SME Owners Research Articles

Market Orientation Strategy And Enterprise Orientation Towards New Normal (Covid-19) Effect And Business Performance At MSMES In East Jakarta

Our expectation of this research is verifying a relationship between the Empowerment Strategy as well as the Micro Business Development during the Covid-19 Pandemic with the Income Level of SMEs in East Jakarta. The object of research is the Management business owners of SMEs in East Jakarta (Duren Sawit, Jatinegara, Utan Kayu, Kramat Jati, and Klender). This research study uses a quantitative design. The primary data generated with the Google tools application and distributed online. The sampling method used is the Non Probability Sampling method. Data were collected as many as 100 samples. All document were analyzed by using SPSS 22.00 approach. Based on the hypothesis test, the results are obtained simultaneously, namely The Market view, Entrepreneurial reorientation which will have a significant effect on the Business class Performance. In part, the New Normal Effect (Covid-19) expected to gain a positive impact on business management performance. MSME management should accurately more focused on variables that have a positive impact on management performance. By conducting of Market Orientation activities focusing on products for consumers in east Jakarta we hope that all management of MSMEs know well our need today. Not only that, dominate the market by coming up with new ideas in producing and managing MSMEs business in East Jakarta. This is shown as the process results of our hypothesis testing and path description analysis that the market orientation variable (X1) has a significant influence on MSME actors in running a business (Y1) New Normal of condition (Covid-19) The influence in East Jakarta and the effect is positive 0.373. Market orientation variable (X1) has a significant effect on business performance (Y2) on MSMEs in East Jakarta and the effect is positive at 0.193. Variable X2 entrepreneurial orientation has a significant effect on (Y2) New Normal (Covid-19). Its effect on MSMEs in East Jakarta and its effect is 0.472. X2 the variable of entrepreneurial orientation has a significant impact on (Y2) Business Performance on all MSME actors in East Jakarta and the positive impact is at 0.217. The variable (Y1) New Normal (Covid-19) has a significant effect on (Y2) on Business Performance at MSMEs in East Jakarta and the effect is positive at 0.497.

INFLUENCE OF FINANCIAL LITERACY, MANAGERIAL EXPERIENCE ON FINANCIAL MANAGEMENT PERFORMANCE OF SMES IN SURABAYA

This study aims to determine the effect of financial literacy and managerial experience on financial management performance of SMEs. The data collection technique in this study was using a questionnaire distributed to 400 SME owners in Surabaya. The data that has been collected is then processed by the logistic regression analysis method using the software IBM SPSS Statistics 25. The results show that financial literacy and managerial experience variables significantly affect financial management performance variables.

THE BEHAVIOURAL DIMENSION OF SME’S OWNER ON AFFECTING THE FINANCIAL DECISIONS

This research seeks the effect of behavioural and non-behavioural factors of SME’s owners and their business characteristic on the financing decisions. Moreover, this research categorized SMEs owners based on their behavioural aspects on establishing a behavioural mapping in SMEs industry. The sample of this research is the informal SMEs owners in Surakarta, Central Java, Indonesia. In investigating the relationship of the independent variable on financial decision making, this research employed the hierarchical linear multiple regression model (HLMR) and multiple logistic regression (LR). Furthermore, this research employed cluster analysis for building a behavioural mapping in SMEs industry. This study discovered a significant effect of behavioural aspects of SME’s owners on the financing decisions, which is, instead of having significant enforcement on the financing decisions, the non-behavioural aspects were more likely impacted on the SMEs owners’ investment decisions. The finding shows that there are three significant groups of SMEs owners in the Surakarta region. The result of this research gives key insights, mainly to the involved stakeholder to keep the sustainability of the SMEs industry.

ANALYSIS AND MUTUAL IMPACT OF DIGITAL SERVICES QUALITY ELEMENTS

If there is a wish to attract new users and keep the existing stay, it is necessary to analyze the mutual impact of the elements on digital service quality. To date, numerous authors have conducted various empirical research studies. This study deals with the interstitial influences including reliability, responsiveness, and empathy. This research study has gone a step forward. It is aimed at determining how reliability and responsiveness, both individually and taken together, affect empathy in the Republic of Serbia on a projected sample of 458 small and medium enterprises, namely the manufacturing, service, and ICT activities. On the applied theoretical model, empirical research was conducted: descriptive statistics, correlation analysis and regression analysis, the impact of the independent elements on the dependent element. This research study is intended to help to understand the interdependence and degree of the influence present between said elements; this can provide help to SME owners and their managers with respect to the development of marketing strategies and good business practices in the digital age.

