Performance Of Small 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.

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.

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.

INFLUENCE OF RECORD KEEPING ON THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN THE CONTEXT OF THEIR AREA OF OPERATION: AN EMPIRICAL STUDY

Objective: The target of this paper is to look into how record keeping affects the performance of Micro and Small Enterprises (MSEs) in the context of their place of operation.   Theoretical Framework: After going through the literature, it is identified that not a single study has been done in the research area of this paper.   Method: In this study, a simple survey was conducted among 268 MSEs functioning in Karimganj District of Assam. Multiple regression analysis with SPSS 21 was used to analyse the data.   Results and Discussion: Result of the analysis shows that female participation is poor in the study area and there is a positive correlation with R2 = 0.460 implying that record keeping Practices in the context of their area of operation is 46% responsible for explaining the dependent variable i.e., Performance of MSEs.   Research Implications: The study suggests that maintaining proper records can significantly improve the performance of MSEs. Furthermore, the adoption of computerized accounting systems can provide a more efficient and accurate means of record keeping, which can lead to improved financial performance.   Originality/Value: The study revealed that the majority of micro and small businesses failed to keep accurate records of their commercial dealings. However, those enterprises that kept proper records had a better understanding of their business operations and could make more informed decisions.

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

Effect of Digital Banking on Financial Performance of Micro and Small Enterprises in Nairobi County, Kenya

The financial performance of MSEs is critical to the performance of the economy since MSEs are some of the best supporters of the government through employment. In recent years banks have developed innovative products and offered a wide range of services to improve their performance, which is the ultimate goal of banks (Mugodo, 2016). Digital banking has several benefits to financial services users such as micro and small enterprises and digital banking providers. The general objective of the study is to establish the effect of digital banking on the financial performance of micro and small enterprises in Nairobi County, Kenya. The specific objectives of the study are to determine the effect of digital payments on the financial performance of micro and small enterprises in Nairobi County, to establish the influence of digital credit on the financial performance of micro and small enterprises in Nairobi County, and to establish the influence of digital savings on the financial performance of micro and small enterprises in Nairobi County, Kenya. The study was guided by the theory of financial innovations, the technology acceptance model theory, and the diffusion of Innovation Theory. This study employed an explanatory research design. The target population is comprised of retail traders/managers in the micro and small enterprises in Nairobi County. For purposes of this study, the population was MSEs, which conduct their business in Nairobi County. From the target population of 10,079 retail traders, Fishers et al (2007) formula was used to pick a sample of 384 retail traders as the sample of the study. The study utilized a semi-structured questionnaire to collect data from the respondents. Data was analyzed aided by descriptive statistics, including variability and central tendency measures of frequencies. The findings of the diagnostic tests revealed that there was no multi-collinearity among the independent variables (VIF=1.281), and the results of the normality test showed that the variables were normally distributed. The findings of the study were that there was a positive and significant relationship between digital payments and financial performance (β1=0.682, p=0.0000.05), there was also a positive and significant relationship between digital credits and financial performance of micro and small enterprises (β2=0.266, p=0.0030.05). There was also a positive and significant relationship with the financial performance of micro and small enterprises in Nairobi County (β3=0.488, p=0.0070.05). The study concluded that digital payments, digital savings, and digital credits had a positive and significant effect on the performance of micro and small enterprises in Nairobi County. The study recommends that more needs to be done in terms of application security due to the risk of cyber-attacks and fraud. Institutions should invest more in research to ensure that their applications used by customers are safe to prevent cyber-attacks and fraud. The study also recommends that MSE’s need to maintain a good record of credit and improve on their saving to access more credit through digital credit applications.

The role of supply chain management practices, supply chain responsiveness, and organizational capabilities on organizational performance

Purpose-Several internal and external elements impact an organization's performance. This study examines organizations' performance using both internal and external elements. Organizational capabilities are the internal aspects of the study, whereas supply chain management practices and supply chain responsiveness are the external factors. These three elements are believed to have a significant impact on an organization's performance. Design/Methodology/Approach-The study population focused on furniture micro, small, and medium-sized enterprises in Yogyakarta, Indonesia. The research data were collected through questionnaires administered to respondents, and the results of 50 respondents were obtained. Then, a model analysis was applied using Smart PLS. Findings-Supply chain management practices positively impact organizational performance, and supply chain responsiveness improves organizational performance. Organizational capabilities also have a favorable effect on organizational performance. If these three elements can be effectively utilized, it will enhance organizational performance. Research limitations/implications-Micro, small, and medium-sized enterprises must understand the importance of supply chain management and maximize its use to promote improvements in organizational performance. Business actors must maximize their efforts to achieve organizational success by considering other aspects, such as organizational capabilities. Originality/value-Research on organizational performance is currently lacking, especially in the case of micro, small, and medium-sized enterprises that are specifically associated with particular industries. Government rules, strategy orientation, and green supply chain management are just a few of the external and internal factors that have been the subject of prior research on organizational performance. As a result, this study examines the characteristics of supply chain management practices, supply chain responsiveness, and organizational capabilities in order to measure the performance of furniture micro, small, and medium-sized enterprises in Yogyakarta, Indonesia.

Understanding dollar dynamics and SME performance in GCC economies

PurposeThis study investigates the impact of US dollar volatility and oil rents on the performance of small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC) region, with an emphasis on understanding how these factors influence SME financing constraints in economies with fixed currency regimes.Design/methodology/approachEmploying a random effects panel regression analysis, this research considers US dollar volatility and oil rents as independent variables, with SME performance, measured through the financing gap, as the dependent variable. Controls such as trade balance, inflation deltas and gross domestic product (GDP) growth are included to isolate their effects on SME financing constraints.FindingsThe study reveals a significant positive relationship between dollar volatility and the financing gap, suggesting that increased volatility can exacerbate SME financing constraints. Conversely, oil rents did not show a significant direct influence on SME performance. The trade balance and inflation deltas were found to have significant effects, highlighting the multifaceted nature of economic variables affecting SMEs.Research limitations/implicationsThe study acknowledges potential biases due to omitted variables and the limitations inherent in the use of secondary data.Practical implicationsFindings offer pertinent guidance for SMEs and policymakers in the GCC region seeking to develop strategies that mitigate the impact of currency volatility and support SME financing.Originality/valueThe research provides new insights into the dynamics of SME performance within fixed currency regimes, which significantly contributes to the limited literature in this area. The paper further underscores the complex connections between global economic factors and SME financial health.

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.

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 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

The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises

The purpose of the study was to investigate the effect of industry extension service projects on the performance of micro and small enterprises. Thus, the study utilized an explanatory and descriptive research design to achieve the objectives of the research. The study targeted MSEs that had been in operation for more than two years at the time of the study. The research had a total population of 606 MSEs, out of which a sample size of 241 operators was realized using Taro Yamane’s formula. Thus, a stratified sampling technique and simple random sampling were employed to select representative samples. Beside, primary and secondary data were used in the study. The analysis was conducted using SPSS version 20 on 223 fully responded questionnaires. The data was analyzed using descriptive and inferential statistics. In addition to this, correlation and regression models were used to analyze the variables of the study. The finding proved that IESP support provided by TVET trainers to MSEs was not adequate. Regression analysis indicated that entrepreneurship, technology, kaizen, and technical skill support had a positive and significant relationship with the performance of MSEs. Thus, it is recommended that the TVET College should provide regular industry extension service support to MSEs through four packages.

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.

Eco-dynamic capability: A surest way to sustainability performance of SMEs?

PurposeTo endure and cope in the rapidly changing environment, it is required of firms to gain a deeper acquisition of knowledge on market dynamics and subsequently concentrate on corporations' capacity to create, restructure and integrate their internal and external competences. Hence, the objective of this study is to investigate the influence of eco-dynamic capability (EDC) on the sustainability performance of small and medium-sized enterprises (SMEs).Design/methodology/approachStructured questionnaires were used to obtain primary data. The data were solicited from 500 employees and owner-managers of SMEs. The study’s hypotheses were tested using standard multiple regression through IBM SPSS Statistics (version 24).FindingsThe study revealed that EDC has a substantial positive effect on the economic, social and environmental sustainability performance dimensions.Originality/valueThe focus of this study is on EDC. Thus, although dynamic capability has been the subject of substantial study, little is known regarding the effect of EDC on the economic sustainability performance (ESP) (financial), environmental sustainability performance (ENSP) and social sustainability performance (SSP) of SMEs, predominantly amongst SMEs in emerging economies.

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.

Impact of the COVID-19 pandemic on small and medium-sized enterprise (SME) government suppliers involved in government green procurement (GGP)

PurposeThe objectives of this paper are twofold. First, it aims to investigate the impact of the COVID-19 pandemic on the activities and performance of small and medium-sized enterprises (SMEs) government suppliers involved in government green procurement (GGP). Second, it examines the differences in the impact of COVID-19 between small and medium-sized groups.Design/methodology/approachThe study used a questionnaire survey that was distributed to SMEs listed in the MyHIJAU directory that supply green goods and services to the government. Of the total 394 sample respondents, 126 usable questionnaires were received, representing a usable response rate of 31.98%. Descriptive analysis of mean score, standard deviation and mean score ranking was used to analyse the overall results. A t-test analysis was carried out to examine the differences between the small and medium-sized groups of companies.FindingsThe study discovers that the SME government suppliers involved in GGP were impacted by the COVID-19 pandemic. The top ranked impacts are that “the COVID-19 pandemic has heightened health and safety practices among the employees”, “the COVID-19 pandemic has reduced company’s turnover”, “the COVID-19 pandemic has forced the company to implement a cost reduction strategy”, “the COVID-19 pandemic has had a negative impact on the company’s ability to deliver work, supplies or services to the government” and “the COVID-19 pandemic has forced the company to incur higher production costs for green products or services provided”. However, there is no significant difference between the impact of the COVID-19 pandemic on the small and medium-sized group of enterprises.Originality/valueThe present study is among the fewer studies on the impact of the COVID-19 pandemic, with particular focus on SME government suppliers involved in GGP.