Growth Of Micro Enterprises Research Articles

The Impact of Financial Literacy, Inclusion, and Access on Msme Growth and Welfare in North Sumatra: A Mediating Role of Business Growth

This study examines the impact of financial literacy, financial inclusion, and financial access on the growth and welfare of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra, Indonesia, with business growth acting as a mediating factor. Using a quantitative research design and Structural Equation Modeling (SEM) analysis, data were collected from 306 MSME operators selected via purposive sampling. The findings reveal that while financial literacy does not have a significant direct effect on MSME growth and welfare, both financial inclusion and financial access significantly enhance business growth and welfare. Furthermore, business growth serves as a mediating variable, amplifying the positive effects of financial inclusion and access on MSME welfare. The results indicate that MSMEs benefit from better access to formal financial services, such as credit and insurance, which facilitates business expansion and improves the overall welfare of business owners. However, the lack of significant impact from financial literacy suggests that practical financial education initiatives should be paired with improved access to capital and market opportunities. This study highlights the need for integrated policy efforts to enhance financial literacy, expand financial inclusion, and provide easier access to credit to foster MSME growth and welfare in North Sumatra.

An Exploration of Entrepreneurs’ Socio-economic Situation and Its Impact on Micro and Small Businesses in South Andaman

This study aims to investigate the socio-economic conditions of entrepreneurs that influence the growth of micro and small enterprises (MSEs) in the South Andaman District. In this study, a scheduled questionnaire-based survey research design was used, and a sample of 344 small business owners was collected for analysis. The data were processed using SPSS, and chi-squared test was applied for statistical analysis. The study’s findings revealed that factors such as entrepreneurs’ business experience, income levels, the number of working employees and ownership of house property significantly impact the growth of enterprises in the island region. However, factors like business location and sector of enterprises were found to be statistically insignificant in determining MSEs’ growth in the island region. The study suggests that policymakers and local administrations should enhance support for micro, small and medium-sized enterprises in island regions by implementing policies such as island capital investment subsidies and island transport subsidies for MSEs. As a result, small businesses play a pivotal role by contributing to local employment, production and investment opportunities in the island region.

A Trend Analysis of Growth and Development of Micro, Small and Medium Enterprises (MSMEs) in India

The Micro, Small and Medium Enterprises (MSMEs) review the policies and programmes and make suitable recommendations regarding the promotion and development of products and services to meet the demands of the domestic as well as global marketing. The ministry of MSMEs sector organizes and implements various schemes focusing on financial assistance, technological assistance as well as upgradation, infrastructure development, skill development and training, enhancing market assistance of MSMEs. An overview of the MSMEs Sector, the organizational structure of the Ministry of MSMEs., role of the office of Development commissioner, setting up of National Board for MSMEs as well as recent developments in MSMEs – are depicted in this article.

Role of Microfinance Institutions in Growth of Micro and Small Enterprises in Kebridehar City, Ethiopia: A Case of Rays Microfinance Institution

This study investigated the influence of microfinance institutions (MFIs) on the development of micro and small enterprises (MSEs) in Kebridehar City Administration. The objective was to assess the role of MFIs in the growth of MSEs, specifically focusing on aspects such as loan provision, financial skills training, role modelling and savings mobilisation. The researchers collected data from 170 MSEs that utilised the services of MFIs, using both secondary and primary sources. Descriptive and inferential statistics were employed to analyse the data, revealing that loans, financial skills training, savings mobilisation and role modelling all had a significant impact on the growth of MSEs in the city. This study enhances our understanding of how these factors contribute to the development of MSEs.

Analysis of the Influence of Social Capital, Innovation, and Market Orientation on the Growth of Micro and Small Enterprises in the Special Region of Jakarta

This study examines the effects of social capital, innovation, and market orientation on the growth of Micro and Small Enterprises (MSEs) in the Special Capital Region of Jakarta. Using a quantitative research approach, data were collected from 160 MSEs through a structured questionnaire, and the relationships between the variables were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results reveal that all three factors—social capital, innovation, and market orientation—significantly contribute to the growth of MSEs. Innovation was identified as the most critical factor, followed by social capital and market orientation. The findings highlight the importance of fostering innovation, adopting market-oriented strategies, and leveraging social networks for the sustainable growth of MSEs. This study provides valuable insights for entrepreneurs and policymakers on how to support the development of MSEs in competitive urban environments.

