Micro And Small Enterprises Research Articles

The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises

This paper studies the relationships among the use of digital communication technologies, innovation performance and productivity, using an extended version of the Crepon-Duguet-Mairesse (1998) model, for a sample of micro and small enterprises (MSEs) in a middle-income country, South Africa. Based on the results of an original survey carried out in 2019, we investigate these links for a sample of 711 manufacturing MSEs located in Johannesburg. We estimate the relationships sequentially, firstly estimating the relationship between digitalization and innovation, and secondly the relationship between innovation and productivity. Our results show that selected digital communication technologies including the use of social media and of a business mobile phone for surfing the internet have a positive effect on innovation, and that innovation conditional on the use of these technologies has a positive effect on labor productivity. The findings suggest that public programs aimed at fostering inclusive digitalization must consider the types of digital technologies that are most accessible and beneficial to small firms, including those operating informally.

Tax Subsidies and Performance of Micro and Small Enterprises in the Manufacturing Sector in Mombasa County, Kenya

Micro and Small Enterprises (MSEs) segment has been recognized worldwide for its role in wealth generation, employment establishment, and poverty reduction. Nevertheless, there is an increasing inability of Small-Scale enterprises access to government support, which leads to failure to meet expected achievements as the engine for economic growth and development despite government encouragement in this direction. As a result, the aim of this research was to determine theiimpactiofigovernmentiinitiativesionitheiperformanceiofimicro and small businesses in Mombasa County, Kenya. In this study, the specific objectives were to determine how tax subsidies affected the performance of micro and small manufacturers in Mombasa County, Kenya. This study adopted agency theory. Descriptive research design was used in this study. The study primarily focused on micro and small businesses in the manufacturing sector in Mombasa County, Kenya, and since the target population was insufficient to draw a statistical sample, a census was used to establish an appropriate sample size based on the target population. Several open-ended questions and a modified Likert scale questionnaire were used. To refine the instrument, a feasibility study was conducted. Cronbach's alpha was used to assess the quality and reliability of the study. Statistical Package for Social Science (SPSS Version 25) for Windows was used to analyze data. The analyses were carried out with the help of frequency counts, percentages, means, standard deviations, regressions, and correlations, and the results were presented as graphs, charts, and tables. From the findings, the study concludes that the tax reforms and tax behaviours significantly affect tax compliance of the MSEs in Mombasa County. The study recommends that: continuous emphasis on creation of awareness and monitoring of the compliance of the MSEs. Review the tax laws and more enforcement of the MSEs tax laws. Kenya Revenue Authority should carry out more profiling of the MSEs and research more on the MSEs to understand the MSEs. Publicize prosecution non-compliance; provide incentives for compliance and opportunity to voluntarily disclose before the application of penalties. There is need for the government to enhance MSEs’ trust with the tax reforms for voluntary compliance.

An Empirical Study of Post Covid19 Pandemic on Micro and Small Enterprises (MSEs) of Telework

An Empirical Study of Post Covid19 Pandemic on Micro and Small Enterprises (MSEs) of Telework

Analysis of Using Social Media to Increase Income of Micro and Small Business In South Tangerang

In the current digital and new normal era, social media was being an important source of information, for entrepreneur, especially UMK (Micro and Small Business) players in marketing their products by optimizing the use of technology. The lack of income for micro and small business entrepreneur, because the majority of them still market their products in traditional and conventional ways. Knowledge, technological stuttering, internet access and technological devices were separately obstacles for MSE actors, but not a few of them have started using technology in product marketing, especially with the Covid-19 pandemic which has begun to spread in the world and Indonesia, especially those whose impact has been felt since February 2020, which has encouraged business actors to be able to use technology, especially social media to keep their product marketing ongoing. This study aims to analyze the use of social media with the use of applications of GoFood and/or GrabFood to increase income for MSEs in South Tangerang. The research method used in this research was a case study with a qualitative descriptive method, the data source in this study uses primary data from 122 respondents of MSEs (Micro and Small Enterprises) in South Tangerang based on purposive sampling, namely MSEs actors who market their products online. at least the last three months used applications on social media, such as applications of Gofood and/or Grabfood. The results of the study show that 61.5 percent of MSE respondents use application services for food delivery, both Gofood and GrabFood. From the above application users, the most widely used is GrabFood (51.65). There was an increase in income after using social media such as the Gofood and Grabfood delivery applications (82%).

