Owners Of Small Medium Enterprises Research Articles

Embracing the role of business performance to foster the association between digital marketing, intellectual capital, and business sustainability

This study aims to explore the relationship between digital marketing and business performance and sustainability in small-medium enterprises (SMEs) in Bandung, Indonesia. Additionally, it examines the mediation power of business performance in enhancing the association of digital marketing, intellectual capital, and business sustainability. We employed a quantitative approach and acquired data from 308 SMEs in Bandung, Indonesia. Data collection utilized Google Forms and purposive sampling methods. We tested the hypotheses using Smart PLS. The results indicate that digital marketing has no significant effect on business performance. However, we found that intellectual capital acts as a catalyst for both business performance and sustainability. Given the identified role of intellectual capital as a catalyst for both business performance and sustainability, SMEs owners should prioritize investments in knowledge creation by providing employee training, fostering a culture of continuous learning, and supporting research and development initiatives. Investments in knowledge creation and innovation are crucial for SMEs to enhance business performance and sustainability. This involves providing employee training, fostering a culture of continuous learning, and supporting research and development initiatives.

Exploring Innovative Thinking Skills Among SME Owners in South Africa: Implications for Business Longevity

Aims: According to the SME South Africa study conducted in 2018, the survival rate of South African Small medium enterprises (SME) is low. The country’s policymakers have become increasingly aware of the need to support the cultivation and growth of resilient, innovative and agile entrepreneurs as can be seen in the National Integrated Small Enterprise Development (NISED) Masterplan. In addition, employees in innovative organizations are more likely to share knowledge to contribute to the improvement of organizational performance, as such environments require high levels of innovative activity. Therefore, the study aimed to assess the level of innovative thinking skills among SME owners in South Africa's construction and manufacturing industries and explore its impact on SME longevity. Study Design: The study employed a descriptive quantitative design, focusing on 204 SME owners from the construction and manufacturing industries in South Africa, selected via quota sampling. Data was collected through an anonymous online questionnaire, which assessed the participants' levels of innovative thinking. The analysis, conducted using Python software, aimed to determine the prevalence of these skills and their implications for the longevity of SMEs. Place and Duration of Study: The study was conducted in South Africa, focusing on the construction and manufacturing industries. The data collection and analysis took place over a period of two years June 2020 and July 2022. Methodology: The study employed a descriptive quantitative approach, using quota sampling to select 204 SME owners from the construction and manufacturing industries in South Africa. Data was gathered through an anonymous online questionnaire and analyzed using Python software to assess innovative thinking levels. Python was selected for descriptive statistics due to its robust and mature libraries like Pandas and NumPy, which facilitate efficient data manipulation and analysis. It ensures consistency and reproducibility in research workflows. Results: The results indicated that SME owners in both the construction and manufacturing sectors exhibited moderate levels of innovative thinking. This suggests that while innovative thinking is present, there is potential for further development to enhance SMEs' competitive edge and long-term viability. Conclusion: The study concludes that while SME owners in South Africa demonstrate moderate levels of innovative thinking, there is significant room for improvement. Enhancing these skills could play a crucial role in boosting the competitive advantage and sustainability of SMEs. It is recommended that SME owners integrate innovative thinking more deeply into their management practices to effectively navigate complex challenges.

INSIGHTS INTO GREEN TAX AMONGST SMALL MEDIUM ENTERPRISE OWNERS IN SOUTH AFRICA: A QUALITATIVE STUDY

Objective: This study sought to explore how the owners of small medium enterprises in South Africa, understood green tax and the factors influencing tax compliance. Methods: Using a qualitative research design, data was obtained from a sample of 12 owners of small medium enterprises, who voluntarily consented to participate in the study. Data was collected using semi-structured interviews, using a virtual platform due to COVID-19 regulations. Thematic analysis was used to analyse the data. Results: Five broad themes emerged from this inquiry which revolved on how business owners understand green tax, factors affecting green tax compliance and the strategies to ensure green tax compliance amongst small medium enterprises. Conclusion: The study found that participants were in favour of green taxes which reflected a commitment to environmental protection. However, concerns regarding how the government utilised green taxes to ensure environmental protection emerged and consumers were found to be reluctant to pay higher premiums for green products, which affected overall tax compliance. Research implications: Greater education regarding the salience and value of green taxes amongst the owners of small medium enterprises is important. More research related to how to ensure green tax compliance and the role small medium enterprises play in green tax compliance will strengthen compliance and enable environmental sustainability. Originality/value: The study contributes to understanding the reasons behind a lack of compliance with regards to green taxes amongst small medium enterprises.

