Small And Medium-sized Enterprises Owners Research Articles

تحديات وعوامل نجاح المؤسسات الصغيرة والمتوسطة في قطاع الأغذية في منطقة الرياض

Small and medium-sized enterprises (SMEs) in the food sector in Riyadh face various challenges and factors affecting their success. This research aims to identify the main challenges encountered by SMEs in the food sector in Riyadh, explore the strategies they adopt, and analyze the success factors contributing to the growth and sustainability of these SMEs. The researchers employed a descriptive survey method, suitable for the nature and objectives of the study, and selected 52 SME owners from the study population. The study revealed several key findings: the overall average response of the study participants regarding the challenges and difficulties faced by SMEs fell at a "agree" level with an average score of 4.02. Additionally, the overall average response of the study participants regarding the success factors of SMEs fell at a "strongly agree" level with an overall average score of 4.51. Furthermore, the overall average response of the study participants regarding marketing and promotion in SMEs fell at a "agree and strongly agree" level with an overall average score of 4.40. The study recommended that educational and training programs specialized for SME owners in the food sector be provided, including marketing, cost management, and development of managerial skills, to increase their understanding and enhance their capabilities in dealing with financial and marketing challenges. Academic institutions should be encouraged to provide greater support for research and innovation in the food industry, including providing funding and necessary resources for researchers to focus on innovative solutions to the challenges facing SMEs in this sector. Universities and academic institutions should support SMEs in the food sector in updating their technology and applying modern technological solutions to improve their productivity, product quality, and more effective marketing.

Overcoming the liability of newness: The interplay of debt, equity, and profitability in nascent SMEs

ABSTRACT Small and medium-sized enterprises (SMEs) in their early stages face the liability of newness that can undermine their survival. This study investigates the impact of strategic financing decisions and profitability on the solvency of 1,106 Ghanaian SMEs during their first 5 years. Leveraging the pecking order theory, the study examines how internal equity and debt, in conjunction with net profit after tax, as well as returns on equity and assets, influences the liability of newness. Regression analysis highlights a positive association between equity financing and return on equity with solvency, while return on assets shows no significant relationship. The study emphasizes the importance of internal equity in mitigating the liability of newness. Considering this study’s findings regarding the significance of equity ratio, debt-to-equity ratio, return on equity, and net profit after tax in mitigating the liability of newness, SME owners are advised to take specific measures to boost these metrics.

Impact of Social Media Usage on Supplier-Customer Relationship Management: Case on Manufacturing and Service SMEs

Digital products have placed as a competitive advantage for business actors both individuals, companies, and industries recently. Social media such as Facebook, Instagram, YouTube, which are accessible from various communication media such as smartphones, tablets, or laptops have become inseparable media from user's handholds in order to share information, offer products and services, and make friends. In an effort to establish good relationships between companies and suppliers (Supplier Relationship Management/SRM) and between companies and consumers (Customer Relationship Management/CRM), hence optimizing the use of social media for companies becomes very important, no exception for small and medium-sized enterprises (SMEs). This study aims to examine the role of social media to assist SMEs in establishing good relationships with their suppliers and customers. There are around 200-250 manufacturing and service SMEs domiciled in Central Java province were involved. The data collection method was carried out through surveys guided by questionnaires and interviews with SME owners. Quantitative data analysis was conducted using Structural Equation Modelling. It is hoped that the resulting findings will prove the significant role of social media in helping SMEs to establish good relationships with suppliers (SRM) and customers (CRM), and it is believed to be useful both theoretically and practically.

Understanding the Technological-Organizational-Environmental Concepts on SMEs' Performance in Emerging Market

This research focuses on integrating digital platforms in small and medium-sized enterprises (SMEs), emphasizing the importance of efficient stakeholder communication for their success. Additional scholarly investigation is required to examine the correlation between SME success and social media adoption, with a focus on emerging countries. This study examines how technology-organizational-environmental (TOE) factors affect digital social communication and SME success in developing nations. Through employing the TOE framework, this study attempts to explain the determinants of social media adoption and its subsequent effect on the performance of SMEs. Data will be gathered through the utilization of a well-organized questionnaire disseminated online to a randomly selected group of participants from SMEs in Indonesia. Partial-leastsquares- structural-equation-modeling will be employed to conduct the route analysis, with the involvement of SME owners, executives, and managers. Furthermore, the study will evaluate how social media influences the connection between TOE qualities and SME performance. The findings will demonstrate a clear and favorable correlation between the TOE components, and the interaction between SME performance and social media adoption. This research will enhance the existing body of knowledge in this domain by offering valuable insights for professionals and scholars interested in the use of social media in SMEs.
 Keywords: digital social communication, SME, TOE

