Small Medium Enterprises Research Articles

The effects of Vicoba Services on the performance of SMEs in Tanzania; the case Kinondoni District

This study assessed the effect of VICOBA services on the performance of small and medium enterprises in Tanzania. The study employed descriptive design to establish relationship between loans and financial performance of Small and Medium Enterprises (SMEs) in the Kinondoni district. The multistage sampling techniques of simple random and judgmental sampling were employed in selecting 76 replicates from Umoja wa VICOBA Kata ya Kigogo (UVIKAKI). Structured questionnaires instruments and interviews were used in data collection. Data analysis was performed using descriptive and content analysis. The study findings revealed that, there is significant influence of VICOBA to the development of entrepreneurship schemes and poverty reductions among community members of UVIKAKI scheme. Through loans disbursement at low interests encourage the improvement of capital and livelihood to the members through income-generated activities such as poultry, catering, canteen, and workshops. The government partners that play a key role in the grassroots movement of informal sector of economy should call on all funders, financing organizations, and development partners to help the marginalized population. Similar to this, communities could assess themselves against programs like VICOBA by developing their own internal awareness, knowledge, skills, and capital.

Examining the triple impact of eco-intellectual capital on the financial, social and environmental sustainability performance of SMEs in emerging economies

The way business has been conducted in modern times has traversed the need to achieve financial gains. Globally, it has become imperative for organisations to thrive competitively on the basis of ecologically conciousness and sustainability. Hence, the primary aim of this investigation is to determine how Eco-Intellectual Capital (EIC) influences the sustainability performance of small and medium enterprises (SMEs). The study made use of primary data and employed a quantitative research approach using a survey for data collection. The main data collection instrument used was a structured questionnaire. Data for the study were solicited from a group of 500 employees and owners managing SMEs in Ghana. Data collected from the questionnaires were analysed using IBM SPSS Statistics version 24 and IBM SPSS AMOS (26.0) Graphics. The results showed that EIC had a favourable effect on the social and environmental dimensions of sustainability performance. On the economic (financial) dimension, however, the effect was not significant. Aside from magnifying Eco-Intellectual Capital and Sustainability Performance literature, this research study is one of the few that looks at how green human, structural and relational capital work together to improve the economic, social and environmental sustainability of SMEs in emerging economies.

Focus Group Interview: University-Industrial Collaboration

Business innovations can introduce novel and imaginative concepts, particularly within digitalization. Innovations have the potential to stimulate the advancement of enterprises, fostering market expansion, enhancing competitiveness, and optimizing profitability. Nevertheless, the implementation of innovation may be achievable in collaboration. Collaborations and interactions between academia and industrial entities may yield improved outcomes. Nevertheless, the presence of obstacles between academia and industries could harm the long-term viability of commercial innovation. The concerns and challenges faced by local institutions and enterprises in Malaysia are examined within the framework of a case study. Data was obtained from a random sample of Chief Executive Officers (CEOs) across several industries. A focus group was conducted with 15 representatives from Small and Medium Enterprise (SME) companies and one moderator to lead the discussion. The findings from the focus group have been transcribed and analyzed based on their sharing. The rationale for focusing on CEOs was their role as critical decision-makers responsible for driving corporate innovations. The collection of perspectives from academia and industries was facilitated through face-to-face interviews. The study provided suggestions for potential avenues of future investigation.

Technological Innovation for Sustainable Supply Chain Management in the Food Industry

