Survival Of Small And Medium-sized Enterprises Research Articles

Predictive analytics, operational efficiency, and revenue growth in SMEs in Africa

Predictive analytics (PA) is used for a variety of objectives, including optimisation, planning, strategy development, and resource management, all to improve performance. PA also helps organisations and customers communicate more effectively. Managers may increase customer satisfaction by integrating data on consumer preferences and experiences. Despite increased interest in PA technologies, there is still a considerable study gap in understanding its influence on small and medium-sized enterprises (SMEs) operational efficiency and revenue growth in Sub-Saharan Africa. Hence, the survival of SMEs as key drivers of economic growth and development in Sub-Saharan necessitated this study. The study investigates the influence of predictive analytics on operational efficiency and revenue growth of SMEs in Accra, Ghana, and Lagos, Nigeria. Acknowledging both cities as main commercial centres in their respective nations Using a cross-sectional and survey research approaches, the study sent 150 copies of questionnaire to SMEs in each of the cities using purposive sampling techniques, therefore guaranteeing a focus on key economic centres. Under the guidance of four research assistants in each city monitoring distribution and collection, data were gathered online over two months. The results showed that predictive analytics has positive and significant effect on both operational efficiency and revenues growth of SMEs. The study recommended that SMEs should give training to their staff top priority as well as build the required infrastructure to make the best use of predictive analytics. This entails not just purchasing cutting-edge analytics tools and technology but also making sure staff members have the ability to understand and act upon data-driven insights. Building a solid basis in predictive analytics can help SMEs better use data to maximise operations, foresee trends, and make wise strategic choices, thereby promoting higher efficiency and income development

“Todos pagan” (Everybody pays): SMEs and urban violence in Medellín, Colombia

Medellín, a bustling city of 2.5 million, is marked by convivial relations between formal and informal economic activity, and between legal and criminal actors. This article examines what this context means for small- and medium-sized enterprises (SMEs) and how they respond to it. In Medellín and elsewhere, SMEs are more numerous than large firms but operate at a smaller scale. They are organizationally more informal, less mobile (i.e., more dependent on specific contexts), more accountable to customers and legal authorities, and less prominent in public debate. Their need to act collectively to counter violence may be greater than that of larger companies, yet they may also find it more challenging to organize collective action. As a result, they face possibilities that are different from those of large companies in the context of violence. The article suggests that most SMEs in Medellín have adapted to, or navigate, the multiple, intersecting layers of legality and illegality, of formality and informality, and of actual or threatened violence. Only very few respond by deliberately seeking to change the external environment. Based on a review of official documents, academic literature, and our own observations during several field trips and 39 interviews, we develop a three-part typology of SME responses to violent actors: acquiescence, avoidance, and mitigation. The implications of our findings will be relevant to managers interested in understanding business conditions in the presence of organized criminal activity and the ways in which SMEs have adapted their own practices to those conditions. The findings suggest that some SME strategies are more effective than others in supporting the survival and growth of SMEs in violent contexts. But while cooperation with illegal actors for the purpose of safeguarding economic activities may be conducive to keeping the peace and ensuring enterprise viability in the short run, it also poses challenges to outcomes that would be more beneficial to communities in the long run: empowerment, institutional strengthening, and inclusive economic development.

Technology Adoption Among SMEs: How Is It? And What Can Be Done to Strengthen It?

Businesses have benefited tremendously from technological advancements, particularly in production, outsourcing, logistics, and marketing. Although large firms and Multinational Companies (MNCs) are in a better position concerning the use and adoption of technologies, small and medium-sized enterprises (SMEs) have both the agility and potential to leverage their resources, market conditions, globalization’s opportunities, and networks to improve the way they use technology and ultimately enhance their competitiveness. As seen in the literature, most research that has addressed the topic of technology adoption among SMEs has emphasized specific issues such as digitalization, information technology, cloud computing, cybersecurity, and Industry 4.0. This paper has gone beyond such a limited view to touch upon different technological aspects that are important to the functioning and/or survival of SMEs and the conditions surrounding the implementation and use of technologies. Specifically, this study examines the realities of SMEs’ technology adoption and draws lessons for policymakers in developing countries.