A Study of the Relationship between Social Media Marketing through Influencer Marketing and SMEs: Applied on the Egyptian Small and Medium Enterprises

This paper explores the multidimensional influence of social media marketing on Egypt’s Small and Medium Enterprises. This study adopts a mixed-methods approach, integrating surveys, interviews, and case studies to give a thorough analysis. The study begins by assessing the amount of social media marketing adoption among Egyptian SMEs and identifying the most regularly used platforms. It evaluates the frequency and characteristics of social media interactions among SMEs, including consumer engagement and collaborations. Furthermore, the study assesses the problems associated with resource limits, digital literacy, and cultural issues in incorporating social media into SME operations. In addition, the study explores the impact of content created by users and online reviews on brand impression and consumer loyalty. The study also examines whether having an active social media presence corresponds with increasing revenue, market share expansion, and globalization activities. It investigates the role of social media marketing in promoting SMEs’ access to finance and collaborations. In conclusion, this thesis contributes to the existing literature by conducting a comprehensive evaluation of the impact of social media marketing on small and medium-sized enterprises (SMEs) in Egypt. It highlights the immense potential of social media and identifies various challenges SMEs face. The research recommends how policymakers, business support organizations, and SME owners can leverage social media marketing to enhance competitiveness and sustainability in the Egyptian business environment. Keywords: Social Media Marketing – Marketing – SMEs – Egypt.

Exploring the impact of family and organisational values on competence diversity reluctance in rural family SMEs

PurposeThis paper aims to examine how organisational values affect diversity in terms of different competencies in rural family Small and Medium-sized Enterprises (SMEs). Recruiting a diverse workforce in rural family SMEs can be particularly difficult due to the prevalence of internal family values and the lack of available local specialised competencies. A deficiency of diversity in employment and competence acquisition and development can create problems, as it often prevents rural family SMEs from recruiting employees with a wide variety of qualifications and skills.Design/methodology/approachThe study takes on a multi-case method of Swedish rural family SMEs, applying a qualitative content analysis approach. In total, 20 in-depth structured interviews are conducted with rural family SME owners and 2 industries were investigated and compared – the tourism and the manufacturing industries.FindingsRural family SMEs lack long-term employment strategies, and competence diversity does not appear to be a priority for rural family SMEs, as they often have prematurely decided who they will hire rather than what competencies are needed for their long-term business development. It is more important to keep the team of employees tight and the family spirit present than to include competence diversity and mixed qualifications in the employment acquisition and development.Originality/valueContrary to prior research, our findings indicate that rural family SMEs apply short-term competence diversity strategies rather than long-term prospects regarding competence acquisition and management, due to their family values and rural setting, which strictly narrows the selection of employees and competencies. Also, a general reluctance towards competence diversity is identified, which originates from the very same family values and rural context.

RESILIENCE AND CONFLICT: THE ROLES OF COPRENEURSHIP, TRANSGENERATION, AND DARK SIDE OF FAMILY BUSINESS

The present study aimed to examine the role of copreneurship, transgeneration, and the dark side with conflicts in and continuity of family-managed small and medium-sized enterprises (SMEs) or family businesses. Data was derived from 178 owners of batik SMEs, consisting of both those managed by spouses and those inherited. Data analysis was done using SEM-AMOS.22 and showed that (1) copreneurship positively related to family business conflicts; (2) transgeneration positively related to business management conflicts; (3) member family’s dark side positively related to conflicts; and (4) conflicts occurred due to tenuous family social identity (decreased co­pre­ne­urship bond, transgenerational process failure and dark side) positively related to family bu­si­ness resilience. The present study also included control variables for business size and gene­ra­ti­onal order in order to determine the extent and resilience of business continuity.

