Small And Medium Scale Enterprises Research Articles

Adoption of green practices in manufacturing SMEs: some lessons from Kochi, Kerala, India

Adopting green practices in the manufacturing sector has become a requirement for achieving Sustainable Development Goals (SDGs). Manufacturing Small and Medium scale Enterprises (SMEs) play a major role in the industrial sector in Sri Lanka. However their contribution towards reaching a green economy is not well documented. Efforts in adopting green practices, failures or success stories, and the problems and issues associated with green manufacturing in SMEs are yet to be examined in depth in the Sri Lankan context. As a means of acquiring a priori knowledge on the reality, this study aims to explore the green practices, challenges and strategies, and the required institutional support for implementing and sustaining such practices in manufacturing SME sin a geographical location similar to Sri Lanka i.e., Kochi, India. Thus, the objective of this study is to identify important lessons from experiences undergone by manufacturing SMEs in the adoption of green practices in their businesses. This is an exploratory study conducted by collecting qualitative data from interviewing the stakeholders of selected manufacturing SMEs visited for this purpose. The study takes a deductive approach, deriving its analytical framework from the review of literature. A set of green practices, challenges to be anticipated, and the institutional and policy support required in implementing and sustaining green practices in manufacturing SMEs are identified as lessons to be learned. The study concludes that the successful implementation and sustaining of green practices in manufacturing SMEs need their own will and drive of owners and employees, supported by government intervention for promoting and ensuring sustainable green practices. The findings of the study propose a conceptualization for validating in a future empirical study.

THE EFFECT OF KNOWLEDGE DEVELOPMENT AND KNOWLEDGE RETENTION ON PERFORMANCE OF SMALL AND MEDIUM-SCALED ENTERPRISES (SMES): A STUDY OF APPAREL SMES IN SRI LANKA

The main purpose of the study is to see whether three is a relationship between knowledge development (KD) and knowledge retention (KR) on the performance of Small and Medium-scale Enterprises (SMEs) and also to understand which factor has a significant effect on the performance of the SMEs. The data was collected from the owners of export-oriented apparel SMEs through a self-administrated questionnaire and used SPSS 21 version to analyze the data statistically. The results suggested that KD and KR have a positive significant relationship with the performance of SMEs, jointly. In the individual effect, the KR is the most influential factor on the performance of SMEs. The findings further reveal that apparel SMEs are practicing KD and KR strategies at the work place at average level. Article visualizations:

Achieving sustainable development goals through identifying and analyzing barriers to industrial sharing economy: A framework development

Various sustainable development goals (SDG's) that have been achieved with current economic business models initiated the new socioeconomic system known as the “sharing economy.” This collaborative economy system shares resources among communities and further assists to reduce both negative environmental and societal impacts and to reduce costs. The importance of this endeavor urges researchers to investigate the sharing economy more fully through different applications, primarily including transportation and customer service. However, these studies fail to attempt to explore the perspectives of the sharing economy through industrial applications. Industrial sectors are more prone towards negative sustainability; hence, it is necessary to address strategies to promote and to implement the sharing economy with an industrial perspective. Hence, this study seeks to identify the barriers of sharing economy implementation in industries, particularly with small and medium scale enterprises (SME) located in India. Common barriers are identified through the combined assistance of literature review and experts' opinions. These common barriers are shortlisted through Best Worst Method (BWM) and further analyzed through proposed solution methodology, DEMATEL, with the support of case industrial managers. Among 15 shortlisted barriers of sharing economy, “Lack of trust” was identified as the most influential and “Capital cost” was identified as the least influential barriers. This study contributes to both academic and practitioner levels by identifying the most common barriers of the industrial sharing economy. Further, we present strategies so practitioners can evade such barriers through customized practices instead of providing a generic treatment. In addition, this study provides a new approach to the literature; insight into the ‘industrial sharing economy’ could be a scientific breakthrough for upcoming studies. Finally, the study concludes with various useful recommendations and suggestions on the implementation of sharing economy in industries, particularly with SMEs. These recommendations shed light into various key research areas, which can be examined more fully in future studies.