Determining the influence of personal entrepreneurial competencies on enterprise risk management in the Bhutanese SMEs

The purpose of this research was to empirically investigate the existence of Enterprise Risk Management and to determine the influence of Personal Entrepreneurial Competencies on the Enterprise Risk Management of the Small-medium Enterprises (SMEs). To achieve the objectives of the study, empirical data is collected from 300 production and manufacturing SME owners and managers from the economic region of Bhutan using closed-ended structured questionnaire. The Structural Equation Modelling was employed as the main technique for data analysis to test the proposed model and hypothesis. The findings revealed the relationship between Personal Entrepreneurial Competencies and Enterprise Risk Management to be statistically significant. Furthermore, the study found that the SME owner/managers demonstrated to be in the “Strong” category on four Personal Entrepreneurial Competencies items and in “Moderate” category for the remaining six items, which are vital to understand in a developing nation. The novel contribution of this research focuses on integrating Enterprise Risk Management and strategic planning processes to gain a better understanding of the enterprise’s key risks and opportunities that are relevant to strategic objectives, as well as defining the leadership team’s responsibilities to establish clear risk oversight and accountability.

Exploring Small Medium Enterprise (SME) owners’ resources for resilience

Resilience can be defined as the aptitude to recover from unexpected events and sustain an acceptable level of competence. In contemporary times, it is irrefutable that every form of business and company must possess resilience. Some businesses, especially Small and Medium Enterprises (SMEs), are not as robust and will fold under pressure. Certain owners experienced failure due to their insufficient awareness, which hindered their ability to demonstrate resilience. Moreover, the insufficiency of financial resources and limited access to necessary assets significantly contribute to the ineffectiveness of business activities. This study aims to explore how the resources of SME owners add to the resilience of businesses. The most common sources of resilience amongst the owners appear to be a combination of adaptation and social support. Regarding owners’ adaptability, most business owners make efforts to adjust to the prevailing circumstances due to the occurrence of crises and disruptions in business operations. This study identified a range of social support mechanisms available to owners within diverse organizational structures. These mechanisms include support from individuals external to the company, social interactions with newly acquainted individuals, as well as internal and external relationships with individuals within the organization and potential collaborators if required. The study used purposive sampling, specifically targeting a limited sample size of five SME owners in Kedah. The structured interview serves as the primary method for collecting data. Subsequently, the textual data was transcribed to facilitate analysis through a coding procedure. Therefore, themes will be employed to link certain facts.

Sustainability Innovation in Small Medium Enterprises (SMEs): A Qualitative Analysis

Prior research suggests that today, sustainability is an important key in innovation. While the integration of sustainability into innovation in large enterprises has been widely studied, research on small-medium enterprises (SMEs) is still lacking. The aim of this study is to understand the sustainability innovation practices in SMEs. We interviewed 30 SME owners and managers in Indonesia and analyzed the data using thematic analysis to understand how SMEs practice sustainability innovation. The findings show that sustainability innovation in the form of product innovation is commonly practiced through the use of more environmentally friendly raw materials and packaging materials. As for process innovation, the practices include local sourcing and empowerment of the surrounding community as well as small-scale waste treatment to help reduce the damaging impact on the environment.

The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy

PurposeThe purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).Design/methodology/approachThis research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.FindingsThe outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.Research limitations/implicationsNotwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.Practical implicationsThe practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.Social implicationsThis study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.Originality/valueGenerally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.

