Support Small And Medium Enterprises Research Articles

THE IMPACT OF COVID-19 ON SMALL AND MEDIUM ENTERPRISES (SMEs) ACCESS TO FINANCE IN THE WESTERN AREA OF SIERRA LEONE

<p>The objective of this study is to investigate the impact of COVID-19 on Small and Medium Enterprises (SMEs) access to finance, measured as access to bank credit, for expansion of business. A survey was conducted with a total of 450 registered SMEs randomly selected from the list of registered SMEs in the Western Area of Sierra Leone for the years 2018, 2019 and 2020. The model draws from El-Said et al. (2013) approach. We also applied a quantitative approach, through the estimation of a probability model for the access to finance determinants. However, we used a panel data framework where we investigated the determinants of access to bank credit for the periods 2018, 2019 and 2020, which are the most recent three-year periods prior to our survey. We also investigated whether this access was stronger during the COVID-19 pandemic period (2020) than the 2018 and 2019 which were pre-pandemic periods. The results show that the year COVID-19 (2020) has the same chance of getting a bank loan as the pre-COVID-19 years (2018 and 2019), in spite of the business uncertainty and the downturn associated with such a pandemic. In this regard, a robust mechanism for strong SME support outside the bank is imperative. This requires strong government and donor support, driven by coordination among the Ministry of Trade, Central Bank, Ministry of Finance, SMEDA and donor partners. The process may require a strong FinTech application in a peer-to-peer framework to achieve its goal efficiently.</p><p><strong>JEL:</strong> F13, F15</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0707/a.php" alt="Hit counter" /></p>

Digital taxation, artificial intelligence and Tax Administration 3.0: improving tax compliance behavior – a systematic literature review using textometry (2016–2023)

PurposeThis paper aims to analyze the impact of tax digitalization, focusing on artificial intelligence (AI), machine learning and blockchain technologies, on enhancing tax compliance behavior in various contexts. It seeks to understand how these emerging digital tools influence taxpayer behaviors and compliance levels and to assess their effectiveness in reducing tax evasion and avoidance practices.Design/methodology/approachUsing a systematic review technique with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses method, this study evaluates 62 papers collected from the Scopus database. The papers were analyzed through textometry of titles, abstracts and keywords to identify prevailing trends and insights.FindingsThe review reveals that digitalization, particularly through AI and blockchain, significantly enhances tax compliance and operational efficiency. However, challenges persist, especially in emerging economies, regarding the adoption and integration of these technologies in tax systems. The findings indicate a global trend toward digital Tax Administration 3.0, emphasizing the importance of regulatory frameworks, capacity building and simplification for small and medium enterprises (SMEs).Practical implicationsThe findings provide guidance for policymakers and tax administrations, underscoring the necessity of strategic planning, regulatory backing and global cooperation to effectively use digital technologies in tax compliance. Emphasizing the need for tailored support for SMEs, the study also calls for expanded research in less represented areas and specific sectors, such as SMEs and developing economies, to deepen global insights into digital tax compliance.Originality/valueThis study has attempted to fill the gap in the literature on the comprehensive impact of fiscal digitalization, particularly AI-based, on tax compliance across different global contexts, adding to the discourse on digital taxation.

Investigation of artificial intelligence in SMEs: a systematic review of the state of the art and the main implementation challenges

AbstractWhile the topic of artificial intelligence (AI) in multinational enterprises has been receiving attention for some time, small and medium enterprises (SMEs) have recently begun to recognize the potential of this new technology. However, the focus of previous research and AI applications has therefore mostly been on large enterprises. This poses a particular issue, as the vastly different starting conditions of various company sizes, such as data availability, play a central role in the context of AI. For this reason, our systematic literature review, based on the PRISMA protocol, consolidates the state of the art of AI with an explicit focus on SMEs and highlights the perceived challenges regarding implementation in this company size. This allowed us to identify various business activities that have been scarcely considered. Simultaneously, it led to the discovery of a total of 27 different challenges perceived by SMEs in the adoption of AI. This enables SMEs to apply the identified challenges to their own AI projects in advance, preventing the oversight of any potential obstacles or risks. The lack of knowledge, costs, and inadequate infrastructure are perceived as the most common barriers to implementation, addressing social, economic, and technological aspects in particular. This illustrates the need for a wide range of support for SMEs regarding an AI introduction, which covers various subject areas, like funding and advice, and differentiates between company sizes.

