Microenterprise Support Research Articles

REGULATORY COMPLIANCE AND ACCESS TO FINANCE: IMPLICATIONS FOR BUSINESS GROWTH IN DEVELOPING ECONOMIES

This paper examines how regulatory compliance requirements and access to suitable financing sources influence business growth potentials, particularly for small and medium enterprises in developing economies. The critical linkages between these factors are established through a review of academic literature and real-world case studies. Strict or disproportionate regulations are shown to impose significant compliance costs that hinder investments and expansionary activity. Lack of access to credit also constrains working capital and innovation expenditures needed to drive competitive advantages. A range of regulatory and financial system reforms are recommended to remove unnecessary bottlenecks while maintaining prudent oversight. Proposed strategies aim to streamline and digitize compliance, build capabilities, tailor support for micro-enterprises, and broaden credit availability. If implemented effectively, these recommendations can optimize developing countries' regulatory environments to maximize the productive contributions of small businesses.

Support of micro-enterprises by the ERDF at a regional level – evaluation of the Polish experience

When Poland acceded to the European Union, it became a beneficiary of financing from the structural funds, in particular from the European Social Fund (ESF) and the European Regional Development Fund (ERDF). One of the main objectives of EU structural policy is to improve the competitiveness of regional economies – aid beneficiaries, which is possible, inter alia, thanks to the support of the competitiveness of business entities. The sector of MSME (micro-, small and medium enterprises) is a particular focus of such support. This paper constitutes an attempt at summarising the experience of Polish regions within the scope of support provided to micro-enterprises from the ERDF funds, with a particular focus on the West Pomeranian Province.

The Lived Experiences of Recipients of Republic Act 9178: A Phenomenological Study on the Implementation of Barangay Micro Business Enterprise Programs

This research paper explores the lived experiences of recipients of Republic Act 9178, also known as the Barangay Micro Business Enterprise (BMBE) Law, in the implementation of BMBE programs. The study focuses on understanding the benefits and challenges faced by micro-entrepreneurs who availed of the BMBE program. The research used a phenomenological approach to gain insight into the participants' experiences [1]. Data was collected through in-depth interviews with 18 BMBE recipients, and secondary data were obtained from various sources [2]. The findings reveal the participants' perspectives on the significance of seizing opportunities, coping with bureaucratic challenges from the Bureau of Internal Revenue (BIR), utilizing BMBE discounts for business growth, importance of personal knowledge and skills in business operations, the role of marketing assistance in sales growth, and the significance of a positive mental attitude in overcoming challenges [3]. The study highlights the importance of consistent implementation of BMBE programs, the need for information dissemination, and ongoing support for micro-enterprises to foster their growth and contribute to economic development [4].

Crowdfunding System Models in the African Context: The Susu and Yibima Concepts in Ghana

The study examines the operations of Susu, which is a Ghanaian indigenous crowdfunding concept of fund mobilization in support of micro enterprises. The study further explores a typology of the Susu concept known as Yibima, which is an emerging concept, which has not been explored by existing literature. The key concepts of these indigenous crowdfunding models are critically considered and the study is conducted using qualitative research method. The study presents an inductive approach from data samples using Grounded Theory to develop a theoretical framework for the study. There was a constant comparison of analyzed data, grounded theory coding, observation and personal experience to come out with a theoretical view that Susu bears similarities with crowdfunding and that Yibima is a typology of Susu that has not been explored by other scholars. This assertion is reinforced by the application of inductive reasoning based on interview data. The findings, therefore, reveal that during Yibima campaigns, project initiators make a general appeal to the public (crowd) and these campaigns are launched on social media platforms and funds raised from such campaigns could be used as startup capital for business ventures or for supporting community projects. Following on the reviewed of existing literature and based on Grounded Theory from analyzed data, the study put forward a theory that Susu satisfies all the conditions to be classified as a crowdfunding concept. In addition, the findings also shows that Yibima satisfies the requirements to be a typology of the Susu as a concept.

Exploring the intentional behaviour of refugees in participating in micro-enterprise support programmes (MESP): is theory of planned behaviour (TPB) still relevant?

