Performance Of Medium Enterprises Research Articles

Effect of the Management Accounting on the Financial Performance of Small and Medium Enterprises in Rwanda: A Case of Small and Medium Entreprises in Gasabo District

Management accounting provides an excellent opportunity for companies to compete in the market by offering superior products and services at reasonable prices to customers. The general objective of this study was to study the effects of management accounting practices on the Financial Performance of Small and Medium Enterprises in Gasabo district, Rwanda. This study adopted a correlation study design. The target population for this study was the 171 small and medium enterprises in Gasabo district Stratified random sampling method was applied to come up with the sample size, since the population in different Small and Medium Enterprises was considered heterogeneous, implying that a simple random sample is unrepresentative. The study therefore involved 171 Small and Medium Enterprises in Gasabo district. The study collected primary data from the respondents. The data collected was both quantitative and qualitative. Qualitative data is descriptive and non-numerical, while quantitative data is numerical. The study found that Budgeting was the most widely used management accounting practices, including budgeting for planning, activity-based budgeting, flexible analysis, zero-based budgeting, and budgeting for controlling costs. costing systems were the second most widely used management accounting practice, including separation of variable, incremental, and fixed costs; plant-wide overhead rate; activity-based costing; target costing; and cost of quality. Information for decision making was also used by respondents, including stock control models, customer satisfaction analysis reports, product profitability analysis reports, risk analysis reports, and investment analysis reports. Strategic analysis was also highly used by respondents. The study further concludes that the most important elements of management accounting practices amongst the Small and Medium Enterprises in Gasabo district are; the management accounting function identifies key factors that influence Financial Performance and management accounting practices have increased return on equity (ROE), which is a measure of how profitable a company is for its shareholders. This is because management accounting practices help companies to identify and improve risky areas, which can lead to increased profits. This study recommends the creation and enhancement of awareness among firms of the importance of Information for decision making practices as this is the most highly used management accounting practice amongst the Small and Medium Enterprises in Gasabo district. Keywords: Management Accounting Practices, Costing Systems, Budgeting, Information for Decision Making, Strategic Analysis, Financial Performance, Small And Medium Enterprises

The effects of electricity load-shedding on the performance of small and medium enterprises in Pretoria, South Africa: A case study of Marabastad Business Community

South Africa has been experiencing electricity load shedding for over sixteen years and this has affected the performance of small and medium enterprises (SMEs) across the country, with devastating effects recorded in the post-Covid-19 era. SMEs are key drivers of the economy and their performance has a great influence on it, as they contribute 36% of gross domestic product (GDP). This case study of the problem used the qualitative research method, with data collected through interviews. This study established that, in the area studied, there is a decline in the performance of the entrepreneurs and working hours have been drastically reduced due to load-shedding. Proposals are made of measures that the SME implementers and the government of South Africa can take in order to prevent the situation from further deteriorating.

Islamic finance principles and performance of micro, small and medium enterprises (MSMEs) in Makindye Division Kampala District Central Uganda

Purpose Micro, small and medium-sized enterprises (MSMEs) are vital for economic growth in developing countries. Yet, little research has explored the link between Islamic principles and MSME performance, especially in Uganda. This study aims to investigate the relationship between Islamic financial principles and MSMEs’ performance in Makindye Division Kampala – Uganda. Design/methodology/approach This study used a correlational research design involving 86 respondents from 30 MSMEs between January and May 2023. Data collected through questionnaires was analyzed with Statistical Package for Social Sciences, examining three independent variables: ethicality, Halal investment and prohibition of riba, in relation to MSME performance. Findings The results revealed significant relationships between these variables and MSME performance. Prohibition of riba (r = 0.296, n = 86, p = 0.006), Halal investments (r = 0.308, n = 86, p = 0.004) and ethical principles (r = 0.283, n = 86, p = 0.008) all exhibited a statistically significant relationship. Regression analysis with R = 0.405, R2 = 0.164 and adjusted R2 = 0.134 indicated that all hypothesized variables were significant predictors of MSME performance. Based on findings, this study rejected the null hypothesis, confirming a moderately positive and significant relationship between Islamic financial principles and MSME performance. Originality/value This study underscores the importance of active involvement from key stakeholders such as the Uganda Halal Bureau, Uganda Muslim Supreme Council, Islamic financial institutions and government agencies in integrating robust support mechanisms for MSMEs into their strategic frameworks. Such efforts could enhance Uganda’s economic landscape, aligning with the experiences of Malaysia and Indonesia in leveraging Islamic principles for economic growth.