Sharia-Compliant Sacco Services and Financial Performance of Small and Medium-Sized Enterprises in Nairobi City County, Kenya

Saving and Credit Cooperative societies (SACCOs) are basis of monetary provisions helping entrepreneurs and other upcoming industries connect to banking facilities and other services. They provide monetary provisions to low-income earners who are self-employed. On the other hand, sharia-compliant SACCOs have obtained considerable importance in the modern globe on the foundation of stipulation of loans without interest together with the sharing of losses and profits via the doctrine of profit-sharing (Mudharaba) and joint-venture (Musyaraka). Although numerous researches have been done on areas of Islamic banking, few researches have explored the role of sharia-compliant SACCOs on SMEs in Kenya. Therefore, the motive of this study was to explore the effect of sharia-compliant SACCO services and monetary achievements of SMEs within Nairobi City County, Kenya. The survey was to be informed by four objectives namely; to determine the effect of credit services, training services, banking services and saving services by sharia-compliant SACCOs on financial performance of SMEs in Nairobi City County, Kenya, The study was to be based on three theories namely; financial intermediation theory, credit access theory and the saving culture theory. The project has utilized a descriptive research plan in establishing the effect of sharia-compliant SACCO services on financial performance of SMEs in Nairobi city county, Kenya. The target population was 300 SMEs that operate within Nairobi City County who are clienteles of sharia-compliant SACCOs. Utilizing cluster sampling, the survey has adopted a total of 90 participants from the SME proprietors. The researcher collected primary data utilizing closed questionnaires as the research instrument. The data was obtained by using drop and pick later method and followed it via telephone calls. The collected data was summarized, coded, tabulated and analyzed using SPSS. The study derived the mean, frequencies and percentages from the data analysis for each variable. Findings of the study were obtained by use of charts, histograms and bar graphs where appropriate. The results of the study are believed to add up to existing body of knowledge in the field of SMEs business development as well as in Islamic banking in Kenya. Regression analysis was used to establish the relationship between SACCO services and financial performance of SMEs in Nairobi City County. The study concluded that the services provided by sharia-compliant SACCOs have significantly enhanced the financial performance of SMEs in Nairobi City County. The study recommended sharia-complaint SACCOs and other financial institutions to do frequent trainings for SME owners so as to solidify their capacity, skills and knowledge.

Business Incubation Initiatives' Impacts on Entrepreneurs and SMEs

Business incubation (BI) is a strategic tool that helps a country to grow its entrepreneurial base and reduce the high mortality rate of SMEs. Kingdom of Eswatini adopted the business incubation initiatives to promote entrepreneurship and SME development. To date, no data exist on the impact made by business incubation initiatives. Adopting methodological triangulation of both quantitative and qualitative data collected through questionnaires and interviews where the participants consisted of SME owners, BI managers, and BI trainers, this exploratory study aims to investigate business incubation initiatives' impact on entrepreneurs and SMEs. Findings reflect that BIs measure their impact by seeing an increase in revenue, increase in the number of people employed, and SME survival post the incubation period. Though SMEs agreed that the BI effects positively, the study also revealed that some SMEs remained in the incubation for more than 10 years. Policy implications emerging are the need to introduce graduation policy and proper determination of requirements for incubation.

Circular economy adoption by SMEs in emerging markets: Towards a multilevel conceptual framework

Adding to the growing literature on circular economy (CE) and employing the theoretical lens of change management, this research explores SMEs’ challenges in the emerging markets context of India for adopting CE practices. We use a multi-case qualitative design, interviewing senior leaders and owners of Indian SMEs, CE intermediaries and two large firms on the nature and extent of critical barriers and enablers of CE adoption. Including CE market intermediaries, sustainability and CE managers of large organizations, who are required to educate and incentivize CE adoption of their SME value chain members, we analyze the barriers and opportunities from both sides of the coin. We develop a multilevel theoretical framework grounded in CE and change management literature, which presents the nature and extent of CE activities, barriers and contextual enablers of SMEs’ adoption of CE in emerging markets. Implications for policy, theory and practice are also discussed.

