Small And Medium Enterprises Entrepreneurs Research Articles

Digital Inclusion Of Ict And Its Implication Among Entrepreneurs Of Small And Medium Enterprises

The emergence of new digital technologies and the existence of digital media has had an important impact in changing the operation of business environment. Correspondingly, the diversity of applications and digital media has now provided a broader space for the users, including the entrepreneurs, to enhance and upsurge their contact with customers and suppliers in entrepreneurship sector. Information and Communication Technology (ICT) and the Web are particularly the integrated and dynamic tool in nurturing entrepreneurship as well as act as the communication and marketing tool to grow the business. It is important to explore the new phenomenon in entrepreneurship that is closely related to ICT usage. The purpose of this study was to identify the patterns of ICT usage and to analyze the relationship between digital inclusion and its implications among entrepreneurs of small and medium enterprises (SMEs). The quantitative method is employed in this study with samples aimed at focusing on entrepreneurs in the Klang Valley. A questionnaire was distributed directly to 500 respondents aged between 18 to 55 years old. The data collected were analyzed descriptively and with correlation inference by using the SPSS software. The finding indicated a significant and strong relationship between digital inclusion and its implications (p <0.005, r = .685) among entrepreneurs of SMEs. It revealed that the entrepreneurs with high involvement in ICT usage have high implications in terms of innovation and business satisfaction. The study recommends that the government should play a dynamic role in education and training for the development of the SMEs as well as bridge the gap among the SMEs to adopt the use of digital media tools. In sum, the use of ICT contributes to enhance a number of benefits such as to be more competitive, innovative, expanding business networks and gaining more global marketing opportunities.

THE DEVELOPMENT OF CAPACITY BUILDING TO IMPROVE THE QUALITY OF HUMAN RESOURCES AMONG SMALL AND MEDIUM ENTERPRISES

Small and medium enterprises (SME) are those of business groups which are believed to survive even when economic crisis occurs. The increasing number of those business groups allows more job opportunities for people, and thus it could impact positively towards the decreasing number of unemployments. Unfortunately, the level of managerial skills and ability among SME are relatively low due to a number of SME entrepreneurs who still hold Bachelor degrees. In addition, the fact indicates that the quality of SME resources is low, especially in the fields of management, organization, mastery of technology and marketing. The low educational level among small and medium entrepreneurs was apparently not supported by capacity building through training, education, and programmed comparative studies. On the other hand, human resources (HR) also plays an important role in gaining success, because sophisticated and complete facilities cannot guarantee the success of an organization if they are not supported by quality of human resources who will use the facility. This study aims at examining strategies that can be used by SME as an effort to improve HR capacity using purposive sampling method; and then the data is analyzed using multi-linear regression. The result shows that capacity development which is proxied through education, skills and ability variables partially or simultaneously have positive and significant effects on HR development.

Perception of SME Management Regarding Islamic Banking: A Users vs. Non-users Comparative Analysis

Small and medium enterprises (SMEs) are playing a vital role in the Pakistani economy but they are facing a major constraint of lack of finance. The financial instruments being offered by Islamic banks can better meet the financial needs of SMEs but investment in Pakistani SMEs sector is not very high. The current study investigates the difference in perceptions among users and non-users of Islamic banking instruments in Pakistani SMEs sector. This is a primary data based study and its sample size comprises of 110 entrepreneurs of SMEs in the twin cities of Pakistan i.e. Rawalpindi and Islamabad. The study has used independent sample t-test for comparing the difference in the mean values of users and non-users of the Islamic banking products to test the hypotheses of the study. The results of the study show that there is a significant difference in perception among SMEs regarding Shariah compliance by Islamic banks, service quality, business development service and level of awareness regarding Islamic banking instruments due to which Islamic banking is not commonly used by Pakistani’s SMEs. This study is helpful to the top management of Islamic banks to devise strategies to clarify the misperception of non-users SMEs management regarding Islamic banking products.

Marketing of innovative products for environmentally friendly small and medium enterprises

The marketing of innovative products that are environmentally friendly is the concern of the global community and can compete with other products. This study aims to (1) describe the process of marketing innovative products for small and medium businesses that are environmentally friendly. (2) Analyze the role of small and medium enterprises in marketing innovative products that are environmentally friendly. Research informants are small and medium enterprises (SMEs) totaling 382. Data collection is carried out using qualitative methods. The results showed that (1) The number of small and medium enterprises (SMEs) registered until the end of 2017 reached 8300 units. This amount is quite large, and if managed properly it will increase regional revenues and reduce unemployment, especially if the existing SMEs are developed in environmentally friendly innovation products with a green marketing orientation, of course, this can increase the income of SME entrepreneurs (2) Entrepreneurs SMEs that carry out innovative products that are environmentally friendly are increasingly increasing marketing performance with increasing demand for the products they produce while increasing their income. Some of the SMEs, have carried out production processes that are environmentally friendly, and in fact have increased sales and income as well, because the public believes that the product produced is very clean, using raw materials that are truly safe, and certified Indonesian National Standards (SNI) and halal label, efficiency in the use of raw materials, energy and water which all can reduce operational costs.