PurposeThis study aims to investigate the relevance of the theory of planned behaviour (TPB) in predicting the intentional behaviour of refugee entrepreneurs. This paper uses key components of the theory on attitude, subjective norms and perceived control to explore the willingness of refugees to participate in microenterprise support programmes (MESP) in refugee camps.Design/methodology/approachThis study used a positivist research approach, comprising a quantitative basis of enquiry and gathered data via survey questionnaires. In total, 400 usable questionnaires were completed and used for analysis. This study uses descriptive and inferential analysis with SPSS and confirmatory factor analysis with AMOS to test three key TPB hypotheses.FindingsThe structured model revealed acceptable high goodness-of-fit indices. Also, the findings indicated that out of three hypotheses, two hypotheses (attitude and perceived control) were substantial, positive and significant. However, the relationship between subjective norms of refugees and their intention to participate in MESP was insignificant. The findings of this study indicate the low-profile refugees give to the views and opinions of the surrounding communities when it comes to determining their intentional behaviour. As such, some poignant implications may relate to microfinance and microcredit programmes targeting refugees.Practical implicationsThe present study illustrates the interrelationships between the proposed variables. Also, by understanding the relationships between the selected variables, the findings would be useful for the concerned authorities to ameliorate and upgrade the well-being of refugees along with empowering their environment, which would facilitate their engagement in business and entrepreneurship.Originality/valueThis study explores the relevance of TPB and its components in the context of the intentional behaviour of refugee entrepreneurs. It further illuminates the distinction of refugee behaviour towards entrepreneurship and MESP.

Evaluating the effectiveness of ChileCompra's Entrepreneurship Centers policy

AbstractMicroenterprise support programs (MESPs) have gained popularity as a modern development policy since the 1980s, with an increasing number of countries adopting this strategy to enhance economic growth. However, few studies have examined the effectiveness of these programs. This paper evaluates one of these programs, Centros de Emprendimiento ChileCompra in Chile. This initiative has a dual mandate – to serve as a primary vehicle for national procurement and to serve as a microenterprise support program. The microenterprise support component consists of regional centers that provide entrepreneurs with training in business plan development, financing, and taxation to enable greater participation among microenterprises in the public procurement market. Using 8 years of panel data on program contracts from 2007 to 2014, we assess the impact of ChileCompra's microenterprise participation component with regards to the share of the total business and the share of revenues. Our results indicate that the program resulted in an increased share of contracts going to microenterprises at the national level, but that results were uneven at the local level. In many cases, contrary to the policy's goals, the share of microenterprises receiving contracts through ChileCompra declined substantially.

ІНФОРМАЦІЙНІ АСПЕКТИ АНТИКРИЗОВОГО УПРАВЛІННЯ МАЛИМИ ПІДПРИЄМСТВАМИ РОЗДРІБНОЇ ТОРГІВЛІ

The article is devoted to topical issues of improving the information support of the management system of retail enterprises in the context of exacerbation of crisis threats. Methodical approaches to the definition and assessment of real and expected factors of the crisis are proposed. And the control of "hidden" crisis risks is proposed on the basis of a payment calendar, which is an operational plan of income and expenditure of funds and is developed for a month with details in accordance with the information needs of crisis management by days, weeks or decades. Table 1 shows the criteria for assessing the "hidden" crisis risks of the enterprise according to the indicators of the payment calendar. Prompt response to the risks of “hidden” crisis, classified as “very high risk” and “high risk”, is aimed at identifying areas and reasons for reduced revenues and / or inefficient spending and the results of the implementation of appropriate measures. It is obligatory to identify structural subdivisions in which the volume of revenues has decreased or spending has increased disproportionately. In these cases, it is necessary to pay attention to the search for additional sources of supply of goods, diversification of operating activities, the introduction of austerity. The system of ratios that should be used to assess financial risks, takes into account the specifics of the reporting information of a small enterprise. The assessment of financial ratios is based on the application of a system of criteria, which are adjusted in accordance with the nature of the activities of retail trade enterprises. The stages of preventive, stabilization and post-crisis management are considered. The methodology of information support is focused on the use of trade in small enterprises as those that are most vulnerable to the negative impact of crisis factors. Measures to improve the financial condition of the enterprise, which are taken at the stage of post-crisis management, are aimed at ensuring the withdrawal of the enterprise from the crisis and include assessment of deviations from the criteria adopted at the previous stage, as well as establishing the causes of crisis risks. Algorithms of calculation and criteria of estimation of coefficients, estimation of financial risks of crisis are offered. It also takes into account the peculiarities of the formation of information support for micro-enterprises, which, despite the fact that they are classified as small enterprises, compile financial reports with a limited number of indicators.

