Business Development Support Research Articles

CURRENT SITUATION OF SMALL BUSINESS FINANCIAL AND CREDIT SUPPORT IN UKRAINE

Keywords: small business, financial support, self-financing, government financing, bank lending The purpose of the study is to investigate the problems and find ways to improve the efficiency of financial support for small business in today's business environment. Research results. Summarizing the research findings, it can be stated that small business is characterized by a lack of sufficient financial resources, which is facilitated by a variety of reasons: insufficient level of profit, lack of knowledge and ability to make depreciation, insufficient level of own savings and funds formed. All this necessitates the development of a broad network of financial and credit support for small businesses. Particularly urgent is the issue of lending to small businesses in rural areas, the vast majority of which are limited in lending opportunities, characterized by low competitiveness and lack of qualifications for obtaining a loan. Not every small business is able to pay high enough interest rates. Thus, the high cost of lending makes banking resources for small businesses unprofitable. A major problem for most small businesses is securing a loan, that is, a security deposit. Public financial support for the creation and development of small businesses is not yet effective enough. Its improvement requires the solution of three key problems: the creation of an extensive network of small cooperative banks specializing in lending to small businesses; expanding the base of lending to small business entities and reducing interest rates on loans; intensification of cooperation with foreign financial institutions operating in the field of small business. Due to unfounded tax reform, the fiscal burden on small businesses has increased, and relations with the fiscal authorities have remained unsettled. Due to the limitation of the possibility to include in the expenses of the taxpayer the sums paid or accrued in favor of the individual - the payer of a single tax for the services rendered by that person, the delivered goods, works performed, thousands of natural persons-payers of a single tax - are left to attribute to the costs without the market of their sales. goods and services and are forced to close their businesses. Non-banking financial institutions play a significant role in lending to small businesses. The formation of non-banking institutions at the regional level should have high-quality organizational support, which requires the interaction of local governments, financial institutions and business entities. Therefore, creating an effective support system for small businesses, including close interaction between banking institutions and the non-banking financial sector, credit unions, insurance funds, leasing, venture capital firms, creates the basis for flexible credit policies, effective financing for small businesses. Addressing the range of problems associated with the financial support of small businesses will significantly increase the role of this important segment of the economy in deepening rural market relations. Conclusions. Therefore, the structure of financial support for small business development is suboptimal: self-financing is the preferred form of financing, while the sources involved must ensure the effective development of small business. Conducting active economic reforms, stable political situation will contribute to stabilization and further growth of the economy, which in turn will expand sources of financing, increase the effectiveness of financial support, activate the development of small business as a whole.

CLUeFARM: Integrated web-service platform for smart farms

Smart farming is a relatively new domain which has popularity nowadays. It emerged from the need to produce more with less effort and it consists of integrating modern technologies in conventional agriculture to raise the quality and the quantity of agricultural products. This paper describes an integrated web-service platform which aims to increase the quality of products grown in farms and to support business development in agriculture related fields. The platform enjoys the benefits of Cloud computing like flexibility, availability or security and it can be accessed at any time, in any place by using just an Internet connection. It allows users to locate and efficiently manage their farms providing access to different types of statistics and predictions. It also acts as a social network allowing users to interact with each other by sending private messages or posting on the forum or on the blog. In addition to describing the services offered by the platform and the interaction between them, this paper also presents the architecture of the system and the performance test results which prove the efficiency of the platform. We have performed in lab validation of the proposed solution, using real equipment and different users with different roles.

Rural Economics Development in the Villages of East Java

Although East Java is the winner of the 2018 Regional Development Prize (PPD) award, they are many small villages, far from cities, still not advanced in economic development. The villages are generally villages with farmers who can not sell their products as well, so they often immigrate to the city to seek additional family income. This has certainly caused the village to be undeveloped, the people relying on assistance from outside the region, including their non permanently immigration to the city and back to the village when the harvest arrives and this will also cause social problems in the city. To anticipate conditions that may worsen the situation, it is proposed to make local product promotion facilities in the villages, so that the Government plays a role in assisting in promoting local products. By empowering Business Development Support professionals and cadres, it is expected that the real economy in remote villages can increase, and it will create a model of rural economic development in other villages in other provinces, thus increasing the speed of regional development wheels that will support the growth rate of the national economy.