This study explores the critical role of technological innovations—specifically blockchain, Internet of Things (IoT), and artificial intelligence (AI)—in enhancing sustainable supply chain management within Malaysia's food industry. As the industry faces increasing pressure to adopt sustainable practices due to environmental concerns, regulatory demands, and consumer expectations, these technologies offer significant potential for improving traceability, reducing waste, and optimizing operational efficiency. The research highlights how blockchain enhances transparency and ethical sourcing, IoT enables real-time monitoring to minimize waste, and AI optimizes demand forecasting and inventory management, reducing overproduction and resource waste. However, the study also identifies substantial barriers to the adoption of these technologies, particularly for small and medium-sized enterprises (SMEs). These challenges include high implementation costs, a shortage of skilled labor, and concerns over data security and privacy. To address these issues, the study recommends starting with pilot projects to mitigate risks, investing in continuous workforce training, enhancing data security measures, and leveraging government support and industry collaborations. By overcoming these challenges, Malaysia's food industry can effectively integrate these innovations, leading to more sustainable, efficient, and resilient supply chains. This research underscores the importance of strategic planning and continuous improvement in fully realizing the benefits of technological advancements, thereby positioning Malaysia’s food industry as a leader in sustainable practices within the global market.

How Fintech Adoption, Digital Payment Systems, and Consumer Trust Shape Financial Performance of MSMEs

This study investigates the impact of fintech adoption, digital payment systems, and consumer trust on the financial performance of micro, small, and medium enterprises (MSMEs). Using data from 400 MSMEs, the research employs multiple regression analysis to explore the relationships between these factors. The results reveal that fintech adoption has the strongest positive influence on financial performance, followed by digital payment systems and consumer trust. Additionally, consumer trust moderates the relationship between digital payment systems and financial performance, highlighting the importance of customer confidence in driving business success. These findings emphasize the need for MSMEs to embrace digital financial solutions and build trust with their customers to improve their financial outcomes. The study provides practical implications for MSME owners, policymakers, and industry leaders, encouraging the adoption of fintech and digital payment systems as crucial tools for achieving competitive advantage and financial sustainability.

The Proliferation of Artificial Intelligence in the Forklift Industry—An Analysis for the Case of Romania

This paper investigates the impact of artificial intelligence (AI) on the forklift industry, focusing on logistics and procurement within small and medium-sized enterprises (SMEs) in Romania. Using a mixed-methods approach, including interviews with seven managers from a benchmarked company in the forklift industry (BCFI) and quantitative analysis of operational data, we examine the transformative effects of AI integration. Key findings include a 30% reduction in inventory holding costs due to AI-powered predictive analytics; a 15% decrease in procurement costs through AI-driven supplier evaluation systems; a 25% increase in operational efficiency from AI-optimized route planning; a 40% boost in overall productivity attributed to AI-enabled automation; and a projected 20% reduction in low-skilled labor requirements over the next five years. The study employs environmental, social, and corporate governance (ESG), balanced scorecard (BSC), benchmarking, and activity-based management (ABM) models to analyze risks and implications of AI integration. A case study of a leading Romanian SME in the forklift industry is presented, examining financial strategies using McKinsey’s 7S framework. The paper concludes that while AI offers significant operational benefits, it also presents challenges in workforce transition and ethical considerations that require careful management.

The implementation of tax imposition Micro Small Medium Enterprise (MSME) in the form of limited companies after the expiry period of final income tax

The MSME tax policy has undergone several changes and changed regulations. In 2022, the government again re-regulated MSME taxes, namely PP Number 55 year 2022 regarding Adjustments to Regulations on Income Tax. This research uses a descriptive qualitative approach. With the issuance of PP Number 55 of 2022, this provides an opportunity to increase the taxes owed by MSMEs and researchers also want to illustrate to the government that after this regulation is issued what impact will be felt by MSME Taxpayers, so that this will later be used as an evaluation by the Government. The result of this research is the calculation for the 2023 tax year using the rate of Article 17 of the Income Tax Law with the rate of 22%, and an additional 50% tax reduction as the Income Tax Law Art 31 E, resulting in the tax payable of IDR 4,240,946.16. PT ABC must carry out the bookkeeping obligations in reporting the tax liabilities and create proof of transactions for every business transaction to avoid a high tax burden.

