Enterprise Survey Research Articles

Does digital finance help reduce self-rationing of small and medium-sized enterprises? Evidence from China

Due to high rejection rates and the costly and time-consuming application procedures, small and medium-sized firms may be discouraged from applying for a bank loan, thus resulting in the so-called self-rationing behaviour. Using the World Bank Enterprise Survey Data collected from 2,700 privately owned firms in China during 2011–2013, we document that there exist a significant number of small and medium-sized enterprises (SMEs) which have good performance and financing needs, but are discouraged from applying for a bank loan. We theoretically and empirically show that digital finance development can alleviate the self-rationing behaviour of SMEs. The mechanism analysis shows that, from the supply side, digital finance development enhances the probability of loan approval and the proportion of private firms’ working capital financed by banks, and reduces the obstacle to access bank loans; while from the demand side, the development of digital finance improves financial inclusion and the financial literacy of firms. Our findings suggest that digital finance development improves loan efficiency and helps SMEs better access bank credits.

National Policy Index (NPI) for worker mental health and its relationship with enterprise psychosocial safety climate

National occupational health and safety (OHS) policy (e.g., legislation) underpins worker health protection and is imperative for healthy and safe working populations. In the interest of bolstering mental health through decent work, this study undertakes a global analysis of OHS policy for worker mental health and develops and validates a short tool quantifying national policy approaches—the National Policy Index (NPI, for worker mental health). Data were collected across 45 countries from 164 global experts (and/or expert groups) to capture policy presence, priority action areas, and drivers and barriers surrounding policy implementation. Analysis revealed top global psychosocial concerns are harassment, mobbing or bullying, work overload, discrimination, and poor work-life balance. Policy priorities are harassment, mobbing or bullying, discrimination, and physical violence. The psychosocial hazards/risks that are most addressed in policies or regulated are physical violence, discrimination, harassment, mobbing or bullying. The main driver for managing hazards is workplace senior management support and having specific national regulations, and the main barrier is poor resource availability. Further, the NPI was developed through exploratory factor analysis and validated through significant correlation with a national policy audit and to the 2019 European Survey of Enterprises on New and Emerging Risks data, which reports enterprise level psychosocial safety climate (PSC, organisational policies, practices, and procedures for stress prevention). The correlation between the NPI and enterprise-level PSC highlights the critical role of national policy in protecting worker population mental health. Yet above and beyond national policy, national union density also related to enterprise PSC indicating that social action is also imperative. Findings suggest that global mental health can be reinforced via decent work outlined in national policy approaches, particularly legislation, as well as via senior management support, and collective approaches such as union action.

Military Perspectives on the Provision of Spiritual Care in the Australian Defence Force: A Cross-Sectional Study

A module to explore perspectives on chaplaincy services was included in an online enterprise survey randomly distributed to members of the Australian Defence Force (ADF) during 2021. Up to eight questions were answered by 2783 active military personnel relating to their perception of chaplain activities and the impact of chaplaincy services. Of those military participants answering the question on religious status (n = 1116), a total of 71.6% (n = 799) of respondents identified as non-religious while 28.4% (n = 317) identified as holding a religious affiliation. Approximately 44.2% (n = 1230) of participants had sought support from a chaplain, of which 85.3% (n = 1049) found chaplaincy care to be satisfactory or very satisfactory. While the data suggest there is a lack of clarity around the multiple roles undertaken by chaplaincy, nevertheless respondents were just as likely to prefer chaplains for personal support (24.0%), as they were to seek help from non-chaplaincy personnel such as a non-ADF counsellor (23.2%), their workplace supervisor (23.1%) or a psychologist (21.8%). This evidence affirms that the spiritual care provided by military chaplaincy remains one of several preferred choices and thus a valued part of the holistic care provided by the ADF to support the health and wellbeing of its members.