Increasing SME Performance Through Quality Information Technology and Top Management Support

This research aims to analyze the influence of information technology quality and top management support on the performance of the city of Semarang. This research contributes to providing feedback for SME managers or owners in making decisions regarding the importance of digitizing accounting, in this case, the accounting information system. This quantitative research uses an explanatory research approach guided by a questionnaire that tests the relationship and influence between research variables. Data analysis was obtained using the SEM approach by analyzing 132 respondents who had used the accounting information system application for at least one year. The research results show that the quality of information technology use and top management support significantly affect SME performance. The implication of this research underscores the importance of investing in improving the quality of information technology and top management support for the performance of small and medium-sized enterprises (SMEs) in Semarang City. It indicates that the utilization of effective accounting information systems and active support from top management can enhance the competitiveness and operational efficiency of SMEs. Therefore, SME managers or owners need to consider adopting and optimizing accounting information systems in their strategic decision-making processes to enhance business performance and growth.

The role of competitor orientation and proactiveness in competitive advantage for small- and medium-sized enterprises performance

Background: As small- and medium-sized enterprises (SMEs) are the primary source of job creation in Nigeria and contribute 48% of the country’s gross domestic product (GDP), their performance must be enhanced and sustainability ensured. The article suggests that through competitor orientation and proactiveness, SME managers and owners can achieve competitive advantage which ultimately promotes firm performance.Aim: The article aims to examine how competitor orientation and proactiveness in competitive advantage enhance the performance of SMEs in Nigeria.Setting: The study focused on registered SME owners and managers who are operating in Nigeria, using Lagos State as a case study.Methods: This study was conducted through administering questionnaires to owners and/or managers of SMEs as the unit of analysis. A quantitative research design was used with stratified and simple random sampling as the sampling method, with the sample comprising 100 SME owners and/or managers.Results: The results of the study indicated that competitive advantage mediates the relationship between competitor orientation, proactiveness and SMEs’ performance indirectly. It further revealed that competitor orientation and proactiveness have significant effects on SMEs’ performance.Conclusion and contribution: The article reveals how competitive advantage, which is influenced by competitor orientation and proactiveness, contributes to increased SMEs’ performance in SME sectors. Thus, to gain a competitive edge over their rivals, the study recommends that SME owners and managers consider competitor orientation and proactiveness more seriously, as these factors ultimately boost their performance.

Innovation capability, strategic flexibility and SME performance: the roles of competitive advantage and competitive intensity

PurposeThis study aims to explore the mediating role of competitive advantage and the moderating role of competitive intensity in the relationship between innovation capability (IC) and small and medium-sized enterprise (SME) performance and between strategic flexibility (SF) and SME performance.Design/methodology/approachThe study adopted a survey research design. The data were collected from a conveniently selected sample of 159 SMEs in Nigeria using a self-reported questionnaire. Mediation and moderation analyses were performed using Hayes' PROCESS macro v3.FindingsResults showed that IC and SF positively affect SME performance. Also, competitive advantage significantly mediates the relationship between IC and SME performance and between SF and SME performance. Additionally, competitive intensity positively and significantly moderates the relationship between IC and SME performance but fails to significantly moderate the relationship between SF and SME performance.Practical implicationsThe findings have managerial implications for SME owners and managers. The findings suggest the need for SMEs to develop more IC and increase their SF. Thus, SME owners and managers should invest more in developing IC and SF. More specifically, they should invest more in research and development, the development of intellectual capital (consisting of human capital, structural capital and relational capital) and new technologies, products, services and processes. Also, they should nurture an innovation culture, encourage creative and innovative acts and allow employees to experiment with new ideas without hindrances.Originality/valueTo the best of the author’s knowledge, this study is the first to provide empirical evidence of the mediating role of competitive advantage and the moderating role of competitive intensity in the relationship between IC and SME performance and between SF and SME performance in the context of emerging economies such as Nigeria. The study validates dynamic capabilities theory by demonstrating that IC and SF are dynamic capabilities that give SMEs a competitive advantage and enhance their performance.

Towards a more flexible SMEs: can HR flexibility spur the nexus between capacity-enhancing HR practices and job performance?

