Small And Medium-sized Enterprises In Regions Research Articles

Regional cooperative banks, ecosystems and small and medium-sized enterprise financing: the importance of cognitive, social and geographic proximities

PurposeThis study analyzes the role of regional cooperative banks in identifying and financing small and medium-sized enterprises (SMEs) from a proximity perspective. Access to finance is a major challenge for SMEs. Regional cooperative banks can remove this barrier based on cooperative bank's characteristics and geographic proximity to SMEs. Understanding the interplay between these financial actors and firms can contribute to a better support of SMEs development.Design/methodology/approachThe results are based on a case study of eight SMEs located in southwestern France. Interviews were conducted with two regional cooperative funds and eight SMEs. The interview guide included questions related to the company, the projects financed and how financing was accessed.FindingsResults reveal that a combination of three forms of proximity allows regional cooperative banks and SMEs to establish effective financing operations. They show that regional cooperative banks are key players in the existing financing mechanisms for SMEs. Such financing is often used to gain access to larger players at a later stage. The findings suggest the need for public policies that promote the integration of financing actors in regional ecosystems to advance SMEs' development.Originality/valueThis article examines how SMEs access financing, with a focus on regional cooperative banks, which have received little attention in the literature. Moreover, the relationships between these actors are studied through the lens of proximity. Regional cooperative banks are able to finance projects that may have been overlooked by traditional banks due to trust-building local dynamics.

THE DIGITAL TRANSFORMATION OF SMES: A COMPARATIVE REVIEW BETWEEN THE USA AND AFRICA

The digital transformation of Small and Medium-sized Enterprises (SMEs) is a critical phenomenon shaping the global business landscape. This paper presents a comparative review between the United States and Africa, exploring the diverse trajectories of digitalization within these regions. While the USA is often at the forefront of technological advancements, Africa's SMEs exhibit unique challenges and opportunities in their digital transformation journey. In the United States, SMEs have embraced digital technologies to enhance operational efficiency, improve customer experiences, and gain a competitive edge. The adoption of cloud computing, data analytics, and e-commerce platforms has become ubiquitous, fostering innovation and scalability. This comparative study delves into the specific strategies employed by American SMEs to navigate the complexities of the digital era. On the contrary, African SMEs face distinct hurdles in their digital transformation efforts. Infrastructure limitations, limited access to capital, and a diverse economic landscape present unique challenges. However, this review sheds light on the innovative approaches taken by African SMEs to overcome these barriers. Leveraging mobile technology, localized digital solutions, and collaborative networks, African SMEs are carving out their digital paths. Moreover, this comparative review emphasizes the role of government policies and support mechanisms in shaping the digital transformation landscape for SMEs in both regions. By examining regulatory frameworks, funding initiatives, and skill development programs, this paper provides a comprehensive analysis of the ecosystem supporting SMEs in their digital evolution. The digital transformation of SMEs is a dynamic process with distinct nuances in the USA and Africa. While American SMEs benefit from advanced technological infrastructures, African SMEs showcase resilience and adaptability in leveraging digital tools to overcome challenges. Understanding these diverse trajectories is essential for policymakers, businesses, and researchers seeking to foster inclusive and sustainable digital growth globally.
 Keywords: Digital Transformation, SMEs, USA, Africa, Review.

Development of Small and Medium-Sized Businesses in Certain Areas of the Central Federal District of the Russian Federation in the Context of State Support Measures and the Regions' Own Potential

The relevance. The main problem of small and medium-sized enterprises (SMEs) in the Russian Federation is that government support measures are not always an incentive to development: the dominance of large businesses,the difficult economic situation and the desire for stable profits often force SME organizations to simply exist on state-provided capital in isolation from the regional economic situation. The solution to this problem forms the relevance of the chosen topic. The purpose of this study is to study the main statistical patterns of changes in the financial situation of SMEs in the regions of the Central Federal District of the Russian Federation in terms of their quantitative and qualitative development. Objectives. To achieve this goal, an analysis of official statistical data on SMEs in certain regions of the Central Federal District of the Russian Federation was carried out: their position in the general federal rating, revenue and number of employees, as well as the total number of SMEs over a five-year period. Methodology. To obtain the results of the study, general scientific methods were used: induction, deduction; statistical methods: observation, grouping, analysis of dynamics and structure. Results: the share of SMEs in the Russian economy in comparison with developed European countries is analyzed; the main problems associated with the resulting low proportion of SMEs in our country are presented; the analysis of the structure of small business in Russia by industry is carried out; a comparative analysis of the revenue indicators of SME enterprises, taking into account relevant government support measures, is also presented, the dynamics of the number of organizations in the SME sector is presented, the dynamics of economic indicators of the turnover of funds and the average number of jobs in SME organizations are reflected; the measures of state support for SMEs are considered and their effectiveness is assessed. Conclusion. State centralized financial support for small and medium-sized businesses, without any doubt, is, if not an incentive to development, then at least a guarantee of the survival of many enterprises in this business segment.

Do innovation support services meet the needs of agri-food SMEs in cross-border regions? A case study from the Euregio Rhine-Waal

ABSTRACT Purpose Innovations in small and medium-sized enterprises (SMEs) are essential for increasing resource efficiency and sustainability in the agri-food system. An innovation support service (ISS) can benefit SMEs but the provision and access to it can be restricted across national borders thereby hindering cross-border regions’ economic potential. The aim was to investigate how ISSs are provided and used in such a region and explore stakeholders’ perceptions on their limitations and opportunities. Methodology We conducted a case study in the Dutch-German cross-border region Euregio Rhine-Waal which included a content analysis of websites and stakeholder interviews. Findings The provision of ISSs was limited by differing structures and priorities in both countries. SMEs’ unfamiliarity with responsible authorities, significant administrative effort, and uncertainty about pay-offs were perceived as factors limiting ISS. Practical implications We provide recommendations on how to improve ISS in cross-border regions and inform policymaking for cross-border regional development. We recommend reducing limitations of ISS provision and use, e.g. by engaging ISS providers and users in a co-creative approach. Furthermore, we suggest using opportunities of ISS provision and use, e.g. through increased promotion of available ISS by brokers. Theoretical implications Our research contributes to the literature of extension and advisory systems by showing how differing institutional settings, combined with different ‘innovation cultures’ and the availability of cross-border brokers affect cross-border integration of ISS. Originality This is the first study to explore the limitations and potentials of ISSs in a cross-border region.

Sustainable entrepreneurship in Malaysian companies

Sustainable entrepreneurship refers to the economic, social, and environmental value creation across enterprises in Malaysia. When examining sustainable entrepreneurship in Malaysian companies, small and medium-sized enterprises (SMEs), which serve as the backbone of the Malaysian economy and account for 97.2% of businesses and generate 38.2% of the gross domestic product, cannot be overlooked. The research is the first study in Malaysia, which extends the entrepreneurial event model to develop a comprehensive research framework to examine and propose suggestions to improve sustainable entrepreneurship in SMEs. A questionnaire was distributed to 400 entrepreneurs from SMEs in central regions in Malaysia, and 300 complete and valid questionnaires were used for the analysis. All constructs in the questionnaire were tested and confirmed to have high convergent validity and high composite reliability. The results show that perceived desirability, perceived feasibility and propensity to act have a positive effect on sustainable entrepreneurship in SMEs. Young entrepreneurs under 40 years old show greater propensity to act on sustainable entrepreneurship compared to older entrepreneurs aged over 40 years old. This research offers practical and theoretical new insights for SMEs, entrepreneurs, employees, and institutions toward improving sustainable entrepreneurship in a developing nation in Asia.

Small and Medium-sized Enterprises (SMEs) Role in Georgian Regional Economy

This research paper investigates the role of Small and Medium-sized Enterprises (SMEs) in local economic development within Georgian regions, focusing on their impact on job creation, innovation, and regional growth. Drawing on an extensive literature review, the paper synthesizes key themes such as the characteristics of SMEs, the business environment, access to finance, capacity building, innovation, and internationalization. The analysis emphasizes the importance of understanding the unique challenges and opportunities faced by SMEs in Georgian regions, with particular attention given to high-growth SMEs. By examining factors such as the regulatory framework, financial services, skills development, technology adoption, and export opportunities, the paper offers valuable insights into fostering a supportive ecosystem for SMEs. The research highlights the potential for targeted interventions to bolster local economic development and enhance regional competitiveness in Georgia.