Effects of Political Instability on Private Investment: Empirical Investigation from African Firms

Using data from the World Bank Enterprise Surveys (WBES), our analysis focuses on the effect of perceptions of political instability on private investment at the firm level in Africa. We apply econometric techniques to correct for biases inherent in the data, such as measurement errors, missing observations, and the endogeneity problem. We used time series cross-section analysis employing the two-stage least squares (2SLS) method. Our results show that political instability has a negative and significant impact on business investment, irrespective of location of the firms. However, this effect is insignificant and weak for small firms. Furthermore, we identify a significant impact of administrative constraints, regulatory constraints and infrastructure constraints on investment. These findings highlight the importance of Strengthening political stability in order to stimulate investment, especially in small towns. Putting in place incentives and programmes to encourage employee training can improve business productivity.

Work Experience of Private Entrepreneurs in SOEs and Enterprise Innovation Investment: Evidence from China

ABSTRACT Private enterprises are important due to their innovation-driven development strategies. There are many private entrepreneurs in China who have experience working in state-owned enterprises (SOEs), and how entrepreneurs’ SOE work experience affects enterprise innovation investment has not yet been sufficiently studied. Based on imprinting theory and using data from a survey of private enterprises in China, our study confirms that private entrepreneurs’ SOE work experience promotes enterprise innovation investment. Mechanism tests suggest that political connections and policy perceptions are mediating mechanisms. Entrepreneurs’ educational background reinforces the mediating roles. This paper enriches the research on imprinting theory and enterprise innovation.

Digitalization Risks in the Bioeconomy: An Enterprise-Level Perspective

The swift adoption of digitalization and transformation within enterprises and their operations had commenced prior to the onset of COVID-19, characterized by the shift towards Industry 4.0 and subsequently progressing towards Industry 5.0. However, mandated restrictions significantly amplified the necessity and drive to utilize digital tools for both businesses and consumers. New opportunities previously not utilized have arisen yet are hand in hand with several risks linked to the use of these new digital tools. The bioeconomy sector is not an exception. The study aims to consider the sector representatives’ opinions on the significance of the risks related to digitalization. The empirical results of this study stem from a survey of enterprises in the bioeconomy sector carried out in 2020 and 2021 in Latvia. The research results prove that there are many factors influencing the development of digitalization. The results notably affirm that both entrepreneurs and employees in SMEs recognize the considerable importance of these risks, particularly emphasizing the significance of security and technology risks. While the Chi-Square Test of Independence indicates a notable association between risk evaluation scores and the education level of respondents before the COVID-19 outbreak in 2020, this association diminishes in 2021. Contrary to the hypothesis that individuals with higher education levels are more attentive to risks, the evidence shows inconsistency in their perception, particularly regarding professional challenges of the entrepreneur and employees to use digital tools and other risk categories. However, the relationship between higher education levels and the significance of risks pertaining to security risks, technology risks, and the skills of the clients to use digital tools is partly affirmed.

Size, geography, and GVC participation of firms in Nigeria and Rwanda: Implications for the AfCFTA

Global value chains (GVC) have recently become an important developmental issue and have become prominent within the development community. Empirical studies on the peculiar nature of firms (small-scale) in the GVC are sparse, especially in Africa. Thus, the present study empirically examines whether or not the size of the firm matters in their GVC participation in Africa. It also investigates if a firm’s geographical location spurs GVC participation. The study answers the above research questions using the World Bank's Enterprise Survey database for two African countries, namely: Nigeria, and Rwanda. Adopting a logit regression model, the findings show that firms in Africa are predominantly small-scale and sole proprietorships. The size of the firm, the legal status of the firm, firm access to ICTs, managerial experience, and the geographical location of the firm are crucial drivers of firms' GVC participation in Nigeria and Rwanda. Policy implications and recommendations for the AfCFTA are discussed in the paper.

SHELF FOR SERVING LINES DEVELOPMENT AND LAUNCHING TO THE MARKET

In today’s market, there is a very intense competition, as well as the unpredictability of customer desires and market trends that change at a rapid speed, resulting in a shorter product life cycle. The purpose of this article is to examine the industry of commercial kitchens and the main aspects could be the key of successfully launching shelf for serving lines to the market. The empirical research background for this study is defined by the performed survey-questionnaire. The results of the survey of enterprises that specialize in manufacturing professional kitchen equipment, as well as the results of the survey of customers who are interested in such products, are presented in this article. The aim of both surveys was to determine which success aspects the company should rely on, and which are the most important for successful product development and market launch. Based on the result of the research and the information which was gathered, a model for the successful development and launch of a shelf for serving lines was developed and proposed. It is a hybrid type model which is based on the principles of Stage-Gate model, Decision process model which was suggested by Kotler and Keller and Agile set of values and principles. It has 7 stages and, stages have 6 gates where the project is assessed every time. This model is a recombinational tool of launching the product to the market which could help to identify the problematic issues within the ongoing process in the company.