Omni micro-reseller's path-to-purchase and MSEs omnichannel readiness in the Indonesian affordable fashion industry

PurposeThis study aims to present the path-to-purchase of omni micro-resellers in affordable fashion shopping centers and differentiates them from the existing knowledge of end-user’s purchase journey. Furthermore, the study aims to explore the omnichannel readiness for Micro and Small Enterprises (MSEs) merchants to provide a seamless experience for the micro-resellers.Design/methodology/approachThis study adopted an ethnographic approach to gain deep insights into the unexplored omni journey of micro-resellers, using multiple techniques and respondent types in various locations.FindingsFindings reveal that the journey of omni micro-reseller is not the same as the end-user's purchase journey. The new value needed in every path-to-purchase is an essential knowledge that helps MSE merchants in serving micro-resellers. MSE merchants' readiness is assessed by their ability to provide the best customer experience for their buyers, consisting of six omnichannel experience dimensions: researching, purchase-payment, shipping, omnichannel testing, return goods experience and relationship building.Research limitations/implicationsUsing the Engel-Kollat-Blackwell (EKB) decision-making model, this study develops the path-to-purchase of omnichannel micro-resellers. The new readiness dimensions developed in this study are set as a potential measurement tool.Practical implicationsIt provides new insights to benefit MSE merchants and the institutions responsible for enhancing merchant quality.Originality/valueThis study focuses on micro-resellers in the MSEs environment, the prominent buyers of affordable fashion in developing countries, which is a novelty of the study. Moreover, unlike previous studies that have focused on large and medium merchants, this study concentrates on MSE merchants. To the best of the authors’ knowledge, this study is one of the first studies to highlight ways to measure MSE merchants omnichannel readiness.

Management of human resources in results of the system of the mypes of the tourism sector

Micro and small enterprises (MSEs) are the economic agents with the greatest capacity to create employment in Latin America; however, they have low levels of productivity, the main cause of the high level of informality in the tourism sector.The purpose of the research was to determine the influence of human resources management on the results of the Mypes system under a quantitative approach, the type of study was basic with explanatory scope, as a non-experimental design, cross-sectional correlational causal. The information was collected through a survey using a questionnaire of technological profile of the Mypes, the sample consisted of 850 companies in Latin America with a non-probabilistic sampling. The results were obtained with the structural model of the asymptotic free distribution method, where it is concluded that Human Resources Management has a 100% influence on the results of the system. In this sense, human resources management is determined by the dimensions for a better relationship with the results of the system.

Social Capital Analysis in Small and Micro Enterprises (SMEs) Management during the Covid-19 Pandemic

Small and Micro Enterprises (SMEs) in Indonesia play an important role as a vital source of employment, contribute significantly to of the country’s Gross Domestic Product (GDP ) and a crucial source of economic security for the lower middle class. However, during Covid-19 pandemic, SMEs have faced serious challenges that have had adverse impact on business operations. Government policies that were aimed at controlling the spread of Covid-19, that included Large-scale Social Restrictions (PSBB) policy and social distancing rules, have had adverse impact on SME economic activities. This study analyzes social capital in the management of SMEs in Bengkulu city. The research was based on primary data and secondary data sources. Meanwhile, data analysis involved frequency distribution statistics. The empirical results showed that social capital in the management of SMEs as manifested in mutual trust, business networks, and solidarity had positive impact on SMEs management in Bengkulu city.

Microfoundations of global value chain research: Big decisions by small firms

In this study, we introduce a unique longitudinal dataset from the Italian Ministry of Economy and Finance Annual Survey (IMEFAS) to assess how micro and small enterprises (MSEs) partake in the global economy by tapping into global value chains (GVCs). The results of the empirical analysis show that the great majority of micro and small enterprises are unable to establish direct links with GVCs. However, two sub-categories of subcontractors and branded producers were able to accomplish upgrading and partake in GVCs after the 2008 economic crisis. For both groups of firms, strategies implemented in domestic value chains contributed to their future participation in GVCs. By identifying small firms’ value chain decisions associated with their ability to access GVCs directly, this study sheds light on the microfoundations of GVCs. It paves the way for the future intersection of small business economics and GVCs, two areas of research that have seldom talked to each other.