Sustainability Performance Level of Small Medium Enterprises in Pahang in the Context of Non-renewable Energy Consumption using Correlation Analysis

The usage of non-renewable energy in Malaysia has become a normal thing especially in the importance of electricity generation. Majority of the industry and households in Malaysia use non-renewable energy as the source of electricity generations. For that, this research aims to analyse the consumption of energy and electricity bills that is used in small-medium enterprises (SMEs) and the awareness level of sustainability in managing their businesses in Malaysia. This research is conduct around Pahang, Malaysia to analyse the awareness level of the SME owners on the percentage of the electricity used. The electricity management and the Sustainable Development Goals are reviewed through the literature survey as a reference to construct a conversion table. The normalization technique is used to reduce the bias in the data. Pearson’s and Spearman’s Correlation Analysis are used in this research to determine the correlation analysis from the finalized results.

Financial Literacy Impact on Small-Medium Enterprises Development and Sustainability in Indonesia

Small-medium enterprises (SMEs) in Indonesia are becoming the pillars for the future of Indonesia's economy. Hence SMEs need to thrive and survive in the business world. This research aims to examine the correlation between financial literacy and the sustainability of small-medium enterprises in Indonesia. Financial literacy in Indonesia is low, and it is not considered an essential factor for the sustainability of SMEs. Although the financial literacy percentage in Indonesia is still low, this does not mean that every SME owner in Indonesia is financially illiterate. A qualitative study will be used to process the data. Data are collected through in-depth interviews of 7 SME owners in Indonesia. which then are analyzed qualitatively using the Nvivo application. It is shown that there is a correlation between financial literacy and the development and sustainability of the SME. The findings in these papers are essential information for business people and SME owners in Indonesia that being financially literate significantly impacts their businesses.

Reasons for CSR engagement in SMES and MNCS: a qualitative perspective

The purpose of this paper was to explore the reasons for Corporate Social Responsibility (CSR) engagement among Small Medium Enterprise (SMEs) and Multinational Corporations (MNCs) in Malaysia. The research is situated within an interpretive approach. The interview technique was employed to explore the issue. Interviews were conducted with 8 firms including 4 SMEs and 4 MNCs. The firms were selected based on the firms that are actively engaging in CSR and the detail of CSR activities have been identified via their companies websites. Five themes emerged as the reasons for CSR engagement in SMEs and MNCs: leadership styles, competitiveness, alignment with company mission, vision, and objectives, and resource availability. From the results, this study helps researchers to understand in depth the CSR terminologies, the differences in CSR activities between MNCs and SMEs, and the factors that would influence firms to engage in CSR activities. Other than that, this study will help in initiating programs workshops, seminars, and training to educate managers and SME owners on the benefits of CSR.

Risk Aversion and Self Insurance Utilisation: Evidence from Small and Medium Scale Business Owners in Lagos State

This study is to examined the influence of risk aversion on the adoption and utilisation of self-insurance among Small Medium Enterprises (SME) owners in Lagos State. This study employed cross sectional class of survey research design. Three hundred and fifty SME owners were selected using Taro Yamane formula and the data obtained was analyzed using correlation and t-test inferential statistics. Questionnaires were administered through convenience sampling method. The result of the study revealed a significant relationship between risk aversion and self-insurance utilisation among SME owners in Lagos State. Additionally, the result of this study also revealed that there is no significant difference between preference for conventional insurance and self-insurance among Lagos State SME owners. Based on the findings of this study, it is recommended that conventional insurers should endeavour to develop products that address the actual needs of SMEs. It is also recommended that SME owners should be highly disposed to risk improvement measures as this would help to reduce the cost of market insurance and self-insurance even if both are taken up contemporaneously.

