Performance Of Small And Medium Scale Enterprises Research Articles

Financial Management Practices and Small and Medium-scale Enterprises' Performance in Sri Lanka

Small and Medium-scale Enterprises (SMEs) add value to an economy by creating employment, contributing to Gross Domestic Production (GDP), making innovations, and minimising poverty. They are partnering with the development of the country. Most small and medium-scale enterprises face issues like lack of knowledge, outdated skills, fear of taxation, adoption of accounting standards, and accounting information records. Therefore, this study aims to identify the relationship between financial management practices and SMEs' performance in the southern province of Sri Lanka. This study measures financial management practices using financial reporting analysis, working capital management, fixed asset management, and accounting information systems. SME performance was measured by the profitability of SMEs using return on assets. Considering data constraints, time constraints, and the COVID-19 situation, 107 Small and Medium Enterprises operating in the manufacturing and service sectors were selected as samples. A questionnaire was chosen as the primary data-gathering method. The sample was chosen using a convenience sampling procedure, and the data were analysed using the Statistical Package for Social Scientists (SPSS) software. Multiple regression analysis was done to examine the hypothetical association. This study found that financial management techniques such as fixed asset management, working capital management, accounting information systems, and financial performance of SMEs have a significant association with performance. The findings support aiding investors, workers, and policymakers in making effective decisions.

Effect of Bootstrapping dimensions moderated by Cost of Doing Business on Performance of Small and Medium Scale Enterprises (SMEs) in South-West, Nigeria

The role Small and Medium Scale Enterprises (SMEs) can never be overemphasised in the has economic drivers in either developed and developing countries of the world. However, contract to immense contribution of SMEs to nation economic growth, most SMEs in Nigeria struggle to survive beyond five years due to poor performance. The major challenge SMEs in Nigeria include developing creative ways of acquiring resources in non-traditional ways cum cost of doing business which to greater extent affect SMEs performance. Thus, this study investigated the effect of Bootstrapping dimension moderated by cost of doing business on the performance of Small and Medium Enterprises in South-West, Nigeria. The study adopted survey research design and the population of the study comprised 14, 527 owner/managers of small and medium scale enterprises (SMEs) enterprises in Lagos and Oyo States. The study utilized stratified simple random sampling technique with a sample size of 750 owner/managers of SMEs determined using Cochran’s (1977) formula and data were analyzed using regression analyses. The findings revealed that cost of doing business (β = 0.003, ΔR2 = 0.021, ΔF = 14.820, p < 0.05) significantly moderated the effect of bootstrapping measure by owner’s financing, subsidy financing, delayed payment, joint utilization, and social capital on the performance of SMEs in South-West, Nigeria. The study concluded that bootstrapping improved performance of SMEs in South-West, Nigeria, cost of doing business significantly moderated effect of bootstrapping on the performance of SMEs in South-West, Nigeria. It was recommended that management of small and medium scale enterprises in South-West, Nigeria should pay more attention on subsidy financing, delayed payment, social capital with less attention on joint utilization in order to improve their performance. Keywords: Cost of Doing Business, Delayed Payment, Joint Utilisation, Owner Financing SME Performance, Social Capital, Subsidy Financing

Effects of Business Intelligence, Organisation Learning and Innovation on the Performance of Small and Medium Scale Enterprises (SMEs) in South-West Nigeria

Business Intelligence (BI), both in process and product, is one of the methods used by organizations to develop and access useful information or intelligence that can help enhance their performance. This paper therefore evaluates the effect of business intelligence (BI), organizational learning (OL) and innovation (IN) on the performance of SMEs in the South West Nigeria. Ex-post facto design of descriptive survey was adopted for the study. Primary data were collected on SMEs from Southwest Nigeria. A structured questionnaire (r=0.77) was used to elicit information from selected respondents. The sample size of 400 was adopted as derived from Cochran sample size formula out of the population size of 299,401. The data obtained were analyzed using statistical and econometric techniques. The findings from the analysis through logistic regression showed that only Business Intelligent (organization learning and innovation) has a significant influence on firm performance. The study therefore concluded that firm performance could be boosted by the integration of business intelligence, organizational learning and innovation. Hence, it is suggested that Nigerian small and medium scale businesses that are yet to incorporate business intelligence-driven innovation into any part of their production and delivery processes should make a quick effort to do so.

A Comparative analysis of service supply chain performance using analytic hierarchy process methodology

The study aims to provide a comprehensive analysis of the service supply chain (SSC) of small and medium scale enterprises (SMEs) and to offer insights to improve its supply chain performance. The study employs mixed methods, to analyse the data collected from SMEs. The findings highlight several key metrics of effective supply chain management in a service firm such as utilisation and flexibility of service capacity, inventory, order lead times, relationships between the organisation, its suppliers and customers, the importance of effective demand forecasting and inventory management as valuable attributes to improve the supply chain performance of service firms. Inventory lead time is presented as a fundamental metric useful in determining the service supply chain performance of SMEs.

Evaluation of Socio-Cultural and Political Factors on Small Scale Business Performance

The research explores the influence of environmental factors on the performance of Small and Medium Scale Enterprises (SMEs) in Oda, Ondo State. Primary data were gathered through the administration of questionnaires to the selected SMEs. Analysis of the data was conducted utilizing Simple Percentage, Chi-Square (X2), and Regression Techniques. The findings of this study clearly show that political and social-cultural factors have significant impact on SMEs performance in Ondo state with the result of hypotheses shown that there were significant positive effect of political and socio-cultural factors through monetary and fiscal policies on the existence of small scale business in Ondo state as the situation was showed through t-statistic and p-value (P= 0.022<0.05) on coefficient value (t=2.098>2.00) and F-stat value 7.617= p(0.034) that showed the robustness of the model with significant differences on the impact of economic factor through government measurement and control from how it was before the inception of this government tenure in Ondo state. The research concludes that environmental factors significantly affect the performance of SMEs in Niger State. In light of these findings, it is recommended that owners and managers of SMEs strategically involve themselves in ongoing monitoring and environmental scanning. This involves a thorough analysis of strengths, weaknesses, opportunities, and threats to consistently assess the overall health and vulnerabilities of their businesses.

The Impact of Information Technology on the Management of Small and Medium Scale Enterprise in Nigeria

The objective of this study is to examine the impact of Information Technology to the Management of Small and Medium Scale Enterprises in Nigeria with reference to Ramadan Press Limited, Bauchi, Bauchi State. The research design took both an inferential and a descriptive approach. A sample size of one hundred and thirteen (113) was drawn from the population. A 5 - point Likert scale was developed and validated to collect information from the respondents. The data collected was analyzed with basic descriptive statistics such as frequency and simple percentages. Chi-square analysis was also made. The core findings from the results obtained show that that Information Technology play significant role in the activities and operations of Small and Medium Scale Enterprises (SMEs), that Information Technology has impacted positively on the managerial practice of SMEs and that Information Technology has improved the performance of SMEs. Conclusion was drawn from the summary of the result. Various remarks and recommendations were proffered to the organization of study.

Impact of Covid-19 Pandemic on the Financial Performance of SMEs in Nigeria: A Study of the South East Geopolitical Zone

This article explores the impact of the Covid-19 pandemic on the financial performance of small and medium-scale enterprises (SMEs) in the South East geopolitical zone of Nigeria. The study objective was to determine the extent to which the Covid-19 pandemic affected the revenue of SMEs, their profitability and their access to credit. The target population for the study were registered SMEs in the South East geopolitical zone of Nigeria, being Abia, Anambra, Ebonyi, Enugu and Imo. Using purposive sampling method, thirty SME owners from each zone were selected for the study, giving a total of 150 SME owners. The study adopted a quantitative research method, using a questionnaire. The findings revealed that the Covid-19 pandemic significantly reduced the profitability and revenue of SMEs but not their access to credit. The study therefore recommended the need for business owners to minimize cost and look for possible innovations/opportunities to grow sales and improve revenue. Also government should make soft loan available to SMEs to help cushion the effect of the pandemic on their financial performance. Finally, future research should consider other related variables that have not been covered in this article.

