Small Enterprises Research Articles

“ESG score” vs. “ESG rating”: a conceptual model for the sustainability assessment and self-assessment of European SMEs

This paper aims to contribute to the ongoing discourse regarding the distinctions and application of scoring and rating systems by presenting a conceptual model designed to assess and self-assess small and medium-sized enterprises (hereinafter also “SMEs”) on their sustainability transition. Indeed, SMEs operate in very different economic contexts and have simplified organizational and governance structures. These characteristics can be effectively captured through this conceptual model based on a customized questionnaire tailored to the specificities of SMEs. Following an analysis of existing literature and regulatory frameworks, a conceptual model is proposed that includes a questionnaire that, unlike commonly proposed industry questionnaires, is designed to generate an Environmental, Social and Governance (hereinafter also “ESG”) Score complemented by a forward-looking perspective. This model can be useful for SMEs, as it allows them to self-assess their strengths and weaknesses in the sustainability transition process, highlighting specific needs and suggesting actions to improve their sustainability transition. It also allows banks to make a more accurate assessment of the sustainability of their customers, facilitating the redefinition of green and social credit products according to the needs of SMEs. Additionally, it also supports supply chain leaders in ensuring a sustainable supply chain by facilitating the sustainability assessment of SMEs. This is so that everything complies with the new European Union (hereinafter also “EU”) regulations. Finally, the questionnaire is currently being tested at a local bank and has been proposed to SME suppliers in a specific supply chain. It will be possible to make changes to the questionnaire based on the feedback received during the administration phase.

An Exploration of Entrepreneurs’ Socio-economic Situation and Its Impact on Micro and Small Businesses in South Andaman

This study aims to investigate the socio-economic conditions of entrepreneurs that influence the growth of micro and small enterprises (MSEs) in the South Andaman District. In this study, a scheduled questionnaire-based survey research design was used, and a sample of 344 small business owners was collected for analysis. The data were processed using SPSS, and chi-squared test was applied for statistical analysis. The study’s findings revealed that factors such as entrepreneurs’ business experience, income levels, the number of working employees and ownership of house property significantly impact the growth of enterprises in the island region. However, factors like business location and sector of enterprises were found to be statistically insignificant in determining MSEs’ growth in the island region. The study suggests that policymakers and local administrations should enhance support for micro, small and medium-sized enterprises in island regions by implementing policies such as island capital investment subsidies and island transport subsidies for MSEs. As a result, small businesses play a pivotal role by contributing to local employment, production and investment opportunities in the island region.

Effect of Court Suits on Value Added Tax Compliance Among Small and Medium Enterprises in Machakos Town, Kenya

Purpose: Value Added Tax non-compliance is an area of concern for all government and tax authorities and it continues to be an important issue that must be addressed. The general objective of the study was court suits on Value Added Tax compliance among the Small and Medium Enterprises in Machakos Town, Kenya. The study was guided by Agency theory and ability to pay theory. Methodology: The target population was 5412 Value Added Tax Registered Small and Medium Enterprises operators located in Machakos Town. The sample size was 372 Value Added Tax Registered Small and Medium Enterprises operators. Out of the 372 issued questionnaires only 275 were correctly filled and submitted in a timely fashion signifying a 73.9% response rate. The study employed explanatory study design. Primary data was collected using semi-structured questionnaires. The pilot study was done in Kitui town and the data analysis was both descriptive and inferential statistics. Descriptive statistics covered frequencies, mean, standard deviations and variances. Inferential statistics included Pearson’s correlation and regression analysis. Results: The study found that court suits significantly affected VAT compliance in a positive way β=0.261 p<0.05. Recommendation: The study recommends that taxpayers should be aware of the legal consequences of non-compliance, as court suits can drive adherence to VAT regulations

