Growth Of Small Enterprises Research Articles

SME FINANCING OF COMMERCIAL BANKS IN BANGLADESH: POLICY DIRECTIONS BASED ON SME LOAN BORROWERS’ VIEW

The importance of bank financing for the growth and development of Small and Medium Enterprises is extensively documented in the literature. SME finance is essential not only to starting an SME business but also to enhance the growth of the business. Unfortunately, SME businessmen are facing difficulties in getting and repaying all kinds of financing in Bangladesh. Moreover, because of financing problems, SMEs cannot enter the manufacturing industry spite many potentialities. This research aims to identify key financing obstacles encountered by Bangladeshi SMEs and recommend policy guidelines to tackle those obstacles. Necessary data were collected through a structured questionnaire from 200 SME loan borrowers of 10 commercial banks by using a simple random sampling technique. Descriptive analysis was performed to analyze collected data. The findings indicate some constraints related to SME financing, such as higher interest rates, complex documentation, etc. SME borrowers face various obstacles before and after the sanction of SME loans. Although some initiatives related to SME financing have been adopted recently, most are not yet implemented. Moreover, SMEs' existing financing policies are inadequate, poorly designed, and inconsistent.

Entrepreneurial Competencies and Performance of Women-Owned Micro and Small Agribusiness Enterprises in Bomet County, Kenya

Entrepreneurship is becoming more widely recognized as a key driver of economic development, efficiency, innovation, and employment, as well as a key component of economic dynamism. Entrepreneurial competencies have contributed to the growth and expansion of most women-owned micro and agribusiness enterprises in. The women-owned Agribusiness has field is developing rapidly and widely to include entrepreneurs who are committed to solving societal problems. However, despite numerous government policies aimed at boosting women-owned micro and agribusiness enterprises in Kenya, the growth rate of such businesses has remained low. This has over time been attributed to various challenges women encounter in the course of their economic empowerment. The research aimed achieve the following specific research objectives; to analyze the effect of savings mobilization on the success of women-owned micro and small agribusinesses; to evaluate the effectiveness of entrepreneurship training on the success of women-owned micro and small agribusinesses; to analyze the impact of market research on the success of women-owned micro and small agribusinesses; and to analyze the effect of financial accessibility on the success of women-owned micro and small agribusinesses. The study targeted 381 women operating their agri-businesses enterprises in Bomet County, Kenya. From a total of 381, the researcher randomly selected 79 women-owned enterprises in Bomet County. Quantitative data were gathered mostly using a questionnaire with no open-ended questions. The results were analyzed with both descriptive and inferential statistics. Frequency and percentage breakdowns, as well as inferential statistics such as regression analysis, were employed. The outcome was showed in tables and charts. The study outcome revealed an existing positive and significant correlation between financial accessibility, entrepreneurship training, market research and savings mobilization and performance of women-owned enterprises. These results suggest that greater availability of bank loans has facilitated the growth of many small and micro-sized agricultural enterprises owned by women in Bomet County. The study found that having easy access to capital was crucial to the success of both new and existing enterprises. The study concluded that women micro and small agribusiness enterprises conduct market research to assess customer needs. The study concluded that the women micro and small agribusiness enterprises has diversified revenue sources to enhance savings. It is possible to provide a recommendation based on the results that, Bomet County Women micro-entrepreneurs should register their establishments and observe regulatory necessities to reduce turbulences of their business processes. For this will boost the chances of obtaining financing from financial organizations and women groups. The women of Bomet County should also dedicate significant time and effort to developing a clear purpose and goal for their micro-businesses.