The Impact of Corporate Governance and International Orientation on Firm Performance in SMEs: Evidence from a Developing Country

Small and Medium-Scale Enterprises (SMEs) have been adopting corporate governance and international strategies to improve performance. However, little is known about the success of corporate governance practices and the international orientation of SMEs, especially in developing countries. Therefore, the objective of this paper is to examine the influence of corporate governance practices and international orientation on the performance of SMEs in a developing country. We used a survey to hand-collect data from 270 SMEs in Ghana in 2022. Consistent with prior studies, we perform robust reliability tests, including confirmatory factor analysis and the Cronbach alpha test. Further, we use the structural equation modelling to test the hypothesis of whether corporate governance and international orientation affect firm performance in SMEs. Our results are as follows. First, we found that international orientation drives good corporate governance practices, and this exerts a positive influence on firm performance. Second, we established that international orientation positively and significantly moderates the relationship between corporate governance and firm performance. The results imply that engaging in the international market offers new knowledge to SMEs in developing countries. Therefore, investors and the government should develop strategies and policies that support the internationalization of SMEs in developing countries.

Innovative Marketing Skills and Business Performance of Small and Medium Scale Enterprises (SMEs) in Akwa Ibom State, Nigeria

This study was carried out to examine the effect of innovative marketing skills and business performance of small and medium scale enterprises (SMEs) in Akwa Ibom State, Nigeria. Anchored on the disruptive innovation theory, the study adopted the survey research design as its approach. The population for the study was 576 SMEs in Akwa Ibom State as obtained from the Ministry of Industry and the Association of Entrepreneurs and Artisan in Akwa Ibom State. The Taro Yamene’s formula was used in determining the sample size of 236. Data were obtained from both primary and secondary sources. Four hypotheses were raised, analyzed and tested statistically using the simple regression analytical tool. The results of the analysis showed statistically significant and positive effects of the independent variables (improved product quality, attractive pricing patterns, creative promotional strategy, and distribution network) on business performance of SMEs in Akwa Ibom State. Based on the findings, it was recommended that owners of small and medium scale enterprises in Akwa Ibom State should offer products whose quality satisfies various needs of the consumer, engage a strong market orientation through the adoption of attractive pricing strategies (such as, conducting market research, and understanding their unique selling proposition) and adopt integrated marketing communication in the promotion of their products. SMEs owners should clearly define their target customer service level and how to reach them. Finally, they should analyze what competitors are doing in order to improve upon those activities.

Financial Inclusion, Financial Technology and Performance of Small and Medium Scale Enterprises (SMEs) in Ekiti State

This study examines the effect of financial inclusion and financial technology on the performance of SMEs in Ekiti State. The study adopted descriptive survey research and covered all the registered 928 SMEs in Ekiti State, Nigeria; out of which 282 SMEs were sampled across the senatorial district in Ekiti State. A close-ended questionnaire was used to elicit the needed information from the sampled respondents across the study location. Pearson correlation and simple linear regression were used to analyze the responses of the respondents. However, before the administration of the instrument, validity and reliability of the instrument were carried out. It was discovered that there is a positive significant effect of availability of financial services on the performance of SMEs in Ekiti State proxied with customer satisfaction and profitability to the tune of 0.608(p=0.036<0.05) for customer satisfaction and 0.384(p=0.002<0.05) for profitability. Also, it was revealed that a positively significant relationship exists between financial literary programs and customer satisfaction and profitability of SMEs in Ekiti State to the tune of 0.485(p=0.042<0.05) and 0.841 (p=0.022<0.05) respectively. Furthermore, it was revealed that there is a positive significant effect of point of sales (POS) on the performance of SMEs measured with customer satisfaction and profitability in Ekiti State to the tune of 0.625(p=0.017<0.05) for customer satisfaction and 0.434 (p=0.048<0.05) for profitability. From the findings made, it was concluded that both financial inclusion and technology contribute significantly to the performance of SMEs in Ekiti State. Based on the findings, it is therefore recommended that the owners of SMEs should engage themselves in financial literary programs.

Capital Structure, Financial Capacity and Financial Performance of Small and Medium Enterprises in the Buganda Region, Uganda

Small and medium scale enterprises (SMEs) are drivers of economic growth in developed and emerging economies like Uganda. Although they constitute a large proportion of businesses, the SMEs’ financial performance has been unstable over the years, and in extant literature this issue has been attributed to capital structure and other financing decisions. Empirical evidence indicates that more than 50% of SMEs in Uganda cease their operations within the first three years of operation, citing financial capacity issues such as inadequate liquidity. Hence, the aim of this work was to determine the mediating effect of financial capacity in the relationship between SME capital structure and financial performance. The study design was anchored in the agency, free cash flow, and stakeholder theories and the relevant data were gathered via a cross-sectional survey. A stratified sampling method was used to identify SMEs operating in the target area, and one respondent was purposively selected from every chosen SME. Although questionnaires were sent to 453 SMEs, only 423 valid questionnaires were obtained and were subjected to further analyses. Data were analyzed using descriptive statistics and multivariate analysis. The mediation test results indicate a partial but statistically significant mediation effect of financial capacity in the capital structure−financial performance relationship. We thus conclude that high levels of financial capacity strengthen the effect of capital structure on the financial performance of SMEs. Consequently, we recommend that SMEs maintain optimal levels of liquidity as well as financial solvency to optimize financial performance.

Does trade openness influence the performance of small and medium enterprises in Nigeria? A re-evaluation of the evidence

The theoretical premises of open trade predict that open economies would benefit more from trade than those in autarky. Empirical findings for Nigeria are mixed both for macro-based studies and those devoted to sectoral investigations. In this paper, we re-evaluate the evidence on trade openness’s impact on the performance of small- and medium-scale enterprises (SMEs) in Nigeria. Existing studies in this area suffer from a twin restriction; one in scope, the other in methodology. We thus employ a two-pronged analytical framework on time series data spanning 1981 to 2019. First, the autoregressive distributed lag (ARDL) methodology is used to investigate the short-run and long-run effects of trade openness on SMEs’ performance. Second, the Toda-Yamamoto causality test provides additional evidence on the direction of causality among the policy variables. Our findings show that trade openness exerts a positive but insignificant impact on the performance of SMEs. Causality test results indicate that variations in exchange rate, infrastructure, labour force and foreign direct investment influence the performance of SMEs. The paper recommends the creation of enabling environments that guarantee formidable enterprise performance amidst open trade. Specifically, there is need, among other things, for significant improvements in infrastructure levels as well as stability in the exchange rate.

Assessment of the Impact of a Firm’s Corporate Social Responsibility (CSR) on its Profitability in Nigeria: A Case Study of Akure Firms in Ondo State

This study critically examined the impact of a firm’s Corporate Social Responsibility (CSR) on its profitability in Nigeria. The specific objective of the study was to assess the effect of customer orientation on the performance of SMEs in South West, Nigeria; examine the effect of competitor orientation on the performance of SMEs in South West, Nigeria and investigate the effect of inter-functional coordination the on the performance of SMEs in Ondo state, Nigeria. A descriptive survey research design was adopted and the population of the study covered all the 23,289 SMEs across all the states in the South West region of Nigeria; out of which, 393 small and medium scale enterprises’ owners were selected using the Yamane model (1967). An adapted questionnaire was used and it was subjected to a validity and reliability test. Data gathered via the questionnaire was analyzed using frequency and percentage for background information of the respondents and items on the questions, Pearson correlation to show the relationship between the predictor and outcome variable and simple linear regression to reveal the effect of all the predictors on the outcome variable. The result of the analysis revealed that customer orientation has a positive and significant effect on the performance of Small and Medium Scale Enterprises (SMEs) in South West, Nigeria to the tune of 0.302(p=0.000<0.05), Thus, it was concluded that all the predictors (customer orientation, competitor orientation and inter-functional orientation) have a positive and significant effect on the performance of SMEs in South West, Nigeria.

Exploring Entrepreneurial Orientation (EO) and Performance among Small and Medium Scale Enterprises (SMEs) In Nigeria

This research is designed to examine the influence of entrepreneurial orientation (EO) on performance of Small and Medium Scale Enterprises (SMEs). The study was carried out in the South-South Geopolitical Region of Nigeria. The proxies for EO were innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness. This study used a survey research approach and a sample size of 1308 SMEs was selected. Copies of an adopted questionnaire were administered to the respondents who were owners/managers of the selected SMEs using the stratified random sampling method. Pearson's correlation analysis and hierarchical multiple regression analysis were used to analyze the data collected. The result of the research revealed that entrepreneurial orientation (EO) has significant influence on performance of SMEs in Nigeria. Consequently, it was recommended that SMEs' owners/managers should use the EO dimensions that best suit their firm's strategic emphasis, taking into account aspects such as the organization's age and/or size, industry influence, and the specific setting in which the firm works.

Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria

Small and medium scale enterprises (SMEs) play an important role in terms of growth and development of an economy. Despite this ostensible relevance of small and medium scale enterprises, it is observed that employee performance level especially in Nigeria is low compared to that of other nations. This is evident in declining workforce productivity, inefficiency, and decreased commitment. These challenges have been attributed to a variety of factors, including poor hiring approach, irregular improvement, and poor teamwork. The impact of lean human resource initiatives on employee performance in selected SMEs in Lagos State, Nigeria, was explored in this research. The survey research design was used in this study. In Lagos State, Nigeria, there were 8,396 small and medium-sized businesses. Sample size of 481 was ascertained using the Research Advisory Table. The participants were identified using a simple random sampling approach. Data was collected from the participants using an adapted and validated questionnaire. Construct ranged from 0.74 to 0.89 for Cronbach’s Alpha reliability coefficients and study found that 85% of participants responded. The data was analyzed using descriptive and inferential statistics (multiple regression). According to the findings, lean human resource initiatives had a significant impact on employee performance in Lagos, Nigeria.. Employee performance was significantly affected by lean human resource initiatives (Adj.R2 = 0.095; F (5,401) = 9.509, p 0.05). The study concludes that lean human resource initiatives had significant effect on employee performance of SMEs in Lagos Nigeria. The study recommends that small and medium scale enterprise owner/managers should embrace Lean Human Resource initiatives such as selective hiring, continuous improvement, mentoring, cross-functional team, and flexible information system which is geared towards human capital development to improve employee performance and boost their contribution to the organization. Keywords: Continuous Improvement, Employee Performance, Lean Human resource initiative, Mentoring, Selective Hiring.

The Social Capital towards the Performance of Small and Medium Scale Enterprises evidences from Sri Lanka

Small and Medium-scale Enterprises (SMEs) are one of the driving forces for economic development by enhancing national production, creating income, employment, and mitigating poverty in any country. Social capital is defined as the total stock of relationships that an individual possesses. In the Sri Lankan context, much attention has not been paid to social capital. The objective of this study is to recognize the interrelation between the social capital concept and the performance of SMEs and how social capital impacts SMEs in Sri Lanka. The study was conceptualized using 03 variables; network ties, trust, and shared vision, and a dependent variable is the performance of small and medium-scale enterprises. A self-administered questionnaire was applied to collect primary data for the present study. Survey data were collected from 384 SME owners through the simple random sampling technique. The trustworthy and shared vision has the highest impact on the performance of SMEs based on the findings of the regression analysis. The findings of the present study will enable scholars and practitioners to gain more insight and understanding of social capital concepts while providing novel insight and useful suggestions to owners of SMEs’.

Green Supply Chain Management: An Empirical Study of Green Distribution and Procurement and Operational Performance within Nigerian SMEs

This study examined the impact of green distribution and green procurement on environment and operational performance of Small and Medium Scale Enterprises (SMEs) in Oyo state Nigeria. The study adopted survey research design, the total population of the study comprises of 4,520 SMEs operators operating in Oyo state Nigeria, out of which 10% (455) were chosen. Stratified random sampling techniques were employed and data collected were analysed using regression and correlation analysis. The result of the study shows that Green distribution do influence environmental performance of SMEs. The results also revealed that, Green procurement has positive impact on environmental performance of SMEs. The study concluded that there is positive relationship between green supply and procurement efficiency and effectiveness of SMEs operating in Nigeria. The study therefore recommends that SMEs operators should embrace green supply management to enhance efficient green supply and procurement. Effectiveness and operational performances.

Impact of Human Capital Development on Small and Medium Scale Enterprise in Some Selected Firms in Ananmbra State

This study examine the effects of human capital development in Small and Medium-Scale Enterprises (SMEs) and entrepreneurship performance and improvement in some selected SME firms in Anambra State. Descriptive survey design was used in the study. The total population of the study was 270. Findings revealed that human capital development helps in improving the performance of firms through training of employees fro greater performance of SMEs; developing efficiency of the SMEs; influencing the proactiveness of the employees; enhancing the flexibility of the employees; and improving service delivery of the employees. This study recommended that firms should develop human capital development so as to avoid stagnation of the skills of the employee. The study further recommended that firms should utilize human capital development so that it would not affect the quality of service delivery of SMEs.

Relevance of Entrepreneurial Orientation and its Effect on the Performance of Smes in Asaba, Delta State

The study investigated the relevance of entrepreneurial orientation on the performance of Small and Medium scale Enterprises (SMEs) in Delta State. Other specific objectives are to determine the relationship between proactiveness and SMEs performance; to assess the connection between competitive aggressiveness and SMEs performance; to ascertain the connection between risk-taking and SMEs performance. A cross sectional research design was adopted for the study. A structured questionnaire was developed to elicit data from respondents for the study. This study specifically focused on relationship between proactiveness, competitive aggressiveness, innovativeness and the relationship between risk-taking and SMEs performance. All the staff of selected SMEs were sampled. The analytical technique used for hypotheses testing was the chi-square, using Stata version 13. Findings revealed that, all variables used in this study had a significant and positive relationship with performance of SMEs. Thus, the study concludes that entrepreneurial orientation has a significant relationship with performance of Small and Medium scale Enterprises (SMEs). This study therefore recommends amongst others that more intensive entrepreneurial training and practice be done by students in tertiary institutions as there seems to be no job waiting for graduates among the teeming youths we have in Nigeria today.

Capital structure, market conditions and financial performance of small and medium enterprises in Buganda Region, Uganda

Small and Medium Scale Enterprises (SMEs) continue to be major players in the economic growth of Uganda as well as many of the emerging economies. The Uganda Investment Authority had projected 5.5% economic growth by 2030 in anticipation of stable market conditions necessary for the sustained financial performance of SMEs. However, the business failure rate of SMEs in Uganda had persistently revolved around 70% in 2018 from 50% in 2004. This problem had been linked to the turbulent market conditions characterized by intensive competition as well as volatile consumption behavior of the customers. Empirical literature indicates that competitive intensity, as well as volatile customer demand, presents a negative impact on financial performance. Hence, the study sought to determine the moderating effect of market conditions on the capital structure-financial performance relationship of SMEs in Uganda. From a population of 218,561 SMEs, a sample of 453 respondents was selected out of which, 423 responded to the questionnaire. Primary data were analyzed using descriptive statistics and multiple regression techniques. The hypothesis was tested at a 0.05 level of significance. Findings indicated that Market conditions had a positive and significant moderating effect on the capital structure-financial performance relationship (?= 0.175 and p = -0.027). We conclude that market conditions can strengthen/ weaken the effect of capital structure on the financial performance of SMEs. We recommend that SMEs should evaluate the market conditions during the process of deciding the financing mix for their operations to optimize the impact of capital structure on financial performance