Sustainability Unleashed through Innovation: Knowledge-Driven Strategies Igniting Labor Productivity in Small- and Medium-Sized Engineering Enterprises

This research is focused on knowledge-based performance drivers, which are often intertwined with intellectual capital (IC); specifically, the value-added intellectual coefficient (VAIC) and its profound influence on labor productivity (LP), with the pivotal inputs of training and research and development (R&D) as moderating, in the realm of small- and medium-sized (engineering) enterprises (SMEs). The aim is to offer this as a sustainable model for practical implementation to empower engineering managers, donors, and policy researchers. The motivation catalyzes more informed decision-making investing in human or structural capital. It attempts to foster sustainable growth and societal stability through job creation within the knowledge-intensive engineering sector of developing countries. Methodologically, the research draws upon statistical analysis, employing Pearson’s correlation, multivariate regression, and model testing executed through specialized statistical software. The World Bank Enterprise Survey Instrument was used to collect data on 213 aviation-related firms. Primary data were collected for the years 2013–2022. Several hypotheses were developed between the variables expected to relate positively, because intellectual capital, training, and research and development should lead to better labor productivity. The findings revealed the critical issue of the misallocated investments in structural capital that this model brought forth. Furthermore, the notable contribution to national intellectual capital (NIC) studies is the significant VAIC value of 4.58 and an impressive labor productivity value of 6.78 within the knowledge-intensive ecosystem of SMEs. More insightful findings were the modest 17% positive variation attributable to the VAIC on LP, accompanied by an absence of significant influence exerted by training and R&D on this relationship. While underscoring the model’s overall validity, this intriguing discovery emphasizes the impact of intangibles on knowledge firms’ overall sustainability calculations, specifically structural capital, which accounts for a substantial 31% of labor productivity. The practical implication is that this model can be used to expose long-term financial performance hiccups through intellectual capital measures. The novelty is employing the labor productivity metric sourced from the engineering literature instead of the customary asset productivity (ATO) ratio from the IC literature.

Resolving entrepreneurial liabilities in African businesses: does gender diversity of ownership team matter?

ABSTRACT This study explores the role of gender diversity in enterprise ownership teams (EOTs) in addressing size and age (entrepreneurial) liabilities in African businesses. Using a contingency framework with organizational ecology theory as its base, gender diversity in EOTs is argued as a strategic action small businesses can use to ameliorate the constraints imposed by the entrepreneurial liabilities of newness and smallness. These hypotheses are tested using World Bank enterprise surveys in Africa across multiple industries. The study finds that gender diversity in EOTs presents small businesses with a competitive advantage to drive their performance. Gender diverse EOTs is found to be useful in relieving the constraints imposed by liability of size but not the liability age. The study contributes to the integrativists perspective of management by integrating the deterministic effects of business age as well as size and the voluntaristic effects of gender diversity using a contingency framework.

Foreign Investment in Vietnam: A Review of Corporate Compliance by Investors from Japan

Japan is one of the most significant foreign investors in Vietnam. However, information about trade compliance by Japanese firms in Vietnam remains scant. This study draws from a new survey of Vietnamese import and export enterprises in 2019, which includes both local and Japanese firms. It shows that Japanese firms are performing better than local firms in terms of trade compliance and regulation. They are also more likely to acknowledge the importance of public-private partnerships and the legal capacity of human force. However, the biggest concerns and obstacles of these actors are Vietnam’s specialized laws and regulations in the cross-border trade of goods. These findings offer important policy implications to enhance trade compliance for Vietnamese enterprises in general and Japanese FDI firms in particular. Authorized Economic Operator Program, Japanese FDI firms, Trade Compliance, Trade Facilitation, Vietnam

Прогнозирование динамики ВВП на основе данных мониторинга предприятий, проводимого Банком России

The article is devoted to modeling and forecasting of the gross domestic product of Russia based on the data of enterprise survey conducted by the Bank of Russia. The purpose was to study the possibility of improving the efficiency and accuracy of GDP forecasting based on the use of these data. The authors used business climate indicators as well as balances of responses to questions about dynamics of output, demand, and prices. The methodology included regression analysis, as well as a combination of factor and regression analysis, both on aggregate data on all economic sectors and on data on individual economic branches. The forecasting results for two control samples containing actual observations for the eight quarters of 2017–2018 and the five quarters of 2022–2023 suggested that the use of monitoring data improved forecasting accuracy compared to the ARIMA benchmark model. The lowest estimation errors were obtained for approaches combining factor and regression analysis on aggregate data for all economic sectors or the economy as a whole.

Proactive Environmental Management's Drive for Green Technology Adoption in MENA Firms: Regulatory Mediation and Financial Moderation

This empirical study explores the determinants of Green Technologies and Practices (GTP) adoption within Middle East and North Africa (MENA) firms, focusing on Proactive Environmental Management (PEM), Environmental Regulation (ER), and Financial Exposure to Environmental Impediments (FEEI). Using World Bank Enterprise Survey data from 5381 firms across six MENA countries, we apply an ordered logit model and General Structured Equation Model (GSEM) to examine the direct and mediated effects of PEM on GTP adoption through ER, and moderation by FEEI. Our analysis reveals a significant impact of PEM on GTP adoption, enhanced by ER mediation. Additionally, FEEI moderation unveils a nuanced relationship between environmental financial exposures and green adoption propensity. The study also investigates control variables, revealing varying GTP adoption propensities across firm characteristics, and offers policy and firm-level recommendations to bolster GTP adoption in the MENA region.

The role of education and ICT in improving the performance of enterprises: evidence from micro and small enterprises survey

The role of education and ICT in improving the performance of enterprises: evidence from micro and small enterprises survey

The role of education and ICT in improving the performance of enterprises: evidence from micro and small enterprises survey

The role of education and ICT in improving the performance of enterprises: evidence from micro and small enterprises survey

Performance of Small and Medium Enterprises in Indonesia Impacted by Financial Accessibility

The goals of this study are to examine and analyze the financial accessibility of SMEs in Indonesia, to examine the impact of financial constraints on SMEs’ performance there, and to determine how SMEs’ performance in Indonesia is impacted by their involvement in the financial market. This analysis makes use of panel data from the 2009 and 2015 waves of the World Bank Enterprise Survey (ESWB). Quantitative analysis with panel data regression models utilizing the Fixed Effect Model (FEM) or Random Effect Model (REM) and Hausman test constitute the analytical framework for this study. Stata Software is used for all computations and estimation related to the model and its tests. The results show that financial accessibility has a greater influence on sales growth compared to labor growth in medium-sized businesses, while in small businesses financial accessibility has a smaller effect on sales growth compared to labor growth. The number of small companies that are not financially constrained is more than the number of companies participating in the financial market. And participation in the financial market has an influence on business performance, both in terms of sales growth and workforce growth.

Strategi Pemberdayaan UMKM Untuk Meningkatan Penjualan Kripik Tempe Hifary Desa Sampiran Kecamatan Talun Kabupaten Cirebon

The community Service Program (KKN) is a community service program that is mandatory for university students in Indonesia. Thus, KKN not only provides benefits for students in terms of developing practical skills and understanding of society, but also supports the growth and aspirations of UMKM at the local level. In the KKN activity, group 1 conducted a survey of Small and Medium Enterprises (UMKM) Tempe Chips Hifary Jl. Kaligandu, RT 01/ RW 03, Sampiran, Talun, Cirebon Regency. The aim is to increase sales, develop the business to make it more advanced and collaborate between KKN and UMKM, which is a strategic step to move the wheels of the local economy while providing real social benefits. During the KKN activities, group 1 provided counseling and assistance to UMKM activist. Hopefully this activity can provide benefits for partners so they can develop their business.