Research on the Path of Realizing Transformation and Upgrading of Chinese Small and Medium-sized Enterprises from the Perspective of Management Innovation

Chinese small and medium-sized enterprises (SMEs) are an important force in the development of the national economy and society. Therefore, adjusting the management concept and improving the management level through innovative management mode has become an important task for the survival and development of contemporary Chinese SMEs. This paper is divided into three parts; the first part introduces the theory related to management innovation, the role of management innovation and the driving factors of management innovation. The second part introduces the concepts and theories related to the transformation and upgrading of SMEs. The third part combines the content of the first two parts and summarizes three paths for Chinese SMEs to realize transformation and upgrading under the perspective of management innovation, which are the transformation and upgrading of processing trade to independent research and development, the transformation and upgrading of providing products to providing services, and the transformation and upgrading of product sales to brand marketing, which are the three specific directions. This study explores management innovation in SMEs, aiming to address their transformation and growth challenges by providing practical solutions. The research intends to contribute significantly to the development and success of SMEs within the national context.

Determinants of business recovery: The role of government support as moderator (a study on tourism SMEs affected by Lombok earthquake, Indonesia)

BACKGROUND: Natural disasters such as earthquakes have imposed particular problems on small and medium-sized enterprises (SMEs), including on their journey to recovery. Business recovery is a term that has numerous theoretical and practical applications and is frequently regarded as the most elusive stage of a disaster cycle. Hence, it necessitates an exploration. OBJECTIVE: This study examines the determinants of business recovery in the aftermath of a disaster. A framework synthesized from the literature review and hypotheses developed demonstrate factors that drive business recovery. METHODS: This study used an explanatory approach that laid quantitative foundations. The study also tested relevant hypotheses with a statistical approach using the PLS-SEM technique. An off-line survey was conducted using data collected from 272 SMEs in tourism affected by the 2018 Lombok earthquake in Indonesia. The data were analyzed with SmartPLS to test the effects of knowledge management, mitigation strategy, business adaptability, business recovery, and government support. RESULTS: The results indicate that knowledge management, mitigation strategy and business adaptability are determinants of business recovery. However, government support has no influence in leveraging those three determinants of business recovery. This finding may indicate that SMEs that possess a strong level of knowledge management with the ability to formulate a mitigating strategy as well as adapt to certain changes are more likely to succeed in recovering their businesses. In addition, whether or not government support is viable, independently managed SMEs are more likely to progressively perform and be less dependent on aid from other entities on their road to recovery. CONCLUSIONS: KM and mitigation strategy function as determinants of business adaptability subsequent to SMEs’ recovery. On the basis of the resource-based view (RBV), mitigation strategy and business adaptability are influential resources that can leverage firms’ potential for in the quest of competitive advantage and facing environmental turbulence. Nonetheless, government support remains a challenge in the survival of SMEs to cope with the negative impact caused by disaster. Thus, government should strengthen the awareness towards such issue as well as providing much more holistic support in the future particularly to educate SMEs on the importance of mitigation strategy in prior to a disaster.

Analysing Factors that Enhance the Growth and Survival of Small and Medium Enterprises in Ghana

The economy of Ghana has been growing consistently during the recent years, and this growth has increased poverty and increased the number of middle-income countries in the region. Meanwhile, the current regional and global economic slowdown requires a new growth model for Ghana, with strengthened fluctuation for Small and Medium-sized enterprises (SMEs) to raise national productivity. Small and Medium Enterprises (SME’s) in Ghana play a dynamic role in the development of this nation, and this cannot be over- emphasized. It also serves as a means of employment in the country thus releasing the pressure on the civil and public sector in the case of employment. The study seeks to solve a problem of technology by Small and Medium Enterprises (SME’s) surveyed in Ghana by using PESTEL theory. It that painful process that Small and Medium Enterprise face to access the loan. Examine the various causes that hinder the growth and survival of small businesses in Ghana. To examine the variables that leads to the growth and survival of small businesses. To enumerate various sources of funds available to SMEs in Ghana and to ascertain the impact of hindrances by SME‟s to the growth of Ghana economy. Finally, the study also revealed that most of the entrepreneurs do not have much knowledge in using technology and it has affected the growth and the survival of SME. It is believed that if all the recommendations are taken into consideration, that entrepreneurs must regard the legal aspect of their day-to-day activities and process the necessary documents to avoid legal actions taken against them.