Counting on U training to enhance trusting relationships and mental health literacy among business advisors: protocol for a randomised controlled trial

BackgroundFinancial distress is thought to be a key reason why small-medium enterprise (SME) owners experience higher levels of mental health conditions compared with the broader population. Business advisors who form trusting, high-quality relationships with their SME clients, are therefore well placed to: (1) help prevent/reduce key sources of financial distress, (2) better understand the business and personal needs of their clients and, (3) recognise the signs and symptoms of mental health conditions and encourage help-seeking where appropriate. The aim of this study is to compare the effectiveness of relationship building training (RBT) combined with mental health first aid (MHFA) training for business advisors with MHFA alone, on the financial and mental health of their SME-owner clients.MethodsThis is a single blind, two-arm randomised controlled trial. Participants will be business advisors who provide information, guidance and/or assistance to SME owner clients and are in contact with them at least 3 times a year. The business advisors will invite their SME-owner clients to complete 3 online surveys at baseline, 6- and 12-months. Business advisors will be randomised to one of two conditions, using a 1:1 allocation ratio: (1) MHFA with RBT; or (2) MHFA alone, and complete 3 online surveys at baseline, 2- and 6-months. Primary outcomes will be measured in the business advisors and consist of the quality of the relationship, stigmatizing attitude, confidence to offer mental health first aid, quality of life and provision of mental health first aid. Secondary outcomes will be measured in the SME owners and includes trust in their business advisors, the quality of this relationship, financial wellbeing, financial distress, psychological distress, help-seeking behaviour, and quality of life. To complement the quantitative data, we will include a qualitative process evaluation to examine what contextual factors impacted the reach, effectiveness, adoption, implementation, and maintenance of the training.DiscussionAs there is evidence for the connections between client trust, quality of relationship and financial and mental wellbeing, we hypothesise that the combined RBT and MHFA training will lead to greater improvements in these outcomes in SME owners compared with MHFA alone.Trial registrationClinicalTrials.gov: NCT04982094. Retrospectively registered 29/07/2021. The study started in February 2021 and the recruitment is ongoing.

The impact of entrepreneurs’ decision-making style on SMEs’ financial performance

PurposeThis study aims to investigate the impact of entrepreneurs’ decision-making styles on enterprise performance and suggests several entrepreneurial ecosystems – factors are impacting this relationship. The authors extend this line of work by examining how regional entrepreneurial culture, educational institutional support and business and social networks mediating the relationship between entrepreneurs’ decision-making style and small medium enterprises (SME)s’ financial performance.Design/methodology/approachThe data were collected through an e-survey of SME owners in New South Wales, Australia. This study developed a model combining a set of entrepreneurial ecosystem factors, entrepreneurs’ decision-making styles and SMEs’ financial performance. Data were analysed using partial least square structural equation modelling.FindingsThe results suggest regional entrepreneurial culture, educational institutional support and business and social networks mediate the relationship between entrepreneurs’ decision-making style and SMEs’ financial performance. Hence, this study developed a more complete methodical understanding of entrepreneurs’ decision-making styles and their impact on SMEs’ financial performance. This study provides deeper insights into the conditions and processes by which an entrepreneurs’ decision-making style impacts SMEs’ financial performance.Originality/valueThe focus of this study was to understand the relationship of entrepreneurs’ decision-making styles on SMEs’ financial performance. The authors identified that the entrepreneurs’ decision-making style positively impacts SMEs’ financial performance. This study augments the body of knowledge by proposing ways in how the entrepreneurs’ decision-making style can be more strengthened.

The Impact of Islamic Financing on the Small Medium Enterprises (SME’s) Performance in Lasanod Somalia

The objective of this paper is to examine the influence of Islamic financing on the performance of small-medium enterprises in Lasanod Somalia. Many businesses obtain financings such as Murabaha, Microfinance, and Qard Al Hassana from Islamic banks operating in Somalia to raise funds and capital required to expand and run their businesses smoothly. This study employs a quantitative research approach. A total of 148 questionnaires were distributed and collected from Small Medium Enterprises owners and workers in Lasanod Somalia who obtained Islamic financing from local Islamic banks in Somalia. The responses were analyzed using SPSS 21. Descriptive statistics, correlation analysis, and bivariate regression analysis were conducted to investigate the impact of Islamic financing on the performances of businesses operating in Somalia. Small Medium Enterprises owners and workers believe that Islamic financing has helped their businesses to obtain the funds needed for their businesses to grow and expand beyond existing markets. Furthermore, this study suggests there is a positive relationship between Islamic financing and business performance. The finding of this paper is statistically significant.