The Comparison of Financing Efficiency of Small and Medium Enterprises in Economically Underdeveloped Regions in China: A Perspective Study

Small- and medium-sized enterprises (SMEs) are important foundations to implement mass entrepreneurship and innovation and play an irreplaceable role in increasing employment, promoting economic growth, as well as scientific and technological innovations, and providing particularly social harmony and stability and imminently are strategic entities to the national economy and social development in underdeveloped regions. However, the low-efficiency financing of SMEs has gradually become a major factor that restricts the high-quality development of SMEs in the current conditions. In this paper, interest expenditure, gearing ratio, and the net debt ratio as input indicators and current asset turnover ratio, cost margin, and main business income as output indicators are used to conduct the DEA-BCC model. By utilizing the GEM-listed private enterprises between 2017 and 2020 in China, the nationwide financing efficiency of SMEs is firstly measured, and then the financing efficiencies of SMEs in economically developed regions and lagging regions are calculated separately. The comparison reveals that the financing efficiency of SMEs in economically underdeveloped regions is not only lower than the national average figure but also much lower than the financing efficiency level in economically developed regions, which is the result of the combined effect of internal and external factors that enterprises face. Further, this paper finds that unexpected public events, core technical personnel, and enterprise size have an impact on the financing efficiency of SMEs when running group testing. This paper puts forward rationalized suggestions to the institutions to improve the financing efficiency of SMEs in underdeveloped regions concerning the conducted research, which are called government, financial institutions, and enterprises.

Critical sustainability factors of regional SMEs; A case study of regional Australia

Small and medium sized enterprises (SMEs) are one of the main development agents and economic contributors to the regional areas. They increase productivity, create employment, and improve the quality of local community's life. They have also significant impacts on the environment and society collectively because a high percentage of businesses in regional areas belongs to SMEs. For example, near to 95% of regional businesses operating in service and industry sectors in Australia are SMEs. Hence, it is necessary to find out the best possible ways to engage the regional SMEs with sustainable practices and see what factors are contributing (or inhibiting) the regional SMEs to be sustainable business citizens. Bringing together the relevant literature and using quantitative methods, this paper explores factors affecting the sustainability adoption by regional SMEs. Through a case study approach, this paper builds a platform for future research in relation to better understanding of the factors affecting the adoption of sustainable practices outside metropolitan regions.

Innovation and entrepreneurship for sustainable development: Lessons from Ethiopia

This study explores whether and how innovation policy concepts can be adapted to address the needs of low-income developing countries and how they can advance their sustainable development objectives, such as economic growth, increased productivity, entrepreneurship, and job creation. We devise a conceptual approach for ensuring the advancement of innovation and entrepreneurship in low-income countries, design and test a methodology for implementing the conceptual approach, and utilize the case of Ethiopia for demonstration. The Ethiopian case is noteworthy due to a combination of various factors—high economic and demographic growth over the past years, acute need for job creation and focus on marginalized and vulnerable groups in society, need for regional and spatial planning focus, and relatively weak performance in innovation.Considering the challenging conditions in Ethiopia, we assess the conditions for innovation and entrepreneurship promotion in low-income countries. Moreover, we test the performance of seven ecosystem factors (finance, human capital, infrastructure, information, academy, government services, and culture) through key informant interviews, focus-group discussions, and questionnaires involving all ecosystem actors: government, academic and research institutions, and business leaders. Each factor is evaluated using 91 variables. Two aspects are evaluated for each variable on a 1–5 scale: the perceived importance of the variable for innovation advancement, and the current availability of the variable in Ethiopia. The gap between the two scores indicates the “frustration” level of the respondents.The findings indicate a challenging economic situation and low innovation level, but simultaneously high potential for growth—based on a growing market, significant GDP growth, and considerable government commitment and efforts. The ecosystem analysis results show that respondents attributed high importance to all ecosystem factors, but expressed frustration due to the low availability of the factors, as well as their weak interaction within the ecosystem—low coordination between government, industry, and academia; insufficient coordination within government; and low interaction among businesses.Based on the analysis results, several directions for innovation and entrepreneurship policy guidelines are derived.1. Adoption and adaptation. The innovation policy of low-income developing countries should not focus on new knowledge creation. The policy should instead support the adoption and adaptation of incremental innovations, which may have a significant multiplier effect, thereby generating jobs, affecting a numerous consumers and enterprises, and enhancing economic growth.2. Impact innovation. The innovation strategy of low-income countries should aim to generate an impact on broad segments of the economy. Priority should be given to innovation types in sectors that can lead to major economic impacts and boost productivity and employment—for example, in agriculture, traditional industry, and small and medium-sized enterprises (SMEs).3. Demand-oriented innovation. Demand-oriented innovation, rather than supply-oriented innovation, focuses on market needs. Instead of encouraging technology push, the innovation policy should focus on market pull, respond to people’s unmet needs, and support privatization.4. Spatial innovation. Innovation policies in a low-income country should adopt the concept of “concentrated dispersal” of innovation activities, thereby providing special grants or funds to SMEs in specific regions or supporting impact investments in priority regions.5. Government coordination. The innovation capabilities of ecosystem actors are strengthened through mutual learning processes and by facilitating interactions among stakeholders in the innovation community. Therefore, supporting innovation, particularly in a low-income country, necessitates a governmental coordination platform that would set up development priorities, strengthen coordination and collaboration among the ecosystem factors, and provide appropriate regulations, infrastructure, and financial and legal services.

Benefits and challenges in adopting social media for SMEs: A case from Bangladesh

Abstract Purpose: The purpose of this study was to identify the challenges, Benefits, and various determinants which play an important role in adopting social media among small and medium-sized enterprises (SMEs) in Bangladesh, based on the (Technology-Organization-Environment) TOE Model. The TOE framework seeks to understand the significant factors influencing the decision to adopt social media in SMEs in Bangladesh. Research methodology: In the study, a random sampling method was used to select a representative sample from the existing active SMEs in different regions of Bangladesh. A structured questionnaire was designed to measure constructs such as relative advantage. Preliminary data were collected from 365 small and medium enterprises through field studies. Then the survey data were analyzed using logistic regression (L.R.) of the independent variables included in the TOE framework Results: The outcomes of the study found that only 5 variables: relative advantage, complexity, consistency, top management's assistance, and innovative management factors significantly influence SMEs' decisions to adopt social media. Limitations: The busy schedules of the respondents are key limitations for the study along with the study area. If the study could explore more districts besides Dhaka city, then the study outcomes would be more extensive. Contribution: The results from this study will help SME foundations, research institutes, and government policymakers to formulate strategies for optimal use of social media in SMEs.

Factors influencing the implementation of workplace health promotion in companies in rural areas

PurposeWorkplace health promotion (WHP) is becoming increasingly important due to the ageing workforce and a shortage of skilled workers. Nevertheless, too few companies have reacted to the demographic change and introduced health-promoting measures. This paper aims to identify which factors influence the implementation of WHP, especially in small and medium-sized enterprises (SMEs) in rural areas.Design/methodology/approach253 companies in a rural area in the federal state of Saxony (Germany) were surveyed using a standardised questionnaire via a computer-assisted telephone interview. Bivariate analyses and logistic regression models were carried out. The focus was on the relationship between the status of WHP and the size of the company, pressure of demographic change, health-related attitude and organisational capacity factors.FindingsIt was shown that, in addition to the control variables company size and pressure of the shortage of skilled workers, a company's attitude regarding health promotion, financial capacity and planning and development capacity has a relevant influence on the status of WHP.Practical implicationsBased on the results, targeted measures can be developed and converted to implement WHP, particularly in SMEs in rural regions. The focus should be on sensitisation, knowledge transfer and capacity development.Originality/valueThe present paper reveals the relationship between company size, pressure of demographic change, health-related attitude and organisational capacities regarding the status of health-promoting measures in SMEs in a rural region.

Locational challenges and opportunities for SMEs in border regions

ABSTRACT The present paper explores the unresolved issue in regional planning of whether small- and medium-sized enterprises (SMEs) benefit from being located in border regions in terms of cross-border cooperation opportunities and cross-border externalities. By systematically reviewing the existing literature on the topic with the help of a mapping review, it suggests the following answer: SMEs in border regions do benefit from cross-border cooperation opportunities. However, there is no strong empirical support of a prevalence of positive cross-border externalities. Rather, the review finds that SMEs in border regions are influenced by negative cross-border externalities. Since the results do not point in a clear-cut direction, given their high degree of context-specificity, we claim that further studies on the topic are necessary to combine the established knowledge on SME-based entrepreneurship with planning theories and concepts taken from the literature on borders, border asymmetries and border regions.

Security and Privacy Concerns for Australian SMEs Cloud Adoption: Empirical Study of Metropolitan Vs Regional SMEs

New national infrastructure initiatives such as National Broadband Network (NBN) could enable Small and Medium-sized Enterprises (SMEs) in Australia to further embrace Cloud computing service. However, the ability of Cloud computing to store data remotely and share services in a dynamic environment bring along with it Cloud security and privacy concerns. In this study, we examined the influence of privacy and security factors on Cloud adoption by Australian SMEs through a questionnaire survey. Data was collected from 150 SMEs (i.e. 79 metropolitan SMEs and 71 regional SMEs) and structural equation modelling was used for data analysis. The findings show that Cloud privacy and security factors are not the most critical concern for Australian SMEs. Moreover, the results indicate that Cloud computing adoption is not influenced by the geographical location of the SMEs. This study extends the current understanding of Cloud computing adoption by Australian SMEs.

Regional Growth and SMEs in Brazil: A Spatial Panel Approach

Cravo T. A., Becker B. and Gourlay A. Regional growth and SMEs in Brazil: a spatial panel approach, Regional Studies. This paper examines economic growth for a panel of 508 Brazilian micro-regions for the period 1980–2004, using spatial econometrics and paying particular attention to the importance of small and medium-sized enterprises (SMEs). The findings indicate the presence of spatial dependence in the process of economic growth and the existence of two spatial regimes in Brazil. The human capital level of the whole population is an important growth determinant, but does not generate positive spillovers. Furthermore, human capital embodied in SMEs is more important than the size of this sector for regional growth and SME activity generates positive spatial spillovers.

Investing in Workplace Innovation Pays Off for SMEs: A Regional Innovation Initiative from the Netherlands

From 2009 to 2013 the workplace innovation project “My Enterprise 2.0” was carried out in the region of Utrecht in the Netherlands in order to strengthen the workplace innovation capability of small and medium-sized enterprises (SMEs). Participating enterprises completed a questionnaire regarding the “workplace innovativeness” of their company. A workplace innovation intervention was then implemented by some of the companies, while other companies chose not to take part. At the end of the project, a second questionnaire indicated that those companies that implemented interventions had a significantly higher score with regard to overall workplace innovativeness. The companies without such interventions reported a small decrease. While the companies in the region had higher workplace innovativeness scores relative to a national reference group both before and after the project, the increase in the “workplace innovativeness” of the regional SMEs that experienced interventions suggests that the project proved beneficial to their continued “workplace innovativeness.” Moreover, these companies also reported positive effects on company performance, achieving company goals and improving labor productivity.

SUSTAINABLE SUPPLY CHAIN MANAGEMENT ISSUES: CASE OF REGIONAL SMEs’ INVOLVEMENT IN THE AIR CARGO

This paper aims at conceptualising and assessing operational environment of small and mediumsized enterprises (SMEs) in sustainable supply chains in regional context. The paper starts an attempt to explore how SMEs in Mecklenburg-Vorpommern in Germany from transport, logistics related value-added services and especially from the air freight sector collaborate, perform and develop from supply chain management perspective, and what crucial determinants for burgeoning business performance and sustainable strategy are effectively to be linked for the benefits of SMEs. Using a qualitative case study approach, the paper bears on empirical evidences of the project “Baltic.AirCargo.Net” financed by the European Regional Development Fund / European Neighbourhood and Partnership Instrument in the framework of the Baltic Sea Region Programme 2007-2013. The paper builds upon a qualitative research approach involving expert interviews, focus groups analysis and secondary data research based on relevant project documentation and field notes from project meetings and workshops. Findings of the case study from the German air cargo service providers are explored and discussed through key theoretical concepts pertaining to sustainable supply chains and logistics of SMEs. Based on the relevant scholarly work and results of empirical evidence and case studies, a conceptual model is designed with propositions and possible future directions for SMEs. The paper showcases empirical findings gathered from the practices of regional SMEs operating in the air cargo transport and logistics service field, thus expanding this poorly conceived research area. The research is based on direct information and insights from SMEs located in Mecklenburg-Vorpommern and highlights how SMEs under the given circumstances may streamline their development paths operationally, tactically and strategically. Insights obtained from this paper can be employed as critical tool among SMEs’ managers, strategy planners and policy decision-makers on how to utilize SMEs’ practices in the context of supply chains, logistics networks and emerging scope of globalisation and trade.