Public Financing Support Options to Micro-Enterprises for Innovation

Innovation related to the technological advances of entrepreneurship are essential in Industry 4.0. The availability of sufficient funding is one of the factors promoting innovations in companies. Therefore the issue of access to finance remains relevant. The study investigates the availability of public financial support for micro-enterprises - the largest enterprise category in Latvia (approximately 94%), focusing on those for whom the introduction of innovations is essential for their growth. In an ad hoc survey of companies registered in Latvia in nationally defined sectors, entrepreneurs disclosed their sources of funding over the three-year period: 2015-2017. Valid responses from 2511 companies, of them 1879 were micro-enterprises, revealed not only the diversity of their financial sources but also the reluctance of external financiers to support companies willing to innovate. Out of the micro-enterprises surveyed, which required new or additional funding during the three-year period in question, 21% stated that the goal of funding was “the development and introduction of new products or services”. Innovation as an important factor was stated by 28% micro-enterprises. According to the data processed by SPSS, micro-enterprises still prefer internal financing (64%) among many sources, whereas only 11% of the respondents used public funding. The micro-enterprises, for which innovation is important, relied solely on internal finance (65%), while public support was used by 13%. Based on the results of the study of Latvian companies, the need to improve the availability of financing for micro-enterprises is highlighted by creating a targeted\external funding offer in the form of a financial instrument based on public finance support.

MFIs’ programmes in support of microenterprises in Mexico: a comparative analysis with commercial banking

Microfinance institutions (MFIs) constitute a support mechanism for microenterprises in Mexico by designing programmes that are accessible to this type of business. This article makes a comparative analysis of the financing programmes granted by MFIs and commercial banking and in turn, determines the impact of these supports on the results of the microenterprises. By applying non-parametric statistics, the results reveal that MFIs offer loans with smaller amounts, shorter terms, periodic payments, and higher interest rates compared with commercial banking products. Also, it was found that microenterprises that obtained financing from MFIs achieved lower profits than those that acquired resources from commercial banking.

Involvement of Unemployed Graduate Youth in SMME Support Programmes: The Case of Mankweng Area, Limpopo Province

This article investigates whether graduate unemployed youth from the Mankweng area in Limpopo Province are aware of small, medium and micro-enterprise support programmes. The article also explores the unemployed youth’s interest in starting their own business ventures. This study is premised on the understanding that youth participation in the activities of small, medium and micro-enterprises (SMMEs) can reduce the high rate of unemployment in the country and can contribute towards bettering the economy of especially rural areas. This article applied a qualitative research method. The study focused on 15 unemployed youth graduates based in the Mankweng area. Data were collected using semi-structured individual interviews. The main findings indicate that only 27 per cent of the participants are aware of some of the available SMME support programmes; and only 40 per cent show interest in starting their own businesses. The study recommends that these programmes ought to be publicised more and be made accessible to the youth, particularly in rural areas. In addition, entrepreneurial education needs to start early at primary school level. Such early awareness will help to build entrepreneurial acumen amongst the youth.

О нормативно-правовом регулировании бухгалтерского учета на микропредприятиях: теоретический аспект

Based on the analysis of specifi c features of microenterprises, real sources of fi nancing of their activities, limited business costs, economic interests of users of accounting information and accounting (fi nancial) statements, some theoretical components of the regulatory framework of accounting support of micro enterprises were analyzed and proposals for their improvement were justifi ed.