Transformasi Digital dan Pertumbuhan UMKM: Analisis Dampak Teknologi pada Kinerja Usaha Kecil dan Menengah di Indonesia

This study examines the impact of digital transformation on the growth of Small and Medium Enterprises (SMEs) in Indonesia, focusing on the impact of technology on SME performance. A quantitative approach with a survey method was employed, involving 100 SMEs across various sectors in Indonesia. Data was collected through questionnaires measuring variables such as the use of e-commerce, social media, and management information systems as indicators of digital transformation, and increased revenue, efficiency, and market reach as indicators of SME performance. Multiple linear regression analysis revealed that digital transformation has a positive and significant impact on SME performance. The findings demonstrate that every one-unit increase in the digital transformation variable results in a 1.5-unit increase in SME performance. Furthermore, the study identified factors influencing the adoption of technology by SMEs, such as internet access, digital literacy levels, and government support. The analysis indicates that high internet access and digital literacy, along with strong government support, are crucial factors in increasing technology adoption and maximizing the benefits of digital transformation for SMEs. The study recommends strategies to encourage digital technology adoption by SMEs in Indonesia, including improving digital infrastructure, providing training and mentoring programs, and offering incentive schemes for digitally transforming SMEs.

Pengaruh Pemahaman dan Kesiapan terhadap Penerapan Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK EMKM) pada UMKM Jenis Perdagangan dan Reparasi di Kabupaten Ponorogo

Micro, Small and Medium Enterprises (MSMEs) in Indonesia are one of the priorities in national economic development. Therefore, reporting in this type of MSME business activity must be able to make systematic reports with the recording process following the applicable Financial Accounting Standards. So, there needs to be an understanding and readiness factor in preparing the report, so that SAK EMKM can be implemented in the management of MSMEs. This research aims to determine the effect of understanding and readiness for SAK EMKM on Trade and Repair MSMEs in Ponorogo Regency. This type of research uses primary data in the form of data on the number of trade and repair type MSMEs in 2021. This research method is a quantitative descriptive approach. Meanwhile, the data analysis method uses data quality testing, regression analysis, and hypothesis testing, while data collection is by distributing questionnaires and interviews. The results of this research show that there is a significant influence of understanding and readiness factors on the implementation of SAK EMKM in Ponorogo Regency. This means that the government needs to pay more attention or provide outreach/direction regarding the preparation of financial reports to MSME actors in Ponorogo Regency in accordance with applicable financial standards.

The Impact of Financial Literacy, Inclusion, and Access on Msme Growth and Welfare in North Sumatra: A Mediating Role of Business Growth

This study examines the impact of financial literacy, financial inclusion, and financial access on the growth and welfare of Micro, Small, and Medium Enterprises (MSMEs) in North Sumatra, Indonesia, with business growth acting as a mediating factor. Using a quantitative research design and Structural Equation Modeling (SEM) analysis, data were collected from 306 MSME operators selected via purposive sampling. The findings reveal that while financial literacy does not have a significant direct effect on MSME growth and welfare, both financial inclusion and financial access significantly enhance business growth and welfare. Furthermore, business growth serves as a mediating variable, amplifying the positive effects of financial inclusion and access on MSME welfare. The results indicate that MSMEs benefit from better access to formal financial services, such as credit and insurance, which facilitates business expansion and improves the overall welfare of business owners. However, the lack of significant impact from financial literacy suggests that practical financial education initiatives should be paired with improved access to capital and market opportunities. This study highlights the need for integrated policy efforts to enhance financial literacy, expand financial inclusion, and provide easier access to credit to foster MSME growth and welfare in North Sumatra.

Factors Affecting the Management of Small and Medium-Sized Enterprises and Corresponding Recommendations

Abstract: Small and medium-sized enterprises (SMEs)play a crucial role in economic development. Their management methods and internal strategic decisions not only affect their own development but also influence the establishment of internal management systems within related industries. Therefore, identifying the factors that influence changes in business management methods is of paramount importance for SMEs. Additionally, due to the smaller size and scale of SMEs, they are easily affected by changes in various management factors. To mitigate risks and enhance development, SMEs must assess both individual and combined impacts of various factors. This article employs a literature review to examine SMEs comprehensively. It summarizes and analyzes existing research, identifies key management factors, and offers targeted recommendations. The research results show that human resource management, financial management, and technology management have important effects on the management methods of SMEs. All three aspects originate from the enterprise itself and continuously affect enterprise development from different angles. Therefore, this article also proposes corresponding recommendations for SMEs concerning these three aspects, in order to continuously improve enterprise management methods.