Influence of Microfinance Banks on Growth of Small And Medium Enterprises (SMES) in Kano State, Nigeria

Influence of Microfinance Banks on Growth of Small And Medium Enterprises (SMES) in Kano State, Nigeria

Social Media Marketing and Small and Medium Enterprises (SMEs) in Nigeria

The role of SMEs in economic development of any nation cannot be overemphasis. This is because of their contributions to their respective country GDP. However, the emergence of social media has provided a paradigm shift in the modus oparandi of SMEs globally. One country that has benefited from this new wave of social media marketing is SMEs in Nigeria. Therefore, this study seeks to examine the imperatives of social media marketing on the growth and development of Small and Medium Enterprises in Nigeria. This study is situated within the Rogers (1995) Innovation Decision Process theory. Data for the study were collected from various secondary sources such as textbooks, journals and internet sources while content analysis was used in analysing the data collected. This study argues that social medium marketing has assisted SMEs in Nigeria in increase connectivity, knowledge sourcing and customer engagement. This study argues that social media has provided a lot of benefits to SMEs in Nigeria. Therefore, for SMEs owners to derive the desired benefits from social media, it will largely depend on how effective and efficient they are in their use of social media platforms. Therefore, this study recommends among other things that if SME owners should leverage on the opportunities provided for SMEs growth and development in Nigeria.

Conceptual Framework of the Impact of Social Media Adoption by Selected MSMEs in Zimbabwe

Changes in the environment affect the growth of Micro, Small and Medium Enterprises (MSMES). Thus, MSMEs have to adopt innovative ways to grow and contribute meaningfully to the economy. A number of studies have been carried out on the adoption of social media by Small and Medium Enterprises (SMEs) worldwide but empirical evidence for MSMEs in the ICT and light engineering sector is still a dearth. This paper, therefore proposes a conceptual framework based on Technology Organization and Environment (TOE) and Diffusion of Innovation (DOI) frameworks to examine the impact of social media adoption by selected MSMEs in Zimbabwe to enhance their growth. The framework suggests four key factors that influence social media adoption and hence improve business performance. The key factors are generalized to 1) owner manager characteristics, 2) social media diffusion, 3) the organization’s size and characteristics and 4) the environmental factors such as competition and regulatory framework. Empirical testing to validate the conceptual framework is needed to help MSMES from all sectors to effectively use social media applications in order to enhance growth.

PENGARUH INKLUSI KEUANGAN SYARIAH TERHADAP PERTUMBUHAN USAHA MIKRO KECIL DAN MENENGAH DI BANK ACEH SYARIAH SUTOMO KCP KOTA MEDAN

This study aims to determine: 1). Knowing the effect of Islamic financial inclusion on the growth of micro, small and medium enterprises at Bank Aceh Syariah Sutomo KCP Medan City, and 2). Analyzing the efforts made in accelerating access to Islamic finance to encourage micro, small and medium enterprises to grow. This research is a survey research. The population in this study is the customer user of the Sharia Bank Sutomo KCP Medan City. The sampling technique used purposive sampling with a total sample of 10 people. The data collection technique uses a questionnaire that has been tested for validity and reliability.The data analysis technique used is simple regression. The results of this study indicate that: 1). Islamic financial inclusion has an effect on the growth of micro, small and medium enterprises mediated by Sharia Bank Sutomo KCP Medan City, the indirect effect significance.2). In this study, the data fulfills a normal distribution. The results show that Islamic financial inclusion has an influence on the growth of micro, small and medium enterprises.

An Exploratory Study of the Effect of Mobile Money Services on the Growth of Micro-Small and Medium-Sized Enterprises in Bosaso

The purpose of this exploratory study is to seek information on the effect of Mobile Money Services (MMS) dynamics on the growth of Micro-Small and Medium-sized Enterprises. (MSMEs) The available studies provide limited information on the subject, regarding the growth of micro-small and medium-sized enterprises, especially in Bosaso municipality, Puntland Somalia. The study is guided by the Unified Theory of Acceptance and Use of Technology (UTAUT) to arrive at some of the factors affecting the growth of micro small and medium-sized enterprises. The study is based on a case study carried out using quasi-structured interviews, observation and documentation. The data was collected from a sample of 34 participants. The information gathered indicated that usefulness, social influence, accessibility, cost, enabling environment and trust aspects were linked to behavioural intention to utilise mobile money service, which has the potential to lead to the growth of micro-small and medium-sized enterprises. Furthermore, it was learned that though mobile money service technology is new in the market, but the rate at which it is being adopted is on upward trajectory. Moreover, most of the participants possessed smartphones and they were already utilizing them to conduct their business transactions. The article presents information collected through the administration of interviews, observation and documentation. The findings potentially increase awareness of mobile money technology among MSMEs, policymakers, financial institutions, academicians and researchers. Thus, the overall growth of MSMEs.