Exploring the impact of student developed marketing communication tools and resources on SMEs performance and satisfaction

A number of SMEs lack the essential marketing skills, knowledge, tools and resources, and financial access to ensure the survival of their businesses. Service learning could be used as an effective pedagogy for assisting SMEs with vital marketing communication (MC) strategies via the development of tools and resources that may increase business growth and sustainability. The primary research objective was to evaluate SMEs’ satisfaction regarding performance factors, and student developed MC tools and resources that were implemented via a MC service learning programme (in the form of student-run agencies). The inquiry utilized the triad service learning model and quality assurance cycle to apply an evaluation research design that was substantiated by the expectancy-disconfirmation paradigm. A survey was conducted among 107 SME owners and managers via a structured questionnaire. The student developed MC tools and resources and their perceived usefulness resulted in a positive influence on a number of performance factors among SMEs. MC tools and resources such as a customer database, email address, and Facebook page had the largest influence on performance factors. Performance factors such as an increase in sales, new customers, brand awareness, competitive advantage, business efficiency, and motivation of employees were found to have a positive influence SME satisfaction. Further inquiry could replicate the study via various marketing-related service learning programmes in different countries that have divergent cultures, economics and contexts.

Cultural and System Relational Capabilities on Business Performance: Role of Value Co-Creation Activities

ABSTRACT This paper aims to examine the effect of cultural relational capability, managerial systems relational capability, value co-creation activities on business performance. The respondents are the owners of fashion retail SMEs in Indonesia. The data was processed by using Structural Equation Modeling. This study found that cultural relational capability and managerial systems relational capability have a significant effect on value co-creation activities and business performance. Furthermore, value co-creation activities can be a mediator of the relationship between cultural relational capability and managerial systems relational capability on business performance.

Assessment of the Impact of Environmental Scanning Intensity on Innovation among SMEs Owners in Oyo State Nigeria

The study investigated the effect of environmental scanning intensity on innovation among SMEs in Oyo State Nigeria. A sample of 400 SME owners was taken using the multistage sampling technique. The questionnaire was used to collect information from the respondents and the data were analyzed using descriptive and quantitative analysis. The result from the study shows that environmental scanning intensity on the part of SME owners is very crucial to innovation. The study further underscores the importance of resources, organizational structure, and technology in the promotion of innovation while the study also concludes that government policy has not been encouraging innovation among SMEs. The study recommends more involvement of government in the promotion of innovation and the SMEs owners on their part should embark on efficient environmental scanning in other to improve their innovative ideas that can make their businesses excel or stand out in the ever-rising competitive world.

The effects of financial and technology literacy on the sustainability of Indonesian SMEs: Mediating role of supply chain practice

Most SME owners have understood the importance of several strategies to run their business more professionally. Financial literacy, technological literacy and supply chain practice are some of the important strategies to maintain the sustainability of SMEs. The research was conducted in Indonesia, in the East Java region whereas a developing country, SMEs are the backbone of the economy because most of the people are involved in this sector. The research sample was taken from data recorded at the Export Center office, and as many as 485 SME owners were involved in this study. Quantitative analysis using SEM-PLS analysis found that financial literacy, technological literacy, and supply chain practice contributed positively and significantly to the sustainability of SMEs. If SME owners are aware and understand the importance of financial literacy and are supported by technological literacy and strengthened by supply chain practice, then the opportunity for SMEs to run their business in a sustainable manner is even greater.

SMEs in Covid-19 Crisis and Combating Strategies: A Systematic Literature Review (SLR) and A Case from Emerging Economy

The paper intends to understand the research trends in “Covid-19 and SME” through a Systematic Literature Review (SLR) and extract themes to explore the most affected areas of SMEs during the Covid-19 pandemic. Subsequently, the study attempts to know the struggles of SME during Covid-19 crisis in a developing country . Furthermore, the study provides a critical dynamic resilience strategy framework to manage the SMEs in the crisis period. The authors extracted data from Scopus and Web of science to conduct a Systematic Literature Review (SLR), Extracted data from both databases were merged using R programming get the same tag in R programming. The study adopts a bibliometric analysis to present the research corpus in the domain of “Covid-19 and SMEs”. The cluster method of R programming has been used to usher the significantly affected areas of SMEs. Based on the cluster theme, an open-ended questionnaire was developed and used to interview 23 SMEs in Bangladesh for the case study. NVIVO-13.00 was used to extract the topic from the transcriptions of the interviews. The study reveals that Cash flow shortages and Supply Chain Disruptions are the critical constraints of SMEs. On the contrary, Digital transformation has gained momentum during this crisis. Enterprises that made the best use of digital platforms through technology, digital marketing, and innovations secured the peak of success and profitability. The study also recommends a critical dynamic, resilient strategy model to adopt in the "new normal" for successful navigation of SME business in the future. The study is the first of its kind that integrates SLR and a case study on the hurdles of SME owners during the Covid 19 crisis. Thus, it helps advance the understanding of the subject matter and enables the formulation of resilient strategies by policymakers and SME owners to navigate the business in any potential crisis in the future. The study has significant methodological contribution as it presents how to merge both Scopus and web of science data to conduct bibliometric analysis through R programming. Besides, it also contributes to using R’s clustering method to extract themes for “SME and Covid -19” domain. Finally, the study presents an overview of SMEs in crisis such as Covid-19 and a case study of a rising economy and its response measures. The Case study has been designed to concentrate on Bangladesh’s SME owners and practical implications potentially limited to Emerging Asian Economies.