The Adoption of Computerized Accounting System (CAS) in Small and Medium Scale Enterprises (SMEs): With Special Reference to SMEs located in Matara District, Sri Lanka

Computerized Accounting System (CAS) plays a prominent role in providing information accurately and quickly to meet the challenges of the ever-changing business environment. Developing countries, however, struggle and are reluctant towards adopting CAS in SMEs. In Sri Lanka whereas an emerging economy is existing, a few studies have attempted to study the reticence of adopting CAS in SME sector. SME sector is vital in developing economy as it generates employment, promotes the growth of Gross Domestic Product (GDP) and stimulates other economic activities. Even though SMEs engender many benefits, their persistence is threatened and need strategies to overwhelm the challenges in the competitive business environment in emerging economies. In line with the previous studies focused on the technological revolution and SMEs in developing countries, research findings reveal that SMEs have a poor accounting system and slower in using new technology. According to them, one key strategy is accountability via sound reporting practices. The study, therefore, examines the factors which affect to the adoption of CAS in SMEs in Sri Lanka. According to the literature, the various factors were identified and broadly classified under different categories. In this study, four factors are included in the research model as managers’ support, perceived usefulness, ability of bearing the cost and human resource proficiency. This study was conducted through the structured questionnaire survey method. Data was collected from 118 SMEs representing manufacturing, trading and services sectors in Matara District, Sri Lanka. The study used Partial Least Squares (PLS) path modeling to analyze the collected data. The study results disclosed that manager’s support and firm’s ability of bearing the cost have a positive and statistically significant relationship with adoption of CAS in SMEs. As per survey results, it has confirmed that there is a positive relationship between perceived usefulness and HR proficiency on adoption of CAS but it is not statistically significant.

The Post-Effect of IFRS Adoption on Financial Position: An Empirical Study of Indian SMSEs

The progressive country like India, now days Small and Medium Scale Enterprises (SMSEs) are contributing a remarkable share to country’s economy. SMSEs now considered as backing up to different economic prospective such as unemployment, GDP, FDI, etc. The globalization era witness of significant growth in integration of economy and capital market of countries and every organization of these countries want to expansion internationally and to raise capital for expansion organizations are not limiting themselves only to domestic capital market and to lead in the market, there is obliged fairness in accounting angle to check, study and examine the genuine financial position of the organization itself and outsiders like investor, authorized body and so on. On this regards International Financial Reporting Standards (IFRS) playing significant part to make standardized financial statements which can acceptable both national and international. In view of objective of this study a comparative approach adopted. Date collected from annual reports of SMSEs which are enlisted in BSE for the period of 4 year. The financial ratios like current ratio, returns on asset and earnings per share ratio taken as measure of profitability, liquidity and market of company for this study. Keywords: IFRS, SMSEs, Financial position, financial reporting. DOI : 10.7176/RJFA/10-24-08 Publication date: December 31 st 2019

The Effect of Knowledge Identification and Knowledge use on Performance of Small and Medium-Scaled Enterprises (SMEs): A Study of Apparel SMEs in Sri Lanka

The previous empirical findings identified knowledge identification and knowledge use as two dimensions of knowledge management; however, both areas were not extensively studied in the literature. Therefore, the paper attempted to determine the nature of knowledge identification and knowledge use on the performance of apparel sector Small and Medium-scaled Enterprises (SMEs) in Sri Lanka and also to analyze the effect of the performance of apparel SMEs. The population was determined from export performance indicators of the Export Development Board of Sri Lanka (EDB) as of 2017, and National Frame Work for SMEs in Sri Lanka was taken as the parameter to classify SMEs, which record annual turnover less than LKR 750 million. A simple random sampling technique was used as the sampling technique to ensure appropriate representation of the sample population. The owners of export-oriented apparel SMEs in Sri Lanka have been considered as respondents. A self-administrated questionnaire was used to gather primary data and SPSS 21 version was used to generate results.