Monetary access and survival of small and medium-sized enterprises in South Africa post-COVID-19 era

The COVID-19 pandemic has posed significant challenges to the survival of small and medium-sized enterprises (SMEs) in South Africa, particularly in accessing necessary funding for their daily operations. This study aimed to assess the relationship between monetary access and survival of SMEs in South Africa in the post-COVID-19 era. Quantitative methods were employed to collect data from a sample of 321 SMEs in South Africa, selected through purposive technique. The collected data were analyzed using SPSS, with linear regression and Pearson’s correlation analysis determining the impact of independent factors on the dependent variable. The findings revealed a notable positive correlation between monetary access and the survival of SMEs in the post-COVID-19 era. Specifically, increased access to financial resources was associated with improved survival rates for SMEs. Furthermore, limited financial access hindered the range of services SMEs could provide and restricted their overall performance. These findings emphasize the critical importance of policymakers regularly evaluating and revising their policy actions to address the challenges SMEs face in accessing finances. By adopting effective measures to enhance monetary access for SMEs, policymakers can support their survival and enable them to thrive in the post-COVID-19 era. Finally, this study underscores the significance of monetary access for SMEs’ survival in South Africa following the COVID-19 pandemic. It highlights the need for policy interventions that alleviate SMEs’ difficulties in obtaining funding, enabling them to contribute significantly to economic growth and development.

Entrepreneurial Strategic Orientation: Prerequisite for SMEs Success in IoT and Digital Transformation Sphere?

Entrepreneurial orientation (EO) is a multidimensional construct that reflects a firm’s tendency to be innovative, proactive, and risk-taking. Previous research has demonstrated that companies with a strong EO possess a competitive advantage in the market when compared to those with a conservative approach to management. The objective of this study is to analyse the entrepreneurial orientation of small and medium-sized enterprises (SMEs) using the ENTRE-U scale and to identify the dimensions of EO that are critical for achieving business success in the context of digital transformation and IoT implementation. The identification of these dimensions is facilitated through a survey method and exploratory factor analysis. After administering the ENTRE-U scale to a representative sample of SMEs that use modern technologies, such as IoT, four distinct dimensions of EO emerged. Each dimension of EO has a significant impact on firm performance. By adhering to the established EO dimensions and using the proposed methodology, managers can develop an efficient business model that aligns with the current digital market demands, enhances SMEs (survival, resilience, and sustainability), and addresses the high uncertainty prevalent in today’s business environment.

The Role of Participatory Leadership and Employee Innovative Behavior on SMEs’ Endurance

Small and medium-sized enterprises (SMEs) have struggled to survive during the COVID-19 crisis. The factors that contributed to their survival during the period deserve to be investigated. Drawing on social-exchange theory, this study aims to explore the mediating effect of participative leadership on the relationship between employee work innovative behavior (EWIB) and the survival of SMEs after the emergence of the COVID-19 pandemic. A questionnaire survey was used to collect data from 390 managers randomly selected from 114 medium-sized enterprises in Saudi Arabia. Structural equation modeling (SEM) was used to examine the hypothesized relationships between the research variables. The results of the study indicate a significant and positive association between EWIB and participatory leadership. There is a positive and important effect of both participatory leadership and EWIB on the endurance of SMEs. Participatory leadership had a partial mediating effect on the relationship between EWIB and the SMEs’ endurance during the COVID-19 pandemic period. The study sheds light on the importance of the innovative behavior of the workers and the participatory leadership for the survival and continuity of SMEs in times of crisis similar to COVID-19. The study’s findings provide suggestions for SMEs’ managers regarding adopting a participatory leadership style to develop employees’ innovative behavior and ensure the enterprise’s endurance.

Accounting information system implementation in batik small and medium-sized enterprises

One of the obstacles faced by batik small and medium-sized enterprises (SMEs), compared to large batik manufacturers, is limited financial and infrastructure resources. In the meantime, large batik manufacturers are supported by vast resources, modern infrastructure, skilled human resources, and a vast network on both the national and international levels. In order to obtain a competitive advantage, batik SMEs must be able to manage its resources effectively and efficiently and establish a hierarchy for resource allocation. On the other side, it is also necessary for the government to play a role, particularly in the form of policy and assistance, in order to ensure the survival of batik SMEs. This study seeks to maximize the potential of batik SMEs by implementing both manual and computerized accounting information systems (AIS) and the outcomes provide solutions to the problems posed by the lack of managerial professionalism in batik SMEs in Indonesia. Observation, in-depth interviews, and focus group discussions are used to collect data for the years 2020 and 2021. The data is then analyzed using an interaction method that emphasizes the connection between data reduction, data presentation, verification, and conclusion drawing. Therefore, this study produces both manual and computer-based accounting information systems for batik SMEs in Indonesia.

Survivability Scenario of SMEs in Facing COVID-19 Crisis Based on the Social Commerce Framework

Government regulations that limit social and community activities to reduce the spread of COVID-19 have a very negative impact on the economy. This negative impact has a more profound effect on small and medium-sized enterprises (SMEs) because their business models are highly dependent on sales flows. Falling demand will significantly threaten the survival of SMEs. To overcome this impact, SMEs need to consider digital technology to better market their products. Social commerce, a new e-commerce business model, is becoming an online sales platform that helps businesses connect with customers and gain a competitive edge. This study aimed to develop scenarios for the ability of SMEs to survive the impact of the COVID-19 pandemic. We created scenarios based on a social commerce framework with four components: customer, platform, merchant, and context. These components were mapped in the Information Technology Infrastructure Library (ITIL) 4 to obtain scenarios of practical and well-documented actions by SMEs affected by the COVID-19 pandemic. This study used canonical action research to apply scenarios to an affected SME and then evaluated how these scenarios can help the SME survive based on its financial performance. This study proposes applicable social commerce scenarios to encourage the ability of SMEs to withstand the impacts of the COVID-19 pandemic.

Corporate social responsibility and SMEs' performance: mediating role of corporate image, corporate reputation and customer loyalty

PurposeThe purpose of the paper is to evaluate the essential role of corporate social responsibility (CSR) on SMEs' performance by exploring the mediating role of corporate image (CI), corporate reputation (CR) and customer loyalty (CL) between CSR and firm performance (FP) in the context of an emerging country.Design/methodology/approachBased on an extended literature review on CSR, CI, CR and CL studies, the authors evaluate the impact of these four constructs on SMEs' performance in an emerging market. The paper follows a quantitative approach. The study sample was composed of 482 responses covering top executives, managers and experts. The Smart PLS SEM version 3.3.2 was used to analyse the data of the small- and medium-sized enterprises (SMEs) of Vietnam in the year 2020–2021.FindingsThe authors' findings reveal significant and positive relationships amongst CSR, FP, CSR and CI, CSR and CR, CSR and CL, and most importantly, the findings add value to the current knowledge by exploring the mediating effect of CI, CR and CL between CSR and FP.Research limitations/implicationsThe study was conducted in Vietnam. As a result, the findings of the study might not be applicable for other countries, if the economic and environmental settings are different from that of Vietnam. Therefore, future research should consider for other countries, other regions. Second, due to the purpose and priority of the study, CI, CR, and CL was employed as mediators amongst the relationship between CSR and FP. Thus, future research should consider other mediators or moderators in such a relationship to see how CSR generates outcomes in the new associations.Practical implicationsThe study regarding the role of CSR in enhancing the performance of SMEs can motivate firm's chief executive officers (CEOs) to be proactive in getting involved and practising CSR in a consistent manner. Second, the above discussion draws a very important implication for the executive level, the management level of the enterprise, which enterprises should balance the interests of business, customers, other stakeholders, the environment and society in order to optimise CSR outcomes for improving competitiveness and developing sustainably. This implication is particularly important to the survival and development of SMEs in a challenging emerging economy.Social implicationsThe study widens the literature regarding relationship between CSR and SMEs' performance. Besides, the study supports stakeholder theory that explains why CSR positively affects firm's performance. The significant mediating roles of CI, CR and CL were positively confirmed in the study. Although previous studies determined that such roles are strategic source of competitive advantages of enterprises, however, how CSR involved in enhancing the roles has not been deeply explored and integrated. Third, the findings of the study support the resource-based view (RBV) and resource-based perspective that explains why firm should engage in CSR activities, and CI, CR and CL can enhance firm's performance by providing strategic source of competitive advantages that facilitate business to improve its performance in sustainable direction.Originality/valueTo the best of the authors' knowledge, the current literature on CSR and FP shows that, to date, there has been little empirical research on the mediating mechanism of CI, CR and CL in the link between CSR and FP for SMEs. The findings of the study may have great implications for entrepreneurs and top management with respect to the strategic perspectives to drive the businesses and to improve firm's performance in a sustainable direction in the context of emerging markets. In addition, the finding might be of great interest to – and motivate – SMEs' managers to engage with CSR actions where such businesses were or are situated during and after the coronavirus disease-2019 (COVID-19) pandemic. By that understanding, the Government might allow for innovative and groundbreaking policies or the reformation of old policies to leverage businesses to promote their strengths towards sustainable development in the new economic settings. The findings of the study may be a significant contribution to SMEs in Vietnam and in other emerging economies.

