax knowledge framework consists of three components: taxpayers' knowledge level, awareness, and attitude toward taxes. These three components correspond to three types of knowledge: general tax knowledge, tax law knowledge, and tax procedure knowledge. This framework can be useful in (i) assessing the significance of each type of knowledge, which, when combined with cognitive ability, can signify a taxpayer's intention to follow tax regulations and (ii) explaining taxpayer behavior, which can indicate compliance or non-compliance based on their attitudes towards taxes and different types of knowledge. Moreover, this framework can be utilized as a basis for developing scales that measure tax knowledge and compliance behavior. This can help state agencies create policies that can reduce tax violations and improve compliance overall. Conclusions: According to the analysis, tax knowledge is an important factor in determining the tax compliance behavior of SMEs, but it is not the only factor. The model suggests that there are two key aspects to consider. Firstly, tax compliance is influenced by the level of understanding, awareness, and attitudes. Secondly, positive attitudes are more crucial than tax awareness when it comes to taxpayers' ability to comply with tax regulations, while negative attitudes are more influential than tax knowledge in terms of taxpayers' likelihood to engage in non-compliance.

Factors influencing the financial satisfaction of MSME owners: the mediating role of access to Islamic financing

PurposeThe purpose of this study is to extend the extant literature on the relationship between financial risk tolerance (FRT), awareness of Islamic financial principles (AWIF) and positive financial behaviour (FB) on financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners by principally investigating the mediating effect of access to Islamic financing (AIF) on these relationships.Design/methodology/approachA quantitative survey method of data collection through a self-administered questionnaire. The sample of 384 MSME owners was selected in which 208 questionnaires were retrieved and analysed using the partial least square structural equation modelling (SEM).FindingsThe result shows that the relationships between FRT and AIF as well as FB and AIF are not significant. However, the AWIF–AIF relationship was found to be positively significant. Moreover, only the mediating effect of AIF on the AWIF–FS relationship was established.Practical implicationsThe result implies that AIF could strongly influence the FS of MSME owners, and the AWIF–FS relationship is better explained with sufficient AIF. However, AIF could not mediate the relationships between FRT–FS and FB–FS. Therefore, policymakers and MSME owners should emphasize on AWIF and AIF to enhance FS.Originality/valueThis study pioneers the examination of the mediating influence of AIF on FRT, AWIF, FB and FS of MSME owners in a single framework. Despite the importance of MSME owners on economic sustainability, literature on MSME owners' FS is lacking expressly among developing countries, particularly in Nigeria. This study also revealed new theoretical and practical knowledge by illuminating the mediating effect of AIF on AWIF–FS relationship.