PurposeThe study investigates the mediating effect of HR flexibility in the relationship between capacity-enhancing HR practices and job performance in small and medium-sized enterprises (SMEs) operating in Egypt.Design/methodology/approachOn the basis of the literature review, the results imply a quantitatively tested conceptual model. The model is empirically validated using the partial least squares method to structural equation modelling (PLS-SEM) with survey data from 270 SME owners and managers in Egypt. The sample was selected using a quota sampling approach for small and medium-sized businesses and a proportionate stratification sampling method for the industry and region.FindingsFindings for the sample revealed that capacity-enhancing HR practices affected job performance positively and significantly. The findings also revealed a direct, positive and significant impact of capacity-enhancing HR practices on HR flexibility and HR flexibility on job performance. Functional flexibility was identified as a significant mediator of the capacity-enhancing HR practices-job performance link, whereas behavioural and skill flexibility were not significant mediators for such a relationship.Research limitations/implicationsThe study's cross-sectional design is an evident weakness. All variables were self-reported; this may raise issues regarding method bias. Other limitations include the generalisability of the study's findings outside the setting in which it was conducted. The accuracy of the field study results would have been enhanced if they had not been limited exclusively to the geographical confines of Egypt.Originality/valueThe paper proposes many implications emphasising the role of HR flexibility in enhancing the performance of SMEs. The study developed a mediation model to understand how SMEs boost the performance of human resources by focusing on flexibility dimensions. Accordingly, companies may strategically employ flexible practices and provide an environment that encourages skill and behavioural development.

Entrepreneurial Exposure Effect

The paper investigated whether prior entrepreneurial exposure moderated the effect of entrepreneurial leadership and learning orientation on small and medium-sized enterprises (SMEs) growth. A cross-sectional survey research design was utilized to retrieve data from 471 owners/managers of SMEs in South-West Nigeria. The simple random sampling technique was applied. The results from the pilot study were used to determine the test of reliability and validity of the adapted questionnaire. The partial least squares structural equation modeling (PLS-SEM) analysis findings showed that entrepreneurial leadership and learning orientation effect on SME growth is not significantly moderated by prior entrepreneurial exposure in South-West, Nigeria [(βiz= 0.002, t = 22.771, p>0.05)], although it has a positive effect. SME owners and managers should leverage their entrepreneurial insights and experiences to inform strategic initiatives, foster innovation, and drive growth. Additionally, creating opportunities for knowledge exchange and collaboration among individuals with diverse entrepreneurial backgrounds could enrich the organizational learning process and fuel innovation. Nevertheless, there are no guarantees that prior entrepreneurial exposure would affect firm growth.

Digitalization and its Impact on Small and Medium-sized Enterprises (SMEs): An Exploratory Study of Challenges and Proposed Solutions

Transformation and Digitalization are the biggest upheavals that companies are facing today. To stay competitive, most companies embrace change. However, organizations face challenges and need to find solutions to overcome these challenges. There is a lack of research that deals in detail with the changes caused by digitization for small and medium-sized enterprises (SMEs) and possible solutions. This research identified the innovative changes that SMEs should embrace. In addition, this study highlighted the challenges and proposed solutions that result from digitization. This was a qualitative study based on the philosophy of interpretivism and the inductive approach. Based on a targeted sample, data was collected from six participants. The study uses an exploratory research design based on interviews with six SMEs. Thematic analysis was used to identify the themes. Changes to be adopted include improving business processes, improving customer experience, transforming the business ecosystem, and improving customer experience. The biggest challenges include financial difficulties, intense competition, and cybersecurity issues. Solutions included additional government support, good security practices, and a clear roadmap for the digitization strategy. By examining the digitization and innovation challenges faced by SMEs and the proposed solutions, this research provided valuable insights to SME owners and stakeholders in embracing the change and devising strategies to overcome the challenges by leveraging digital technologies and innovation to sustain competitive advantage

The Influence of Digital Financial Literacy on Indonesian SMEs’ Financial Behavior and Financial Well-Being

Purpose: This study investigates the multifaceted impact of digital financial literacy on the financial well-being of Small and Medium-sized Enterprises (SMEs). Recognizing the pivotal role of digital financial literacy in contemporary business landscapes, we explore how SMEs' comprehension and utilization of digital financial tools influence their financial behavior and, subsequently, their overall financial well-being.
 
 Theoretical framework: Drawing on a comprehensive literature review, we delve into the various dimensions of digital financial literacy, including access to capital, financial management practices, risk mitigation, and market expansion. The research also examines the mediating role of financial behavior, elucidating how informed decision-making, efficient budgeting, and adept financial management act as crucial intermediaries in the relationship between digital financial literacy and SMEs' financial well-being.
 
 Design/Methodology/Approach: The study used quantitative method with online questionnaires as data collection tool. The population in this study was SMEs owner in Indonesia, focusing in four cities: Medan, Surabaya, Makassar, and Bali. The sampling technique employed was purposive sampling, involving a total of 186 respondents. The collected data underwent analysis through the Partial Least Square-Structural Equation Model (PLS-SEM).
 