Investigating Complimentary E-Marketing Strategy for Small- and Medium-Sized Enterprises at Growth Stage in Taiwan

Globally, 95% of enterprises are small and medium sized enterprises (SMEs). Social media has recently become a powerful marketing tool due to characteristics such as the ability to share digital information and interact with consumers instantly. In SMEs, limited budgets restrict the use of social media as marketing tools. Thus, complimentary use of social media may be an alternative method for SMEs to maximize their marketing strategies. This study identifies what marketing goals are important for SME growth and how complimentary social media are used for attaining marketing goals. The analytic hierarchy process (AHP) analysis was conducted to confirm the order of local weights and global weights for marketing goals and complimentary social media. We found that the order of local weights for marketing goals for SMEs in the growth phase is brand awareness > online purchase > sales potential. The order of global weights for complimentary social media to meet above marketing goals is Facebook > PIXNET > Twitter > Instagram > YouTube > LINE. Finally, we used an SME from Taiwan as a case study to ensure that the application of the above complimentary social media can meet above marketing goals and potentially increase the survival of SMEs at the growth phase in Taiwan.

Sustainability Time and Its Determinant Factors of Small and Medium-scale Enterprises in East Gojjam Zone: Parametric Survival Regression Model

The contributions of small and medium-sized enterprises (SMEs) to socio-economic development are generally recognized, but they have faced several obstacles that impede their sustainability. This manuscript seeks to identify factors for the survival of SMEs in the East Gojjam Zone, Ethiopia. The prospective study design was employed. Both descriptive and inferential statistics, particularly families of parametric survival regression models, have been used. Of the 650 enterprises included in this study, 330 (50.8%) were censored (sustained enterprises) and the remaining 320 (49.2%) were events or withdrawn enterprises. The findings of this study revealed that the incidence of termination or withdrawal of SMEs in the study area is relatively common. The results from multivariable Weibull regression model revealed that woreda, sector, manger profile (gender, age, educational status, experience (in year) and source of experience), working place, marketing channel and profitability district status of enterprise were found to be statistically significant factors for the sustainability of enterprises in the study area. The bodies concerned, in particular the enterprise administrative offices at various levels, should work with collaborative organizations to develop a strong marketing platform (network), should be able to make workplaces accessible with the required infrastructure at minimal rental costs, and should prioritize the type of sector that has the highest customer needs at the onset, for instance, agriculture and service sectors.

Aspects Hindering the Development and Survival of Small and Medium-Sized Enterprises in Pakistan: Stability Perspective

This article intends to explore aspects that are hindering the development and survival of small and medium-sized enterprises (SMEs) in Pakistan. A survey was developed to collect statistics from 226 SME owners and staff in selected Punjab Provinces in Pakistan. Some statistical approaches accompanied the results of the survey to examine the elements hindering the development of SMEs in Pakistan. The results of the research indicate that the expected constraints, including lack of management knowledge, corruption, decaying infrastructure, absence of financial funds, and inadequate earnings are hindering SME development and survival in Pakistan. Considering the elements hindering the development will help legislators, federal and local concerns, NGOs, shareholders, policymakers, and others to create well-structured policies and plans that will aggressively promote the efficiency and stability of SMEs in Pakistan. The significance of this research derives from the reality that few studies have been conducted about the development and survival of SMEs in Pakistan with a stability perspective.