Organisational competencies: The Essence of Emerging Resilience

This paper investigates organisational resilience as an emergent property arising from the interactions of specific organisational competencies. Drawing on the principles of emergence and the Resource-Based View (RBV) theory, the study aims to support Small and Medium Enterprises (SMEs) by identifying the competencies that contribute to resilience; and defining how these competencies should interact for an organisation to be considered resilient. The paper outlines the process for consolidating an organisational resilience framework based on the ISO 22316 and BS 65000 international standards, as well as on the resilience cycle defined by the Fraunhofer institute. The methodology employed in this study includes a review of the relevant literature on organisational resilience, systems thinking, and the RBV theory. Additionally, the paper provides an analysis of the relationships between the three pillars of the framework, as well as the identification and merging of activities and abilities from both the ISO 22316 and BS 65000 standards. The study then identifies the organisational competencies required to acquire the abilities and execute the activities present in the organisational resilience framework. It also classifies the identified competencies into a competence atlas based on Erpenbeck’s competence atlas but adapted to organisational competencies. The methodology applied in this work supports SMEs by defining a process for: identifying organisational competencies; and, defining their interactions to achieve desirable properties at the organisational level, while offering significant insights for the strategic planning process of organisations. Furthermore, it aims to raise awareness on the importance of carefully analysing the interactions among organisational assets in complex operational scenarios. Finally, the findings obtained, provide organisations with a set of organisational competencies, classified into a competence atlas, which enables them to become resilient in accordance with a resilience framework based on internationally recognized standards.

Spatial agglomeration of information services industry and its evolution: Evidence from the Pearl River Delta, China

AbstractThe information services (IS) industry, which facilitates industrial transformation and upgrading, has emerged as a key driving force behind China's economic growth in recent years. More evidence can be accumulated from the Pearl River Delta (PRD), one of the largest transforming economies and IS gathering region in China. Firstly, this paper investigates the spatial patterns and dynamics of IS agglomeration in the PRD from 2003 to 2018, using the spatial autocorrelation analysis and Kernel density analysis. Secondly, a dynamic panel model with a system generalized method of moments (SYS‐GMM) estimation is employed to identify the factors significantly influencing the industry agglomeration economy. Results show that: (1) Large firms continue to gather in the core area of major cities, while smaller firms show a more balanced distribution from the core to periphery regions. The spatial proximity of firms proves that micro firms benefit less from industrial agglomeration compared to larger ones. (2) The effects of agglomeration externalities on economic growth remains positive, with labor force and commuting costs playing a vital role in the expansion of the IS industry. By integrating geo‐spatial information and empirical evidence, this study contributes to China's understanding and experience as a late‐developing country in the digital economy era. Finally, policies supporting small and medium enterprises (SMEs), improving the effectiveness of government subsidies, and strengthening industry‐university research cooperation are proposed.

State support for small and Medium-sized businesses as the Most important factor in Political stability

the purpose of the article is to study the mechanisms and instruments of state support for small and medium enterprises (SMEs) as a factor of political stability. To do this, it is necessary to substantiate the relevance of state support for SMEs in Russia; consider strategic priorities and directions for expanding its capacity; highlight the urgent problems of the systemic strategic development of SMEs in the current market macroeconomic conditions; outline the prospects for the development of SMEs based on the construction of a matrix of predictable risks. Materials and research methods. In the course of the work, a wide range of research methods was used. The use of the legal and regulatory method makes it possible to characterize the key elements of the domestic legal field related to state regulation of SMEs. Within the framework of the statistical method, the formation of the information base necessary for the study of the current state and development trends of SMEs is carried out. On the basis of the logical method, causal relationships are built between the patterns of development of SMEs and market factors that influence it. The analytical method creates conditions for the use of verified diagnostic tools for key performance indicators of SMEs. When using the monographic method, the most important regularities and features of the development of SMEs are focused in the current macroeconomic environment.