Orientasi kewirausahaan dan kapabilitas pemasaran pada kinerja usaha kecil dan menengah: Peran faktor lingkungan yang dinamis sebagai pemoderasi

The purpose of this study is to examine the impact of entrepreneurial orientation and marketing capabilities on the performance of small and medium-sized enterprises (SMEs), as well as how dynamic environmental factors moderate these relationships. The population was all managers or owners of SMES in Padang City. The sampling technique used a non-probability approach, namely purposive sampling. In the data analysis, 190 samples (response rate 84,44%) were used as a sample size. The Smart-PLS software is used in this study to perform variance-based structural equation modeling (VB-SEM). The findings show that (i) entrepreneurial orientation has a positive and significant effect on SME performance, (ii) marketing capabilities have a positive and significant effect on SME performance, and (iii) In these relationships, the role of dynamic environmental factors as a moderator is not supported. The managerial implications will be discussed later.

Eksterno finansiranje MSP u Srbiji

Considering the fact that small and medium enterprises often face funding difficulties, this paper discusses and analyzes the issue of financing SMEs in Serbia, i.e. the usage and possibilities of alternative, relatively more affordable, cheaper and more flexible options for financing entrepreneurial projects, which are available in practice. The research was conducted by surveying entrepreneurs and SME owners, in order to show the extent to which SMEs in practice rely on their own financing of their business, and how much is represented by financing from external non-banking sources. Also, the paper investigates and analyzes the level of satisfaction of entrepreneurs with the current usage of various financial instruments that they can access in different circumstances, as well as potential opportunities for their usage, with a focus on the current state of SME financing in practice. The obtained results indicate that entrepreneurs mostly rely on own financing of their business, that various options of non-bank financing are insufficient and that there is a lot of untapped potential. However, there is a need for more simplified procedures and better informedness of entrepreneurs.

Accounting Records Keeping and Growth of Small and Medium Enterprises in Kumasi Metropolitan

Small and medium enterprises constitute about 90% of the Ghanaian economy. This study explored accounting records keeping and growth of small and medium enterprises in Kumasi Metropolitan Assembly. The target population of the study was the owners or managers of small businesses in Kumasi Metropolitan Assembly. This study adopted a descriptive survey research approach. The study used stratified random sampling methods to sample the respondents. The study considered a total sample size of 200 small business operators and an interview with 1 personnel in NBSSI in Kumasi Metropolitan Assembly. It was found out that the most SME operators in Kumasi Metropolitan keep the following books altogether; sales book, purchases book, cash book and employees payroll. The research revealed that some businesses in the Metropolitan do not keep accounting records because they do not see the need (33.3%) and at the same time they want to keep secrets of their business from their competitors (28.6%). Also, some cited accounting system being expensive to operate and, some SME operators stated lack of the requisite accounting skills. In addition, the findings showed that accurate accounting record keeping of SMEs transactions is essential to the growth of the enterprises in determining their profit/loss level, acquiring credit facilities from banks, ability to have some document to back up their tax records and able to make efficient financial decisions of their business. The challenges of keeping of accurate records were highly blamed on cost constraints (58.2%), difficulty in maintaining the system (21.5%) and non-availability of skills personnel (8.2%). Following this, the study recommended that the appropriate authorities in the metropolitan concerned should come up with an efficient program for training the SMEs owners or managers. Additionally, the research recommends that a policy be made to make it mandatory for the SMEs owners or managers to keep records of their business transactions.