Enhancing Work Capability, Leadership Style, and Work Motivation for Improved Internationalization Performance of SMEs: A Case Study in the Micro Sector of Worm and Laboratory Animal Production in Indonesia

This study investigates the influence of work capability, leadership style, and work motivation on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the context of internationalization. The method of analysis used is path analysis to test the relationships between variables. The research sample of 135 respondents was chosen to consist of employees working in the industry of breeding worms, rats, and animals for medical purposes in Indonesia. Data were collected through questionnaires distributed to respondents. The results of path analysis indicate a significant positive influence of work capability, leadership style, and work motivation on the performance of MSMEs in the context of internationalization. The implications of these findings underscore the importance of developing work capability, implementing effective leadership styles, and enhancing work motivation to improve the performance of MSMEs in facing the challenges of internationalization.

Analysis of the Influence of Entrepreneurial Orientation on Internasional Business Networking and Competitive Advantage, and Its Impact on the Marketing Performance of SMEs (A Study on SMEs in Kampung Embong Arab, Malang City)

This study aims to analyze the influence of entrepreneurial orientation on business networking and Competitive Advantage and its impact on the export-import performance of Micro, Small, and Medium Enterprises (MSMEs) in the Arab Embong Village, Malang City. A survey method was employed to collect data from MSMEs operating in the village. Hypothesis testing was conducted using multiple regression analysis. The results show that entrepreneurial orientation has a significant influence on the formation of business networks. Furthermore, it was found that business networking has a positive and significant impact on the export-import performance of MSMEs. The implications of these findings underscore the importance of developing entrepreneurial orientation and fostering business networking for MSMEs to enhance their export-import performance. Therefore, it is recommended that the government and relevant institutions provide support and guidance to MSMEs in developing entrepreneurial skills and expanding their business networks.

EFFECT OF PRODUCT MARKET MATRIX ON THE PERFORMANCE OF MEDIUM ENTERPRISES IN NORTH CENTRAL, NIGERIA

This research work examined the effect of product market matrix on the performance of medium enterprises in North Central, Nigeria. The researcher used primary data source from a sample of three hundred and eighty four (384) respondents obtained by the use of a structured questionnaire. The data collected was analyzed using descriptive statistics such as frequency, simple percentage and the relationship between the variables of the model were tested using multiple linear regression analysis. The hypotheses of the study were tested using the probability value of the regression estimates. The result of the regression analysis indicates that Market penetration strategy's regression coefficient is 0.401 and significant (p0.05). Product development strategy is -0.059 and negligible (p0.05). A one-unit increase in product development decreases medium firm performance by 0.059 units. A one-unit increase in market development strategy increases medium firm performance by 0.196 units (p0.05). Product diversification approach has a strong coefficient of 0.319. This means a one-unit improvement in product diversification strategy increases medium firm performance by 0.319 units. It was concluded that businesses must consider the region's market conditions, competitive hurdles, and client behaviors to flourish. It was recommended among others that Market Penetration and Product Diversification Strategies are advised for medium enterprises in North Central Nigeria due to their benefits. Expanding market share and targeting existing clients can increase performance. Diversifying products to fulfill client needs can enhance revenue and performance. Firms should use both methods to optimize profits.

Factors Influencing the Use of Account Information Systems and its Impact on Small and Medium Enterprises Performance: Systematic Literature Review

The viability of Small and Medium Enterprises is heavily reliant on effectively managed firm finance management. Utilizing technology and information through an Accounting Information System is beneficial for businesses as it aids in the management of financial transactions, financial reporting, and financial decision-making. This article employs the Systematic Literature Review research methodology, utilizing several papers indexed by Scopus from 2015 to 2024. Researchers investigate the characteristics that facilitate the adoption of Accounting Information Systems in Small and Medium Enterprises (SMEs) and their influence on corporate performance to ensure the long-term viability of SMEs in the face of business challenges and advancements. An Accounting Information System is crucial for assessing the progress of SME businesses and obtaining assistance from internal and external stakeholders. This is particularly important given the significant influence that Small and Medium Enterprises have on the national economy