THE INFLUENCE OF BPUM ON THE REGIONAL ECONOMY DURING THE COVID-19 PANDEMIC

The research objective is to analyze the influence of BPUM on the Regional Economy by considering HDI, poverty levels, PAD and labor force in MSMEs. This type of quantitative research uses panel data, namely secondary archival data on the population of Micro, Small and Medium Enterprises in cities and districts in all provinces in Indonesia. Data was obtained from the Ministry of Cooperatives, Small and Medium Enterprises, the Directorate General of Fiscal Balance (DJPK) and the Central Statistics Agency (BPS) for the period 2020 and 2021. The research population for all districts in Indonesia in 2020 and 2021 was 514 districts and cities. Based on the results of the Fixed Effect Model, the influence of BPUM on GRDP obtained a coefficient value of 0,010803, the influence of HDI on GRDP obtained a coefficient value of -0,0006866, the influence of poverty levels on GRDP obtained a coefficient value of 0,0212617, the influence of PAD on GRDP obtained a coefficient value amounting to 0,0009767, and the influence of the labor force on GRDP obtained a coefficient value of -0,0331359.

Environmental knowledge, regulatory compliance mechanisms, and environmental sustainability practices of manufacturing small and medium enterprises (SMEs) in Uganda

This study investigates the mediating effect of regulatory compliance mechanisms on the association between environmental knowledge and environmental sustainability practices of manufacturing small and medium enterprises (SMEs) in Uganda. This study was cross-sectional and correlational. Data were collected through a questionnaire survey of 254 manufacturing SMEs and analyzed using the Statistical Package for Social Sciences (SPSS), following Baron and Kenny, as well as bootstrap guidelines, to establish the association between the study variables and the mediating effect of regulatory compliance mechanisms. The study results indicate the following: (1) environmental knowledge and regulatory compliance mechanisms significantly explain the environmental sustainability practices of manufacturing SMEs; (2) environmental knowledge is significantly related to regulatory compliance mechanisms; (3) regulatory compliance mechanisms partially mediate the environmental knowledge and environmental sustainability practices of manufacturing SMEs. This study contributes to the existing literature on environmental sustainability practices as it offers initial empirical evidence on the mediating effect of regulatory compliance mechanisms in the association between environmental knowledge and environmental sustainability practices of manufacturing SMEs.

The Effect of Capital, Training, and Motivation on Micro, Small and Medium Enterprises in Malang

Micro, Small, and Medium Enterprises (MSMEs) are vital to Indonesia's economy, especially in regions like Malang City. This study explores the influence of capital, training, and motivation provided by BAZNAS Microfinance on MSME development. Utilizing a quantitative research approach, the findings indicate that access to low-interest loans significantly enhances production capacity and operational management. Additionally, training programs improve technical skills and digital marketing capabilities, fostering collaboration and competitive advantage among MSMEs. Furthermore, motivational support encourages entrepreneurial resilience and long-term growth. The research concludes that the integration of capital, training, and motivation is crucial for the sustainable development of MSMEs. Recommendations include enhancing training quality, streamlining capital access, and offering personalized motivational support to entrepreneurs.

Improving SME Performance Through the Utilization of Usable Digital Technology in the Gunung Kawi Area, Wonosari, Malang

The development of digital technology has changed the way society consumes information and makes decisions, including in the tourism sector and other related fields, including small and medium enterprises (SMEs) around the tourist areas. The Mount Kawi area, known for its religious tourism, natural beauty, and cultural heritage, seems to continue to attract visitors even though it has not fully recovered as it was before the Covid-19 pandemic. This also impacts the development of the performance of existing SMEs. This community service aims to introduce user-friendly digital marketing technology to small and medium enterprises (SMEs), so they do not have to rely solely on the local market. The approach used is the initiation model, which involves stages of introduction, demonstration, evaluation, improvement, and reinforcement. The participants of the event consisted of 20 SMEs, ranging from batik to various types of food. The instruments for success used are observation sheets and portfolios. The results of the activities show an increase in digital knowledge among SMEs, particularly in utilizing social media for product content that supports online marketing strategies, as well as the ability to create content and operate digital technology based on market feasibility. The recommendation from this community service activity is the need for assistance in certifying their products to enhance consumer trust.