Human resource competencies, supply chain management, and financial performance

This research was conducted on SMEs in Indonesia, by prioritizing the local wisdom of the Indonesian nation as a tropical, agrarian country, with SMEs owners who process fruits and vegetables into snacks as respondents. The study involved 243 respondents, to determine the partial and simultaneous influence of human resource competences and supply chain management on financial performance. The reason for doing this research is because some of the research that has been done by previous researchers still discusses this on corporate and not on SMEs. However, market conditions have changed. SMEs need to be managed professionally, by minimizing expenses to maximize revenue, taking into account risk, resource capabilities, in flexible ways as well as low-cost. The results showed that there was a significant influence on the financial performance of SMEs with the presence of human resource competences and supply chain management either partially or simultaneously.

Impact of Government Grant on Growth of Small and Medium Scale Enterprises in Nigeria (A Study of Some Selected SMEs Owners in Abeokuta, Ogun State)

In this study, the effect of government incentives on the expansion of small and medium-sized businesses was evaluated. The study’s goals were to ascertain the effect of government grant availability, the effect of grant accessibility, and the sufficiency of grant on the expansion of small and medium-sized enterprises. The research design used in the study was a descriptive survey. The research instrument was a structured questionnaire. Three hundred and sixteen (316) SME owners made up the study’s population, and a sample size of one hundred and seventy seven (177) was chosen. Statistical Package for Social Sciences’ (SPSS) multiple regression analysis was used to assess the hypotheses developed for this study). The study’s conclusions showed a favorable association between government grant availability, accessibility, and sufficiency and the expansion of SMEs in Nigeria. This is clear from the fact that the p-value of the t statistic for the three independent variables is less than 5% (P=00.0000.05). The government should boost the different grants and resources made available for the operation and establishment of small and medium scale businesses in Nigeria, according to the results and recommendations. This will encourage more Nigerian small- and medium-scale business owners and operators.

Using digital marketing from SMEs companies in the manufacturing industry in Albania

Marketing has been a challenge for the manufacturing industry worldwide because of its cost. The use of digital marketing is an area that is facing a lack of research on the manufacturing industry in Albania, so this study aims to identify how companies use the internet and digital channels in their marketing strategies. Managers and SME owners have the opportunity to know what digital marketing method can be effective for them; how to reach potential customers and be able to maximise their digital marketing and how to become more competitive. The study is valuable for marketers who can create a form that integrates digital marketing into existing traditional marketing in their organisations. The purpose of this study is to identify how small and medium-sized manufacturing companies in B2B use the internet as a tool for digital marketing strategy and how they see the future development of internet and digital channel use.

The perceptions towards the digital sharing economy among SMEs: Preliminary findings

Although the implementation of the digital sharing economy provides many positive values, there are still few SMEs that adopt the digital sharing economy. It is inseparable from the readiness of SMEs to adopt the digital sharing economy business model. Therefore, it is necessary to understand the readiness for change in SMEs in helping SMEs adopt the digital sharing economy. The literature review states a need for a strategy and guidelines in implementing the digital sharing economy for SMEs. This study is also supported by other studies in various countries, illustrating that the adoption of the digital sharing economy is not running smoothly. This study aims to understand the current conditions in the field regarding the readiness to change SMEs in adopting the digital sharing economy business model. This preliminary study used a snowballing technique to conduct semi-structured interviews with SME owners in the household consumption sector in Indonesia. The preliminary study’s findings include the readiness of SMEs to change in adopting the digital sharing economy business model, elements related to readiness on the digital sharing economy, and the need for guidance in adopting the digital sharing economy. This study concludes that the readiness of SMEs to switch to a digital sharing business model is still limited. Currently, there are no guidelines that direct the implementation of the digital sharing economy business model. Therefore, preparedness and guidelines are needed as a strategic step to help SMEs prepare to switch to a sharing economy business model.

Analysis and mutual impact of digital services quality elements

If there is a wish to attract new users and keep the existing stay, it is necessary to analyze the mutual impact of the elements on digital service quality. To date, numerous authors have conducted various empirical research studies. This study deals with the interstitial influences including reliability, responsiveness, and empathy. This research study has gone a step forward. It is aimed at determining how reliability and responsiveness, both individually and taken together, affect empathy in the Republic of Serbia on a projected sample of 458 small and medium enterprises, namely the manufacturing, service, and ICT activities. On the applied theoretical model, empirical research was conducted: descriptive statistics, correlation analysis and regression analysis, the impact of the independent elements on the dependent element. This research study is intended to help to understand the interdependence and degree of the influence present between said elements; this can provide help to SME owners and their managers with respect to the development of marketing strategies and good business practices in the digital age.