 Findings: The results of data analysis indicate that digital financial literacy significantly affects financial behavior as well as SMEs’ financial well-being. Financial behavior significantly affects SMEs’ financial well-being, as well as plays the mediating role between digital financial literacy and SMEs’ financial well-being.
 
 Research, Practical & Social implications: The findings of this study carry profound implications for both academics and practitioners in the realm of business and finance. One key implication is the critical role of education and training programs aimed at enhancing digital financial literacy among SME owners and stakeholders. Moreover, the findings underscore the importance of fostering an environment conducive to digital financial literacy adoption.
 
 Originality/Value: The findings of this study hold significant implications for policymakers, financial institutions, and SME owners seeking to foster economic resilience and growth in the digital era. Through empirical investigation and data analysis, this study provides actionable insights that contribute to the advancement of digital financial literacy initiatives, ultimately enhancing the financial well-being of SMEs in an increasingly digitized business environment.

STRESS AND EMOTION MANAGEMENT AS THE KEY TO SUCCESS FOR MSME OWNERS

This research is motivated by the awareness of the importance of stress and emotion management in the success of small and medium-sized enterprises (SMEs). The aim of this study is to provide a better understanding of the significance of stress and emotion management for SME owners and to assist in implementing stress and emotion management techniques. The research conducted is qualitative research using the ABCD method. The subjects of this study are SME owners in Selogiri Village, Kebumen. Data collection techniques were carried out through interview observations. The results of this study indicate that stress management has a significant impact on SME practitioners in developing their products. Based on the data obtained, SME practitioners in Selogiri Village mentioned that stress arises from comments made by some consumers. Their approach to managing stress is to evaluate their products based on the comments given by consumers, so they believe that improving the quality of their products can silence consumers with negative comments. Stress management in this context means turning hate comments into product evaluation materials for SME practitioners.

Entrepreneurial orientation, social media and SME performance: an emerging economy perspective

Purpose This study examines the role of social media adoption (SMA), opportunity recognition (OR) and opportunity exploitation (OE) in mediating the relationship between entrepreneurial orientation (EO) and the performance of newly established small and medium-sized enterprises (SMEs) in emerging economies, with a particular emphasis on Ghana.Design/methodology/approach This study adopts a post-positivist philosophical stance and uses a quantitative approach and a survey design. A purposive sampling technique was used to select 336 SME owners and managers from Ghana’s manufacturing, trading and service sectors. Questionnaires were administered to source the empirical data for this study. Structural equation modelling (SEM) was used to analyse the proposed hypotheses.Findings The results reveal that EO positively and significantly influences the performance of new-born SMEs. SMA, OR and OE partially mediated this relationship.Practical implications This study is a wakeup call to policymakers, practitioners, managers and owners of recently established businesses. Policymakers should provide support and resources for newly established SMEs to adopt effective social media marketing strategies, bolstering their online presence and customer engagement. Simultaneously, they should invest in entrepreneurship education and create an environment conducive to innovation to cultivate an entrepreneurial mindset among fresh SMEs. Business owners and managers should proactively monitor market trends and consumer preferences, adapting their strategies to identifying and seizing emerging opportunities.Originality/value This study introduces a significant novelty to previous literature and one of the first to employ the dynamic capability theory to examine the interplay between EO, SMA, OR and OE in influencing the performance of new SMEs in the context of emerging markets. Furthermore, it extends the scope of understanding of the mechanisms through which SMEs can prosper in these dynamic environments. This unique combination of theoretical framework, comprehensive variables and contextual focus sets this study apart from existing research, enriching the literature on SME performance in emerging markets.

Awakening the giant within: turning SME’s survival strategy into improved performance

Purpose This study aims to examine the positive impact of strategies on the viability of small and medium-sized enterprises (SMEs) in times of crisis. Specifically, it investigates the influence of resource utilization as an initial survival strategy on innovation practices and SMEs’ performance. It further assesses the potential impact of government aid and partnerships on the relationship between resource utilization and innovation. Design/methodology/approach This study used a mixed-method approach that integrates phenomenology and quantitative research. This phenomenological study conducted in-depth interviews with 23 SME owners. Based on qualitative findings, a quantitative research design was developed, and this study surveyed 352 SMEs. Structural equation modeling was used for hypothesis testing. Findings Resource utilization as an initial survival strategy has a positive effect on increasing organizational innovation practices and ultimately affects business performance. Furthermore, government support and external partnerships significantly enhance the relationship between resource utilization and innovation. Practical implications The COVID-19 pandemic brought a crisis for businesses but has provided many positive transformations. SME entrepreneurs should sustain their survival strategies and seize external support to enhance their potential. Due to the pandemic, various efforts have created innovations, honed business resiliency and increased competitiveness. Originality/value SMEs struggled with the crisis and responded by utilizing many retrenchment strategies. This study is among the first to provide empirical evidence of an emergency response that has resulted in fruitful impacts. The findings can be generalized to represent the behavior of SMEs, especially in emerging countries.