Quantifying the impact of red tape on investment: A survey data approach

An important strand of research in macro-finance investigates which factors impede enterprise investment, and what is their aggregate economic cost. In this paper, we make two contributions to this literature. The first contribution is methodological: we introduce a novel framework to calibrate macroeconomic models with firm-level distortions using enterprise survey micro-data. The core of our innovation is to explicitly model the firms' decisions to report in the survey the distortions they face. Our second contribution is to apply our method across seven countries to characterize the distribution of these distortions and estimate the gross domestic product (GDP) loss induced by distortionary red tape. Our estimates are based on a dynamic general equilibrium model with heterogeneous firms whose capital investment decisions are distorted by red tape. We find that the aggregate cost of red tape varies widely across the countries in our dataset, with an average cost of 0.8% of annual GDP. Our framework opens up a new range of applications for enterprise surveys in macro-financial modeling and policy analysis.

Effects of Indebtedness, Taxes and Financial Distress on the Demand for Non-Mandatory External Audit: Evidence from the Chinese Firms

This paper aims to examine the determinants of firms’ demand for non-mandatory external audit in China. Although the demand for non-mandatory external audit has often been investigated for the western economies, we are the first to present evidence for the China by using a unique dataset that the World Bank provided. Using enterprise surveys to estimate the likelihood of firms engaging non-mandatory external audit, the paper uncovers how the indebtedness, tax inspection probability, and the financial distress affect the demand for non-mandatory external audit. The results indicate a positive association between tax inspection probability and demand for external audit. Contrary to the previous literature, the likelihood of demanding external audit diminishes as financial distress level of the firm rises. This result indicates relatively high audit costs for the financially distressed firms that can not afford to cover their non-operational costs.

Economic planning at agricultural enterprises: Ukrainian experience of increasing the availability of data in the context of food security

Purpose. The purpose of the research is a comparative assessment of the state of data availability for planning the economic activity of agricultural enterprises, as well as the development of a model for increasing data availability based on the established correlation between socio-economic factors of internal and external influence of agricultural enterprises and readiness to disclose information when receiving consulting services.
 Methodology / approach. The study is based on the results of a survey of agricultural enterprises’ (farms’) managers, collected based on a random sampling, the volume of which satisfies the requirements of representativeness. The results of the research made it possible to conduct a correlation analysis of the dependence model for increasing data availability based on the established correlation between socio-economic factors of internal and external influence of agricultural enterprises and readiness to disclose information when receiving consulting services. The obtained results of the analysis made it possible to confirm the research hypotheses and obtain answers to several research questions.
 Results. The study reveals several dependencies and trends in the formation of openness and availability of data at agricultural enterprises (farms) for the implementation of economic activity planning by third-party consultants/experts. A strong direct connection was established between the unwillingness of enterprises to share management accounting data with third-party experts precisely because of the lack of practice of collecting such data, and not because of privacy concerns or negative past experiences. It was established that at enterprises characterized by a low level of openness to the dissemination of management accounting data, planning work is conducted directly by managers without qualified support of experts or planning is not conducted at all. The results suggest a number of solutions to ensure better access to the data needed for effective planning.
 Originality / scientific novelty. The study concerns the problems of data availability at agricultural enterprises (farms) for the implementation of planning of economic activities by external consultants/experts and uses the method of correlation analysis to establish relationships between variables of the model. The data collection paradigm of agricultural enterprises for planning their activities has been developed. For the first time, the relationship between a number of socio-economic factors and the openness of agricultural enterprises and farms to management consulting was established.
 Practical value / implications. The study formulates a number of proposals for improving the data availability at agricultural enterprises (farms) for the implementation of economic activity planning by third-party consultants/experts, which can be used by regional and state development agencies; state and private scientific institutions; governmental and non-governmental organizations; product manufacturers; legislators, etc., when developing support programs for agricultural producers to motivate them to use more effective planning tools, as well as when determining areas of activity for the regional advisory centers, taking into account the priority tasks in the sphere of planning data collection and analysis at agricultural enterprises and farms. Further studies of the data availability for planning the economic activity of agricultural enterprises are possible on the basis of the current study.