Solving the SME finance puzzle: an examination of demand and supply failure in the UK

ABSTRACT Following economic instability after the Global Financial Crisis, the financing of small and medium-sized enterprise (SME) growth and productivity has become central to UK government policy for sustainable economic development, evidenced by the establishment of the British Business Bank and Regional Investment Funds. This paper considers demand-side and supply-side failures in the contemporary UK SME finance market. Adopting mixed methods, binary logit regression analysis of the 2015 UK Small Business Survey of 15,502 SMEs is sense-checked using qualitative participatory findings from 6 SME finance support advisors. Findings confirm the importance of SME size, age, management capability and use of appropriate, timely external advice. They support the resource-based view of SME access to finance, contributing to borrower discouragement and under investment, suggesting the need for improved support to upskill entrepreneurs’ financial management and investment readiness and the concept of an ‘holistic entrepreneurial finance ecosystem’ approach to assist UK SME finance.

The adoption of artificial intelligence powered workforce management for effective revenue growth of micro, small, and medium scale enterprises (MSMEs)

Artificial intelligence (AI) has been used in various industries to provide innovative and intelligent features in micro, small and medium enterprises (MSMEs). Big industries started adopting AI for their HR and workforce management (WFM) activities, however, past literature suggests a lack of AI adoption in MSMEs. In the ongoing pandemic, a large number of job loss is reported in the literature. Thus, artificial intelligence-powered intelligent workforce management (WFM) may be critical during or post-pandemic to manage the huge employment in MSMEs. In this study, we develop and test a conceptual framework based on three areas where AI-powered WFM adoption for MSMEs revenue development has been highlighted. These are (a) risk management (workforce), (b) business and marketing, and (c) information exchange. Six hypotheses have been proposed and tested using structural equation modelling (SEM) with responses from 307 employees. According to the research findings, all of the offered hypotheses are significant. The findings suggest to MSME decision-makers that AI-powered WFM may help revenue growth, workforce risk reduction, intelligent business and marketing, and thoughtful, innovative, and safe information exchange. MSMEs are required to use AI in the information sharing that help in workforce risk management, business and marketing, and intelligent workforce management that scale-up the economic growth.

Influence of Equity Financing on the Growth of Micro, Small and Medium Enterprises. A Critical Literature Review

Purpose: Greatest potentials in driving economies of the developing countries such as Kenya are within the Micro, Small and Medium Enterprises sector which account for almost over 90% of the businesses in these countries. The overall objective of this study was to examine influence of equity financing on the growth of micro, small and medium enterprises. A critical literature review
 Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps.
 Findings: The researcher concludes that MSMEs financed by the venture capitalist that were under study experienced growth in both financial and non- financial aspects as well as in the managerial practices. This study reaffirms the correlation between MSMEs growth in any economy and poverty or lifestyle degradation. The economic impact of venture capitalist has been realized by MSMEs in sales, profit and asset upsurge.
 Unique Contribution to Theory, Policy and Practice: The study recommends that government owned venture capital firms need to be privatized to serve entrepreneurs better. The youth and women development funds which should be venture capital funds but are not as interest is paid by borrowers and no monitoring of businesses should be privatized to become a true venture capital fund to serve young entrepreneurs better. MSMEs using equity financed capital should be given tax concession to attract other SMEs financed by financial institutions. This will open an avenue for their growth after which they will be big industries. This study has shown that the influences of equity financing have been seen and felt and so more businesses should be encouraged to use this type of finance for economic development.