The Masonry Block Industry in Akwa Ibom State: Challenges and Prospects of Entrepreneurial Development

The study investigates the challenges and prospects of entrepreneurial development of Small and Medium scale Enterprises (SMEs). The focus is on the masonry block industry in Akwa Ibom State. Data used for the analyses were collected through 139 returned and valid structured questionnaires, administered on the respondents including, owners/managers of masonry block industry, small and medium size contractors. Data collected was analysed using percentage, mean item score and Kruskal Wallis Rank test. The results reveal a high level of patronage and prospect for entrepreneurship growth of SMEs masonry block industry. The further reveal ready availability of products, time/energy savings, material efficiency, quality control, and employment opportunities among the major prospective advantages of SMEs masonry block industry. Major challenges confronting entrepreneurial growth and development of SMEs masonry block industry in the study area include inadequate funding, high cost of production, inflation, unstable patronage, and poor managerial skill. The study recommends that government should provide an enabling business environment and infrastructures through its Support Initiatives and Policies for masonry block industry to thrive in addition to the provision of business enabling infrastructure in ensuring increased productivity, reduction in production cost and profit optimization. Keywords: Economic Growth, Employment, Developing Nation, Entrepreneurship, SMEs. DOI : 10.7176/CER/11-10-04 Publication date: November 30 th 2019

Survival Strategies and the Growth of Small and Medium Scale Enterprises (SMEs) In Federal Capital Territory (FCT), Abuja

The business sector is globally characterized as turbulent with huge and constant movement in and out. This is so because the business environment is changing, dynamic, turbulent, discontinuous and highly competitive. In the process, many small and medium scale enterprises (SMEs) deploy diverse practices to gain competitive advantages for their survival. The study thus examines the survival strategies and growth of small and medium scale enterprises (SMEs) in an emerging economy using selected SMEs in Abuja as a study. The empirical analysis was conducted using Ordinary least square (OLS) regression method; while t-test statistic was used to test each of the hypotheses. Findings from the study revealed that product line diversification had no significant effect on business expansion of SMEs. In addition, product branding has had no significant impact on the sales turnover of SMEs for the past few years. However, ideas/innovation was discovered to have a significant impact on the profit margin of SMEs for the past years. It showed the adoption of modern method production had increased their revenue generations. The study thus recommends that the most important strategy that can be used in re-positioning SMEs and other micro enterprises in Nigeria is for them to identify the type of products they want to offer to the market. This means a determination of the type of products in which they have distinctive competence to produce. Further development of the technology would make transplantation and adaptation for use in diverse fields of production possible. Keywords: Diversification, Business Expansion, Branding, Small and Medium Scale Enterprises and Sales Turnover DOI : 10.7176/EJBM/11-30-12 Publication date :October 31 st 2019

Small and Medium Scale Enterprises: Their Role in Economic Growth of Nepal

Small and medium scale enterprises (SMEs) have historically played an important role in contributing to economic growth and development. Naturally, all businesses start as small businesses or even start out of small businesses initiated by individuals. It is imperative to give high priority to Nepalese labor, skill and raw material based domestic investments to promote national level industries for achieving economic growth in the course of SMEs. This study has used Johansen Cointegration, Vector Error Estimates (VAR) and Granger Causality test to investigate relative changes in the position of the Nepalese SMEs and investment to the real GDP since 1989 and 2018 based on secondary data regarding regression analysis. It has examined the dynamic relationship among the total SMEs and investment with real GDP of Nepal and found to be significant and positive relationship in between investment and real GDP of Nepal while insignificant and inverse relationship in between total SMEs and real GDP of Nepal. It implies that real GDP was seemed to be mostly influenced by investment rather than number of SMEs. However, it was and still is contributing significant role in economic growth in Nepal.

Digital Marketing and the Law in Nigeria: Would a Regulation Steer the Industry Forward?

The buzz around digital marketing is at its budding stage in Nigeria however it requires specific attention and sui generis regulation by the government. As an emerging and viable sector of the economy in Nigeria, digital marketing is interlaced with small and medium scale enterprises (SMEs) and other multinational companies. This has prompted numerous multinational companies to collaborate with national business entities in Nigeria to train local businesses on digital marketing as a means of boosting the financial capabilities of local business organizations. Although, digital marketers and their companies survive under some neighboring provisions of different laws that keep them going. Regulating this industry would be a herculean task as such regulation must not smother any progress that has already taken shape. There is a similar data protection regime in Nigeria – Nigeria Data Protection Regulation 2019 (NDPR) – this regime was issued by the National Information Technology Development Agency (NITDA) in 2019. A regulation would put into perspective how the industry looks like, how consumers’ information is protected and what digital marketing firms are required to do. The final part proposes a regulatory framework – an Act – is created for the supervision of the industry. An Agency which would be headed by a board is also proposed. The Agency would have administrative and prosecutorial powers. The underlying principles of digital marketing, consumer and data protection, privacy and compliance forms the bedrock of the Agency. It is further proposed that a section of the regulation which would enable the Agency to formulate policies that would catch up with new development should be part of the Act itself. In a technologically driven world, laws catch up with technological advancements and not vice versa.

Marketing and entrepreneurial success in emerging markets: the nexus

Purpose This paper aims to examine the interconnection between marketing and entrepreneurship among small and medium scale enterprises in emerging markets. Design/methodology/approach Quantitative data were obtained from 113 micro, small and medium scale enterprises (SME) into services, manufacturing and agriculture selected conveniently within the Tema metropolis, a harbour city in Ghana; however, purposive sampling was used to choose owners and managers as respondents pre-occupied with marketing and entrepreneurial roles. These voluntary informants have operated between 4 and 9 years. Findings The study reveals a significant relationship between five dimensions of the study including market orientation and entrepreneurial success; customer orientation and entrepreneurial success; competitor orientation and entrepreneurial success; intelligence generation; and entrepreneurial success, including information dissemination and entrepreneurial success. Research limitations/implications Blending marketing with entrepreneurial initiatives has the propensity to accelerate success for wealth and job creation for national development especially in emerging markets where poverty and under development abounds. Adoption of basic marketing principles enables local entrepreneurs to become vehicles for social re-engineering and for rapid socio-economic growth, which ultimately affects lives at the local level. The study was limited to opinion of SME managers and owners of a harbour city. Practical implications Application of basic marketing principles influences entrepreneurial success in emerging markets (EMs) highlighting opinions of managers and owners of SMEs strategy warranting attention of stakeholders. Thus, the study validates theoretical model of how prudent marketing and entrepreneurial attitude contributes entrepreneurial success. It also provides a new perspective on marketing principles and success in emerging markets. Social implications Consciously incorporating basic marketing principles into operations of MSMEs will impact performances; hence, social lives of entrepreneurs will be affected positively. Originality/value This study being among the few in sub-Saharan Africa highlights how application of marketing principles to entrepreneurial operations is a vital role in growing local MSMEs unto the world stage. Therefore, blending basic marketing principles with entrepreneurial initiatives will accelerate wealth and job creation and national development to achieve the world's sustainable development goals aimed at reducing poverty.

Financial Literacy, Cultural Dominance, and Financial Well‐Being of SME Owners in Ghana

The literature on the relationship between financial literacy and financial well‐being is growing but yet to consider whether the social support emanating from cultural settings conditions this relationship. The main objective of this article was to assess the role cultural values (Protestantism and Catholicism) played in explaining the financial well‐being of small‐ and medium‐scale enterprise (SME) owners in a developing economy, Ghana. On the basis of 300 randomly selected SME owners, an ordinary least squares technique was employed to establish this relationship. The results highlight that the level of financial literacy of SME owners tends to influence their financial well‐being. In addition, Protestant ideology weakens financial wealth acquisition process of SME‐Owners. Lastly, the study found little support for the assertion that culture moderates the relationship between financial literacy and financial well‐being. Consequently, the study recommended that policies aimed at promoting financial education for financial well‐being should not neglect the cultural context of beneficiaries.

Entrepreneurship development and new business start-ups: challenges and prospects for Ghanaian entrepreneurs

Entrepreneurial development in Ghana has come under sharp scrutiny in recent years as a result of the debates that have characterized the role of entrepreneurs to the development of the Ghanaian economy and the challenges militating against the growth and sustainability of entrepreneurs. Existing literature has overlooked the challenges that entrepreneurs face in starting new businesses in Ghana. This paper addressed the scholar gap in the literature within the context of small and medium-scale enterprises (SMEs) in diverse industries in Ghana. Using qualitative research approach with selected SMEs as case study, the paper unearths some of the challenges confronting entrepreneurs and the remedial measures to adopt in their operations to remain competitive and relevant in both the local and international markets. Four main themes emerged as the challenges that entrepreneurs face: funding availability and accessibility; lack of planning, skilled labour & proper management skills; lack of competitiveness, technology innovation & customer loyalty; and Legal and regulatory framework and social factors. Based on the outcomes in the findings, the study recommends assistance from stakeholders such as policy makers, financial institutions and the government of Ghana to help formulate new strategies to support entrepreneurship development initiatives and new business start-ups in Ghana. Keywords: Ghanaian entrepreneurs, entrepreneurship development, new business start-ups, prospects and challenges

Ghee Hiang heritage: the Chinese innovating perseverance of tacit knowledge last few generations in Malaysia

Southeast Asia with its historical concentration of ethnic Chinese remains an important economic hub encouraging cross-disciplinary inquiries on themes relating to businesses, R&D, tacit knowledge development, enterprise development and innovation. To date, there has been little empirical research on the capacity of Malaysian Chinese family businesses relating to the China factor. In industrializing Malaysia, where Chinese family small-and-medium-scale enterprises (SMEs) are undergoing a shift from the earlier generation, there is little research on their capacity to develop the tacit knowledge of the founding generation mostly inherited from China, before starting a business in Malaysia. This assessment of Ghee Hiang’s heritage evaluates how a new generation has been innovated their products. Interestingly, tradition may enable these Malaysian Chinese firms to innovate by building on more reliable knowledge and resources, extensively validated over time, and hence reduce development and utilization costs and increase profits from new products. The well trained of 2nd and 3rd generations has been innovated the tacit knowledge to elicit strong and positive feelings on “Chinese” identity, increasing the value of new products through R&D by embedding past knowledge and facilitating the legitimacy of innovative functionalities and the likelihood of obtaining market acceptance. Ghee Hiang evokes memories and experiences of Malaysian Penang Chinese legendary in sesame oil and traditional pastries production.

Power supply and the performances of small and medium scale enterprises (SMSEs) in Rivers State

This paper examined the effect of power supply and the performances of Small and Medium Scale Enterprises (SMEs). In doing this, the paper used durations of public power supply, bills paid for public power and cost paid for private power supply as measures of power supply on the performances index of the SMEs in Port Harcourt. The performance indexes are employed in the models as the dependent variables while the power supply indexes are the explanatory variables. The data were sourced primarily through a well-structured questionnaire and the samples determined by the Cochran sampling techniques. The data were analyzed with the Qualitative Respond Model. It was revealed that a lower duration of public power supply significantly reduces the profitability, productivity and revenue, as well as the storage of products of the SMSEs, examined. Hence, the study recommended among others that there is a need to allocate more electric power to the industrial area of Rivers state- Port Harcourt, especially in the day light to encourage productivity, profitability and employment generation in the state.

The Role of Deposit Money Banks’ Loan Facilities in Financing Small and Medium-Scale Enterprises in Nigeria

Abstract The credit money banks whose obligation is to contribute money-wise to small and medium scale enterprises (SMEs) to oblige an essential utensil in decreasing the dismal paucity and enhancing pecuniary change in Nigeria. This paper examines the role deposit money banks’ loan facilities plays in funding SMEs businesses in Nigeria. The study employed the cross-sectional method of survey research. Ten (10) years financial performance index report of SMEs businesses was extracted from the Central Bank of Nigeria (CBN) statistical bulletin between the periods of 2008 – 2017 were selected. The index captured dependent and independent variables. Gross domestic product (GDP) is a proxy to SMEs while fund deposit, loan facilities and return on equity were proxies to deposit money banks variable. Data collected was analysed using descriptive statistics and ordinary least square techniques. The study revealed the positive co-efficient value of 17.19434 and 15.84082 for fund deposit and loan facilities variables; and the negative co-efficient value of −3.442694 for the returns on equity variable which affect the growth of SMEs in Nigeria. The recent economic recession experienced in Nigeria also affect SMEs businesses because the return on equity from SMEs was not encouraging. Therefore, financial regulators should adhere to stability and sustainability of fiscal guidelines that will readdress the loan facilities requirements of 65% to SMEs in the nation’s economy. This will aid enhancement of the country’s economy from the deficiency of funds that impedes investment.

A Study of Small and Medium - Scale Enterprises (SMES) Owners’ Resources Mobilisation and Innovative Culture in South-West, Nigeria

This study examined resource mobilisation and innovative culture of small and medium-scale enterprises (SMEs) owners in South-West, Nigeria. Five research questions were raised. The study adopted the descriptive survey research design. The sample comprised one thousand, four hundred and seventeen (1417) SME owners / managers out of which one thousand, three hundred and eighty-two (1382) responded appropriately, this showed 97% response rate. Data were collected using two instruments; these are Resource Mobilisation Questionnaire (r = 0.85) and Innovative Culture Scale (r = 0.68). Data were analysed using descriptive statistics, Pearson Product Moment Correlation and Independent t test.The results showed that SME owners possessed high level of resource mobilisation and innovative culturein South-West, Nigeria. Significant relationship existed between resource mobilisation and innovative culture of SME Owners’ in South-West, Nigeria. Furthermore, there was significant difference in the score on resource mobilisation of SME Owners while no significant difference existed in the score on innovative culture of SME Owners in South-West, Nigeria. Based on the findings, it was recommended among others that Government agencies should create strategies to improve resource mobilisation. This, in turn, will upgrade and enhance innovation among SMEs.

Here Comes the Bribe: The Relationship between Bribery and SME Performance

The development of small and medium scale enterprises (SMEs) is shaped by the environments where they are located, and the institutions in those environments. Governments can have a positive role in shaping SME development. However, corruption exists especially in countries with weak government institutions. Literatures on corruption and firm performance indicate that corruption can either grease or sand business performance and operations. This paper analyzes this relationship using the survey results of 480 SMEs in the National Capital Region and the CALABARZON Region. This study finds evidence that SME profit growth rate, especially among small-sized firms, and revenue growth rate performance have an inverse association with the firms’ extent of perceived corruption around them. The negative and challenging business environment for SMEs may reflect negatively on the macro-level economic performance of the Philippines as SMEs provide a sizable chunk of employment, gross value added and export revenues, among others, for the country. Because of the large contribution of SMEs to the economy, this finding underlines the need for the country to do reforms such as strengthening government institutions and streamlining bureaucracies to stamp out corruption to improve the business environment for SMEs, especially smaller firms.

Applying Linear Programming in Employee Scheduling Problem during Off-Season: A Case Study

To improve competitive positioning, the effective utilisation of resources has become a favourable consideration for small and medium scale enterprises (SMEs). Among others, the scheduling of staff in SMEs has been regarded as a common problem. So, the present work is an attempt to solve this problem, particularly during the low production days. The study aim is achieved in steps. In the first step, the associated query is transformed into the linear programming problem, and in the second step, the application of MATLAB software is utilized to solve the problem. As a case study, the issue of scheduling for 8-hour shift is discussed. Study results are found in favour of both workers and employees. The study's assumptions may treat as its limitations.

The Role of Small-Scale Businesses in the Economic Development of Nigeria

This study is on the role of small and medium scale enterprises (SMEs) in the economic development of the country. The objective of the study is to determine the role of SMEs on the economic development of a country. The study has a sample size of 78. A total number of 110 questionnaires were distributed, out of which 78 were returned. Data was tabulated and analyzed before recommendations were made. Findings show that financial and government institutions have performed below expectations in terms of contributions to SMEs, thereby resulting in their poor contribution to the growth of the economy. The recommendations made are that: government should encourage infant industries by granting them tax holidays, government via the Central Bank of Nigeria, should prevail on commercial banks to review downwards interest rates and the Federal Government of Nigeria should as a matter of urgency strengthen and improve agencies such as National Poverty Eradication Program (NAPEP), National Directorate of Employment(NDE), etc. The study concludes that SMEs are the catalyst for any nation's economic growth. Government should therefore do more to uplift the standard of SMEs which will, in turn, contribute to the economic growth and development of the nation's overall development.