Pengaruh Inovasi Produk, Literasi Keuangan, dan Akses Pembiayaan terhadap Pertumbuhan UMKM di Indonesia

This study investigates the impact of product innovation, financial literacy, and access to financing on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach was employed, involving 180 MSME owners and managers. Data were collected through a structured questionnaire using a 5-point Likert scale, and the analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results show that all three factors—product innovation, financial literacy, and access to financing—positively and significantly influence MSME growth, with product innovation having the strongest effect. These findings highlight the importance of fostering innovation, enhancing financial literacy, and improving access to financing as key strategies for promoting MSME growth. The study offers valuable insights for policymakers and business practitioners to support MSMEs' sustainability and competitiveness in emerging markets like Indonesia.

The Islamic Financing on Macroeconomic Stability in Indonesia

The objective of this study is to examine the function of Islamic finance in fostering macroeconomic stability in Indonesia. Specifically, it will scrutinize the stability of Islamic banks, its effects on micro, small, and medium enterprises (MSMEs), and its impact on economic growth and inflation. Employing a qualitative research approach, data were gathered by means of document analysis, encompassing books, scholarly publications, and institutional reports. The results demonstrate that Islamic banks, which employ profit-sharing and asset-backed financing structures, have higher levels of stability in comparison to conventional banks, therefore mitigating the likelihood of financial catastrophes. Islamic finance has profoundly facilitated the expansion of MSMEs by offering cost-effective, interest-free lending, therefore augmenting their productivity and economic contributions. Furthermore, Islamic finance promotes consistent economic expansion by prioritizing investments in tangible assets in industry areas such as agriculture and manufacturing. Although it suppresses speculative activity, its effect on inflation is inconclusive, as further growth of micro, small, and medium enterprises (MSMEs) may have upward influence on pricing. In conclusion, the study highlights that Islamic finance contributes to Indonesia's macroeconomic stability by strengthening Islamic banks, promoting MSME development, and fostering balanced economic growth. The data shows a consistent rise in the contribution of MSMEs to Indonesia's GDP from 57.08% in 2017 to 61.90% in 2022, underscoring their increasing significance in the national economy. This upward trend highlights the growing role of MSMEs in economic development.

Factors Affecting the Growth of Micro and Small Enterprises: The Case of Daro Lebu and Hawi Gudina Districts of West Hararghe Zone, Oromia, Ethiopia

The purpose of this study was to identify factors affecting the growth of micro and small enterprises operating in Daro Lebu and Hawi Gudina districts of west hararghe zone, oromia region, Ethiopia. The study adopted both Quantitative and Qualitative research designed with arrangement of primary data collection via a cross-sectional survey. Survey Data collected through structured questionnaires from a sample of 197 MSEs selected using stratified sample techniques. The result of regression analysis revealed that access to credit, government support, Education, gender and enterprises’ age were positively significant effects on MSEs' growth. But, Initial capital and infrastructure were negatively associated with capital growth rate of MSEs. However, Recordkeeping, access to technology, access to market and labor found to be insignificant variable in determining enterprises’ growth. More evidence desired on factors affecting the growth of micro and small enterprises before any generalization of the results can be prepared. In addition, the empirical tests conducted only on 197 sampled enterprises employee in Daro Lebu and Hawi Gudina Districts since 2024. Therefore, the results cannot be taken as uniform to generalize for MSEs in the country. The study might help the entrepreneurs, donated to the body of knowledge on the factors affecting the growth of micro and small enterprises to take some corrective action for both planners and policy implementation in government organizations toward developing their performance and in turn contribute to employment creation, poverty alleviation, and economic development. This paper adds to the literature on factors affecting the growth of micro and small enterprises. In particular, it tests the influence of access to credit, government support, Education, gender, enterprises’ age, Initial capital and access to infrastructure on growth of enterprises. The result forward key policy implications to take a corrective action that alleviates the existing challenges of the sector and calls for further MSEs bearing evaluation research.

Factors Affecting Growth and Sustainability of Micro and Small Enterprises, in Kawakoto Town, Silte Zone, Snnpr, Ethiopia

Factors Affecting Growth and Sustainability of Micro and Small Enterprises, in Kawakoto Town, Silte Zone, Snnpr, Ethiopia

Optimization of business processes: commercialization of ideas, taxation, business ethics

