Growth Of Small And Medium Enterprises Research Articles

Pelatihan dan Pendampingan Pemanfaatan Media Digital untuk Medukung Peningkatan Pemasaran Produk UKM di Desa Uteunkot Kota Lhokseumawe

The use of digital media by MSMEs, which is increasingly competitive and growing rapidly, requires Small and Medium Enterprises (SMEs) to implement effective and efficient marketing strategies. The use of digital media is very important in marketing SME products in the digital era. However, the problem faced is the lack of knowledge and skills of Uteunkot village residents in utilizing digital media as a marketing tool. Meanwhile, training and mentoring are effective solutions for increasing the use of digital media to support the growth and success of SMEs. This service aims to empower SMEs in Uteunkot Village through digital media to support increased marketing of SME products. The training material covers the use of social media, both content creation and online advertising strategies. The results of the Digital Media Utilization Training and Assistance service showed that 88% and 12% of respondents were satisfied with implementing the service activities. Then, the results of the solution's suitability are expected by partners to increase their productivity and market access using digital technology and be able to compete better in an increasingly competitive market.

EFFECT OF FINANCIAL LITERACY, EDUCATION LEVEL AND GENDER ON THE GROWTH OF SMES: EMPIRICAL STUDY ON THE COVID19 PANDEMIC CONDITIONS

This study aims to examine the effect of Financial Literacy, Education Level and Gender on the Growth of Small and Medium Enterprises (SMEs) in the Creative Economy Sector in the Mandalika Special Economic Zone (SEZ). The data was collected using the survey sample method, and the number of samples in this study was 50 SMEs. The sample was taken using a simple random sampling technique. The independent free variables are Financial Literacy, Education Level and Gender, while the dependent variable is SME Growth. Technique Analysis data is multiple linear regression, which conducted using the 2016 version of SPSS. The results showed that financial literacy and education level have a positive and significant effect on SMEs growth. Meanwhile, gender has a positive, but not significant effect on the growth of SMEs.
 Keywords:
 Financial Literacy, Education Level, Gender and SMEs Growth

Understanding the Concept of SMEs in Driving Economic Growth and Development in Bangladesh

Small and Medium Enterprises (SMEs) play a vital role in Bangladesh's economy and have been recognized as a significant catalyst for poverty reduction programs and economic growth. Therefore, it is essential to have a comprehensive understanding of the concept of SMEs and their role in driving economic growth and development. Consequently, this study endeavors to explore the definition of SMEs, their present status, and their contributions to the development of Bangladesh’s economy. Using a quantitative research method, the study performed a descriptive statistics analysis on data gathered from diverse sources, including academic, governmental, and private institutions, as well as pertinent literature from researchers, academics, and scholars. The study has found that the definition of SMEs in Bangladesh has undergone changes over time. The study findings also revealed that the growth of SMEs has had a significant impact on various economic indices in Bangladesh, contributing positively to the country's economic development. Hence, the findings of this study can provide valuable insights to readers seeking a comprehensive understanding of SMEs in the context of Bangladesh. Moreover, policymakers can utilize these findings to introduce well-suited policies and initiatives that will foster the future development of the SME sector.

Contribution of Microfinance Institutions in the Growth of Small and Medium Enterprises in Tanzania: Evidence from Trade Enterprises in Moshi Municipality

Small and Medium Enterprises (SMEs) in developing and developed countries play a vital role in economic development. Despite their crucial role in the economy, SMEs continue failing in large numbers due to various problems that Microfinance Institutions (MFIs) claim to offer solutions such as access to finance. This study intended to assess microfinance institutions' contribution to SMEs' growth. Precisely, the study aimed at examining the contribution of credit to SMEs, determining the extent to which entrepreneurial training contributes to the growth of SMEs, and examining the contribution of MFIs technological innovations to the growth of SMEs. The study used a cross-sectional research design with a sample size of 231 respondents to collect the information required. Multiple Regression Analysis (MRA) and descriptive statistics were used in data analysis, whereas graphs and tables were used to present the results. It was found that MFIs play an important role in providing services to SMEs. With access to credit, the adjusted R2 was 50.3%, indicating a highly positive relationship between access to credit and SMEs’ growth. The results of entrepreneurial training also showed an adjusted R2 of 38.8%, implying a normal positive relationship between entrepreneurial training and SMEs’ growth. It can, therefore, be concluded that MFIs play an important role in facilitating the growth of SMEs. However, it was also revealed that the SMEs were still struggling to have a high pace of growth due to unfavorable credit terms, less entrepreneurial training, and low awareness of technological innovations. The study recommended that the MFIs improve the credit terms, and the government should also intervene in the activities of MFIs by creating policies aiming to favor the SMEs to improve the sector.

Development strategies for creative small and medium enterprises (SMEs): A Quintuple Helix Model approach to support smart city initiatives

This study explores the development of Creative Small and Medium-Sized Enterprises (SMEs) in the food, textile, and handicraft sectors in Jambi City, employing the quintuple helix model to align with the Smart City concept. The research gathered primary data through surveys, interviews, and focused group discussions (FGDs). The study encompassed a diverse range of stakeholders from the specified sectors, with a sample size of 100 individuals. A mixed-method research approach was adopted, integrating both qualitative and quantitative methods. Analytical tools such as the Likert scale, SWOT analysis, and the quintuple helix model were employed for data analysis and interpretation. The findings reveal that many participants in these sectors were women, predominantly with high school-level education. The age group of 46-55 years was most represented among the respondents. Notably, the food sector emerged as the dominant industry among the studied SMEs, attributed to its relative ease of establishment and cost-effectiveness compared to the textile and handicraft sectors. The study also examined the perceptions of the roles of quintuple helix actors (government, academia, industry, society, and social environment) in the development of these SMEs. The findings indicate a generally positive perception, suggesting effective fulfillment of roles by these actors. This collaborative effort within the quintuple helix framework has positively impacted the development of creative SMEs in Jambi City, contributing significantly to the Smart City initiative. The study underscores the importance of such collaboration in fostering the growth and sustainability of creative SMEs in the context of urban development.

Entrepreneurial Characteristics and Business Growth of SMEs: Special Reference to North Central Province

The small and medium enterprises (SMEs) sector is considered to be the backbone of the modern economy, especially in developing countries where it plays a significant role in economic growth. Hence, it is crucial to monitor the growth of SMEs in these countries. Entrepreneur characteristics play a significant role in the development of both entrepreneurs and SMEs. This study aims to identify the influence of entrepreneur characteristics on the business growth of SMEs. To measure these characteristics, eight traits were selected, including risk-taking, self-motivation, adaptability, resilience, strong work ethic, networking skills, financial management skills, and strategic thinking. A stratified random sampling technique was used to select 120 participants from SMEs in the Anuradhapura and Polonnaruwa districts and asked them to complete a self-administrated questionnaire. The study's findings revealed that entrepreneurs' characteristics play a significant role in the growth of SMEs. The finding suggests that risk-taking, self-motivation, and adaptability are inevitable characteristics that must be developed by Sri Lankan Entrepreneurs. According to the study's findings, entrepreneurs possess vital characteristics that significantly impact the success of SMEs. Among these characteristics, networking skills stand out as particularly important. Additionally, the study recommends that entrepreneurs exhibit a willingness to take risks in order to lead their firms to even greater levels of success. These findings not only contribute to the existing literature on entrepreneurship and SMEs but also have implications for policymakers who may wish to consider including these characteristics in their policy decisions.

A cross-national study of internationalisation barriers with reference to SME value chain

Research background: The study responses to the internationalisation issue, one of the essential factors of SMEs growth. Particularly to companies' efforts towards setting international cooperation and circumstances obstructing these struggles. The study takes into consideration that internationalisation in specific areas of company's operations differs noticeably. Similarly, different barriers may arise depending on the areas of the company's value chain that are the focus of the enterprises' internationalisation strategies. Purpose of the article: This study aims to identify barriers to internationalisation regarding various areas of a company's value chain. The study employs the Value Chain Model by Porter. Methods: The field data was collected using a questionnaire survey on a sample of small and medium enterprises (SMEs) located in countries in the Baltic Sea region (Denmark, Estonia, Finland, Germany, Latvia, Lithuania and Poland). A multiple regression analysis was performed to determine the impact of barriers on internationalisation. Finding & value added: The study indicates three areas that are most often the subject of internationalisation in SMEs: operations, outbound logistics and marketing and sales. Barriers differ between value chain areas; however, cultural differences and competition are perceived as the most important hindering factors by companies experienced in internationalisation. At the same time, barriers regarding knowledge and finance diminish when companies becoming more experienced in internationalisation in particular value chain areas. This study is one of few employing the value chain framework to examine internationalisation.

Problems Of Financing SMES In Ghana: A Case Study Of Kwahu West And Birim Central Municipalities

Purpose:Considered peripheral to economic and public policy in the past, the role of small and medium enterprises (SMEs) has recently been highly recognized as a critical factor in the economic growth and development strategies of countries worldwide. This notwithstanding, SMEs continue to face a myriad of challenges about financing. The study, among others, sought to explore financing challenges facing SMEs in Kwahu West and Birim Central Municipalities of Ghana.Methodology:A survey questionnaire was used to collect data from 200 senior officers of SMEs in the selected municipalities. Descriptive statistics, Pearson's correlation, and linear regression statistical techniques were employed in data analysis.Findings:The findings indicated that most SMEs in both municipalities were sole proprietorships and needed more capacity and expertise to fulfill the requirements for external funding. Also, SMEs need more access to credit, adequate managerial expertise, information asymmetry, and transaction costs. In addition, the findings indicated that SIZE of SME and SME age have a positive and significant relationship with SME financing. Moreover, alternative funding sources, including equity sources provided by the alternative market of the Ghana Stock Exchange, were identified.Implication:The study concluded that although the financing challenges are real and numerous, stakeholder engagements and general governmental support can help push the growth and sustainability of SMEs. It was recommended that the National Board for Small-Scale Industries compile a register of all SMEs in the country and provide a platform for publishing their annual financial reports.

On the question of entrepreneurial breakthrough or failure in Africa: a framework for analysis

PurposeHaving the right intent, aspiration, ability and attitude to become an entrepreneur has become the mantra in the extant literature to be driver of entrepreneurship and small and medium enterprise (SME) growth. Why would zealous and ambitious individuals with all rightful attributes so required of entrepreneurs have to fizzle out few years after venturing into business or SMEs? Perhaps these same individuals may relocate to other jurisdictions and would establish successful firms even beyond their imaginations. Beyond the individual’s entrepreneurial attributes, there are other external countervailing forces which either “enable” or “impede” entrepreneurial drive and SME growth processes. Adopting the theory of planned behavior, this study conceptualizes a systems framework to analyze how SMEs either flourish or fail in developing countries.Design/methodology/approachThe study relies on secondary sources of data. It adopts a critical stage review of secondary data.FindingsThe study argues that the interplay of “internal factors” and “external factors” of prospective entrepreneurs provides a useful framework to explain the general SME outlook of an economy. The study postulates that many internally driven prospective SME entrants (with entrepreneurial attitudes, abilities and aspirations) mostly in the developing economies may have their dreams shattered because of obstructive external ecological elements which tend to frustrate new business entrants as well as existing ones.Originality/valueWith the aid of a framework, this study conceptualizes a comprehensive framework to analyze how SMEs either flourish or fail in developing countries.

Physical and Technological Capital Efficiency for Profit Growth in Small and Medium Enterprises in Gauteng, South Africa: A Descriptive Qualitative Study

The increasing number of businesses closing down and the persistent slow growth of small and medium enterprises (SMEs) within the manufacturing sector is a serious concern globally, including in South Africa. The SMEs that are currently existing are operating below the required efficiency level. Physical and technological capital efficiency integrating manufacturing systematic planning, work study, standardisation and inventory management to improve the profit of SMEs in Gauteng South Africa is inadequate, which is a major concern. This study aimed to explore the physical and technological capital constraints affecting SMEs’ profit growth and develop the physical and technological capital efficiency adoption model merging manufacturing systematic planning, work study, standardisation and inventory management for SME profit growth in Gauteng. The study was qualitative, exploratory and descriptive in nature. Face-to-face interviews were conducted targeting 15 owners/managers amongst SMEs in Gauteng. The findings show the most common causes of slow profit growth, which involve poor material handling, unfavourable workplace layout, unscheduled machine maintenance, network challenges, failure to adhere to workplace standards, insufficient product and material recording systems and poor work methods and procedures. The study revealed major concerns for SMEs that required intervention for these enterprises to sustain their profit growth. Thus, the adoption of the model concerning the incorporation of physical and technological capital efficiency tools to advance manufacturing operations be considered as the contributing insight into the profit growth of SMEs in Gauteng. Thus, this study recommends that the government creates an enabling environment for the adoption of this model for SMEs.

Effects of Social Capital, Financial Access, Innovation, Socioeconomic Status and Market Competition on the Growth of Small and Medium Enterprises In West Java Province

This study aimed to investigate the effects of social capital, financial access, innovation, socioeconomic status, and market competition on the growth of small and medium enterprises (SMEs) in West Java Province. A cross-sectional survey design was employed, and data were collected from 384 SMEs using a structured questionnaire. Descriptive statistics, correlation analysis, and regression analysis were used to analyze the data. The findings showed that social capital, financial access, innovation, socioeconomic status, and market competition had a significant positive effect on the growth of SMEs in West Java Province. The study contributes to the existing literature by providing empirical evidence on the relationship between these factors and the growth of SMEs.

The Relationship Between Mobile Money Services and Small and Medium-Sized Enterprise Growth in Bamenda, Cameroon: A Probit Model Approach

ABSTRACT The main objective of this article is to determine the relationship between mobile money services and the growth of small and medium enterprises (SMEs). A sample of 50 SMEs was collected. The probit model was used to estimate the result. The study established that mobile money services have a positive and significant relationship with the growth of SMEs. The determinants of mobile money services observed are; experience in business management, frequency of bill payment, size of business, male entrepreneur, operation of mobile money account, frequency of purchasing airtime, distance to financial institutions, number of business branches, mobile money accounts held, secondary education, technical support, location of business, number of workers and size of capital transaction. The challenges faced by entrepreneurs in mobile money transactions observed are: wrong manipulation of account, delays, environmental complexities, and loss of money due to hawkers. The result suggests that SMEs should intensify the use of mobile money services in their daily business transactions. It is a wise step toward business expansion. Entrepreneurs of SMEs should take advantage of the drivers of mobile money services to encourage the diverse use of digital technologists. Finally, entrepreneurs should avoid risky manipulations of their mobile money gargets.

ANALISIS STRATEGI USAHA KECIL MENENGAH (UKM) INDONESIA BERDAYA UNGGUL SEBAGAI UPAYA MEMASUKI BISNIS GLOBAL PADA UKM NOQTAH ART TANGERANG SELATAN BANTEN

Small and Medium Enterprises (SMEs) have proven to be an important pillar in contributing to the Indonesian economy, by being able to contribute to GDP growth of 61.07%. With the increasingly massive growth of SMEs, the right strategy is needed so that SMEs have superior power to compete in the domestic context or even to enter global business. This global business can be used as a momentum and opportunity for SMEs to be able to develop their business to become superior. Of course, in entering this global business scope, the right strategy is needed. This study in the form of an article uses a descriptive method with literature study as a data collection technique by collecting from various literature as a basis for arguments. Through this article, it also tries to investigate and analyze the right strategy to be applied to Noqtah Art SMEs in entering the global business sphere which has better future business prospects.

The significance of technology-driven entrepreneurship activities: Lessons from SMEs operating in the manufacturing industry

Innovation in small and medium enterprises (SMEs) is often the result of technology-driven or market-pull entrepreneurship activities. So far, although its importance in practice, as well as in academia continues to grow, extant research exhibits little theory about the process of technology-driven entrepreneurship in SMEs. The study aims to better understand how technology-driven entrepreneurship processes transform business in SMEs in the manufacturing industry. Therefore, we developed a technological entrepreneurship (TE) process framework by utilizing the flexible pattern matching approach (FPMA). We iteratively compared a priori patterns from existing theoretical knowledge to empirical findings that emerged from in-depth interviews with corporate executives in the manufacturing industry. The framework highlights the TE process in SMEs leading to four output components: (1) corporate-function-related, (2) business-model-related, (3) competitiveness-related, and (4) customer-related. This study makes a unique contribution to academia by being the first that develops a TE process framework tailored to SMEs from the manufacturing industry. We point out that sustainable growth and competitiveness of SMEs depends on appropriate TE process management, and we underline the strategic importance of TE-driven transformation for SME managers. Our study expands the scope of TE and SME research and provides empirically grounded insights into technology-driven innovation.

The Effect of Digital Marketing Adoption on SMEs Sustainable Growth: Empirical Evidence from Ghana

Online presence is fast becoming a marketing hub for contemporary businesses. Often known as digital marketing, the phenomenon offers several opportunities to businesses. Small and medium enterprises (SMEs) are using their online presence to launch stern competitive promotions and interact with consumers. Against the backdrop of the stern competition, digital marketing is being utilized to drive sustainable strategies for SMEs. This study leverages the theory of planned behavior to explore the impact of digital marketing adoption on the sustainable growth of SMEs in Ghana. Using a structured questionnaire and SmartPLS version 3.3 for the data analysis, 533 owners/managers of SMEs in Ghana were drawn to administer the questionnaire. Our findings suggest that, while attitudes toward digital marketing did not influence the intention to use digital marketing, perceived behavior control and subjective norms were found to affect individuals’ intentions to use digital marketing. Additionally, the results proved a direct positive link between subjective norms and actual behavioral use of digital marketing. Finally, the relationship between the actual use of digital marketing and SMEs’ sustainable growth was also proven positive, affirming that digital marketing significantly improved the sustainable growth of SMEs in developing countries. This study contributes to the multiplicity of factors that influence the behavioral tendencies of managers of firms in their quest to adopt digital platforms to enhance their sustainable growth. The study’s results serve as guidelines for prospective adopters of digital platforms as they develop their sustainability strategies.

SOSIALISASI PERAN PERGURUAN TINGGI DAN AKADEMISI SEBAGAI INKUBATOR BISNIS DALAM PENGUATAN KOPERASI SEBAGAI LEMBAGA EKONOMI KERAKYATAN MENUJU KOPERASI MODERN BAGI PELAKU UKM DI SUMATERA UTARA

This community service aims to provide an understanding that universities and academics act as business incubators for developing small and medium enterprises. In order to support the growth and development of SMEs, there needs to be a synergy from various parties ranging from academia, industry, and universities as stakeholders. The business incubator is a place used by many developing countries, including Indonesia, as a means of developing new businesses and/or small and medium enterprises (SMEs). The business incubator itself is an institution that oversees a business incubation in the coaching process for small businesses and/or new product development as well as the provision of business facilities and infrastructure, business development, and management and technology support. The availability of skilled labor needed by the Business and Work World (DUKA) is still very low. This is revealed from data from the Central Statistics Agency (BPS) which was announced in February 2020, which was around 13%. This condition is a challenge for universities not to exacerbate this condition by introducing an early work environment to students, so that theycan become graduates according to the needs of the job market, either as employees or business owners through student business incubators at universities. The Business Incubator is a form of Academic Entrepreneurship adapted to the industrial era 4.0 based on the use of electronic media and the internet. To socialize the community service material to SME business actors, the lecture method and question-and-answer method are used for 90 minutes. The results of the socialization have further increased the understanding of the community and SMEs about the importance of developing business incubators as business facilities and infrastructure in business development

Determinants of Social Media Marketing Adoption among Small and Medium Enterprises in Dar es Salaam - Tanzania

The general objective of the study was to examine the determinants of social media marketing adoption among Small and Medium Enterprises (SMEs) in Ilala Municipality, Dar es Salaam. The study provides the effects of technological, organizational and environmental factors on adoption of social media marketing in the SMEs sector. This study used descriptive research design; thus primary data were collected using a structured questionnaire, whereas multiple regression analysis was used to analyse the collected data from 122 SMEs owners who were selected through simple random sampling. The SPSS software was used for data analysis. The results from multiple regression analysis showed that technological factors had positive and significant relationship with the adoption of social media marketing in SMEs (p = 0.001). Moreover, the findings showed that organisational factors and adoption of social media marketing were positively related (p = 0.000). Furthermore, the findings indicated that there was positive and significant relationship between environmental factors and adoption of social media marketing in SMEs (p = 0.002). The study concludes that technological, organizational and environmental factors determine social media marketing adoption for SMEs. However, organizational factors are the major determinants of social media marketing adoption in SMEs. The study recommends that the management of SMEs should improve organizational environment such as employee skills by providing training in order to increase the use of social media marketing in SMEs. Government should provide support and comprehensive policy to foster growth of SMEs in Tanzania through adoption of social media marketing, and the SMEs management should accommodate technology innovation to support easy adoption of Social media marketing.