The Determinants of Micro and Small Enterprises Performance: An Empirical Study of Millennial and Centennial Entrepreneurs

The purpose of this study is to determine the factors affecting the enterprise performance of Micro and Small Enterprises (MSEs) among generations Y (millennial) and Z (centennial) entrepreneurs during the Covid-19 pressure under the theory of Resource-Based View. Data were collected by online questionnaires to 227 generation Y and Z respondents and were analyzed using the Partial Least Squares Structural Equation Model (PLS-SEM). The data analysis findings indicate that risk-taking and networking positively affect micro and small enterprise performance positively and positively affect entrepreneurial competencies. Entrepreneurial competencies also significantly positively affect micro and small enterprise performance. While technology usage has no significant effect on micro and small enterprise performance, it substantially affects entrepreneurial competencies. Theoretical and practical contributions are provided.

Income Analysis of Micro and Small Enterprises (MSEs) During the Covid-19 Pandemic: Evidence from Indonesia

Income Analysis of Micro and Small Enterprises (MSEs) During the Covid-19 Pandemic: Evidence from Indonesia

Study on Influencing Factors of Micro and Small Enterprises’ Work Safety Behavior in Chinese High-Risk Industries

Due to the limited work safety resources and the poor awareness of work safety from business owners with absolute decision-making power, safety accidents frequently occur in Chinese micro and small enterprises (MSEs) in high-risk industries. This study identifies the influencing factors of work safety behavior from MSEs, government safety supervision departments, and work safety service agencies. Based on the theory of planned behavior (TPB), the mechanism model of work safety behavior is built from the aspects of behavior attitude, subjective norms, behavior control cognition, past behaviors, and risk awareness of the enterprise. Based on the interview with nearly 600 MSEs in the east of China over 6 months, the results show that the work safety awareness of the business owner determines the work safety lever of the enterprise, and the work safety behavior of MSEs is a passive restraint behavior. Our findings provide a new perspective on the formation of MSEs’ work safety behavior in high-risk industries.

Reshoring by small firms: dual sourcing strategies and local subcontracting in value chains

Abstract This article assesses how the reshoring of manufacturing activities by micro and small enterprises (MSEs) affects the performances of co-located subcontracting networks and the reconfiguration of global value chains (GVCs). We utilize quantitative microdata of Italian MSEs operating in the clothing and footwear industries during the 2008–2015 period. Empirically MSE reshoring does not have a significant impact on domestic subcontractors’ birth rates and survival chances, whereas it is positively associated with their productivity growth. Most MSEs in our sample adopt a dual sourcing strategy, expanding their global production networks while preserving their local supply base. Local and global production networks are not two alternative paradigms of industrial organization; they can be complementary and mutually reinforce each other.

Sustainable Leadership in Microfinance: A Pathway for Sustainable Initiatives in Micro and Small Businesses?

Microfinance is used to enhance micro and small enterprise start-up and growth in developing countries. Although there is some discussion of how microfinance institutional activities lead to their own sustainability in the extant literature, the same cannot be said of the ways in which microfinance institutions shape the sustainability agendas of micro and small enterprises (MSEs). In this paper, we conceptualise and explain the way that joint liability lending in microfinance shapes the sustainability of micro and small enterprises owned by borrowers. Using sustainable leadership as a theoretical foundation, we conceptualise the strategic, operational, and community-level leadership functions associated with joint liability and construct a framework. Based on the conceptual framework, we also develop propositions and explain them using an illustrative case study. Our conceptual work reveals that leadership tasks at strategic, operational, and community levels influence MSEs’ sustainability. Our conceptual framework, propositions, and illustrative case evidence contribute to theory and practice by highlighting that joint liability mechanisms are a possible pathway for MFIs to facilitate sustainable initiatives in micro and small enterprises.