Diagnosing Business Incubation for Social Purpose: A Viable System Model Approach

Business incubation is one of the means that promotes the overall business and economic growth of a particular location. However, to date, the role of business incubation as a social innovation, which has the aim to achieve concurrent development of firms, the economy and the society, is not yet understood. Using the systemic approach, specifically the viable system model (VSM) as the framework, the objective of this study is to diagnose the operation of an incubation programme that focuses on supporting business development for social purpose. This study utilized the qualitative methodology and selected an incubator, known as Kompleks Industri Makanan MARA (KIMAR), as the system-in-focus. KIMAR is a halal food industry complex established and operated by Majlis Amanah Rakyat (MARA); the latter a Malaysian government agency that aims to promote the socio-economic empowerment of the indigenous people of Malaysia including the Malays. Data for the diagnosis was collected through interviews with the executives responsible for the incubator operation, as well as the managers or entrepreneurs of the businesses located within it. Our analysis found cohesions among the functions of the incubator and their functionality to manage certain varieties in the environment, although more requisite varieties are needed to manage the high complexity of global halal business development. In managing these varieties, the incubation process receives financial sponsorship and other support from its social-based parent organization. The use of systems perspective highlights operational values of responsibility, long-term perspective as well as effective management of resources that drive the impact of a social incubator, thus enriches the concept of social innovation that typically focuses on the social impact of the outcome.

Influence of State Participation on Business Conditions and Entrepreneurship in the EU Countries of the Former Eastern Bloc

Abstract The purpose of this paper is to show the extent to which state interference in the economy affects the conditions of functioning for small and medium-sized enterprises in economies of the former eastern bloc which have already gone through the EU accession process. The data on SMEs’ situation were taken from the Fact Sheets of the EU program Small Business Act. Due to the fact that the variables proposed to describe the business environment differ significantly it was necessary to standardize them. The zero unitarization method was applied to rank countries properly. Special attention in this paper is devoted to Poland and the situation of businesses operating in this country. The research has identified some areas requiring urgent changes. It is crucial to improve the situation so that companies can play a proper role in the economy. A country which could be an example of good solutions that support business development is also described.

Assisted living technologies and the consumer market: how is it developing?

PurposeA three-year research study, funded by Innovate UK, Consumer Models for Assisted Living (COMODAL) aimed to support the development of the consumer market for electronic assisted living technology (eALT) products and services, particularly for people aged 50-70, approaching older age and retirement themselves or with caring responsibilities for family or friends. The purpose of the COMODAL study was to gain a greater understanding of their needs and behaviours relating to the acquisition of eALT and develop sustainable consumer-led business models that might address these needs and support business development within a consumer market (Ward et al., 2016). The purpose of this paper is to present a follow up study to explore how the market may have changed since the publication of the research findings.Design/methodology/approachAn online survey was used to collect both qualitative and quantitative data from individuals working in the supply and distribution of assisted living technologies in the UK regarding how their businesses had developed in the past two years.FindingsThe results showed that since the publication of the COMODAL research there have been changes in the way that the consumer market for eALT is being approached, not only with more direct marketing focused on consumer’s needs but also in direct partnerships with local authorities that offer greater choice with an improved range of products.Originality/valueThis is the first paper in the UK to follow up the impact of the original COMODAL research and explore its influence on the development of the consumer market for eALT.