The Effectiveness of Microenterprise Policies in Chile: The Case of Entrepreneurship Center – ChileCompra

Microenterprise support programs (MESP) have gained popularity as a modern development policy starting in the 1980s, with an increasing number of countries adopting this strategy to enhance economic growth. However, few studies examine the effectiveness of these programs. This paper will evaluate one of these programs, Centros de Emprendimiento ChileCompra in Chile. This initiative consists of centers that provide training to entrepreneurs in business plan development, financing, and taxation to enable greater participation amongst microenterprises in the public procurement market. Using eight years of panel data on program contracts, we assess the impact of ChileCompra’s microenterprise participation component with regards to the share of the total business and the share of revenues. Initial results indicate that the program resulted in an increased share of contracts going to microenterprises at the national level, but that at the local level that results were uneven. In many cases, contrary to the policy’s goals, the share of microenterprises receiving contracts through ChileCompra declined substantially.

The Challenges of SME Business Transfers: The Evidence from Croatia and Finland

Abstract Background and Purpose: In the life cycle of a firm, business transfer represents the critical stage of development. Underestimating the complexity and longevity of this process can have negative implications for firms, their owners and wide network of stakeholders. The aim of this paper is to compare the attitude towards business transfer of entrepreneurs aged 55 and more in Croatia and Finland and provide policy recommendations for improvement of the national business transfer ecosystems. Methodology/Approach: Both surveys targeted entrepreneurs aged 55 and more using the same questionnaire, with some adjustments to Croatian business transfer ecosystem. Finish barometer was conducted through webbased survey among members of Federation of Finnish Enterprises. Survey in Croatia was conducted with combination of CATI and CAWI collection method by a professional data collection agency. Data collected was compared based on a demographic criterion, industry background, experience in business transfer, expected future of the company, support needed and biggest challenges. Results: The research results indicated a growing number of entrepreneurs in Croatia who will be interested in selling their firm once they withdraw from the business and less than expected family business successions. In Finland the most important challenges are related to business valuation and finding a successor or a buyer. Conclusion: For further development of business transfer ecosystem in Croatia it is recommended to focus on awareness raising activities, channels for matching sellers and buyers, promotion of takeover entrepreneurship and consultancy support for micro enterprises. In Finland results indicate the importance of investing continuous efforts in raising the effectiveness of the measures implemented.

Linking adult education and training to small and micro-enterprise promotion policies and institutions for self-employment in South Africa

The article investigates the relationship between the small and micro-enterprise (SME) promotion policies and institutions, and the practice in adult education and training (AET) programs for self-employment in South Africa. The concern that informed this article is that adults who face long-term unemployment remain unemployed after completing the AET programs. The findings reveal that linkages of AET programs to SME promotion policies and institutions are not effective in providing post-training support for micro-enterprises of graduates because centre managers and trainers have inadequate knowledge of the policies and the respective custodian institutions, and they are poorly informed about the application processes. The author concludes that without linking the AET programs to SME promotion policies and institutions for self-employment, graduates will continue finding it difficult to be integrated into the labour market which perpetuates unemployment and chronic poverty in South Africa.

Linking adult education and training to small and micro-enterprise promotion policies and institutions for self-employment in South Africa

The article investigates the relationship between the small and micro-enterprise (SME) promotion policies and institutions, and the practice in adult education and training (AET) programs for self-employment in South Africa. The concern that informed this article is that adults who face long-term unemployment remain unemployed after completing the AET programs. The findings reveal that linkages of AET programs to SME promotion policies and institutions are not effective in providing post-training support for micro-enterprises of graduates because centre managers and trainers have inadequate knowledge of the policies and the respective custodian institutions, and they are poorly informed about the application processes. The author concludes that without linking the AET programs to SME promotion policies and institutions for self-employment, graduates will continue finding it difficult to be integrated into the labour market which perpetuates unemployment and chronic poverty in South Africa.