Supply chain management and the performance of small and medium scale enterprises in Nigeria

This paper examined the relationship between supply chain management practices (SCM) and performance of small and medium enterprises (SMEs) in Nigeria. It aimed to explain how SCM practices like strategic suppliers’ alliances, information sharing, and collaborative governance impacts the performance of SMEs in Nigeria. SME success was measured using a continuum of operational efficiency, customer satisfaction, and profitability. To reach the study's goal, a survey research approach was used, with a sample of 352 respondents representing the owners and senior management members of registered SMEs in Nigeria. Because the study depended on quantitative analysis, respondents' opinions were collected using a standardised closed-ended questionnaire. The gathered data was analysed using IBM SPSS 28 and IBM AMOS. The study found a positive and substantial correlation between chosen SCM practices and the performance of SMEs in Nigeria, as shown by the coefficients and p-values (SSA = 0.544; P <.001; IFS = 0.621; P <.001; CGV = 0.673; P <.001). It is therefore argued that SCM techniques such as strategic partnerships with suppliers, information sharing, and collaborative governance have a favourable and significant influence on the performance of SMEs in Nigeria. Consistent with the findings and current literature, this study recommends that Nigerian SMEs form strategic supplier relationships by sharing continuous improvement programs with important suppliers and include key suppliers in their planning and goal-setting processes. Keywords: Supply Chain Management, Strategic Supplier Alliance, Information Sharing, Collaborative Governance, Performance.

Innovation capabilities and performance of small and medium-sized enterprises in Indonesia

Orientation: Entrepreneurial orientation (EO), knowledge management (KM), human resource management (HRM) and knowledge sharing (KS) are important aspects in driving innovation capabilities (IC) to improve organisational performance (OP).Research purpose: The purpose of this research was to analyse the mediating effect of IC on individual EO, KM, HRM and KS and small and medium-sized enterprises (SMEs) performance.Motivation for the study: The fluctuation in batik business performance can be attributed to a lack of studies that examine the dynamic capability perspective in the context of batik SMEs in developing countries.Research design, approach and method: A quantitative approach was used for this study. A structured self-administrative measuring instrument was employed to collect the data. A non-probability sample of 297 participants was obtained. The collected data were then analysed using SmartPLS3 software.Main findings: Innovation capabilities have been verified to significantly mediate the relationship between HRM and KS on OP. Innovation capabilities mediated the relationship between KS and OP in a negative direction, whereas previous studies indicate a positive direction.Practical/managerial implications: Entrepreneurial orientation has the most prominent role in OP in batik SMEs. An EO allows business actors to optimise their creativity and innovation to develop ideas, which helps maximise the growth of OP in SMEs.Contribution/value-add: This study’s results support the concept that EO develops various skills, from managing uncertainty to tolerating risk and forming strong entrepreneurial abilities to improve business performance.

Tax Service Quality, Trust in Government and Tax Compliance among Small and Medium Enterprises in North Rift Economic Bloc

Purpose- The study sought to establish the indirect effect of trust in government on the relationship between the tax service quality and tax compliance among SMEs in North Rift Economic Bloc, Kenya.Design/Methodology- Based on the social contract theory, this study has a positivist philosophy that is informed by an explanatory research design. The target population was 21,232 SMEs; the sample size used in this study consisted of 393 SME owners/managers selected through a stratified sampling technique. Data were collected using a self-administered questionnaire, and Cronbach's alpha with factor analysis was used to establish the instrument's reliability and validity. Descriptive and inferential statistics were employed to test the hypothesis, and hierarchical regression using the Hayes Process macro was performed.Findings-The study revealed that tax service quality (β =.541, p=.000<0.05) and trust in government (β =.375, p=.000<0.05) are significantly positively related to tax compliance. In addition, the tax service quality was found to have a significant effect on trust in government (β =.395, p =.000<0.05). In addition, the results showed that trust in government mediates the relationship between tax service quality and tax compliance (β =.1482, CI=.0981, .2015).Practical Implications- These findings underscore the need for governments to improve the quality tax services, as this may be able to help in gaining public trust which will ultimately increase SMEs compliance with taxes. There is scope for future research to incorporate mixed-method approaches in order to discover yet more factors affecting tax compliance.