Knowledge Management as a Source of Innovation and Competitive Advantage for SMEs in Peripheral Regions

The advent of knowledge management has offered new opportunities for small and medium-sized enterprises (SMEs) in peripheral regions to leverage knowledge as a source of competitive advantage. However, few studies at firm level examine the role of knowledge management in helping to improve innovation and competitiveness in SMEs in such regions. This paper explores how SMEs in peripheral regions can use knowledge management concepts and practices of knowledge acquisition and assimilation to achieve higher levels of innovation implementation. Survey findings indicate that more innovative firms are more likely to acquire or source external knowledge through various methods, and are more likely to have higher levels of absorptive capacity. Overall, the authors conclude that SMEs in peripheral regions can use knowledge acquisition and assimilation as antecedents to innovation to help overcome innate tangible resource limitations.

Capital structure of SMEs in Spanish regions

This article examines whether the capital structure of small and medium-sized enterprises (SMEs) and its firm-factor determinants are different across regions belonging to a single country. This subject is relatively innovative in capital structure research, since the majority of the studies carried out in a single country have neglected to take into account the region in which firms operate to explain leverage. To this end, we study whether the capital structure and its firm-factor determinants—size, asset structure, profit, growth, and age—differ depending on the region in which the SMEs are located. For the empirical analysis, panel data methods are applied to a sample of firms from all regions of Spain for the period 2004–2007. Our results not only suggest that there are regional differences in the SMEs capital structure but also confirm that the impact of firm-factor determinants on leverage differs across regions in terms of signs, magnitudes and significance levels.

Factors affecting the effective utilisation and adoption of sophisticated ICT solutions

PurposeThe purpose of this paper is to consider factors affecting the effective utilisation of information and communication technology (ICT) and the adoption of more sophisticated ICT solutions in small and medium‐sized enterprises (SMEs) in Lagos, Nigeria.Design/methodology/approachThe study adopts a case study approach. Semi‐structured interviews in 25 SMEs were used as tools for data collection.FindingsThe paper identifies eight key factors that affect the effective utilisation and adoption of more sophisticated or advanced ICT solutions in Nigerian SMEs.Research limitations/implicationsThe data for this research are drawn from a particular region in Nigeria, therefore, the findings are not generalisable to SMEs in other regions. Also, the data are collected from various industry sectors hence, it is not possible to have sector‐specific conclusions.Practical implicationsEffective utilisation of sophisticated ICT solutions in SMEs has great impact on SMEs' competitiveness. Also, the study could assist owner‐managers, policy makers and stakeholders to better understand the major challenges faced by Nigerian SMEs and create various initiatives to assist these SMEs.Originality/valueThe study provides insight into the adoption of sophisticated ICT solutions within Nigerian SMEs that is of value to owner‐managers, policy makers and academic researchers. The study further suggests means to achieve a successful and sustainable technology adoption in SMEs.

The impact of internationalisation on the competitive strategies of SMEs

The aim of this research was to study the effect of internationalisation on the competitive strategies of Small- and Medium-sized Enterprises (SMEs). An empirical study, based on the 'strategic fit' theory, was conducted on a sample of 59 SMEs. It revealed that international SMEs are significantly different from regional SMEs in terms of a number of 'competitive dimensions'. International SMEs are exposed to greater demands with regard to differentiating their products and minimising their production costs. They also adopt more pronounced concentration strategies.