PENERAPAN AKUNTANSI PADA USAHA MIKRO KECIL DAN MENENGAH (UMKM) DI KABUPATEN REJANG LEBONG

Abstrack-These days Small-Medium Enterprises (SME) have been run by people to improve economic income. Some kinds of SME business in Indonesia are services and commercials. However, because of the lack knowledge of accounting cycle, many enterprises cannot implement appropriate recording system according to general accounting recording. As the result, the SME owner cannot draw aside enterprise financial and personal financial. The case is that when the SME owners are planned on evolve their business, they can propose bank loan. The implementation of accounting cycle on SME can help the owner to manage their business that their business can be successful. It also can help to stimulate new SMEs especially in the District Rejang Lebong

Is brand management critical to SMEs’ product sustainability? Qualitative analysis in the context of Indonesia small enterprise environment

This qualitative study aims to analyze brand management’s implementation in small, medium enterprises (SMEs) in three areas in Indonesia, which specialized in craft, food, and fashion companies. The performance of brand management addresses five main stages based on Keller’s framework of brand management, including 1) developing brand positioning, 2) identifying and developing brand plans, 3) designing and implementing brand marketing programs, 4) measuring and interpreting brand performance, 5) managing brand equity. Semi-structured in-depth interviews were conducted to collect data in Yogyakarta, Lombok, and Makassar. The study found that brand management is perceived to be important in supporting SMEs’ performance. This study contributes to the importance of brand management in SME by applying the framework of brand management. The finding can help SME managers or owners formulate branding strategies that strengthen SMEs. However, the results also show that some respondents argued about the unimportance of brand management.

Compliance Factors of Malaysian Private Entity Reporting Standard (MPERS) by Small Medium Enterprises (SMEs)

The study objectively reports the findings on a questionnaire survey when examining the factors affecting Malaysian Private Entity Reporting Standard (MPERS) compliance in Malaysia by small and medium enterprises (SMEs). The study is based on a professional accountant questionnaire survey involving a sample of 176 respondents who are currently involved in the implementation of MPERS. The result reveals that the main factors affecting the SMEs' compliance with MPERS were the legal limitations and requirements. The study also finds that the perception, size of entities, management and accounting skills of the external user, and consideration of costs and benefits, have little impact on MPERS compliance. Furthermore, the study contributes to the literature of the financial reporting standard for SMEs by providing empirical from Malaysia's local context that uses MPERS and how the theses affect reporting practices. To adopt the 'true and fair view' financial reporting standard when explaining the firm's financial performance and financial position, this study should be the interest of regulatory authority, standard setters, and owners of SMEs themselves.

Personality as a predictor of human resource management strategy among small and medium enterprise owner-managers in South Africa

This study investigated personality as a predictor for the choice of human resource strategies among small medium enterprises (SMEs) owner-managers in a district in the Free State Province of South Africa. Small and medium enterprises are regarded as essential and contribute towards a country’s growth; however, most of them fail within the first year or two (2) of inception. While many reasons have been proffered to explain such failures, the issue of human resources management (HRM) has not been given much attention in most South African SME literature and studies. Known studies have attempted to explain SMEs success and survival using personality and motivation, resulting in mixed results, yet, none of the studies done attempted to link personality and human resources (HR) within the SMEs context. The study adopted a positivist philosophical paradigm and was, therefore, quantitative in nature. The design was cross-sectional with a sample size of 180 SMEs owner-managers. Data was collected by means of self-administered questionnaires and analysed using descriptive and logistics regression techniques. The findings show that there is a positive and significant relationship between personality and the selected human resource strategies. The study is a first of its kind study to investigate the two (2) variables in South Africa and thus contributes to the literature on SMEs by providing a platform for profiling SME owners, thereby linking personality characteristics to human resource development and business growth.

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports