Small And Medium Enterprises Entrepreneurs Research Articles

Digital marketing as a determinant variable for improving the business performance

This study analyzes the complex relationships between digital marketing, Customer Relationship Management (CRM), сompetitiveness, and business performance in the creative industry Small and Medium Enterprises (SMEs), focusing on craft-leading products in urban areas of East Java province. According to the sample size, the number of survey respondents was 172. There were 86 male entrepreneurs (50%) and 86 female entrepreneurs (50%). Primary data were collected by distributing the questionnaires according to the number of respondents to SME entrepreneurs who are managers or company owners with competence in the business field and more than five years of business experience. The analysis used Partial Least Squares Structural Equation Modeling (PLS-SEM). The results emphasize that digital marketing affects business performance through CRM by 0.126 with p-value of 0.006, and competitiveness by 0.260 with p-value of 0.000. It can be explained that digital media can identify, recruit, and turn potential customers into loyal customers. Higher demands from customers for online services are becoming increasingly crucial for digital marketing and business activities. The essence of the results of this study is that the more effective digital marketing is, the more influential the company’s CRM is to improve the company’s business performance, including profit growth, sales growth, and employment growth. The critical role of digital strategy, CRM, and competitiveness on business performance can overcome the challenges posed by the pandemic and drive success in creative industry SMEs of superior products in East Java, highlighted in this study. AcknowledgmentThe author would like to thank the Ministry of Education, Culture, Research and Technology. Directorate General of Higher Education, Research and Technology of The Republic of Indonesia, which has supported the research implementation and permitted publication of this article.

Impact of Financial Management Practices on Performance Measurement of Small and Medium Enterprises in Tamil Nadu

Small and medium enterprise (SME) development is essential for India’s economic expansion. SME is an important participant in the development of accessories that supports major industries. The current study is focused on the variables impacting performance measurement in SMEs, despite the fact that many small and medium businesses are experiencing significant losses and closures as a result of poor performance. The next goal is to determine the connection between small and medium business performance management and financial management practices. This study uses SME performance measurement as a dependent variable. Risk management, working capital management and credit management are three independent factors that can be used to assess SME financial management practices. The questionnaire that was used for each item was based on the earlier research. A five-point Likert scale was used to score each item scale used in this investigation. Working people in a few districts in South Tamil Nadu, India and used online structured questionnaires to gather data. The present sample size of the study is 157. The statistical data analysis has been carried out employing jamovi 1.8. For factor loading, reliability, sample size, model fit, regression analysis for hypothesis testing and structural education modelling were used. Policymakers and SME entrepreneurs who are familiar with performance measurement of many elements can benefit from the study’s findings. The study found a relationship between SMEs’ performance measurement and financial management practices.

Empowering Growth: The Role of Commercial Banks in Financing Small and Medium Enterprises (SMEs) in India

This research explores the pivotal role played by commercial banks in facilitating the financial growth and sustainability of Small and Medium Enterprises (SMEs) in India. SMEs form the backbone of the Indian economy, contributing significantly to employment generation and economic development. This study employs a mixed-methods approach, combining qualitative insights and quantitative analyses, to comprehensively examine the mechanisms through which commercial banks support and finance SMEs. The qualitative component of the study involves interviews, case studies, and expert opinions to capture nuanced perspectives on the challenges and opportunities faced by SMEs in accessing financial services from commercial banks. Simultaneously, quantitative data analysis will be employed to identify trends, correlations, and statistical patterns associated with the financing of SMEs. Various aspects of the role of commercial banks in SME financing will be investigated, including credit facilities, financial products tailored for SMEs, risk assessment, and the impact of banking support on the growth and sustainability of small businesses. The study aims to provide insights into the strategic implications of commercial bank interventions for the SME sector in India. The findings from this research are anticipated to offer valuable insights for policymakers, banking professionals, and SME entrepreneurs. By understanding the intricacies of SME financing by commercial banks, stakeholders can refine strategies, improve financial inclusion, and contribute to the robust development of small and medium enterprises, fostering economic growth in India. This study serves as a foundation for informed decision-making and future research within the realm of SME financing by commercial banks.

Measuring supply chain finance: a study of scale development and validation in the emerging market context

Purpose Financing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of financing (SCF; supply chain finance) has emerged to meet the financing issues of SMEs. Therefore, measuring SCF is essential to support SMEs’ operations. This study aims to develop and validate the SCF scale based on extant literature. Design/methodology/approach Using a mixed-method approach, this study recruited different samples of SME entrepreneurs to confirm the internal consistency, assess construct validity and check the item structure of the SCF scale in AMOS. Findings The outcomes of confirmatory factor analysis demonstrated the six factors of SCF (inventory financing, working capital optimization, reverse financing, fixed assets financing, logistics financing and order cycle financing) spread over 21 items. An interitem solid structure of the SCF scale offers invaluable contributions to the supply chain management literature. Practical implications This research supports SME entrepreneurs to obtain secure financing at the best cost, mitigating the risk of default, supporting the buyers’ payment terms, providing early payment to suppliers and strengthening the firm’s value chains. SMEs can obtain financing per their requirements to support their operational business processes. Moreover, SMEs can plan, manage and control finance-related transactional activities by correctly identifying financing solutions. Originality/value The present study contributes to SCM literature by developing and validating the SCF scale. To the best of the author’s knowledge, this is the first study that redefined SCF and identified its six dimensions.

Analyzing the Nexus Between Entrepreneurship and Business Mathematics - A Comprehensive Study on Strategic Decision-Making, Financial Modeling, and Risk Assessment in Small and Medium Enterprises (SMEs)

This research undertakes a comprehensive exploration of the symbiotic relationship between entrepreneurship and business mathematics, focusing on strategic decision-making, financial modeling, and risk assessment within the context of Small and Medium Enterprises (SMEs). The study aims to elucidate how the integration of mathematical models influences the operational dynamics of SMEs, ultimately shaping their ability to navigate uncertainties and foster sustainable growth. The investigation delves into the theoretical underpinnings of this nexus, drawing from established theories such as the Resource-Based View, Decision Theory, Financial Modeling Theories, Prospect Theory, Systems Theory, and Entrepreneurial Learning Theories. These frameworks collectively form the basis for understanding how SMEs strategically leverage business mathematics to optimize resource allocation, assess risks, and make informed decisions. Methodologically, a mixed-methods research design is employed, combining qualitative in-depth interviews with SME entrepreneurs and quantitative surveys distributed among a representative sample. The research design aims to provide a nuanced understanding of how mathematical models are applied in SMEs, capturing both the qualitative insights of entrepreneurs and quantitative data on the prevalence and impact of business mathematics in strategic decision-making, financial modeling, and risk assessment. Challenges and opportunities associated with the integration of business mathematics are discussed, including issues of expertise, data quality, perceived complexity, and cost constraints. The research highlights the potential for technological advancements, collaborative platforms, educational initiatives, and supportive policies to bridge these gaps and unlock the transformative potential of mathematical models in SMEs. The research contributes to the growing body of knowledge on the intersection of entrepreneurship and business mathematics, providing insights for SMEs, educators, policymakers, and researchers. The findings underscore the importance of mathematical literacy in the entrepreneurial landscape, offering practical implications for enhancing decision-making processes, financial strategies, and risk management practices within SMEs. Keywords: Entrepreneurship, Business Mathematics, Financial Modeling, Risk Assessment, Small and Medium Enterprises (SMEs), Entrepreneurial Finance, Probability Analysis.

Pro-environmental improving products Qualityin SMEs from the Visegrad Group Countries (V4)

Purpose: The aim of the article was to analyse the pro-environmental approach to products improvement by SMEs from the Visegrad Group (V4) countries. Design/methodology/approach: The research was survey. The survey research was carried out in traditional (paper) and electronic form (MS FORMS). The survey was directed at electronic industries (machinery processing) belonging to small and medium enterprises (SMEs) from V4 countries. The results presented in the article refer to sample size of 379 SMEs, obtained between March and September 2023. Results were analysed in statistical way, i.e.: ANOVA test and Mann Whitney U test by significance level equal to α = 0.05. Findings: SMEs in V4 countries have a similar approach to pro-environmental improving of products. It was shown that pro-environmental activities of SMEs from the V4 countries, the lowest consistency of assessments occurs in the following countries: Poland and Slovakia, Poland and Hungary, Slovakia and Hungary. Practical implications: The research results may contribute to more effective and coherent development activities of SMEs in the V4 countries as part of their sustainable development, and also to take appropriate actions that will be supporting qualitative and environmental products. Social implications: The results can help SME entrepreneurs improve their products to protect the natural environment. In addition, they can be the basis for the development of SMEs from the V4 countries and their unidirectional development, which includes not only improving the quality of products, but also caring for the environment. Originality/value: The originality of the research is the determination of the current pro-environmental approach to product improvement in SMEs in the V4 countries. The novelty is the provision of current data on the importance of improving pro-environmental products in SMEs from the V4 countries and their comparison between companies in the electrical machinery industry. Keywords: Visegrad Group (V4), SMEs, environment, quality, product improvement, production engineering. Category of the paper: Research paper.

Women entrepreneurs’ struggles during the COVID-19 pandemic and their use of social media

Small and medium enterprises (SMEs) throughout the world are facing a very complicated crisis due to COVID-19 pandemic and other structural challenges. This study is aimed at demonstrating the challenges faced by SMEs, particularly the struggles that women entrepreneurs of SMEs in Indonesia experienced to survive against these structural issues: COVID-19, digital presence and the male-dominated business sector in the country. Focusing on female-owned businesses in Yogyakarta, Indonesia, this paper carefully considers how social media platforms helped these businesses to continue. Using a descriptive quantitative approach, we collected data from 130 respondents and found that the COVID-19 pandemic has severely affected women entrepreneurs—especially those operating small and medium enterprises. They have experienced reduced income due to decreased sales, disrupted supply chains, difficulty paying credit instalments, and lack of access to government assistances. This study further sheds light on social media’s important role in sustaining women-owned businesses. Facebook, WhatsApp, and Instagram have become the new tools through which women promote their products and reach new audiences. To overcome this issue, we advise a stronger government intervention to women-owned SMEs in the post-pandemic. Aside from managing social media for selling, we recommend women-owned small companies to internally intensify digital engagement, promotions, coupled by innovative products and attractive offers such as discounts.

PENDAMPINGAN PENYUSUNAN LAPORAN KEUANGAN PADA KELOMPOK USAHA KECIL MENENGAH (UKM) DESA SUKAJADI

Small and Medium Enterprises (SMEs) are the most important economic activities to prevent competition from unfair competition. The place for community service that we chose was Sukajadi Village, precisely in kp. Gadog Sisi RT 03/RW 08, Tamansari District, Bogor Regency. The problem faced by SMEs is the lack of ability of SMEs in managing finances. The purpose of this community service is to make SME actors (Tempe SMEs, Kue Noga SMEs, Convection SMEs, and Strawberry Seed SMEs) aware of the importance of recording financial reports on central performance. The method used is to socialize the importance of financial reports for SMEs and provide assistance in preparing financial reports for SMEs. The result of this activity is that SMEs can know the importance of preparing financial reports that will make it easier for them in the future to prepare financial reports correctly. With the preparation of this simple financial report, SME entrepreneurs can share their own assets and their business assets. SMEs can also see that developments gain or lose.

Do innovation and proactiveness impact the business performance of women-owned small and medium-scale enterprises in Vietnam? A study using the PLS-SEM approach

Purpose: This study aims to identify and evaluate the relationship between factors and the business performance of women-owned small and medium enterprises (SMEs) in Vietnam focusing on the dimensions of entrepreneurial orientation factors such as innovation, risk-taking and proactiveness.
 Design/Methodology/Approach: Data were obtained from 350 female entrepreneurs of SMEs in Vietnam using a structured questionnaire. The partial least squares structural equation modeling method (PLS-SEM) was applied to find the cause-and-effect relationship between exogenous and endogenous variables.
 Findings: The results show that the business capacity of business owners, the quality of human resources, access to finance, social capital, entrepreneurial orientation and government policies positively impact the enterprise's business performance. The relationship between the three dimensions of entrepreneurial orientation and business performance is examined. In detail, proactiveness and innovation have a positive relationship while risk-taking negatively affects the business performance of women-owned SMEs.
 Conclusion: The study has shown the factors affecting the business performance of women-owned small and medium-sized enterprises in Vietnam and at the same time proved that EO is a multidimensional concept when the dimensions of EO tend to have different effects on business performance.
 Research Limitations and Implications: The research may lack a comparison in the field of SMEs to deeply understand the cause-and-effect relationship between exogenous and endogenous variables. Therefore, researchers are encouraged to test the proposed propositions further.
 Practical Implications: Research results provide insight for businesses, state management agencies, credit institutions and associations on policy-making and appropriate solutions to support and develop the enterprise.
 Contribution to Literature: The important impact of proactiveness and innovation on SMEs' business performance opens a new door to more research in business orientation.

Understanding the Motivations for SMEs in South Africa to Adopt Social Media

Since the covid-19 pandemic in 2020, many businesses have relied on social media to stay abreast with the latest news, developments and to predict the future world of business. Many countries around the world instigated lockdown restrictions to curb the spread of the covid-19 virus, and social media platforms were very popular tools used for spreading the news. The proliferation of social media has also increasingly drawn the attention of Small and Medium Enterprises (SMEs) in South Africa to improve their efforts of sustaining their businesses. Social media platforms have become popular in the business environments for their ability to increase market reach, transfer knowledge, and sustain the business. While many benefits of social media to enhance business performance have been studied, there are also skeptics on data privacy issues that social medial brings to the business. In the SME sectors in South Africa, social media are adopted due to their cost effectiveness and ease of use. However, little is known about the effect of data privacy issues on SME business performance. The literature of social media adoption indicates that the older generation of SME owners are skeptical about sharing their confidential business insight on social media platforms. This is despite the availability of many other literature studies that report on the increase of social media studies to enhance business sustainability. This study aims to produce knowledge for understanding the key motivations of SMEs to adopting social media despite the existence of data privacy issues on social media. Qualitative interviews were conducted with 13 SME entrepreneurs who were purposively selected based on their knowledge of social media, experience of its application in the business, industries and premises of the SME business in South Africa. The results of the interviews indicated that SMEs are generally aware of the data privacy issues surrounding the use of social media, and the adoption rate differs from younger and older generation of SME entrepreneurs.

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.

GELAGAT KEPATUHAN ZAKAT PERNIAGAAN DALAM KALANGAN PERUSAHAAN KECIL DAN SEDERHANA DI WILAYAH PERSEKUTUAN

Business-type Zakat is the second highest contributor in the Federal Territory, Kuala Lumpur. However, business zakat collection results are still satisfactory compared to the number of small and medium enterprises (SMEs) in the Federal Territory of Kuala Lumpur. Thus, the objective of this study is to investigate the factors that influence business zakat compliance behavior by SME entrepreneurs. The Theory of Planned Behavior (TPB) was used in the formation of the research framework. 401 questionnaires were analyzed using multiple regression. Five independent variables influence the behavioral intention of business zakat payers: attitude, subjective norm, perception of zakat distribution, the credibility of zakat center, and the role of amil zakat (R2 = 0.494). Of the three additional variables to TPB, only two showed a significant regression relationship value named as the credibility of the zakat center and the role of amil zakat. Meanwhile, the customer satisfaction variable shows a non-significant regression in the intention of the zakat payer's compliance behavior. Zakat compliance behavior is also influenced by the zakat payer's compliance behavior intention (R2 = 0.299). In total, six variables play an important role in aspects of business zakat compliance behavior and there are three additional variables that need to be paid attention to in future studies. The zakat authorities should pay special attention to each study result to find a solution to the zakat compliance issue of SMEs (Micro) in the Federal Territory of Kuala Lumpur.

Inventory management systems of small and medium enterprises in Bangladesh

PurposeInventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and medium enterprises (SMEs) in Bangladesh.Design/methodology/approachThe study applied a qualitative case study design. Data were collected from ten SME owners in Bangladesh. The study employed a purposive sampling technique to collect data. This study used semi-structured interviews to generate data. The NVivo software was used to analyze the data.FindingsThe findings show that most SME business owners collect raw materials from the local market. Along with the local sources, they collect raw materials from international markets. Some SME entrepreneurs collect raw materials throughout the country as they dealt with recycled products. Frequently, they used digital technologies and online media to manage raw materials. SME owners could not buy many raw materials due to financial crisis, wastage, and damage, leading to a ratio of 10–15% losses.Research limitations/implicationsThis research contributes greatly to the government, SME Foundation, and trade associations concerning the SME IM system. The study recommends the government should reduce the tax rate on importing SME raw materials and inventories and exporting SME products.Originality/valueThis is the first study that focuses on the IM systems of SMEs in Bangladesh.

PERSPEKTIF SISTEM INFORMASI AKUNTANSI SEBAGAI STRATEGI KOMPETITIF USAHA KECIL

Small and medium enterprises (SMEs) are the largest contributor to state revenues in Indonesia. However, along with the development of information technology, SMEs are forced to follow the use of information technology-based accounting information systems as a competitive strategy. The limited quality of SME human resources is the main factor hindering the use of accounting information systems to improve performance and competitive strategies to compete with other SMEs. Research journal research methodology is the choice of researchers to reduce the concept of novelty as an alternative strategy for improving the performance of SMEs. The concept of the novelty model is Subjective Planning Innovation, which is a plan that is owned, designed, stored, used and updated (innovation) that uses an indirect accounting recording system by SME entrepreneurs based on previous work experience (subjective). Furthermore, the model concept, dimensions and limitations of the study are explained in detail in this study.

Small and Medium Enterprise Development: Concept Overview of Stakeholder Engagement, Business Coaching, and the ADDIE Model in Training

There are various problems faced by Small and Medium Enterprises (SMEs), especially those related to business competition, technological developments, and transformation into the digital era. These various problems require the strategic role of the government and other stakeholders to be present to provide solutions. The ability of SME entrepreneurs can be developed through various forms of intervention, both in the form of mentoring and training. This study is intended to describe the concept of stakeholder involvement, assistance in the form of business coaching, and training programs using the ADDIE system model. There needs to be empirical research on government institutions that function to foster and develop SMEs in various forms, for example through business incubators or other formats

Analysis of a Factors Affecting Use of Accounting Information in Small and Medium Businesses (MSMEs) on Medan City

Small and Medium Enterprises (SME) are types of businesses that can be directly managed by communities or families, small and medium-sized businesses have a big impact on a country's economy, one of which is reducing unemployment. So SMEs must continue to grow from time to time, this is one of the most important things An important factor for SMEs to develop their businesses is accounting information (financial reports). This research is a descriptive study of small and medium enterprises in the city of Medan. Cooperation department. This study aims to describe the characteristics of SMEs, and as an understanding and trend of accounting, applications use but also provides an overview of SME from a demographic perspective. Research results according to the report, by gender, the majority of SME entrepreneurs are women. Leading the ethnic groups are Javanese and Batak. Most of the business fields carried out are trading business. Most SME entrepreneurs have recorded their business activities, but still in a very simple form. How many people run the accounting process that communicates the final results? accounting information, namely financial statements. SME follow and understand accounting training materials are provided by the cooperative.

What do we know about small and medium enterprises’ survival in a post-global economic crisis context?

Considering the impacts of the most recent global economic crisis in 2008/2009, this paper explores how firm size, type of business activity and approach to internationalisation influence SMEs’ survival. Based on the literature in the field, we developed three hypotheses regarding determinants of Small and Medium Enterprises (SME) survival. We tested these hypotheses in a 7-year quantitative study and a survey of 344 SMEs in Poland – the seventh largest market in the European Union. Our findings reveal that, in the context of crisis, internationalisation acts as a stimulus for SMEs and influences their long-term sustainability, with businesses operating in foreign markets being more likely to survive after a global crisis. However, neither business size nor the type of business activity appears to have an impact on SMEs’ survival in a post-global economic crisis environment. Our paper extends knowledge about factors influencing a firm’s post-crisis survival and proposes a new framework for understanding characteristics of SMEs and their propensity to survive in a post-crisis context. In our conclusions, we discuss implications for SME entrepreneurs showing that, in order to enhance chances of survival, even small and medium enterprises should consider expanding business activities beyond their national markets.

Reviewing Factors Affecting the Implementation of FAS-EWPA in Small and Medium Enterprises in Denpasar City

Small and Medium Enterprises (SMEs) play a role and contribute to the economy in Indonesia. To obtain additional capital from bank and non-bank financial institutions, SMEs are required to include financial statements as a condition for applying for loans. Financial Accounting Standards for Entities without Public Accountability (FAS-EWPA, in Bahasa Indonesia known as SAK-ETAP ) is a standard that is intended for business entities that do not have public accountability such as SME entities. This study aims to analyze the effect of providing information and socialization, entrepreneur education, length of business, business size, and perceptions of SME entrepreneurs on the implementation of FAS-EWPA. The research population is SME entrepreneurs who are located and registered with the Denpasar City Cooperatives and Micro, Small, and Medium Enterprises Service. The results showed that the provision of information and socialization, the perception of SME entrepreneurs had a positive effect on the implementation of FAS-EWPA. Meanwhile, entrepreneur education, length of business, and business size have no effect on the implementation of FAS-EWPA. It can be suggested that the role of related parties such as the government needs to be increased in providing socialization about the understanding of FAS-EWPA. Keywords: FAS-EWPA, Financial Reporting, SMEs.

Availability and Use of Technology Among SME Entrepreneurs in Mumbai and Navi Mumbai

The present research paper discussed the role of information and communication technology (ICT) within the small and medium enterprise (SME) sector in Mumbai and Navi Mumbai. ICT plays a significant role in maintaining business operations and to make businesses globally competitive. SMEs play a very important role in the economic growth and development in an economy and thus, it is important to focus on making them globally competitive with the use of ICT , as use of outdated technology or lack of technology also hampers growth of SMEs in India. The research focused on studying the availability and use of technology by entrepreneurs of SMEs in Mumbai and Navi Mumbai. The use of outdated technology or low level of use is one of the problems faced by SMEs to beat growing competition. SMEs should make use of different ICT tools for increasing competitiveness of their business. This research paper focused on availability and use of technology using structured questionnaire for data collection.

Exploring of Potential of Cloud Computing for Small and Medium Enterprises

Business activities such as human resources management, payroll, finance, and accounting are crucial for Small and Medium Enterprises (SMEs). Therefore, adopting technologies such as cloud computing is expected to improve SMEs’ efficiency. The migration from current business practices to cloud computing amongst SME entrepreneurs remains a challenge. Therefore, this study presents a short review of cloud computing concepts, the characteristics, types of cloud computing service models, and also cloud computing deployment models. This study highlights the benefits and challenges faced by SMEs entrepreneurs in adopting cloud computing. Also, this study explores the existing cloud computing services provided for SMEs. The present study aims to provide a better understanding of cloud computing’s potential to be applied in helping SMEs manage their business activities.