ICT's Impact on SMEs in Zanzibar: A 360-Degree Appraisal

The integral role of Information and Communications Technology (ICT) in global socio-economic growth is universally acknowledged. Zanzibar, too, recognizes ICT's potential to foster enterprise development. This study conducts a focused analysis of the symbiotic relationship between ICT and small and medium enterprises (SMEs) in Zanzibar, encompassing ICT's significance, adoption challenges, and its impact on SMEs' growth. Employing a descriptive research design, data collection involved a structured questionnaire distributed to a random sample of 100 respondents. Analysis was conducted using the Statistical Package for Social Science (SPSS), yielding insights communicated through percentages, tables, and graphs. The findings underscore ICT's pivotal role in SME development, with a substantial proportion deriving benefits from its integration. Key variables—ICT's importance, implementation, and influence—are identified as catalysts for improved SME performance. However, challenges persist, including limited expertise, slow internet, setup costs, and security concerns, underscoring the need for refined ICT strategies. Recommendations echo the importance of continuous ICT enhancement, advocating for advanced tools to secure competitive advantages. Moreover, policy interventions by governmental bodies and private entities like the Chamber of Commerce are deemed necessary to facilitate SME education, training, and advisory services. This collective effort promises not only individual business growth but also national economic advancement.In summation, while ICT is a linchpin, factors like technology, customer care, and trust are equally vital. Governmental support for SMEs' effective ICT integration emerges as a core necessity, propelling Zanzibar's SMEs towards amplified growth within an increasingly digital landscape.

Impact of cloud computing as a digital technology on SMEs sustainability

PurposeThe purpose of this study is to investigate the adoption of cloud computing as a digital technology by small and medium enterprises (SMEs) and assess its impact on sustainability of such enterprises.Design/methodology/approachA model was developed that featured factors influencing SMEs sustainability. Primary quantitative data was gathered using a survey as an instrument. Total set of n = 387 responses were gathered using a convenience sampling method.FindingsFindings reveal that cost reduction, ease of use, reliability and sharing and collaboration factors have significant statistical impacts on SMEs sustainability, whereas privacy and security factor has no significant statistical on SMEs sustainability.Practical implicationsThe study poses significant implications on managers and SME development authority to create an inductive environment for technological support for SMEs’ sustainability.Originality/valueThe study enhances SMEs’ performance and sustainability by upgrading their existing information and communications technology as a digital infrastructure and benefiting from novel IT-based cloud revolution. Several studies have provided an understanding of the use of cloud computing services in SMEs but lack enough information about the challenges and impact on SMEs sustainability.

The extent of accessibility of microfinance services by SMEs owned by Women

This study sought to establish the extent of accessibility of microfinance services by Women SMEs in Zimbabwe. There is a growing importance and contribution of women-owned Small and Medium enterprises (SMEs) to economies’ in the world to their economic growth and employment creation. However, the majority of SMEs continue to face constraints in their access to resources, and women-owned SMEs are not spared resulting in entrepreneurial gender financing gap. This study’s purpose was to develop a framework for enhancing access to finance from microfinance institutions (MFIs) to women-owned small and medium enterprises (SMEs) in Harare, Zimbabwe. This study was motivated by the inadequacies in the frameworks existing in both developed and developing countries including Zimbabwe, that holistically address enhanced financial access to credit from MFIs by women-owned SMEs. A cross-sectional, mixed method study was employed with both quantitative and qualitative methods being utilised. The collected quantitative data were analysed using factor analysis with the help of Statistical Package for Social Sciences (SPSS version 26) while qualitative data was analysed using thematic analysis with the help of NVivo (version 11). The key findings that comprised the developed framework of enhanced financial access from MFIs by women-owned SMEs revealed that facilitating factors are: women SME support systems, efficient infrastructure, collaborations, and regulated interest rates. On financial access constraints faced by women-owned SMEs, the findings are; women SME’s informality, inadequate infrastructure, MFI’s prohibitive charges, poor financial position, illiteracy, non-sensitised MFI products and services, stereotyping and lack of collateral. Lastly, the appropriate and affordable financial products and services at the women SMEs’ disposal are MFIs’ innovative products and services, sufficiently capitalised MFIs, capacity building, business capital, micro-Insurance, group loans, financial literacy and business start-up coaching, online applications and government support. The study developed a framework that assists MFIs and women-owned SMEs to enhance accessibility to finance between them. The framework informs policy that achieves gender responsiveness, equality and equity for both male and female entrepreneurial financing initiatives for an inclusive and sustainable economic growth and development.Keywords: Microfinance, Accessibility, Microfinance institutions, Women-owned small and medium enterprises, Microfinance products and services

Development of directions for optimizing the conditions for the functioning subjects of small and medium businesses in the Republic of Kazakhstan based on the experience of developed countries

The article reveals the development of directions for optimizing the conditions for thefunctioning subjects of small and medium businesses in the Republic of Kazakhstan based on theexperience of developed countries. The article introduces the study of small and medium businessesdevelopment based on the experience of the United States, France, Germany, and Singapore. Theworld experience is of particular interest in studying the facilitation of state support for small andmedium enterprises. The particular attention is focused on the role and significance of the SMEsactivities in various countries, namely, the micro and macroeconomic indicators, such as the levelof competition and employment, the introduction of new technologies and production efficiency,structural changes in the economy, etc. depend on the efficiency and scale of the SMEs activity.The experience of developed countries indicates that the development and expansion of smalland medium-sized enterprises create favorable conditions for economic recovery, a competitiveenvironment is being developed, as well as the sectoral and regional monopoly is being overcome.

A novel value-based multi-criteria decision making approach to evaluate new technology adoption in SMEs.

The modern competition is moving quickly toward incorporating cutting-edge technological improvements to support Small and Medium Enterprises (SMEs) in enhancing their business models. Making decisions regarding implementing new technologies in SMEs is a challenging process driven by the continuous new advances in the technology industry. Important operational process decisions, such as organizational investment costs, technology acquisition, maintenance, customer experience, employee training for the proper use of each technology, reliability requirements, and security needs, must be made very carefully for such adoptions. In this research, a novel multi-criteria decision-making process model is presented to help SME decision-makers choose the optimal technology from a list of desirable choices. The proposed approach makes use of a weighted multi-criteria decision model to rank parameters by combining many criteria that are crucial in choosing the best-suited technology. A literature review and expert opinion are utilized to pinpoint key decision-makers for the adoption of technological innovation. Specialists had reviewed the proposal in the field, and early findings suggest that it might be helpful to SME decision-makers in promoting customer value and firm performance.

Evaluating the adoption of e-banking services by SMEs in the common monetary area

There has been limited study from a southern-African perspective investigating factors that affect the adoption of e-banking specific to small and medium enterprises (SMEs) in developing African economies. To date, little is known about SME uptake of e-banking in the southern African common monetary area (CMA), comprising South Africa, Lesotho, Namibia, and Eswatini. This knowledge gap is problematic for banks in providing SME support for the transition to e-banking, given the current move by banks toward embracing digital strategies. This study focused on a single bank with a large footprint in the CMA, intending to add to the body of academic knowledge regarding the adoption of e-banking services by SMEs. It employed a qualitative methodology involving one-on-one, semi-structured, open-ended interviews with purposefully selected Bank X staff in each country of the CMA, using the literature reviewed to identify themes relevant to the proposed conceptual model. The conclusions of this research have led to a framework for e-banking adoption. A framework such as this may positively impact the profitability and sustainability of an SME by ensuring the adoption of e-banking services and utilization of available financial products to improve business opportunities via the e-banking channels of Bank X.

Komparasi Kualitas Informasi Akuntansi dan Strategi Bertahan UMKM di Masa Pandemi

This article aims to explore the impact of the global epidemic of Coronavirus Disease 2019 (COVID-19) for Small and Medium Enterprises (SME) in Indonesia and Malaysia using social dynamic theory, in order to add insight into the handling carried out by each of them. Each of these countries is facing a crisis during the COVID-19 pandemic and seeing how Covid-19 affects accounting practices which have implications for the quality of accounting information. SME are one of the sectors with a major contribution to a developing country such as Indonesia and Malaysia. This research is a literature review study, which uses data from previous research articles in the Mendeley database. A total of 13 articles were reviewed using the keywords, “survival strategy”, “quality of accounting information”, “SME”, “covid-19”, “Indonesia”, “Malaysia”. From the articles reviewed, 13 articles show that there are similarities regarding SME survival strategies with digitalization and differences in government policies in funding support for SME in the two countries, as well as the impact on the quality of accounting information during the pandemic.
 Keywords: Survival strategy; Quality of accounting information; SME; covid-19; Indonesi; Malaysia.

Small Businesses’ Awareness, Experience and Attitude towards Microfinance in Asmara, Eritrea

It is universally accepted that Micro Finance Institutions (MFIs) have a significant contribution in supporting Small and Medium Enterprises (SMEs) and buttressing the economy of developing countries. This study attempts to identify the problems that small businesses in Eritrea face while also measuring their awareness and attitudes towards microfinance. We collected data through questionnaires from 145 small business owners, classified into beneficiaries and non-beneficiaries of MFI loans. We find that there is considerable lack of awareness about and positive attitude from the beneficiaries towards MFI. The biggest challenge facing SMEs is financial constraints. We find that MFI is helpful in addressing the financial limitations faced by the beneficiaries. These findings underline the need to ramp up sensitization efforts and to increase access to loans for SMEs by privatizing and proliferating MFIs in Eritrea.

Dual Embedding as EPO Strategy in Creatively Connecting Cultures to Support SME Internationalization

Although small and medium enterprises (SME) from one country have dependencies on state sponsored export promotion organizations (EPO) for internationalization, EPOs are limited by bureaucracy and protocols to offer adequate support beyond a few generalized ones. Extant research on EPOs contribution in SME internationalization remains inconclusive. We examine how an EPO can identify and address performance challenges through a longitudinal study of the French Embassy’s Trade Mission in Kazakhstan. Our analysis reveals how the French EPO navigated the challenge of cultural distance and structural rigidity through a strategy process of organizational transformation with dual embedding, negotiated reformulating and creative combining as constituents. The recursive process led to refining services toward improved SME internationalization. Our study extends EPO research to corporate entrepreneurship and strategy process.

Impacts of COVID-19 crisis on innovative work behaviour in Vietnam

Adapted from current literature, this study develops the model of the relationship between knowledge sharing and innovative work behaviour with the promotion of trust, Organizational Rewards system, Management Support in Vietnam. The author builds hypotheses based on the literature review and presents an integrated research framework. This study focuses on how innovative work behaviour can help firms survive during the COVID-19 crisis. We take insights into previous crises through evaluating popular articles and identifying fundamental innovation management mechanisms that could be efficient in the open-ended COVID-19 crisis to achieve this objective. In addition, our review of a large body of literature highlights several knowledge sharing mechanisms that may support small and medium enterprises (SMEs) to cope with the COVID-19 crisis. The consulted empirical studies demonstrated that trust, reward, and management support positively impact explicit knowledge sharing and tacit knowledge sharing. At the same time, innovative work behaviour is driven by knowledge sharing and tacit knowledge sharing. Our research results have produced some practical significance and contribute to stimulating the power of knowledge sharing and innovative work for sustainable development in Vietnam. The widespread crisis activated unprecedented changes in how firms are administered and managed. Therefore, firms can adjust them to form the business sustainable and resilient using the suggestions made by considering our findings. To the best of the authors’ knowledge, this is the first study to explore the impact of the pandemic and analyse firms’ responses to the crisis in management innovation in a Vietnamese context.

How leadership styles influence organizational outcomes: an empirical study in Vietnamese SMEs

PurposeThe purpose of this paper is to investigate the impact of leadership styles on different organizational outcomes and value structure such as: overall business performance, working style, motivation and trust of employees, management efficiency and corporate culture in the context of Vietnamese small and medium enterprises (SMEs).Design/methodology/approachThe authors perform a qualitative analysis and gather data by conducting conversational semi-structured interviews with 51 SME managers from different industries. Data were analyzed using a step-by-step approach following Creswell.FindingsThe study explores the effects of leadership styles on various organizational outcomes. Given the features of SMEs, it sheds light on the significance of leadership styles in changing work environment, increasing staff retention, and promoting the viability of SMEs. It also discusses the selection of leadership styles in accordance with Vietnamese culture.Practical implicationsThis study has practical implications on human resource management in the context of SMEs. SME managers, training providers and support agencies may utilize the research outcomes to raise the awareness of SMEs leaders. Based on the research findings, appropriate training programs should be developed to assist managers in tackling major problems.Originality/valueAlthough several previous studies have tried to investigate the influence of leadership styles on organizational outcomes, this is the first research to explore the topic in the context of SMEs and in conjunction with the Vietnamese culture.

Policies to Support Small and Medium Enterprises in Participating in International Trade: Experiences of Southeast Asian Countries and Lessons for Vietnam

This paper applies a secondary research method with the use of available literature about some South East Asia countries’ policies to support small and medium enterprises (SMEs) to participate in international trade. The paper then analyses the ways in which these countries have promoted the SME sector in their countries to integrate deeply and widely into the international economy and draws five important lessons for Vietnam: Firstly, support trade promotion for SMEs. Secondly, support Vietnamese SMEs to boost exports through e-commerce. Thirdly, support SMEs to participate in industry clusters and global value chains. Fourthly, implement solutions to improve the product quality of SMEs, creating competitiveness in the international market. Fifthly, implement the National Single Window (NSW) with special incentives for SMEs.

Assessing the Efficiency of Russian Business Support Institutions in the Digital Economy

Aim. The presented study aims to determine methodological approaches to assessing the efficiency of government regulation and support of small and medium enterprises in the context of the digitalization of the economy, to propose directions for its improvement, and to consider institutions and tools that could contribute to solving the problems of small enterprises in the post-COVID period.Tasks. The authors examine the major problems in the development of small and medium enterprises (SMEs) in Russia, potential opportunities and solutions; analyze the main problems of SME support; determine indicators and criteria for evaluating the efficiency of this type of national and municipal administration.Methods. This study uses the methods of abstraction and aggregation, historical analysis and synthesis, induction and deduction, systemic and structural approaches.Results. The results of the study prove that the assessment of the efficiency of government regulation and support of small and medium enterprises in the context of the digitalization of the economy should be considered not only using KPI, but also by applying extended criteria and indicators at various management levels as part of an integrated approach. This makes it possible to determine why SMEs, which traditionally experience a lack of financial resources, use government support mechanisms to such a small extent.Conclusions. In Russia, government support is provided to SMEs in the form of guarantees and benefits, subsidization of the costs of leasing contracts and participation in advertising campaigns and exhibitions, co-funding of regional system-forming business projects. At the same time, the most important factor in optimizing the system of government regulation and support of entrepreneurship is the creation of digital space infrastructure to increase the efficiency of interaction between the government and business structures, since the existing system is not optimal.

What Drives Senegalese SMEs to Adopt Renewable Energy Technologies? Applying an Extended UTAUT2 Model to a Developing Economy

Renewable energy technology (RET) can help small and medium enterprises (SMEs) in developing economies to both meet the need for a stable energy supply and contribute to the fight against climate change. In Senegal, SMEs have the opportunity through RET to become electricity prosumers. Whether it works as such in Senegalese SMEs is one of the questions we were able to address through qualitative interviews with 23 SMEs and 13 experts. Using qualitative content analysis, we examined what factors promote the adoption of RET by these SMEs. We also examined how well the established Unified Theory of Acceptance and Use of Technology model (UTAUT2) can serve as a guiding framework for this type of investigation. We find that effort expectancy is generally underestimated. Performance expectancy, when high, may influence the adoption process positively, while social influence does not seem to play a role. Both SMEs and experts point to customer service and government support for SMEs adopting RET as important facilitating conditions. The cost of RET is another factor influencing the adoption of these technologies. However, we regard the UTAUT2 as only partially helpful for the Senegalese context, due to the informal sector economy in Senegal. This leads us to add the factors knowledge, communication channels and entrepreneurial orientation. Moreover, we question the unequivocally positive notion of prosumerism for African contexts, as the idea draws its motivating power from a Western mindset.