Marketing Innovation and the Performance of Small and Medium Enterprises in Oyo Township, Nigeria

The performance of SMEs has continued to generate immense research attention among scholars and researchers in the extant literature. Many factors have been investigated in SME performance but there remain some literature gaps. Based on this premise, the present study examined the direct influence of marketing innovation on SME performance and also investigated the mediating role of research & development in the relationship between marketing innovation and SME performance. The study adopted a survey research design and data. A structured questionnaire was used to collect data from 175 small-medium enterprises in Oyo township using a convenient sampling technique. Two hypotheses were tested with the IBM-SPSS version 25. The study found that there is a positive relationship between perceived product innovation and perceived performance. The study found that perceived collaboration innovation exhibited a positive relationship with perceived performance. The study found that perceived distribution channel innovation also showed a positive association with perceived performance. The study found that there was a joint influence of (product innovation, digital marketing technologies, collaboration innovation, and distribution channel innovation) on perceived performance. The study found that research & development mediated the relationship between perceived workload and life satisfaction. The study concluded that marketing innovation influences SMEs' performance and research & development also mediated the link between marketing innovation and SMEs performance.

Cashflow Management Practices and Financial Performance of Small and Medium Business Enterprises in Kenya

This comprehensive review examines cash management and its impact on the financial performance of Small and Medium Enterprises (SMEs). The review covers theories, practices, and empirical evidence, providing insights into financial management strategies. Theoretical perspectives include the Dynamic Trade-Off Theory and the Free Cash Flow Theory, which shed light on the implications for SMEs' financial management strategies. Empirical evidence underscores the importance of cash accountability, internal controls, cash policy, cash budgeting, and financial performance metrics like profitability, liquidity, and solvency. Effective cash management is crucial for SMEs as it enables growth, optimizes investments, enhances profitability, and ensures financial stability. This synthesis offers valuable insights for policymakers, practitioners, and academics seeking to understand and enhance SMEs' financial performance through sound cash management practices.

The Role of Operational Performance as a Mediator in the Influence of Supply Chain Management Practices on the Financial Performance of MSMEs

<p><em>Financial performance is a tool for measuring the success of a business. Managers can make appropriate decisions by reviewing the results of the company's financial performance. One of the aspects believed to influence the financial performance of a company is operational performance. Of course, this must be done through supply chain management practices in order to achieve good financial performance of the company. This research aims to determine the mediating role of company operational performance in the influence of supply chain management (SCM) practices on company financial performance. A quantitative approach was carried out by distributing questionnaires to 100 business leaders. Primary data consists of the results of filling out a questionnaire by the business owner. The data collection technique uses a survey method by distributing questionnaires to respondents, namely business owners. The MSMEs in question are 100 MSMEs located in Yogyakarta. Validity and reliability tests are carried out before implementing research analysis techniques. In this research, we examine the effect of SCM practices on financial performance through the operational performance of micro, small and medium enterprises in Bantul Regency, Yogyakarta Special Region (UMKM). The analysis technique uses structural equation modeling-partial least squares (SEM-PLS) with the WrapPLS application. The researchers estimated the results of direct effects and indirect effects. The research results prove that operational performance as a mediator in SCM practices influences the financial performance of the company. Apart from this, it is also proven that supply chain management has influence on operational performance, operational performance has influence on financial performance and supply chain management also has a direct influence on financial performance.</em></p>

The Impact of Performance Appraisal and Training and Development on The Financial Performance of Small and Medium-Sized Enterprises (SMEs)

This study aims to measure the influence of human resource management (HRM) practices on the financial performance of small and medium enterprises (SMEs). It notably focuses on analyzing the effects of training and development programs and performance appraisal methodologies. In order to carry out this study, a quantitative methodology was employed, which entailed the use of self-administered questionnaires. A linear regression analysis was conducted on data obtained from 130 small and medium-sized enterprises (SMEs) to examine, assess, and improve the relationship between performance appraisal, training and development, and the financial performance of SMEs. The results indicate a clear and direct association between training and development, performance appraisal systems, and the financial success of small and medium-sized enterprises (SMEs). The findings highlight the critical importance of HRM practices as strategic investments rather than just administrative tasks. These findings provide useful insights for scholars and practitioners, offering a framework for implementing training and development and performance evaluation procedures to achieve financial success in small and medium-sized enterprises (SMEs), not just in Kosovo but also in similar global contexts.

Interlinking networking capabilities, knowledge worker productivity, and digital innovation: a critical nexus for sustainable performance in small and medium enterprises

Interlinking networking capabilities, knowledge worker productivity, and digital innovation: a critical nexus for sustainable performance in small and medium enterprises

Risk management practices and financial performance nexus: Evidence from MSMEs in Osun State, Nigeria

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (? = 0.388, p ?0.01) and Control activities (? = 1.096, p ?0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

The new Naira notes redesign as drivers of the performance of small and medium scale enterprises in Nigeria

The new Naira notes redesign as drivers of the performance of small and medium scale enterprises in Nigeria

A conceptual study on investigating the effect of innovation, transformational leadership and work stressor on employee performance of SMEs in Pakistan

The understanding of elements contributing to employee performance of small and medium enterprises (SMEs) in Pakistan is still deficient. As the SMEs of Pakistan have had difficulty surviving in their early years, their initial failure rate is 90% -95%. Initially, this is a concept paper to provide useful insights into the relationship between organizational innovation, transformational leadership, and work stressor on employee performance of small and medium enterprises (SMEs) in Pakistan's manufacturing sector. The relationship between organizational innovation, transformational leadership, and work stressor and their effect on overall employee performance is established through a review of the literature. The mediating role of creativity was also an attempt to explore. In order to reach the optimum level of employee performance to increase the outcome of SMEs in Pakistan, it is mandatory to provide an open and supportive environment to employees so they can cultivate their creative ideas. This study mainly focused on the factors that directly influence employee creativity to ensure progress in employee performance. This study emerged from the fact that a very limited study is being carried out on this issue, and further research should be carried out in this field, especially in Pakistan. A model is proposed, and hypotheses will be developing and discussed based on theoretical considerations. The findings of this study can contribute to business practice by informing employee performance, improvement strategies. Business leaders could gain additional insights into strategies to engage and motivate employees to improve performance.

Pengaruh E-commerce, Pengetahuan Akuntansi dan Sistem Informasi Akuntansi Terhadap Kinerja UMKM

MSMEs are of paramount importance in the economic landscape of a nation. The performance of Micro, Small, and Medium Enterprises (MSMEs) pertains to the extent to which these firms successfully accomplish their economic and business goals. The objective of this study is to determine and examine the impact of e-commerce, accounting expertise, and accounting information systems on the performance of MSMEs. The study used a quantitative research methodology, with a sample size of 135 participants selected using the Slovin formula. The technique of purposive sampling is employed for participant selection. Data collection entails the dissemination of questionnaires employing Likert scales, followed by analysis using SPSS Version 26. Based on the results, it can be concluded that the performance of MSMEs is significantly influenced by the e-commerce factor, as supported by a T-test significance value of 0.004, which falls below the predetermined threshold of 0.05. However, the significance value of 0.548 from the T-test indicates that the variable of accounting expertise does not significantly affect the performance of MSMEs. This value exceeds the predetermined threshold of 0.05. In addition, the significance value of 0.000 for the T-test on accounting information systems means that this variable has a substantial effect on the performance of MSMEs; this value is less than the critical value of 0.05. Hence, it can be deduced that the performance of micro, small, and medium enterprises (MSMEs) is significantly impacted by the variables of e-commerce and accounting information systems. Nonetheless, there is no discernible effect of accounting expertise on the performance of MSMEs.

The Influence of Supply Chain Integration, Agility, and Innovation on Company Performance

This research aims to determine and investigate the role of supply chain integration, agility, and innovation in the performance of Micro, Small, and Medium Enterprises (MSMEs) operating in the food and beverage sector. By optimizing these factors, companies can enhance the value and profitability generated across the supply chain, encompassing value addition from suppliers to manufacturers, manufacturers to distributors, and ultimately to consumers. This value is created from the service value and price of a finished product, with the total costs borne by the entire supply chain system. The study focuses on MSMEs in the Yogyakarta region, employing random sampling techniques to gather data from various stakeholders, including owners, managers, and operational staff. Questionnaire-based data collection is followed by Structural Equation Model (SEM) analysis using AMOS software. The results of this research indicate that integration, agility, and innovation have a positive effect on company performance, both in terms of financial performance and operational performance. This study contributes to the supply chain literature, specifically in the food and beverage industry, by expanding the understanding of supply chain dynamics. To enhance supply chain integration, managers can implement broader strategies and utilize information technology for better collaboration. To improve supply chain agility, the focus should be on developing flexibility and partnering with agile businesses. Supply chain innovation can be promoted through investments in technology and prioritizing innovation in products, processes, and business models.

Determinants of Micro, Small and Medium Enterprises (SMEs) Performance

This study aims to analyze the influence of capital, human resources and technology on the performance of micro, small and medium enterprises (SMEs) in Gorontalo City. The analysis method uses multiple linear regression with a crossection approach. The data used in this study was primary data sourced from 30 respondents. The results of this study show that: 1) capital has a negative insignificant effect on the performance of SMEs; 2) human resources have a positive insignificant effect on MSME performance and 3) technology has a significant positive effect on SMEs performance. This study provides practical implications for the government as a policy maker in an effort to improve the performance and empowerment of SMEs, especially in Gorontalo City.

A design framework for Food Small Medium Enterprises resilience and performance in Indonesia

For small and medium-sized businesses (SMEs) in Indonesia, the post-pandemic economic challenges are particularly severe, even with the numerous government initiatives that have been put into place over the last two years. Most SMEs, including food SMEs, are finding it difficult to overcome the health crisis and the uncertainty of impending economic difficulties. While food SME players must concentrate on their business performance—both financial and non-financial, such as environmental performance—in order to survive and endure in the competitive landscape. The aim of this paper is to identify resilience factors and performance measurement for food SMEs in Indonesia that are facing economic challenges. Using a literature review, this paper recommends a framework that integrates food SME resilience factors with business market challenges identified in Indonesia as drivers of food SMEs performance. Additionally, this paper offers researchers and policy makers a framework for creating plans that will increase the performance and resilience of food SMEs. This research implies that in order to improve food SMEs performance, actors must work together and in concert.

Effect of Bootstrapping dimensions moderated by Cost of Doing Business on Performance of Small and Medium Scale Enterprises (SMEs) in South-West, Nigeria

The role Small and Medium Scale Enterprises (SMEs) can never be overemphasised in the has economic drivers in either developed and developing countries of the world. However, contract to immense contribution of SMEs to nation economic growth, most SMEs in Nigeria struggle to survive beyond five years due to poor performance. The major challenge SMEs in Nigeria include developing creative ways of acquiring resources in non-traditional ways cum cost of doing business which to greater extent affect SMEs performance. Thus, this study investigated the effect of Bootstrapping dimension moderated by cost of doing business on the performance of Small and Medium Enterprises in South-West, Nigeria. The study adopted survey research design and the population of the study comprised 14, 527 owner/managers of small and medium scale enterprises (SMEs) enterprises in Lagos and Oyo States. The study utilized stratified simple random sampling technique with a sample size of 750 owner/managers of SMEs determined using Cochran’s (1977) formula and data were analyzed using regression analyses. The findings revealed that cost of doing business (β = 0.003, ΔR2 = 0.021, ΔF = 14.820, p < 0.05) significantly moderated the effect of bootstrapping measure by owner’s financing, subsidy financing, delayed payment, joint utilization, and social capital on the performance of SMEs in South-West, Nigeria. The study concluded that bootstrapping improved performance of SMEs in South-West, Nigeria, cost of doing business significantly moderated effect of bootstrapping on the performance of SMEs in South-West, Nigeria. It was recommended that management of small and medium scale enterprises in South-West, Nigeria should pay more attention on subsidy financing, delayed payment, social capital with less attention on joint utilization in order to improve their performance. Keywords: Cost of Doing Business, Delayed Payment, Joint Utilisation, Owner Financing SME Performance, Social Capital, Subsidy Financing