Introduction. This paper explores the critical role of entrepreneurship in Ukraine's economy, particularly under the strain of ongoing military conflicts and the vulnerability of micro and small enterprises. The purpose of the paper is to thoroughly investigate the current challenges facing micro and small businesses in Ukraine, with a specific focus on optimizing entrepreneurial processes to withstand economic instability. The study seeks to develop a comprehensive framework that incorporates effective business strategies, ethical communication practices, and a streamlined taxation system to enhance the operational efficiency and profitability of these enterprises. By addressing these key aspects, the paper intends to contribute valuable insights into the stabilization and growth of businesses during times of crisis. Results. The research highlights several innovative findings crucial for the sustainability and competitiveness of micro and small businesses in Ukraine. First, the study identifies the necessity of continuous process optimization, including the elimination of inefficiencies and the enhancement of team collaboration. It emphasizes the importance of strategic business communications tailored to the needs and expectations of specific target audiences, ensuring clarity and engagement. The paper also explores the integration of ethical practices in business operations, advocating for transparency and honesty in dealings with clients and regulatory bodies. Furthermore, the analysis underlines the significant impact of a reformed taxation framework that supports business growth while ensuring compliance with legal standards. These findings underscore the interconnectedness of these factors and their collective impact on business resilience and market positioning. Conclusion. The study concludes that a multifaceted approach encompassing process optimization, ethical business practices, and strategic tax planning is essential for the survival and growth of micro and small enterprises in Ukraine's challenging economic landscape.

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

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

Identifying obstacles to evaluating business intelligence in Micro-Small Apparel Enterprises: a case study in Durban, South Africa

The escalating financial burdens faced by the Small Medium and Micro Enterprise (SMME) sector necessitate a perpetual pursuit of enhanced managerial efficacy. For enhanced financial management, client relationship management and inventory control, it is necessary for businesses to utilise various technologies and methodologies. One approach involves the utilisation of business analytical technologies, such as Business Intelligence (BI). Business Intelligence (BI) serves as a valuable tool for enterprises, aiding in the examination and interpretation of data to facilitate informed decision-making processes aimed at enhancing overall business efficacy. The eThekwini region encompasses a significant presence of micro-small enterprises within the apparel manufacturing and retail sector. The primary aim of this research was to identify and analyse the many issues that hinder the evaluation of business intelligence (BI) in micro-small apparel enterprises located in Durban, a city in Kwa-Zulu Natal, South Africa. A cross-sectional quantitative study was undertaken to examine a cohort of 161 small apparel business owners. The participants were chosen through the utilisation of a judgemental sampling technique. The data was gathered through the utilisation of anonymous questionnaires. The data was analysed by utilising multiple linear regression analysis to determine the characteristics that hinder the evaluation of business intelligence (BI) in the small apparel industry. The study employs the Technology-Organisation-Environment (TOE) framework as its conceptual framework. The researcher identified several obstacles that hinder the evaluation of business intelligence in micro-small textile enterprises in South Africa. These factors include perceived relative advantage, cost, organisational data environment, organizational decision-making culture, and external support. However, there are numerous governmental institutions that are intended to provide support for micro-small companies. Therefore, it is recommended that these institutions establish training initiatives aimed at educating apparel SMMEs on BI. The implementation of target-driven training has the potential to significantly contribute to the achievement of vision 2030 for fostering the growth of small, medium, and micro enterprises (SMMEs) to enhance the South African economy.

Maintaining Sustainable Growth of Micro and Small Enterprises: Antecedents of Management Orientation and Digital Business

Maintaining Sustainable Growth of Micro and Small Enterprises: Antecedents of Management Orientation and Digital Business

The Influence of Sharia Economic Law on the Growth of Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era

The Influence of Sharia Economic Law on the Growth of Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era

Organizational Technology Policies and the Growth of Micro and Small Enterprises in Nairobi City County, Kenya

This study sought to establish the influence of establish the influence of organizational technology policies on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on organizational technology policies and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Resource Based theory. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that organizational technology policies and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically, MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommends that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effectively utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platform that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

Peranan Nomor Induk Berusaha (NIB) Sebagai Legalitas Usaha Bagi Pertumbuhan Bisnis UMKM Tape Semen Bu Suwarti

A country's economic growth can increase because of the important role of Micro, Small and Medium Enterprises (MSMEs). Micro, Small and Medium Enterprises (MSMEs) are productive economic enterprises that were born as one of human activities to fulfill their daily needs. This research discusses the role of the Business Identification Number (NIB) in the context of business legality to support the business growth of Micro, Small and Medium Enterprises (MSMEs). The focus of this activity is the UMKM Semen Tape Bu Suwarti, a tape producer in Semen Hamlet, Musir Kidul Village. This MSME assistance work program is carried out using several methods including surveys, observations, interviews and discussions, as well as mentoring. The stages in this activity begin with socialization regarding the importance of NIB ownership for business legality and assistance in making NIB. The existence of NIB can help to increase transparency in the business world by making it easier for the government to monitor and enforce laws related to business licensing and regulations. In this way, NIB not only simplifies the business process, but is also an important step in supporting the growth of MSMEs as a sector of the Indonesian economy.