The impact of microfinance on microenterprises

The provision of and access to financial services, particularly credit, can contribute greatly to the development of microenterprises in South Africa. Such provision has been an issue ignored by conventional banks or formal financial institutions. The problem associated with this ignorance includes high transaction and operation costs, lack of collateral, and the inability to obtain information about microenterprises resulting in difficulties to extend such credit. Microfinance therefore becomes an alternative to conventional banking and a mainstream and sustainable development activity for extending credit to microenterprises. However, the benefits of microfinance, which include, among others, the ability to provide the much-needed financial support for microenterprises, have not been fully harnessed in South Africa. The objective of this article is to evaluate the impact of microfinance on microenterprises in a typical South African township and to propose specialized financial mechanisms to support and improve the provision of credit to microenterprises. The article draws on the findings of a study undertaken in the Ga-Rankuwa township located in the Tshwane Metropolitan area in the Gauteng province of South Africa. It further draws on a wide range of extensive review of literature that documents the impact of microfinance on microenterprises. A case study approach is adopted and mixed method research paradigm (qualitative and quantitative) is used to gather information. Structured questionnaires and interviews were used to solicit information from the randomly selected microfinance institutions and microenterprises in the Ga-Rankuwa township.

إشكالية الدعم وتسيير الكفاءات البشرية بالمؤسسات المصغرة : دراسة حالة الوكالة الوطنية لدعم تشغيل الشباب بولاية سكيكدة خلال الفترة (2012 - 2016)

المؤسسات المصغرة | دعم المؤسسات المصغرة | تسيير الكفاءات البشرية | الوكالة الوطنية لدعم وتشغيل الشباب بولاية سكيكدة | Micro-Enterprises | Support for Micro-Enterprises | Management of Human Competences | National Agency for Support of Youth Employment in the Province of Skikda

PERFORMANCE TRENDS IN YOUTH ENTREPRENEURS CAPACITY PREREQUISITE FOR THE ENTREPRENEURSHIP DEVELOPMENT OF LATVIA

The paper found that mostly small and medium-sized enterprises (SMEs) prevailed in Latvia and the EU and their number increased year by year, particularly because various measures for the establishment and support of micro-enterprises, including financial ones, were implemented. In recent years, at the same time, activity in starting up entrepreneurship considerably declined, as well as students’ entrepreneurial attitudes to set up their own business and to associate their future careers with entrepreneurship significantly deteriorated as well. Therefore, the present paper aims to investigate Latvian high school students’ entrepreneurial attitudes to become self-employed and to set up their own business according to the challenges of the twenty-first century for entrepreneurship. To achieve the aim of the present research study, 5910 students aged from 15 to 22 years (2015) were questioned about the factors motivating as well as promoting and hindering the start-up of entrepreneurship. The results of the survey showed that in recent years, students had insufficient information and knowledge about entrepreneurship promotion measures, as well as about the demands of the labour market and further education in learning a profession. This means that there is a need to improve the teaching and training for entrepreneurship in Latvia and implement targeted career education measures.

Comparative Analysis of the Credit Guarantee Characteristics Analysis of Micro Enterprises Using Generalized Linear Model

This study aims to find the comparative analysis fo the credit guarantee chracteristics of Micro Enterprises using generalized linear model. Especially we focus on the existence of seasonality(or regularity) of each dependent variables during the process of general credit guarantee. The results of this study suggest some policy implications that the CGFs have to estimate and consider this seasonality of each dependent variables. For CGFs’ better financial support for micro enterprises, our results reveal that seasonal characteristics is required to be considered in the process of providing credit guarantee

The Returns to Microenterprise Support among the Ultrapoor: A Field Experiment in Postwar Uganda

We show that extremely poor, war-affected women in northern Uganda have high returns to a package of $150 cash, five days of business skills training, and ongoing supervision. Sixteen months after grants, participants doubled their microenterprise ownership and incomes, mainly from petty trading. We also show these ultrapoor have too little social capital, but that group bonds, informal insurance, and cooperative activities could be induced and had positive returns. When the control group received cash and training 20 months later, we varied supervision, which represented half of the program costs. A year later, supervision increased business survival but not consumption. (JEL I38, J16, J23, J24, L26, O15, Z13)