Social media perceptions, readiness and usage in fostering sustainable growth of micro and small enterprises in Uganda

PurposeThe purpose of this study is to investigate the influence of social media, perception, readiness and usage on sustainable growth of micro and small enterprises (MSEs) in Uganda.Design/methodology/approachThis study is cross-sectional and adopted a mixed method approach. Data was gathered through a questionnaire survey of 212 business owner–managers that are members of the Uganda Small Scale Industries Association (USSIA) and engaging 8 business managers in the in-depth interviews to support and strengthen the quantitative results. Data analysis was done using statistical package for social sciences (SPSS.24) and Atlas ti.8.FindingsThe study reveals that social media perception, readiness and usage positively influence sustainable growth of MSEs in Uganda. However, the insufficient soft and technical skills, lack of devices such as computers and smartphones and the high cost of Internet data undermine the usage of social media by business owner–managers for sustainable growth of their businesses.Practical implicationsThe findings demonstrate what policymakers, social media operators and business owner–managers need to do to enhance integration of social media platforms and channels into the operations of MSEs in Uganda.Originality/valueThis study adds to existing literature on social media technology in MSEs with evidence from Uganda. The study results are likely to foster usage of social media as policymakers and social media providers will come up with appropriate strategies to unlock the social media potential of the business owner–managers for sustainable business growth in Uganda.

The mechanism for SMEs growth by applying stochastic dynamical approach

The purpose of this paper is to establish an interpretable framework to describe the growth mechanism of small and micro enterprises (SMEs) under the tech-economic paradigm and develop a new measurement method for growth performance. Based on stochastic resonance theory, as the inherent capital–product switches are applied with capital driving and risk incentive, SMEs’ growth might exhibit an optimal state subject to the implementation of different strategies. Simulation results verify these strategies from management orientation, specialization level, and environmental uncertainty to reveal some nonintuitive phenomena. These findings lead us to create useful decision rules in risk management, growth path optimization or SME loans. Finally we wish the framework established in this paper may provide another new mathematical way to explain Schumpter’s economic development theory based on SMEs growth with innovation.

Financial Literacy, Digital Literacy and Financing Preferences Role to Micro and Small Enterprises’ Performance

Purpose: This research aims to examine financial literacy, digital literacy and financing preferences influences toward micro and small enterprises (MSEs) performance
 Design/methodology/approach: This research used quantitative method and SmartPLS were employed to test the hypotheses
 Findings: financial literacy and digital literacy has significant positive influence to MSEs performance. External financing has negatively significant influence toward performance. Financial literacy is positively significant to internal financing.
 Research limitations/implications: Due to limitations of response rate, this research model for external financing preferences results limited adjusted r-square. We suggest that next research can expand the samples, and variables.
 Practical implications: This research implies that MSEs need literacy supports to get reliable information about market access, analyzing financial performance and budget, government policies which affect their financial condition, from universities and governments as policy-maker. 
 Originality/value: There were limited studies which examining MSEs performance for surviving in crisis period. This research provides data about financial literacy, digital literacy and financing preferences to enhance MSEs performance.
 Paper type: Research paper

The Influence of Micro and Small Enterprises (MSEs) on Poverty Reduction in Indonesia 2015-2019

One approach in poverty reduction is through microfinance, as a flexible financing. The small people's economy which is synonymous with Micro and Small Enterprises (MSEs) is a big influence on economic growth in Indonesia. MSESs contribute greatly to employment in Indonesia by 97% of the total workforce and the largest contributor to GDP at 61.97% or equivalent to8,573.89 trillion rupiah.This study uses secondary data from 34 provinces using the following methods: 2 PLS regression which is a linear regression technique between the predictor variable X which is multivariate and the response variable Y to see the effect of MSEs and GDP on poverty and the effect of Poverty and MSEs on GDP per capita in Indonesia. . The end of this study in order to see the effect on the existence of GDP in Indonesia which is influenced by the number of MSESs on the current level of poverty, using the Granger method to look at 2 directions from the study