Factorial analysis of capacity-building needs of small- and medium-scale building contractors in developing countries

PurposeThe needs assessment is the heart of any capacity-building strategy since it determines the design of any intervention, and also helps to prioritise the allocation of resources. Whereas there is a considerable amount of literature on the challenges faced by small- and medium-scale building contractors (SMBCs), very little is known about the needs (support) required by SMBCs. But given the critical role played by SMBCs in the construction industry demands, an understanding of how this sector can be assisted is required. The purpose of this paper is to contribute to the literature relative to capacity building of SMBCs by exploring and examining the needs with the objective to extend the understanding on how to promote and sustain SMBCs to continue their infrastructural delivery at the local and rural areas in Ghana.Design/methodology/approachA questionnaire with five-point Likert scale is administered to 416 respondents, including local government authorities, consultants, first-class contractors and SMBCs using simple random and purposive sampling techniques. Data generated from the survey are analysed using mean score ranking and principal component analysis, thus enabling the findings of the study to be examined under six thematic areas.FindingsThe SMCs needs identified include anti-corruption measures, job accessibility, technical and technological assistance, favourable fiscal policy, business development support and financial assistance. The findings of the study bring to the attention of policy makers the critical areas that required support by the assistance of SMBCs. In the interim, the study recommends the extension of business advisory services to the SMBCs by National Board of Small-Scale Industries, whilst in the long term, the government must create the necessary business operating environment to promote SMBCs pertaining to the industrial sector of the economy. The SMBCs must also factor the needs into their business operations that can be addressed from within.Originality/valueThe study suggests the need of SMBCs in building a robust construction industry in developing countries.

Co-operatives as a development mechanism to support job creation and sustainable waste management in South Africa

South Africa, as with most African countries, is facing the reality of limited economic growth, high levels of poverty and increasing unemployment. At the same time, waste generation is growing, especially in urban centres across Africa, posing a great sustainability challenge. However, the waste sector can provide significant opportunities for improving livelihoods, generating jobs and developing enterprises, through the recovery of valuable recyclables. Co-operatives are recognised as a means of formalising the large number of informal waste pickers in developing countries. This paper attempts to identify the challenges facing waste and recycling co-operatives in South Africa. Results suggest that such co-operatives still face numerous challenges relating to infrastructure, operations, and capability. They still operate largely on the fringe of municipal solid waste management, and have not been integrated effectively into such formal collection systems, making it difficult for them to access sufficiently high volumes of recyclables. In addition, some co-operatives are operating as traditional businesses (e.g. following Pty Ltd business models) with the five co-operative members (minimum required membership for registering a co-operative) taking on management roles and instead employing staff to undertake the collection and sorting of recyclables. This is sometimes done through written contracts, but often it is through verbal contracts or no formal contracts at all. Many co-operatives appear to be opportunistic in their registration, targeting short-term co-operative grants and responding to procurement policies that support co-operative development, rather than aiming for long-term sustainability. With a reported 91.8% failure rate of waste recycling co-operatives in South Africa, and the return of many co-operative members back into the informal sector, this business model is not currently creating sustainable businesses or jobs. The results highlight three criteria which are considered crucial to creating a viable co-operative movement in the solid waste management sector in South Africa; access to materials, access to markets, and business development support.

Фінансове багатство України в офшорах світу та офшоризація капіталу банківської системи

The article focuses on the fairly large amount of financial wealth of the countries with different levels of economic development extracted to the offshores, which is a result of the growing trend of increasing the role of offshore in the global economy. Given the presence of a national shortage of developmental resources, author emphasizes the importance of evaluating the amount of the extracted to the offshores financial wealth for the developing countries. The offshore financial capitals are considered in the context of lost or presently unexploited potential for a country's development, which, with favorable conditions and mechanisms created by the national policy, could become a resource for development in the medium and long term. The article presents expert estimates of the amounts of illicit financial flows from Ukraine and offshore financial wealth of the developing and CIS countries. The author notes that, with the growing trend of capital flight from Ukraine to the offshores, part of it returns to the country in the form of loans and foreign direct investment. Analysis of the dynamics of the structure of direct investments in individual countries shows the role of offshore investment in supporting business development in Ukraine. Author summarizes the main factors supporting the development of offshore activities worldwide and singles out the factors that encourage the growth of the offshore sector of domestic economy. Given the benefits and costs of offshore companies, the article highlights the thesis that, in modern conditions of globalization, the objective need in offshores will remain, as shown by the experts' predictions of the increase in the global offshore private wealth by 2020. The article presents author's assessment of the dynamics of the offshore part of capital in Ukraine's banking system in 2012-2016 as a share in its total authorized capital. Calculations made in two versions based on the analysis of the NBU's available official information about the bank owners and data presented on the banks' websites, taking into account the current official list of offshore countries and financial centers by the IMF and OECD. Presented a geographical distribution of the offshore ties of Ukrainian banks. Author emphasizes the risks and the need to strengthen regulation of the offshore activities, gives the main guidelines of international anti-offshore policies and describes Ukraine's first steps in this field.

DEFINING OPTIMAL WAYS OF KHARKIV’S SOCIAL-ECONOMIC DEVELOPMENT BY COMPONENT ANALYSIS

Formulation of the problem. Due to active development of the Ukrainian cities a question arises as to the definition of problems and prospects of urban organization, ways of city space optimization. For Kharkiv city, the second biggest city by population in Ukraine, leading industrial, scientific and cultural center of the country, definition of weaknesses and strengths of social-economic development is quite relevant. The purpose of the article is to define optimal directions of social and economic development and the organization of Kharkiv`s city space on the basis of the component analysis. Methods. Method of component analysis is used in this article to determine the optimal ways of Kharkiv sociogeosystem development. The essence of this method is the definition of projections in the development vector to multidimensional space with the detailed substantial analysis of their changes. This method allows to move from the general assessment of the conditions and level of SGS`s development in an integral form to the assessment of individual components (parameters). Main results. During 2010-2015 development of Kharkiv SGS of the city was positively influenced by the following factors: an increase in the number of children at preschool and other educational institutions; volumes of the sold industrial output; number of officially registered enterprises; reduction in boiler and oven fuel use; reduction in heat power use. The decline of population, reduction of educational institutions and students number at higher education institutions by III and III-IV levels; reduction in the number of workers engaged in scientific activity were negative factors for development of Kharkiv`s SGS. During all research time Shevchenkivskyi and Kyivskyi districts were the leaders by all indicators. Nemyshlianskyi and Kyivskyi districts were outsiders by dynamics of development. For Novobavarskyi, Slobidskyi, Kholodnohirskyi, Osnovianskyi and Nemyshlianskyi districts it is proposed to introduce programs for improving the demographic situation. For Shevchenkivskyi and Kyivskyi districts it is proposed to increase the number of schools and pre-schools or to renew educational institutions. For Nemyshlianskyi and Osnovianskyi districts it is proposed to support business development. Scientific novelty and practical significance. By using the method of component analysis in this study, it was possible to identify the main problems of socio-economic and spatial development of the city, as well as to propose recommendations for its improvement.

Entrepreneurial intentions of university students in an emerging economy

PurposeThis paper aims to develop an empirical model that examines whether a student’s proactive personality or the university support environment (education support, concept development support and business development support) affects their entrepreneurial intentions. Additionally, the relative strengths of a student’s proactive personality and the university environment influences are compared.Design/methodology/approachA total of 141 students attending a well-established and internationally renowned Malaysian higher education institution completed a questionnaire survey. Results were based on correlation and regression analysis.FindingsResults indicate that a proactive personality and concept development support have significant impact on students’ entrepreneurial intentions. Additionally, the results showed that a student’s proactive personality had a greater effect on their entrepreneurial intentions than that of the university support environment.Originality/valueThe paper demonstrates one of the few attempts to examine the effects of both a proactive personality and university support environment on entrepreneurial intentions in an emerging economy context. Specifically, we reconfirm students’ personality traits as a more important predictor of their entrepreneurial intentions than environmental factors in the Malaysian context. Additionally, by also demonstrating concept development support as a significant predictor of entrepreneurial intentions, we provide new insights into how universities in emerging economies can foster the entrepreneurial intentions of their students. This result adds to the academic literature on entrepreneurial intentions in emerging economies.

Sarilumab for the treatment of rheumatoid arthritis.