The Contribution of Financial Management Practices to the Growth of SMEs in Bulawayo CBD: A Case Study of Bulawayo Centre, Imbali Mall and Haddon & Sly Complex.

Financial management practices are ways of handling a company’s finances in a bid to help it be successful and compliant with regulations. This study focused on the contribution of financial management practices to the growth of Small and Medium Enterprises (SMEs) in Bulawayo Central Business District (CBD), particularly those operating at Bulawayo Centre, Imbali Mall and Haddon & Sly Mall. Lately, sentiments have been suggesting that SMEs in Zimbabwe are failing due to a variety of reasons, and they generally need help in adopting and applying financial management practices effectively. The literature revealed the need for extensive research on how frequently these financial management techniques are employed and how they correlate with the expansion of SMEs. The study employed a mixed research method and utilized a survey conducted through questionnaires and interviews. The findings of the study revealed that SMEs are employing financial management practices effectively, however, a few are not keen to carry out financial reporting and audits as well as implement budgetary control systems. This study recommended that SMEs should develop a financial management plan that includes budgeting, cash flow management and financial reporting, and seek advice from professional financial advisors to ensure compliance with the best practices. It is also important for future researchers to explore the role of technology in improving financial management practices and the growth of SMEs and consider longitudinal studies to track changes in financial management practices over a long period of time and how they impact the growth of SMEs. This study concluded that it is beneficial to adopt professional financial management practice systems and use all methods of financial management as it contributes to growth. It is also important to note that the growth of SMEs is impacted by other factors, apart from financial management practices, which include competition and macro-environmental challenges.

Research on the Resilience Enhancement Path of Technology-Based SMEs Using Dynamic Fuzzy Cognitive Maps—Organizational Context and the Employee Loyalty Perspective

Technology-based small and medium enterprises (SMEs) represent an important organizational aspect of technological innovation and economic growth. The complex and turbulent operating environment resulting from COVID-19 is a fatal threat to the survival and growth of technology-based SMEs. Based on the Wuli-Shili-Renli (WSR) methodology, this research uses dynamic fuzzy cognitive maps to analyze the mechanisms underlying the interactions among organizational context, employee loyalty and organizational resilience in the context of technology-based SMEs. The study also includes a sensitivity analysis, and the results of these analyses are mutually corroborated. The study finds that organizational context, employee loyalty and organizational resilience are correlated to varying degrees but also that organizational learning and sustained loyalty are weak, while normative organizational loyalty is relatively weak. This study enriches the research concerning organizational resilience and has practical value with regard to improving the organizational resilience of technology-based SMEs.

Growth and Competitive Analysis of SMEs in Sleman, Indonesia

This study examines the factors that affect the growth and competitiveness of Small and Medium Enterprises (SMEs) in Sleman Regency Yogyakarta Indonesia.�We collect the data using a survey technique involving 100 SMEs�owners from five sectors (the craft,�food�processing,�clothes,�metals,�and others).�Regression analysis was used to analyze the relationship between internal and external factors and the performance of SMEs.�The findings depict that both internal factors (entrepreneur attitudes towards risk, learning entrepreneurship, the number of employees,�financial reports, wealth value,�age, and license)�and external factors (marketing networks and supplier cooperation) affect the performance growth and competitiveness of SMEs.�This paper recommends�that�in order to develop the business activities of SMEs, the�efforts include easy access to capital,�business scale,�network, marketing and partnership, human resources (knowledge of marketing,�product development, license, financial reports, supply chain, risk management, business management, and others) could�increase the technology access of product development�to establish a more conducive business climate�and more systematic strategy assistance based on the specific problems faced by SMEs.