Assessment of the Implemented Kapatid Mentor ME Program (KMME) of the Department of Trade and Industry (DTI) in Region VII, Philippines

The Kapatid Mentor ME (KMME) Program is a 10-module mentorship and coaching program initiative of the Department of Trade and Industry (DTI) and Philippine Center for Entrepreneurship (PCE) - Go Negosyo to help the country's Micro and Small Enterprises (MSEs). Since the COVID-19 pandemic started, the program was transitioned from face-to-face to an online learning platform. The study aimed to assess the implementation of the program from the period 2016 to 2021 to streamline the future direction and craft a more holistic initiative for MSEs. The study used a descriptive research design. An online questionnaire was administered to the 257 respondents clustered by Region VII provinces. There were advantages and disadvantages identified for both learning approaches used. The respondents considered the advantages of face-to-face learning as hands-on learning, easy networking, and a conducive learning environment. Also, the advantages of the online learning approach were accessibility of time and place, comfort, and abundant online resources. It was discovered that 74.75% of the mentee graduates had improved their business status after joining the program. To ensure sustainability and scaling up of MSEs, strengthening the monitoring phase and maximizing the enterprise development track tool are recommended to address the gap of the 25.25% non-improving mentee graduates through concrete and specific intervention schemes recommended.

Learning Orientation and Customer Retention Practices in Micro and Small Enterprises: Lessons from Agro-processing Firms in Tanzania

Over years Micro and Small Enterprises (MSEs) have been struggling to build their competitiveness in retaining customers in the highly dynamic business environment in which they operate. Learning has been identified as one of the strategic weapons that influence the the development of appropriate business practices in a turbulent environment. However, there is scanty development of appropriate business practices in a turbulent environment. However, there is scanty literature that relates learning orientation and customer retention practices in agro-processing MSEs specifically in developing economies like Tanzania. This study examines the influence of learning orientation on customer retention practices. The quantitative research approach and cross-sectional research design were adopted. We obtained a total response of 302 questionnaires distributed to owner-managers of micro and small agro-processing enterprises in Arusha, Morogoro and Dar es Salaam regions in Tanzania. Structural Modelling Equation was used in data analysis. The study established that, learning orientation dimensions of learning orientation were positively and significantly influence customer retention practices except shared vision which posted only a positive relationship with competitor analysis and inter-functional coordination practices of agro-processing MSEs. The results provide implications that owner-managers who wish to form appropriate customer retention practices should enhance their learning orientation by putting commitment to learning, opening their doors to new ideas and knowledge and having a shared share vision towards learning. The study recommends that business practitioners and institutions that oversee and support the activities of micro and small business enterprises in Tanzania need to develop a well-built learning environment to accelerate the learning behaviour, competitiveness and sustainability of these firms.

Analysis of the Business Inequalities Stimulated by the Fourth Industrial Revolution Between Corporates and Small and Micro Enterprises in South Africa

Most of the authors have discussed how technology could enhance the effectiveness and efficiency of the production in various businesses. Yet, there is still a gap in literature, and little has been researched about the business inequalities which are fuelled by the Fourth Industrial Revolution (4IR) between Small and Micro Enterprises (SMEs) and corporates. The aim of this paper is to theoretically analyse the business inequalities instigated by the 4IR between corporates and SMEs. The paper argues that the 4IR is advocated by the corporates to increase their production because they are well-resourced and is a disadvantage to the SMEs due to their poor resources. The inadequate analysis of the business inequalities due to the inception of the 4IR provides a vacuum for further conceptual investigation of the phenomenon. The paper used literature-based methodology to analyze the business inequalities brought by the 4IR between corporates and SMEs. This methodology provided an extensive conceptual review of the literature regarding the subject under investigation. This paper reveals that the critical factor of production in corporates appears to be technology which increases production. In that, the 4IR is beneficial to the corporates and a disadvantage to the SMEs. Therefore, the literature indicated that there is an inevitable huge inequality between corporates and SMEs. The paper concludes that there are great business inequalities between corporates and SMEs brought by the 4IR. Thus, the paper recommends the support structures/organizations to assist the SMEs to respond to the growing technology and attempt to close the business inequalities.