Digital tax policies and compliance challenges for MSMEs in Indonesia

As digital Micro, Small, and Medium Enterprises (MSMEs) rapidly grow in Indonesia, ensuring their compliance with tax regulations has become an urgent priority. This study delves into the challenges and innovative solutions to enhance tax compliance, focusing mainly on digital content creators. This study examines the challenges and solutions for improving tax compliance among digital Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, mainly digital content creators. The research aims to analyze the impact of tax sanctions, modernization of tax administration, and tax policy reforms on the compliance behavior of these entities. A qualitative approach was employed, utilizing interviews and focus group discussions (FGDs) with informants selected through purposive sampling. The findings indicate that tax sanctions significantly influence compliance, but modernization of tax systems improves transparency and efficiency, thus enhancing compliance. Policy reforms, particularly those tailored to the unique needs of digital businesses, offer the flexibility needed for fulfilling tax obligations. The novelty of this research lies in the proposed model that integrates tax sanctions, administrative modernization, and policy reforms, addressing the unique characteristics of digital MSMEs. The practical implications suggest that implementing a user-friendly digital tax system, supported by clear guidelines and targeted reforms, can simplify compliance for digital MSMEs, leading to better tax reporting. These findings provide actionable insights for policymakers in designing effective, adaptive tax policies for Indonesia's rapidly growing digital economy.

A Bibliometric Analysis of Sustainability in MSME

This research paper examines the role of Micro, Small, and Medium Enterprises (MSMEs) in the Indian economy and their sustainability. It analyses 85 Scopus documents from 66 sources between 2014 and 2024, revealing a peak in scientific production in 2023. The study emphasizes the importance of sustainable practices for long-term success. This comprehensive research paper rigorously examines the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in the Indian economy and emphasizes the critical importance of sustainable practices for long-term success. Through meticulous analysis of 85 Scopus documents from 66 sources between 2014 and 2024, the study conclusively reveals a peak in scientific production in 2023 and robust ties between India and various other countries in this domain.

Green nexus womenpreneurs: harnessing internal-external capabilities for sustainable MSMEs fashion

Purpose This study aims to analyze the capabilities and external conditions of womenpreneur owners of micro, small and medium enterprises (MSMEs) Fashion EcoPrint Indonesia in green business practices and their implications for sustainable business performance. Design/methodology/approach This study chooses a quantitative approach with a sustainable business internal-external capability model. Using the structural equation modeling-partial least square analysis tool, the analysis was conducted on a sample of womenpreneurs who owned MSMEs EcoPrint Indonesia (n = 493). Findings In the internal capability dimension, total quality environment and green core competence affect green supply chain management, affecting green product innovation performance. Meanwhile, women entrepreneurs’ external capability dimensions (regulation, customer awareness of the environment and technological innovation infrastructure) are connected to sustainable development business capabilities, which affect the performance of green process innovation. The study confirms that green products and processes have the potential to influence sustainable business performance. A key finding is the strong influence of environment-based total quality management governance on both sides. At the same time, womenpreneurs have a significant impact on their respective dimensions. Research limitations/implications This study has implications for increasing competency, Sustainable MSME industrial infrastructure, and protecting women in developing countries. The theoretical implications of creating a model that examines the impact of womenpreneurs’ internal and external abilities on eco-friendly businesses’ success are significant for developing nations’ promising growth. Originality/value This study explores women’s contributions to family well-being and environment-based economies, focusing on eco-friendly supply chain management and sustainable external capabilities of women entrepreneurs in Indonesia, using a gender equality approach in developing economies.

The Influence of Personal Protective Equipment (PPE) Usage, Age, Work Tenure on Workplace Accidents

Workplace accidents can reduce productivity, which occurs as a result of unsafe actions and unsafe conditions in the Small and Medium Enterprises (SMEs) of leather tanning in Magetan. Workplace accidents could be caused by workes low awareness of wearing Personal Protective Equipment (PPE), as well as factors like age and work tenure on workplace accidents in the leather tanning SMEs in Magetan 2024. The research design employed an observational analytic method with a Cross-Sectional approach. The sample size consisted 66 people out of a population of 190, selected through proportional random sampling. The variables of PPE use, age, and work tenure, which were collected through observation and interviews, were then processed and analyzed using the Spearman Correlation statistical test (r2). The results indicated that the use of PPE, including masks,gloves, and boots, was at 36,4%, the proportion of workers aged over 30 years was 54,5%, and those with a work tenure over 5 years was 59,1%. The analysis showed that PPE use (p=0.000) and age (p=0.035) had an impact on workplace accidents, with a correlation value of p=0.232 more than 0.05. The study concluded that the use of PPE and the age of workers in the leather tanning SMEs in Magetan influenced workplace accidents. It is recommended that management provide complete PPE such as masks, boots, gloves and conduct regular monitoring of PPE use conditions. Additionally, workers should use PPE according to standars while performing their duties.

Leveraging Knowledge Management for Business Success: The Influence of Dynamic Capabilities and Entrepreneurial Competence, Moderated by Government Policy

This study examines the impact of knowledge management on business performance, mediated by dynamic capabilities and entrepreneurial competence, and moderated by government policy. A survey of 156 small and medium-sized enterprises (SMEs) in the Riau Coastal Food sector was conducted, and data were analyzed using Structural Equation Modeling (SEM). The findings reveal that knowledge management positively influences business performance, with dynamic capabilities and entrepreneurial competence acting as key mediators. However, government policy does not significantly moderate this relationship. The study highlights the importance of internal organizational capabilities in enhancing SME performance, suggesting that firms must focus on dynamic capabilities and entrepreneurial competence to maximize the benefits of knowledge management.

Intelligent E-commerce under the Trend of Integration of Artificial Intelligence and E-commerce: A Case Study of Alibaba International Station

Abstract: China has fully entered the era of digital economy, and undoubtedly, the e-commerce industry needs to keep pace with the times and evolve into a new stage of development: integrating artificial intelligence with e-commerce. Nowadays, an abundance of new productivity tools have unveiled new opportunities for the e-commerce industry. This study focuses on Alibaba International, a premier global digital trading platform, to illustrate the applications of artificial intelligence tools in e-commerce, examine both the positive and negative impacts of these tools on e-commerce, and suggest strategies for enhancing e-commerce Operation Management. The aim is to offer enlightenments for small and medium-sized cross-border e-commerce businesses. Through this case analysis, it can be understood that intelligent e-commerce has provided many conveniences for the e-commerce industry, but also faces a series of challenges, such as AI generated false or infringing content, and increased operational management difficulties. In this situation, e-commerce companies should take strengthening the cultivation of intelligent talents as a guarantee, focusing on customer experience and valuing personalized product needs as advantages, and improving operational management efficiency through the reasonable use of favorable policies to bring profits to the enterprise.

The impact of sustainable entrepreneurship education and self-efficacy on students' entrepreneurial mindset and attitude

This study aims to foster a shift in students' entrepreneurial mindset through sustainable entrepreneurship education. This initiative is expected to contribute to the recovery of the MSME (Micro, Small, and Medium Enterprises) sector while enhancing the quality of education by expanding the content of entrepreneurship courses, inviting experts to share their experiences, organizing events to promote student products, and facilitating internships in the entrepreneurial industry. Data were collected through questionnaires, with responses measured using a Likert scale. A literature review was also conducted to support the research. The population of this study consists of students from universities in West Jakarta, with a sample of 153 respondents. The data were analyzed using a structural equation modeling approach based on components or variances. The results of hypothesis testing reveal that: (1) Entrepreneurship education has a positive and significant effect on the entrepreneurial mindset; (2) Self-efficacy has a positive and significant effect on the entrepreneurial mindset; (3) Entrepreneurship education has a positive and significant effect on entrepreneurial attitude; (4) Self-efficacy has a positive and significant effect on entrepreneurial attitude; (5) Entrepreneurial attitude has a positive and significant effect on the entrepreneurial mindset; (6) Entrepreneurial attitude does not mediate the relationship between entrepreneurship education and entrepreneurial mindset; and (7) Entrepreneurial attitude does not mediate the relationship between self-efficacy and entrepreneurial mindset.

Access to finance and its impact on operational efficiency of MSMEs: mediating role of entrepreneurial personality and self-efficacy

PurposeThe present study aims to investigate the factors of loan access that affect entrepreneurial self-efficacy (ESE) and operating efficiency of Indian Micro, Small and Medium Enterprises (MSMEs). Furthermore, the study intended to investigate the influence of ESE on the operating efficiency of Indian MSMEs and its mediating role.Design/methodology/approachIn this study, exploratory research design is used. The study heavily relies on the primary data which has been collected by using the survey research method from a cross-section of 617 women-owned MSMEs, located in urban, rural, suburban and exurban areas of Haryana, Uttarakhand, Himachal Pradesh and NCR-Delhi. The partial least square structural equation modeling method version 3.3.3 has been used to evaluate.FindingsIn terms of the selected factors affecting access to finance, it has been established that the Loan Formalities, Banking Process, Loan Process, Staff Responsiveness and Incentive Scheme have a positive and significant influence in enhancing accessibility to finance and improving the self-efficacy and operating performance of firms. The findings also show that ESE mediates the relationship between various factors of loan access and the operating efficiency of MSMEs.Research limitations/implicationsThe study’s findings show that entrepreneurial capacity is significantly and favorably impacted by attitudes toward entrepreneurship, ESE, perceived access to findings and business operations. It has also been demonstrated that entrepreneurial intentions are strongly and favorably influenced by entrepreneurial ability to access commercial bank financing for small businesses and the impact of the same on the women-owned MSMEs in India. It also revealed unfavorable loan terms, limited collateral, fear of repaying of loan and intricate loan application were among the many reasons for loan denial.Originality/valueThe study offers a comprehensive approach that simultaneously considers financial accessibility and ESE. This all-encompassing method offers a thorough grasp of the variables affecting MSMEs' operational efficiency (OE). In contrast to earlier research that might have concentrated only on direct relationships, this study explores the mediating mechanisms involved. This study examines how ESE modulates the influence of financing availability on OE, providing a comprehensive understanding of the underlying mechanisms. By taking into account particular MSME sector characteristics like size, industry or regional variations, the study may provide a unique contextual lens. Understanding how these contextual factors interact with entrepreneurial attributes and access to finance adds depth to the analysis.

Model Sustainability Competitive Advantage for Manufacturing SMEs: A Structural Equation Modelling Approach

This study aims to analyze the influence of strategic drivers on cleaner production and increasing the sustainable competitiveness of manufacturing Small and medium-sized enterprises (SMEs) in Indonesia. The manufacturing SMEs studied were the Batik cloth and clothing industry. The number of samples in this research was 365 Batik SME entrepreneurs in Indonesia, taken using a purposive sampling method. The analysis data used is Partial Least Square-Structural Equation Modelling (PLS-SEM). This study found that strategic drivers, namely entrepreneurial orientation and management knowledge orientation, directly affect cleaner production and indirectly affect the sustainable competitive advantage of Batik SMEs in Indonesia. Cleaner production, innovation capabilities, and business networks directly influence the sustainable competitive advantage of Batik SMEs in Indonesia. This research contributes to developing a model of sustainable competitive advantage in SMEs using a strategic driver and environmental sustainability approach. This article aims to study the factors influencing sustainable competitive advantage in manufacturing industries in developing countries.