The Effect of Short-Term Debt on Profitability among Deposit-Taking Microfinance Institutions. A Critical Literature Review

Purpose: Very few deposit-taking microfinances institutions are profitable. Most of them report loses in every financial year. The making of the losses may be a result of inefficiency in short term debts. The overall objective of this study was to examine influence of equity financing on the growth of micro, small and medium enterprises.
 Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps.
 Findings: From the findings of the study, the study concludes that short term debt had a positive and significant association on the profitability of the deposit-taking microfinance. The study also concludes that short term debt has a positive and significant relationship on the profitability of the deposit-taking microfinance. This means that profitability would increase with a proportionate increase in in the level of the short-term debt when all other factors affecting the profitability of the organizations are held constant. The study showed that when the company borrows, availability of sufficient funds to finance the available assets of the company, which in return improves in the level of performance.
 Unique Contribution to Theory, Policy and Practice: Based on the coefficients of determination, the study recommends that policymakers in the microfinance institutions should use short term debt for the financing of the activities. The cost of the short-term debts is minimal and generally offers lower interest charges, and most lenders do not charge interest until all credit allowance period is breached and therefore becomes useful for companies

Influence of Innovation on the Growth of Micro and Small Pharmaceutical Enterprises in Kenya

Medium and Small Enterprises (MSEs) are engines of economic development through contribution of jobs and poverty reduction. Currently, the MSE sector in Kenya contributes over 70% of the country’s GDP. Despite this importance, 3 out every five of MSEs in Kenya collapse within 3-5 years of operation leading to loss of jobs, increased poverty and low GDP. Innovation has been termed as one of the most crucial elements in today’s globalized and competitive environment. Remaining competitive in today’s modern world require organizations to pursue innovation the objective of the study was to determine the influence of innovation on growth of micro and small pharmaceutical enterprises in Kenya. To achieve this objective, a descriptive survey study design shall be adopted. The target population of the study was the pharmaceutical MSEs in Nairobi County. Random sampling technique was used to get sample size of 30 .The research study adopted a questionnaire as a research data collection instrument. Both open and closed ended questions shall be used to elicit responses from respondents. The research data collected was analyzed using the statistical package for social scientists software and the results presented using charts and tables. Descriptive statistical data was used for analysis and reporting. The reliability of the test instrument shall be done using Cronbach’s alpha coefficient. Regression analysis was used to establish the relationship between growth and the types of innovation applied in pharmaceutical Mses. The study results were presented through tables and figures. The study concludes that open innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. In addition, the study concludes that process innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Further, the study concludes that front end innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. The study also concludes that market innovation has a positive and significant effect on growth of micro and small pharmaceutical enterprises in Kenya. Based on the results, this study recommends that the management of micro and small pharmaceutical enterprises should encourage open innovation to ensure maximum utilization of resources and minimize wastage. Further, the management of micro and small pharmaceutical enterprises should formulate and implement effective marketing strategies to increase the sales of their firm. Keywords: Innovation, Leadership Skills, Pharmaceuticals, Micro and Small Enterprises

Entrepreneurial Financing Practices and Growth of Youth Owned Micro and Small Enterprises in Kenya