Simon Cooper has >18 years of global experience in the pharmaceutical industry. He joined Sanofi in July 2014 as the Vice President, Global Project Head. In his current position at Sanofi, Dr Cooper is responsible for the clinical development of sarilumab and the worldwide submission in rheumatoid arthritis. He joined Sanofi after serving as the Global Program Medical Director at Novartis since 2012. In this role, Dr Cooper acted as the clinical lead for secukinumab psoriasis submission. Prior to Novartis, Dr Cooper held various posts at Human Genome Sciences, USA, including Executive Director of Clinical Research, Senior Director of Clinical Research and Director of Clinical Research. During his tenure at Human Genome Sciences, USA, Dr Cooper was involved in the submission of belimumab leading to its approval for SLE, and was responsible for its subsequent clinical development program. Dr Cooper has also previously held positions at MedImmune Ltd, UK, Roche, Napp Pharmaceutical Research Ltd, Wyeth Research and Medeval Ltd. In these roles, his responsibilities ranged from medical oversight of clinical trials to medical support for commercial, medical affairs and business development. He received a Bachelor of Medicine and Bachelor of Surgery from University of Newcastle upon Tyne Medical School.

Ten Lessons on Catalyzing Entrepreneurship and Innovation: How Planners Can Support Business Development in the New Economy

Ten Lessons on Catalyzing Entrepreneurship and Innovation: How Planners Can Support Business Development in the New Economy

Administrative Simplification in the Context of the Global Economic Crisis. The Case of Romania

Abstract The economic crisis has developed new challenges for public institutions in the EU member states. These institutions experience a notable economic pressure on their decisional process. The EU has been boosting the member states to reduce the ‘administrative burden’ of public institutions by promoting measures of institutional and legislative adaptation to the challenges set by the crisis, measures appropriate to the techniques of adaptive public management. The goal of this article is to analyze the administrative simplification processes undertaken as a result of the implementation of adaptive public management in the Romanian pubic administration. The targeted fields of reform analyzed relate to public investments, public expenditure, public procurement, the fiscal policy, the level of beaurocratisation, and the support for business development. Methods of research refer to the analysis of official documents regarding the ‘administrative burden’ and possible solutions for reducing it, as indicated by the EU or member states that succeeded in doing so, as well as the method of data analysis regarding the indicators of improvement of the targeted fields and the results of administrative simplification. The conclusions underline the level of implementation in the Romanian public administration of the action courses promoted by the EU in the direction of reducing the “administrative burden”.

Access to Business Development Support Services and Performance of Youth-Owned Enterprises in Tanzania

We investigated a sample of 3,098 randomly chosen youth-owned enterprises (YOEs) in Tanzania and studied their access to business development support (BDS) services. YOEs are defined as enterprises owned and run by young entrepreneurs, aged between sixteen and thirty-five, according to the Tanzanian definition of youth. We analyzed which BDS services affect the performance of YOEs in terms of (i) number of employees, (ii) whether the enterprise keeps financial records and (iii) the entrepreneurs’ perception of the performance of their enterprises. With the support of the resourcebased view, we found that access to expert advice is positively associated with a YOE’s number of employees and their ability to keep financial records. We also found that access to business management training and entrepreneurship training positively influences financial record keeping and enterprises’ perceived performance. Overall, we conclude that the resources that young entrepreneurs obtain through their access to BDS services are crucial for their enterprises.

The Influence of Cloud Computing on Digital Publishing

The main problems restricting the development of digital publishing include: the lack of a clear business model and integrated services platform supporting business development, unable to achieve the customers’? value innovation; the lack of unified standard of digital publishing industry, unable to realize the orderly and scale development; the lack of effective mechanism of copyright protection of digital publishing, unable to realize the value protection. This paper discussed the innovation direction of digital publishing mode under the cloud computing environment from the following aspects: build cloud publishing comprehensive service platform, expand industrial organization boundary, optimize resources allocation; build digital publishing standard based on “?cloud computing”? and achieve scale development; set up the publication service platform based on “?cloud computing”? to realize copyright protection effectively.