Peran mediasi keunggulan kompetitif pada faktor determinan kinerja bisnis UKM di sentra tenun batik di Jawa Tengah

Industry era 4.0 poses challenges for Small and Medium Enterprises (SMEs) to expand their business into the global market, but there are still many obstacles related to the readiness of resources and technology. This study aims to analyze the influence of business strategy quality, seller behavior ethics, process innovation, entrepreneurship orientation perspective, and business environment adaptability to the business performance of SMEs, with the role of mediation of competitive advantage. This study is a quantitative inferential research with primary data sources through questionnaires. The sample that used in this study is 80 SMEs entrepreneurs of batik center in Central Java, who taken uses purposive sampling method. The data are analyzed using Partial Least Square Structural Equation Model (PLS-SEM) with SmartPLS software. The results of the first study show that the quality of business strategy and behavioral ethics of the seller partially positive effect on competitive advantage. The second finding of this study shows the quality of business strategy, seller behavior ethic, process innovation, entrepreneurship orientation perspective, business environment adaptability, and partial competitive advantage positively affect business performance. The results of this study are expected to be useful in theoretical development, especially strategic management.

Hubungan Antara Orientasi pada Kepuasan Konsumen dan Sistem Pemasaran Berbasis Syariah pada Usaha Kecil dan Menengah (UKM) di Banda Aceh

Abstract: This study aims to investigate the relationship between customers’ satisfaction orientation towards implementing Islamic marketing in Small and Medium Enterprises (SME) through examining the dimensions of service quality and Islamic marketing. In order to achieve the study objectives, questionnaires were designed and distributed over 185 samples of SME entrepreneurs in Banda Aceh. The questionnaires were collected and analyzed by using the modified SERVQUAL model and analyzed with Cronbach Alpha and multiple regression analysis. The study concluded that service quality represented by tangibility, responsiveness, assurance, and empathy were positively related towards Islamic marketing, with the exception of reliability variable that did not have any effect on Islamic marketing. The results of this study will be useful for policy-making by authorities in Indonesia that are responsible for the development of SME sector, especially the Islamic marketing system. Future research is needed to study further on the readiness of the customers for a full-fledged of Islamic marketing implementation.

Digital transformation by SME entrepreneurs: A capability perspective

AbstractThis research investigates how entrepreneurs of small and medium enterprises (SMEs) with inadequate capabilities and limited resources drove digital transformation in their companies, a phenomenon that remains under‐researched in the extant literature. We conduct qualitative research on digital transformation to cross‐border e‐commerce undergone by 7 SMEs on the Alibaba digital platform. We inductively derive a process model that aims to describe and explain how SME entrepreneurs, with support from the digital platform service provider, drive digital transformation through managerial cognition renewal, managerial social capital development, business team building, and organizational capability building. This model expands our understanding of both digital entrepreneurship and digital transformation. It also presents new insights into how digital platform service providers can help SMEs transform and compete.

Policies to enhance social development through the promotion of SME and social entrepreneurship: a study in the Colombian construction industry

The intent of this research is to propose and analyse a set of policies in the construction industry to enhance social development. First, the paper shows the connections between the development of small and medium enterprises (SMEs) and social entrepreneurship (SE), the reduction of the leakage, and then the generation of social value (SV) for sustainable regional development. For that, the article analyses briefly the literatures on SE and leakage, and focuses on the relevance of SME and social entrepreneurs as promoters of SV creation and development. Second, the paper proposes a framework and proposes a set of 20 policies aimed to reduce leakage, reinforce SMEs and entrepreneurship and also to promote SE behaviour by the diverse economic agents in the construction industry, in order to increase the generation of SV and sustainable development. Then, the paper analyses the acceptability, feasibility and viability of these proposed polices, which can be useful for academics and practitioners. For that, the study uses the Delphi methodology, applied to an expert-group of 23 professionals (representatives of the private and public sector) belonging to the Colombian construction industry. The results emphasize the relevance of the development of local incumbents and the social focus of firms to increase the generation of SV. Oppositely, policies interfering economic freedom and free trade receive the lowest rates in the three criteria considered.