The Effect of Financial Support, Creativity, and Regulatory Environment on the Growth of MSMEs in Depok and Bogor Cities, West Java

This study looks at the financial assistance, innovation, and regulatory environment as key determinants of the growth of Micro, Small, and Medium-Sized Enterprises (MSMEs) in the West Javan cities of Depok and Bogor. A structured questionnaire survey was used to gather data from MSME owners and operators using a quantitative research approach. The data was analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The findings show a strong correlation between financial assistance, innovation, the business climate, and MSME expansion. Increased MSME growth is linked to better financial support, innovative ideas, and a supportive regulatory framework. These results highlight the significance of addressing a variety of issues in order to promote the expansion of MSMEs and offer insightful information to stakeholders, policymakers, and company owners who wish to assist in the growth of the MSME sector in the area.

Users' Technology Capabilities and the Growth of Micro and Small Enterprises in Nairobi City County, Kenya

This study sought to establish the influence of establish the influence of user's capabilities on the Growth of Micro and Small Enterprises in Nairobi, Kenya and; To determine the moderating effect of Entrepreneurial Orientation on user's capabilities and the Growth of Micro and Small Enterprises in Nairobi, Kenya. The study was grounded on the Technology Acceptance Model (TAM. The study adopted a descriptive research design since the design enabled the researcher to generalize the findings to a larger population of MSEs. In addition, this design enabled the researcher describe the characteristics of the population being studied as they exist at present hence minimizing biasness and maximizing the reliability of the evidence collected. This study was guided by positivism philosophy. The target population for this study comprised of all the 1835 Owners or managers of the MSEs registered with Nairobi City County and have operated for more than five years. Stratified and Simple Random sampling techniques was used to select a total of 184 respondents for the study. The study found out that user's capabilities and organizational technology policies were the key variable that significantly influencing the Growth of Micro and Small Enterprises in Nairobi County, Kenya. Specifically MSEs Staff were largely found to be un-trained especially on Emerging Technologies and lacked motivation to adopt and use technologies. In addition, study found out that there was low adoption on use of social media platform for business operation. The study recommend that the Management of MSEs needs to make deliberate efforts and invest on training especially on Emerging Technologies such as e-commerce, communication, e-production, e-procurement among others. This will ensure that the MSEs staffs are well equipped with the necessary skills and knowledge needed to effective utilize the emerging technologies in the market. Further, the management of the MSEs needs to be motivated to adopt and use technologies and innovation. Motivation many be inform of incentives and rewards that motivates users to adopt and use technology in their operations. The is also need to invest in a strong and robust social media platforms that are easy to use for most users. Social media networks can be harnessed to boast in product and services marketing and sourcing of market information among other.

Empowering Local Businesses: Evaluating Strategies and Proposing Solutions for Sustainable Growth of Micro, Small, and Medium Enterprises (MSMEs) in Cibeuruem Village

MSMEs are an important sector to advance the economy in Indonesia, MSMEs in Cibeureum Village have great potential to be developed, totaling around 173 MSMEs, many development efforts have been made. However, these efforts have not made much positive contribution. The purpose of this article is to analyze what is happening with the efforts that have been made and provide alternative solutions in answering the problem. existing. Using a qualitative approach, data collection using secondary and primary data. Data collection techniques using interviews, observation and documentation. Then to analyze the data that has been obtained using an interactive model, namely data collection, data reduction, data presentation and conclusion drawing. The results of this study state that efforts to develop MSMEs through training are not in accordance with training procedures, have not applied the principles of empowerment and lack of collaboration with all elements of the pentahelix. As for bridging all elements of the pentahelix, it is necessary to have an assistance team called Sahabat UMKM as an alternative solution to be able to carry out and succeed development efforts in the future. So that this research can be used to improve MSME development programs and can be a consideration for all parties who will carry out programs according to procedures. In the future, it is expected to further adjust Sahabat UMKM by optimizing the available human resources so that the application of the pentahelix elements is better.

Enhancing Sales through Marketing Strategy and Customer Satisfaction in Culinary MSMEs

This quantitative study investigates the impact of marketing strategy and consumer satisfaction on sales growth in Micro, Small, and Medium Enterprises (MSMEs) within the culinary sector of Krembung District, Sidoarjo Regency. Data collected from 100 MSME owners via questionnaire surveys using Google Forms reveals significant positive effects of both marketing strategy (Tcount = 3.568, p = 0.001) and consumer satisfaction (Tcount = 2.325, p = 0.022) on increasing sales. The findings highlight the critical role of strategic marketing planning and customer satisfaction in enhancing business performance and competitiveness, underscoring the need for MSMEs to prioritize these factors to achieve sustainable growth and profitability in competitive markets. Highlight: Quantitative study on marketing impact in culinary MSMEs. Significant influence of customer satisfaction on sales growth. Practical implications for enhancing business strategies in MSMEs. Keywords: Sales enhancement, marketing strategy, customer satisfaction, MSMEs, culinary sector