Microenterprise, Multinational Business Support, and Poverty Alleviation in South Africa's Informal Economy

The authors examine corporate programs that support microenterprise development in Africa. Specifically, the analysis assesses the extent to which local income and sales are affected by Coca-Cola's initiatives to assist South Africa's microenterprise in the retail trade sector. To quantify the impact, questionnaires were obtained from owners of small-scale retail establishments in the country's vast informal economy. Regression analysis is performed on key variables from the survey, testing hypotheses advanced to explain the size of an owner's income and sales. In addition to business development support, the explanatory variables include startup capital, size, and male/female ownership. It appears that business development support has a positive effect on lifting income and reducing poverty for microenterprise owners, after controlling for other influences.

A Primary Diagnosis of the Limiting Factors of Doing Micro, Small and Medium Scale Businesses in Two Municipal Local Government Areas of Cross River State, Nigeria

This study sought to examine growth requirements of MSMEs based on primary data gathered from two local government areas in Cross River State Calabar South and Calabar Municipality. The method of random sampling was used to select 3,660 respondents for the administration of structured questionnaire instrument for data collection. Data collected and analysed covered employment behavior, enterprise owners’ demographics, enterprise type and sector, bankability, and accessibility to Business Development Support (BDS) services. Other information elicited was on business formalization, growth prospects of enterprises, and taxation. Information collected was analyzed and summarized using simple percentages.Findings show that in both LGAs, enterprises required capacity building in specialized technical, managerial and marketing fields for business startups. Interest charges by banks, ignorance, and poor access to loans were leading limiting factors confronting MSMEs in both LGAs. It was also revealed that low purchasing power, inadequate knowledge, large number of dependants, unfair tax system and insecurity were the leading de-enablers of enterprise growth. The study recommended the provision of Business Development Support (BDS) services targeted at budding microenterprise owners and aspiring entrepreneurs, especially women, the physically challenged and other vulnerable groups, and people living in communities with limited banking services.

泰州市中小型医药企业发展中的问题及对策

中小型医药企业是推动泰州市经济发展重要力量。随着人口增长，居民收入水平提升，医药企业有了发展机遇。由于原材料、工资、知识产权纠纷与融资成本上升，许多中小型医药企业经营陷入困境。对此，企业需加强与金融机构合作，加强品牌建设，加强自主创新，利用产业集群资源等措施。政府需改善服务水平，在知识产权保护与财税政策等方面支持企业发展。 Small and medium sized pharmaceutical enterprises are an important force of promoting Taizhou economic development. With the population growth and the increase of income levels, pharmaceutical enterprises gain new development opportunities. However, many small and medium sized pharmaceutical enterprises get into trouble because the costs of raw materials, wages, intellectual property disputes and financing have risen. Therefore, these enterprises need to strengthen the cooperation with financial institutions, strengthen the brand building, strengthen the independent innovation and use industrial cluster resources and other measures. Government needs to improve the level of service and support business development in aspects of the intellectual property protection and taxation policies.

The Role of Perceived University Support in the Formation of Students' Entrepreneurial Intention

Entrepreneurship education is central to student entrepreneurship. Previous research has attempted to understand the role of entrepreneurship education in the formation of students' entrepreneurial intention and behavior, albeit in an isolated manner. Universities can support entrepreneurship in many ways, but it is important to measure students' perception of the support that they receive in order to understand the extent of such support and its impact on students. The current study proposed and tested an integrative, multiperspective framework. We have hypothesized that the three dimensions of university support, that is, perceived educational support, concept development support, and business development support, together with institutional support, shape students' entrepreneurial self‐efficacy. In turn, entrepreneurial self‐efficacy and individual motivations constitute the fundamental elements of the intention to start a business. A sample of 805 university students took part in the study and data were analyzed using structural equation modeling. Our findings showed that perceived educational support exerted the highest influence on entrepreneurial self‐efficacy, followed by concept development support, business development support, and institutional support. Self‐efficacy in turn had a significant effect on entrepreneurial intention. Individual motivations such as self‐realization, recognition, and role had an additional impact on intention. However, intention was not related to financial success, innovation, and independence. The findings suggest that a holistic perspective provides a more meaningful understanding of the role of perceived university support in the formation of students' entrepreneurial intention. Theoretical and practical implications are discussed.