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

PurposeThe purpose of this study is to investigate the evolving perceptions and human resource (HR) responses of owners and HR managers of Chinese small and medium-sized enterprises (SMEs) towards local labour markets in the context of the impact of the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThis study adopts a two-stage longitudinal qualitative approach involving 52 interviews with owners and HR managers of Chinese SMEs in the pre- and post-pandemic time periods.FindingsThe findings reveal a shift from the perceptions of a general labour shortage to perceptions of specialised talent shortages and increasing geographical disparities in local labour markets. They further reveal that SMEs are increasingly likely to adopt efficiency-oriented, flexibility-enhancing HR practices in the face of high uncertainty.Practical implicationsThe findings provide insights into the nature of the constraints of SMEs' sustainable development that need to be addressed by policymakers, SME owners and HR managers when they devise and implement policies relating to structure optimisation, labour market integration and mobility enhancement.Originality/valueIn contrast to extant literature that has examined the labour market at the national level, this study explores the views of SMEs (the demand side) by taking a localised perspective on how SMEs have responded to change through their HR practices.

The Performance of Small and Medium Sized Enterprises (SMEs) in Punjab: A Moderating Role of Corporate Image

The main purpose of this study is to check the factors affecting the performance of Small and Medium Sized Enterprises (SMEs) in Punjab. These factors include quality certification, open innovation, organizational culture and corporate philanthropy. Moreover, to check the moderating effect of corporate image between corporate philanthropy and SMEs’ performance. Quantitative research approach is used in this study because it is based on primary quantitative data which is collected by adapted questionnaire. Managerial level employees of SMEs located in Lahore were selected as population. Simple Random Sampling technique was used to collect data. Reliability and validity of model was checked and hypotheses were tested by using SMART PLS-SEM. The results of this study revealed that quality certification, open innovation, organizational culture and corporate philanthropy positively and significantly related to SMEs’ performance. Moreover, moderating variable, corporate image significantly moderates the relationship between corporate philanthropy and SMEs’ performance. Above mentioned practices play key role in boosting the performance of SMEs in Punjab, Pakistan. The results of this study are significant for the strategists, policy makers, managers and owners of SMEs located in Punjab, Pakistan or elsewhere. Results suggested them to incorporate such practices for enhancing their businesses’ performance. It will ultimately enhance the contribution of SMEs in the growth of economy.

Examining the relationship between fear of COVID-19 and digital financial service usage among Pakistani SMEs

PurposeThis research aimed to find out both direct and mediating relationships between the fear of COVID-19 (FC) and the usage of digital financial services (UDFS) via mediator financial anxiety (FA). It also attempted to ascertain the moderated effect of education of small and medium-sized enterprise (SME) owners (ESO), i.e. business degree holders (BDH) vs nonbusiness degree holders (NBDH), in the relationship between FC and the UDFS.Design/methodology/approachThis research employed a simple random sampling technique. In total, 387 complete responses were collected from Pakistani SMEs. The complete analysis was performed using Statistical Package for the Social Sciences (SPSS) 23, AMOS 24, Process Marco 4.1, and Interaction 1.7.FindingsAccording to the findings, FC leads to UDFS and FA mediates this relationship. Additionally, the findings show that the ESO between FC and UDFS was moderated. However, conditional analysis shows that BDH-SME owners strengthened the moderated relationship between FC and UDFS compared to NBDH-SME owners, who did not show any relationship.Research limitations/implicationsPolicymakers might use the study's findings to promote business education, which has been recognized as essential for making sound financial decisions. Finally, because the study is cross-sectional, the authors are unable to draw definitive generalizations.Originality/valueThe key novelty of this research work lies in the inclusion of FA as a mediator and the education of SME owners as a moderator in understanding the relationship between FC and the UDFS. This study illuminated the positive aspects of the COVID-19 epidemic based on the theory of emotional finance, risk avoidance theory and theories of emotion.