Despite the importance of MSEs to the Kenyan economy, the rate at which new firms are formed, have stagnated and the already established MSEs younger than 5 years are collapsing a great deal. This study thus sought to establish the effect of entrepreneurial financing on growth of youth owned Micro and Small Enterprises in Kenya. The study was guided by the following specific objectives; to establish the effect of digital credit on growth of youth owned Micro and Small Enterprises in Kenya, to assess the effect of banks and microfinance lenders on growth of youth owned Micro and Small Enterprises in Kenya, to determine the effect of equity financing on growth of youth owned Micro and Small Enterprises in Kenya, and to find out the effect of investors on growth of youth owned Micro and Small Enterprises in Kenya. The study was anchored on technology adoption theory, influential theory, pecking order theory, and agency theory. The researcher used descriptive research design. The target population for this study was 2672 MSEs in Kenya. Yamane formula was used to determine study sample size which was 348 owners of the MSEs. The researcher used simple random sampling to select the sample. Questionnaire was used as the research tool. The study piloted the questionnaire on 17 MSEs from Kiambu County (5% of sample size). The study employed both quantitative and qualitative methods of data analysis. Qualitative data analysis involved coding and systematically putting into themes the open ended questions which was analyzed through content analysis and presented in prose form. Quantitative data was analyzed using descriptive and inferential statistical techniques. Descriptive statistics was used to present the main characteristics of the sample and involved use of mean, measures of dispersion and percentages. Correlation analysis was used to investigate the relationship between study variables. The study used SPSS version 25 software to carry out regression analysis. Data was presented using tables, and figures to make them reader friendly. The study concludes that digital credit has a positive and significant effect on growth of youth owned Micro and Small Enterprises in Kenya. In addition, the study concludes that banks and microfinance lenders has a positive and significant effect on growth of youth owned Micro and Small Enterprises in Kenya. Further, the study concludes that equity financing has a positive and significant effect on growth of youth owned Micro and Small Enterprises in Kenya. The study also concludes that investors have a positive and significant effect on growth of youth owned Micro and Small Enterprises in Kenya. In addition, the youth owned SMEs should consider interest rates charged, repayment duration and collateral required before accessing the credit facility Keywords: Entrepreneurial Financing Practices, Growth, Micro and Small Enterprises

The influence of digital transformation on the growth of small and medium enterprises in South Africa

From a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.

THE IMPACT OF MICROFINANCE ON THE MSMES SECTOR

Finance for micro, small and medium size enterprises (MSME’S) has been a concern for all stakeholders including entrepreneurs, financial institutions and government organisations. (Charan et al., 2016) The key objective of this present study is to identify various challenges faced by MSME’s in sourcing finance. The Micro Finance Institution has been conducting a variety of services to assist the financial and non- financial needs of the MSME's entrepreneurs including credit, saving, leasing, insurance facilities and training programs. This survey was conducted in Ahmedabad and Mehsana covering a wide range of sectors like jewellers, retailers, metal works, textiles, book shop, tailor and small manufacturing units. The researcher has used both primary and secondary data. The primary data were collected with the help of a questionnaire in the Google form. The sample size of this particular study is 34 respondents. This little research exists that examines the role of financial institutions, banks and microfinance institutions, on the growth of micro, small and medium enterprises in Gujarat, especially Ahmedabad and Mehsana. The study found that the main challenges faced by MSME’s in underutilization are lack of financial awareness and lack of the tools to evaluate projects that need to be implemented by MSME’S.

Exploring Factors Affecting Growth of Micro and Small Enterprises: Evidence from Ethiopia

Micro and small businesses (MSEs) create jobs at a low cost and assist society's progress toward wealth and growth. The aim of the study is to examine major factors that determine the growth of MSEs in the Siltie Zone, in southern Ethiopia. Out of the total 2,244 MSEs units, 488 respondents were sampled for the study using stratified and simple random sampling techniques. Descriptive statistical tools and a binary logit model are applied. Employment was employed as a growth indicator in the study. The findings of the study showed that out of the total sample, 49% of MSEs were growing and 51% of MSEs were not growing in terms of employment. The results showed that individuals and their relatives are the main source of finance for the majority of MSEs for two major reasons. The first and the most important reasons are due to the religion factor. A majority of the respondents replied that access to credit is forbidden to Muslim followers. The second reason is unwillingness to access credit; they fear the high interest rate of debt, the complexity of the procedure, and the lack of collateral. In addition to that access to infrastructure, access to finance and government policy are the major factor affecting MSEs engaged in construction sector. The major independent variables affecting growth of MSEs engaged in manufacturing sector are access to infrastructure, working premises, government policy and market linkage. Access to finance, market linkage and business management capacity are the determinant factor hindering the growth of MSEs operating trade sector. Access to infrastructure, market place and government policy were the determinant factor affecting the growth of MSEs operating service sector. Access to working premises, market linkage, government policy and owner motivation are affecting the growth of MSEs operating urban agriculture sector. Hence, government organizations concerned with the promotion and development of MSEs needs to work with the factors in each sector for economic growth.