Motivations of SME entrepreneurs to become halalpreneurs

PurposeThis paper aims to address the factors associated with a propensity for halal entrepreneurship among small and medium enterprise (SME) entrepreneurs.Design/methodology/approachData were gathered from SMEs in Malaysia by conducting a survey with 209 respondents. Data were analyzed with the partial least squares technique.FindingsResults indicated that halal entrepreneurship, intrinsic motivation, effort to seek out opportunity, perceived desirability, peer influence, perceived feasibility and perceived governmental support significantly affected halalpreneurial propensity among SME entrepreneurs. On the other hand, the effects of creativity and innovation, honesty and integrity, risk taking attitude, relative advantage and family supports on halalpreneurial propensity were not supported.Practical implicationsThrough identification of the motivational factors to be recognized as a halapreneurs, policyholders in Malaysia would be able to successfully promote halal entrepreneurship in this country. In this regard, policymakers can adjust their tactics and strategies in a way which encourage halal entrepreneurship among SME entrepreneurs.Originality/valueThis study aimed to serve as an initial step in understanding the cognitive process of SME managers in embarking on halal business.

Effects of global networks and the foreign migrant workforce on Thai SMEs' satisfaction with their export performance: the mediating role of international knowledge

This research investigates the interconnections of global networks, the sharing of the foreign migrant workforce and the international knowledge of the entrepreneurs' satisfaction with the export performance of small and medium enterprises (SMEs). The results of our partial least squares analysis using a sample of 170 Thai entrepreneurial SMEs provide significant evidence that the degree of international knowledge is significantly higher in those SMEs that strongly emphasised establishing and maintaining networks with people in foreign markets, as well as in those SMEs that employed a higher share of the foreign migrant workforce. The entrepreneurial SMEs that possessed a higher degree of international knowledge and employed a higher share of the foreign migrant workforce tended to exhibit a greater satisfaction about their export performance.

Accounting Record Keeping Practices in Small and Medium Sized Enterprise’s (SME’s) in Sri Lanka

Small and Medium Enterprises (SMEs) play vital role in many countries including Sri Lanka, because of its role for the country's economic growth. This study discovers the level of awareness towards the importance of Accounting Record Keeping Practices and its information usage in the business. The research design is based on a survey methodology using a sample of systematically selected SMEs in Gampaha District in Sri Lanka. The target population comprised of 100 SMEs operating retail shops, manufacturing firms and supplier’s of various services in Gampaha district in Sri Lanka. It was concluded that the most of the SMEs do not keep complete accounting records because lack of accounting knowledge and the cost of hiring professional accountants. As a result, there is an inefficient use of accounting information to support financial performance measurement by SMEs. This made it difficult for the entrepreneurs to calculate their business profit efficiently. Lack of keeping of accurate records was highly blamed on the lack of skills in this field by the owners or managers. The study further revealed that the owners and managers of SMEs were highly willing to learn more about how to keep accurate records of their business transactions. The results of the study also revealed that majority of the SMEs encounter problems of lack of accounting knowledge. This study recommended that that the responsible authorities should come up with an effective programme for training for SMEs entrepreneurs.

Socio-Economic Factors influencing Entrepreneurship Development: An Empirical study across the Small & Medium Enterprises of Chennai, State of Tamil Nadu, India

Entrepreneurship Development makes a powerful impact on the economic development of the country. The success of the entrepreneur depends on the environmental factors such as social, economic, legal, political and technological factors which influence their activities thus leading to successful entrepreneurship. The socio-economic factors are the major key factors influencing the entrepreneurial behavior and operation of the business and thus the need for the study and the due influence. This paper analyzes the impact of socio-economic factors in relevance to entrepreneurship development of Small and Medium Enterprises (SMEs) across Chennai, Tamil Nadu State, India.This paper attempts to explain the infrastructure that has to be developed in order to cultivate the quality of leadership among potential enterprising young men. Attempts are being made to inculcate the spirit of entrepreneurship. Our empirical results reveal that most of the selected entrepreneurs of SMEs perceive the relevance of these factors to the highest degree. They are tempted to enter the entrepreneurship sector because of the perceived opportunities available to make an appreciable profit.The study also reveals that the factors which are not considered to be of high importance in the bygone days, such as Education, Religion, Previous Experience, Family Type and Legal Status have a significant influence on the entrepreneurial behavior and the operational performance of the selected SMEs’ business, in the recent period. Thus, there exists a necessity for the Government and the related sponsoring institutions to look into these factors and encourage the young entrepreneurs who in turn will render their full support towards national economy.

Measuring Information Technology Capability of Small and Medium Enterprises in Rajasthan

Use of Information Technology (IT) at the functional level by the small and medium enterprises (SMEs) is a recent phenomenon. Moreover, IT adaptation by the SMEs in India is at an emerging phase. As investments in IT continue to grow, SMEs managers’ awareness of the need to derive the value of IT is also increasing. Research has shown that SME managers are increasingly adopting new IT technologies in all aspects of business activities. On the backdrop, this research intends to measure information technology capability (ITC) in SMEs in Rajasthan state. ITC is a firm’s ability to acquire, deploy, and leverage its IT related resources in combination with other resources in order to achieve business objectives through IT implementation. The paper identifies four dimensions, viz. IT infrastructure, IT architecture, IT human resource, and IT relationship resource, in an effort to measure the ITC construct. To accomplish the above objective a sample of 193 SMEs have been surveyed through a pre-tested questionnaire. Results suggest that model fit statistics are reasonably acceptable and IT human resource as a significant contributor to the ITC construct followed by IT architecture. The study may help the firms to leverage technology to differentiate them from competition. SME managers and entrepreneurs will be able to develop a clear understanding of the critical components of ITC and their role in supporting and shaping business strategy.

Does patenting influence SME sales performance? A quantity and quality analysis of patents in Northern Italy

Purpose – In today’s economy, intangibles have become more important than physical assets for firm success. In particular, small and medium enterprises (SMEs) registered an increasing trend in patenting, exceeding large firms in the number of patent registrations. In this context, the purpose of this paper is to investigate the association between patents and SME sales performance, taking into consideration also patent quality. Design/methodology/approach – The approach uses panel regression model to investigate the relationship between patenting and sales, controlling for firm size and firm age. The authors adopt a purposive sampling technique focusing on a sample of Italian SMEs in the mechanical industry. Findings – The results show that the count of patents do not have any effect on sales performance, while the number of jurisdictions where the protection is extended produces a positive and significant result. Practical implications – The main implication for SME entrepreneurs and managers is that relying on a large number of patents does not automatically lead to higher performance; instead, filing those patents which protect particularly valuable innovations could be more productive in terms of SME sales performance Moreover, the results suggest that a longer time lag between patent filing and SME sales performance might be possible. Originality/value – This paper is one of first attempts to shed light on the issue regarding SMEs patent quality. It is notable that the quality of patents in terms of geographical scope is positively associated to SME sales performance.

The Comparative Analysis of Gender and Social Network among Malay SMEs Entrepreneurs in Malaysia

 Abstract— The purpose of this paper is to make comparison in terms of social network between male and female Malay entrepreneurs in Small and Medium Enterprises (SMEs) in Malaysia. Social network is defined as interrelationship between the entrepreneurs and their contact (alter) in business venturing. However, there is limited understanding on how the entrepreneurs use their social network. Moreover, there is dearth attention given to investigate the social network in developing country especially in Malaysia. Both social network theory and structural perspective were employed in this quantitative-based study. The data gathered through the mail questionnaire method in which 93 are male and 72 female respondents representing 53 percent responded. Using t-test, the study reveals that there is no significance difference in terms of network size, network activity and network density for both genders. Implications and direction for further research are also presented. entrepreneurs in SME firms in Malaysia. The research tries to answer the question of: Do Malay male and female entrepreneurs have significant difference in terms of network size, network activity and network density? In addressing the above question, we make the following contributions. First, little attention given to study the social network in Malaysia, therefore this study shed light on the structural perspectives to spark the attention in understanding the social network phenomenon. Second, entrepreneurship scholars have failed to notice on how the social network is used and give the benefit to the firm (14). Therefore, we advance the research on the value of social network specifically on Malay entrepreneurs who struggle to survive in business in their mainland. Lastly, most of the social network-based research focuses on cause-and-effect of the network; however the current study employs the comparative study between male and female. We hope that the findings of this study will serve a benefit to the entrepreneurs especially for those who have an intention to start the business.

Factors Affecting the Development of Long-Term Relationships Among SME Entrepreneurs in the Malaysian Agro-Based Industry

A strategy based on long-term relationships is considered one of the most effective options, especially for small and medium enterprises (SMEs), to be competitive and sustainable in the market. There are many benefits that can be obtained from long-term relationships that include efficiency and effectiveness in operations, total cost reduction, better delivery performance, and higher profit. Thus, the objective of this study is to determine factors that influence the development of long-term relationships among SME entrepreneurs in the Malaysian agro-based industry. The data collected from 226 entrepreneurs has revealed 7 important factors that influence the development of long-term relationships of SME entrepreneurs with their preferred buyers. These factors were trust, reputation, quality, satisfaction, power/dependence, relationship specific investments and communication. This result provides a basis for managers to put more effort into developing business relationships in order to create high competitive advantage in the market.

Management skills and entrepreneurial success of small and medium enterprises (SMEs) in the services sector

This study attempts to analyze the contribution of entrepreneurs in terms of their management skills towards the success of small and medium enterprises (SMEs) in the services sector in Malaysia. The methods used are descriptive analysis, Pearson correlation, stepwise regression procedures and t-test. The data for the study were collected through mail questionnaires sent out to selected entrepreneurs of SMEs. Of the total number 500 questionnaires mailed, 186 entrepreneurs responded and completed the questionnaires. The empirical information resulted from analyzing the data obtained from the 186 entrepreneurs suggests the findings that high entrepreneurial success was associated with high business operating skills, skills to obtain market share that suits their size and capability and skills to offer more special services; with bumiputera and non-bumiputera being indifferent in their perception towards management skills that affected their success.

Nature and antecedents of a marketing approach according to Italian SME entrepreneurs

PurposeThe purpose of this research is to explore the conception of marketing held by entrepreneurs of Small and Medium Enterprises (SMEs), in comparison with that proposed by researchers using different paradigms (i.e. the transactional, relationship, or inductional marketing). It then seeks to examine the determinants of the entrepreneurs' intention to adopt a marketing approach in their firms.Design/methodology/approachThe research is articulated in a pilot and a main study, which were carried out on a stratified sample of more than 200 Italian entrepreneurs. It adopts exploratory research techniques to investigate the entrepreneurs' perceptions of the marketing concept and applies Ajzen's Theory of Planned Behavior to quantitatively assess the psychological antecedents of their intention to adopt a “marketing approach” (i.e. what they mean by that).FindingsResults clearly show that the “concept of marketing” as perceived by Italian SME entrepreneurs differs from that proposed by academic researchers and subjective norm (as an indicator of corporate culture) is the main determinant of the entrepreneurs' intention to adopt a marketing approach.Research limitations/implicationsThe research stresses that a wide gap exists between academic researchers' and entrepreneurs' conceptions of marketing. The existence of a proper organizational culture can foster the diffusion of a marketing approach among firms.Originality/valueThe research contributes to the literature on contemporary marketing theory and practice, by showing the existence of a need “to market the marketing approach” at least among Italian SME entrepreneurs.

Acquisition of tacit marketing knowledge

PurposeFocusing on entrepreneurship in China's emerging economy, this paper aims to explore the extent to which the human capital and social capital of Chinese entrepreneurs facilitates their acquisition of tacit marketing knowledge.Design/methodology/approachObservation and literature review are presented.FindingsThe paper proposes a conceptual framework that links tacit marketing knowledge and entrepreneurs' human and social capital. When accessibility of the general knowledge of expertise and professional business in a society is low, Chinese entrepreneurs in small and medium enterprises (SMEs) thus depend on their own resources of human capital and abilities of social capital to acquire tacit knowledge. Both specific and general human capitals facilitate Chinese entrepreneurs' acquisition of tacit marketing knowledge. With a strong awareness of the low level of institutional trust in the current transition economy, Chinese entrepreneurs develop the interpersonal trusting relationship to gain social support. Through the trust and trustworthiness, the quality of relationships in business networks creates the personal relational resource for tacit knowledge reciprocity.Originality/valueThis paper fills the gap in the literature by identifying critical intervening components of human and social capitals in the entrepreneurship process in China's emerging market knowledge which have previously remained untouched. The key issues of how Chinese entrepreneurs of private SMEs initially acquire knowledge‐based resources to operate their businesses are critically proposed.

How do we explain the capital structure of SMEs in sub‐Saharan Africa?

PurposeThe purpose of this study is to examine the determinants of capital structure decisions of small and medium enterprises (SMEs) in Ghana. The issue is very relevant considering that SMEs have been noted as important contributors to the growth of the Ghanaian economy.Design/methodology/approachRegression model is used to estimate the relationship between the firm level characteristics and capital structure measured by long‐term debt and short‐term debt ratios.FindingsThe results of the study suggest that variables such as firm's age, size, asset structure, profitability, and growth affect the capital structure of Ghanaian SMEs. Short‐term debt is found to represent an important financing source for SMEs in Ghana.Originality/valueThe findings of this study have important implications for policy makers and entrepreneurs of SMEs in Ghana.