Digital Transformation and Efficiency of Sharia-Based HR Management on MSME Performance with Organizational Culture Moderation: A Quantitative Study in Cileungsi

Digital transformation has become a crucial factor in enhancing the competitiveness of micro, small, and medium enterprises (MSMEs) in the era of globalization. Digital technology enables MSMEs to innovate, improve efficiency, and expand markets. However, many MSMEs face challenges in adopting this technology, such as limited resources and resistance to change. Sharia-based human resource management (HRM), which emphasizes justice and welfare, can provide solutions in creating a productive and harmonious work environment. This study aims to fill the gap in the literature regarding the interaction between digital transformation and Sharia HRM on MSME performance, with the moderation of organizational culture. The research method uses a quantitative approach with a case study on MSMEs in Cileungsi, involving 100 randomly selected respondents. Data were collected through questionnaires and analyzed using SEM-PLS. The SEM test results show that digital transformation and Sharia HRM have a significant effect on MSME performance. Organizational culture has a strong moderating role, strengthening the positive impact of digital transformation and Sharia HRM on MSME performance. The results indicate that the integration between digital transformation and Sharia HRM, supported by a strong organizational culture, can enhance productivity, operational efficiency, as well as employee satisfaction and motivation. This study emphasizes the importance of adopting digital technology and applying Sharia principles in HRM to improve MSME performance, with organizational culture as an essential supporting factor. These findings provide practical guidance for MSME actors in developing strategies that improve efficiency and employee welfare.

Measurement and Sorting of MSMEs Business Performance Rating Using Analytical Hierarchy Process

This research was conducted in an enterprise that provides venture capital assistance to its 876 Micro,Small, and Medium Enterprises (MSME) partners to measure and sort the performance of theirbusiness. The enterprise wished for a business performance calculation system that is more reliableand utilized more than one criterion. In addition, the enterprise also desired to give rewards to MSMEswith the most excel accomplishment, so they need to know which MSMEs are the most developedamong others. This study uses focus group discussions and existing data to obtain the appropriateperformance measurement criteria. The determination of the weight of the importance of eachcriterion was carried out using the Analytical Hierarchy Process (AHP) method using pairwisecomparison techniques and its consistency is measured using the transitive property and consistencyratio. The proposed method is emphasized on ease of use and delivery to stakeholders but still capableof acquiring the performance calculation. The calculation includes the increase or decrease rate of thebusiness performance for each MSME, and after sorting the rating, the most accomplished MSMEalso can be found. The application of this method also can help the stakeholder to reach consensusswiftly.

Business Feasibility Analysis of Processed Sweet Potato Products at MSME Karya Indah Bandorasa Wetan

Sweet potato processing is a vital part of the local economy. In this study, the business costs incurred and feasibility of processing sweet potato product businesses in the Malaysian Small and Medium Enterprises (MSME) Karya Indah in Bandorasa Wetan are analyzed. The research is based on a census technique, namely, the MSME Karyan Wetans, which is used as the population and sample in the research. The business costs are calculated to calculate various costs associated with running a business consisting of fixed costs and variable costs. The acceptance feasibility ratio was found to be 1.455, so it is greater than 1 and is in the feasible and feasible category. This research offers practical guidance for MSMEs in assessing their operational efficiency and helps business owners make informed decisions about investment and expansion. Furthermore, it contributes to the broader understanding of sustainable business practices in the agricultural processing sector, specifically focusing on sweet potato products. Moreover, analyzing the impact of technological improvements or more efficient production methods on reducing costs and increasing productivity could provide valuable insights for enhancing business operations.

Peningkatan Semangat Berwirausaha Pada Paguyuban Umkm “Aku Bisa” Di Kota Semarang

Abstract: In Krobokan Village, West Semarang, there is a Micro, Small and Medium Enterprises Association (MSMEs)”AKU BISA”. This asssociation accommodates approximately 50 MSMEs with various types of productss produced, including culinary to handycraft. The problem faced by this association is that their business has not developed since at was pioneered until now. This is due to the lack of understanding of entrepreurship and the lack of entrepreneurial spirit. The purpose of Community Service is to provide knowledge about entrepreneurship and motivate MSMEs to be more enthusiastic in running their businesses. The method of implementing community service activities is the lecture and discussion method. Meamwhile, the implementation of community service activities in March – May 2024. After the counseling was carried out, there was an increase in knowledge and understanding of entrepreneurship among the participants, understanding and understanding the success factors of a business and there was a positive change in behavior, namely being more enthusiastic in entrepreneurship. Keywords: Entrepreneurship, Motivation, Counselling, Skills technology

Fortifikasi Nak Nan Jelly Bog Segamur

Abstract: Abundant banana stem waste is often wasted and becomes an environmental problem. In fact, research results show that banana stems are rich in benefits, one of which is the potential as an anti-obesity agent. Seeing this potential, the community service team tried to process banana stem waste into nutritious and economically valuable food products. This community service activity focused on assisting PKK Metuk mothers in processing banana stems into innovative food products. With intensive training and assistance, it is hoped that PKK mothers can produce value-added food products from banana stem waste. In addition to providing health benefits to the community, this activity is also expected to improve the community's economy through the development of small and medium enterprises based on local resources. The results of this community service activity show that the processing of banana stem waste into food products can be successful. PKK mothers succeeded in producing food products that are not only beneficial for health, but also have good market potential. This success proves that banana stem waste can be a valuable resource if managed properly. Keywords: Musa paradisiaca, economy, health

Effect of Asset Reduction on Growth of Small Enterprises in Busia County, Kenya

Purpose: The primary aim of the study was to establish the effect of asset reduction on growth of small enterprises in Busia County, Kenya. Methodology: Descriptive and explanatory research designs were used in the study. The research targeted 220 management employees of licensed small enterprises operating in Busia County in Kenya. A census was carried out on all management employees in the department because the number was small. Therefore, all 220 management employees of licensed small enterprises operating in Busia County were included in this study. The drop-and-pick method was used by the investigator to manage the surveys. The research collected primary data using a structured questionnaire. The study supervisor reviewed the instrument and suggested any required changes to ensure content validity. Reliability was evaluated using Cronbach alpha, the author evaluated the trustworthiness of the data tools. Descriptive and inferential statistics were generated. Data was captured using tables. Results: Regression of coefficients showed that there is a positive and significant effect of asset reduction and growth of small enterprises. Conclusion: The study recommended that small enterprises should do replacement of long-term assets since this will enhance their growth. Further, Small enterprises should ensure they often modernize their assets since this enhances the small enterprises' internal operation efficiency and growth. However, firms should not concentrate on disposal of assets since it plays no role in firm growth.

Factors affecting the growth of small and medium Enterprises in Luangnamtha Province

The purpose of this study is to study the operating conditions and factors affecting the growth of small and medium enterprises in LuangNamtha Province. which uses descriptive study methods, surveys, and questionnaires to collect data from small and medium-sized enterprise operators who have registered enterprises at the Department of Industry and Trade in LuangNamtha Province according to the law in the number of 233 business units using basic statistics such as average value and standard deviation and analyzed with an ordinary least squares regression model. The results of the study found that most of the business operators are males aged between 37-43 years old, have a high degree of specialization, and have previous experience in the service sector, which a business is owned by a single Lao person. The registered capital of the business is less 100,000,000 kip, it is a source of funds for the family, there are between 5-20 people, the duration of the business operation is less 5 years, the customer group is in the province, the business is mainly in the commercial sector, but the performance is not good compared to last year. Such as, revenue and net profit decreased. The importance of factors affecting the growth of small and medium-sized enterprises in LuangNamtha province is very important. The factors affecting the growth of enterprises include four factors that have a relationship in the same direction, such as leadership factors affecting the growth of enterprises with a statistical significance level of 0.1, strategic decision-making factors affecting the growth of enterprises with a statistical significance level of 0.05, financial factors affecting the growth and stability of enterprises with a statistical significance level of 0.01 and 0.1, respectively, and marketing factors affecting the stability of the enterprise with a statistical significance level of 0.1.

A Trend Analysis of Growth and Development of Micro, Small and Medium Enterprises (MSMEs) in India

The Micro, Small and Medium Enterprises (MSMEs) review the policies and programmes and make suitable recommendations regarding the promotion and development of products and services to meet the demands of the domestic as well as global marketing. The ministry of MSMEs sector organizes and implements various schemes focusing on financial assistance, technological assistance as well as upgradation, infrastructure development, skill development and training, enhancing market assistance of MSMEs. An overview of the MSMEs Sector, the organizational structure of the Ministry of MSMEs., role of the office of Development commissioner, setting up of National Board for MSMEs as well as recent developments in MSMEs – are depicted in this article.

Особенности управления изменениями в малом бизнесе

It is clarified that the essential content of the concept of “change” implies a certain procedural phenomenon, including awareness of the need for change, the implementation of change, and the consolidation of the result of change. Various types of changes are considered (there is no classical generally accepted classification yet), as well as the most popular models of change management and the use of these models in small businesses. The results of small business development in our country (modern characteristics and industry structure) are briefly analyzed and the main problems of small business development are formulated. The peculiarities of change management in small business are determined by the peculiarities of the small business itself, considered in the context of the study of the possibility of change management (sensitivity to change, flexibility, the need for innovation, working in a highly competitive environment, short-term existence, facilitated document management, quick reaction, corporate solidarity of staff, risk). For the first time, a feature of small business is highlighted – corporate solidarity of staff. The main features of change management in small business are considered. Communications on any communication platform are particularly important, the mandatory use of new technologies, the possibility of using various change management strategies, the publicity and openness of small businesses, the importance of continuous staff training, and the cascading formation of communication goals at all stages of change implementation are noted. The necessity of using various systems for evaluating the effectiveness of change management results is confirmed, since there simply is no unified system; The possibility, but limited use of Lean technologies is noted, since the reserves for reducing costs in small enterprises are always practically exhausted; certain features of change management in small businesses of various industry affiliations (manufacturing, construction business, services and trade differ in their economies, processes, sizes).

The Impact of digital payments on small coffee business in India

India's coffee industry has experienced notable growth, fuelled by rising demand for specialty coffee and a thriving start-up culture. However, small coffee businesses continue to face challenges such as fierce competition, limited resources, and reliance on a cash-driven economy. This study examines the impact of digital payments on these small enterprises, focusing on key aspects like convenience, security, speed, data-driven insights, and reduced costs associated with cash handling. Utilizing a mixed-methods approach, the research integrates both quantitative and qualitative analyses. Primary data is gathered through structured surveys from 200-300 small coffee business owners and customers, complemented by in-depth interviews with 10-15 coffee shop owners. Additionally, secondary data from industry reports and case studies enriches the analysis. Statistical tools, including descriptive and inferential statistics, correlation analysis, and factor analysis, are employed for quantitative data, while thematic analysis interprets qualitative insights. The study reveals that digital payments significantly improve operational efficiency, enhance customer satisfaction, and boost revenue for small coffee businesses. Challenges such as digital literacy gaps, cyber security concerns, and infrastructural limitations remain. The findings recommend that small coffee businesses can optimize the benefits of digital payments by investing in digital literacy, addressing security issues, and leveraging data insights for informed decision-making.