The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective

Today, we are living in the knowledge century. Knowledge-based intangible resources in enhancing sustainable growth of small and medium enterprises (SMEs) is presently a significant scope of research. Innovation capability is the intuitive skill of an individual or a firm to transform an explicit concept towards value orientation that carries an economic value. This economic value would then lead to wealth creation and eventually result in sustainable SMEs. The SME sector has been highlighted for its significant contribution towards the creation of employment, opportunity for innovation and economic dynamism. In this study, evidence derived from knowledge-based view and knowledge creation theory was used to construct a structured model to analyze the relationships among innovation capability, disruptive technology and knowledge creation and their impacts on SMEs sustainability. A sample of 384 owners of SMEs in Sri Lanka was included in the study. The outcome of structural equation modelling (SEM) discovered positive effects of innovation capability, disruptive technology and knowledge creation on sustainability. Innovation capability also emerged as a predictor of disruptive technology and knowledge creation. Moreover, disruptive technology and knowledge creation were found to be partial mediators of the association between innovation capability and SMEs’ sustainability. These findings pave the way for policy makers to promote sustainability in SMEs, by assisting to enhance their performance in competitive and innovative economic environments. Further, the validated model can be empirically tested in future research.

DEVELOPMENT STRATEGIES FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSME) BY IMPROVING THE QUALITY OF HUMAN RESOURCES

MSMEs, which stand for micro, small, and medium enterprises, play a significant part in the expansion of the Indonesian economy. The contribution of micro, small, and medium-sized enterprises (MSMEs) to economic growth in Indonesia is undeniable; however, despite this, MSMEs continue to struggle with a wide variety of internal and external challenges. Consequently, it is essential to have an MSME development strategy to make MSMEs more developed. In the meantime, the problem that frequently arises in micro, small, and medium-sized enterprises (MSMEs) is the low quality of the human resources. The quality of a company's human resources is a significant factor in determining whether it will achieve success or failure. Human resources are an essential component of any business. Therefore, one must access competent human resources to cultivate a successful business. This research aims to establish a plan for the growth of micro, small, and medium-sized enterprises (MSME) of kerupuk cracers in the city of Serang by enhancing the caliber of the human resources used in their management. Methods of qualitative research used for this study. In this research project, the data collection methods include observations, interviews, and documentation. The data analysis process carries out in several stages, the most important of which are data reduction, data presentation, and conclusions. According to the findings, there were three different routes to enhance the quality of the human resources available at MSME Crackers in Serang City. 1) Training, with an emphasis on both "on the job" and "demonstration and example" styles of instruction. 2) Education through the use of the method of Coaching and Counseling. 3) Work experience, in which case you should give someone with previous experience in recruiting employees top priority. Because the increased quality of the human resources put into practice to “kerupuk” SMEs in Serang City contributes to the sustainability of its business, this approach can use as a strategy for developing SMEs

Factors Influencing Growth and Development of Small and Medium Enterprises in Zimbabwe

Factors Influencing Growth and Development of Small and Medium Enterprises in Zimbabwe

Assessing the Role of Entrepreneurship Training in the Growth of Small and Medium Enterprises in Zambia: A Case of Chongwe District

Assessing the Role of Entrepreneurship Training in the Growth of Small and Medium Enterprises in Zambia: A Case of Chongwe District