Political factors affecting the survival of SMEs case study: An empirical study in Tehran Grand Bazaar

Today, the basic role of small and medium-sized enterprises (SMEs) in determining the economic growth of developed and developing countries is obvious for all governments. In the present study, the political factors refer to the application of a nested set of macroeconomic and political policies in practice without the intended profit or theoretically transparent and profitable but rent-seeking in the implementation method, which is detrimental to the small businesses from the micro perspective and the economy from a macro perspective. Considering the economic problems of Iran in the field of SMEs, the present study investigated the political factors affecting the survival of SMEs. In this regard, more than 300 individuals were selected from those with SMEs in Tehran Grand Bazaar in 2018 by using a binary model. The logit and probit regression models were used to analyze the data, and Excel 2016 and SHAZAM 11 software packages were used to analyze the results. The results indicated that among the variables and indicators used in the model as political factors, interactive policies (LIPs), the rule of law policies (RLPs), and the international tension-releasing policies (IPs) significantly influence the factor of SMEs survival policy in Tehran's Grand Bazaar.

European SMEs amidst the COVID-19 crisis: assessing impact and policy responses

We consider how the COVID-19 pandemic has challenged European small- and medium-sized enterprises (SMEs) in the manufacturing sector, and draw suggests policy implications. The sudden onslaught of the pandemic has acted as an economic shock, and we consider how it is likely to affect different types of manufacturing SMEs. We distinguish between immediate effects, a result of the almost-simultaneous lockdowns across Europe and its major trading partners, and longer-term implications for both SMEs and the global value chains where they are inserted. In the shorter run, most SMEs have faced logistical challenges in addition to demand disruptions, although the severity has differed across firms and industries. We argue that in the longer-term, there will be different challenges and opportunities depending on the type of SME. Policy interventions will also need to be sensitive to the different types of SMEs, rather than adopting a one-size-fits-all approach. The policy mix will need to shift from its initial focus on the survival of European SMEs in the short term, towards a more structural and longer-term approach based on promoting their renewal and growth through innovation, internationalization and networking.

A holistic assessment of the risks encountered by fast moving consumer goods SMEs in South Africa

Fast moving consumer goods (FMCG) small and medium-sized enterprises (SMEs) play an indispensable role in the emerging economies by selling products that are often classified as necessities. This paper argues that the traditional classification of risks into mainly operational, strategic, financial, and compliance risk, exposes FMCG SMEs to sustainability issues today. Focusing on sustainability and the associated factors, this paper seeks to offer a broader perspective on the risks that are crucial to the survival of FMCG SMEs in a fast-paced changing environment. The empirical investigation relied on the mixed research methods with the survey questionnaire and personal interviews as tools of interest. Two expert interviews were held to complement the quantitative data that was collected from 289 respondents. The research findings highlight the necessity for FMCG SMEs to look beyond the traditional risk types by incorporating social, economic and environmental risks, which are essential elements of the sustainability framework today. By combining these three components of sustainability into risk assessment, the paper seeks to introduce a more holistic view of risk sources that include evolving risk areas that are of growing importance in a rapidly changing global environment.

The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China

ABSTRACT The outbreak of the coronavirus disease (Covid-19) in January 2020 in Wuhan has had a significant impact on the Chinese economy, and especially on the small and medium-sized enterprises (SMEs). In February 2020 an online questionnaire and follow-up interviews were conducted on 4807 SMEs in Sichuan to assess the challenges associated with work resumption and the associated policy requirements. It was found that most SMEs were unable to resume work because of a shortage of epidemic mitigation materials, the inability of employees to return to work, disrupted supply chains, and reduced market demand. Many SMEs were also facing cash flow risks as they had to continue to pay for various fixed expenditures even though they had little or no revenue. As these delays in work resumption have put unprecedented pressures on the survival of many SMEs, recommendations relevant to China and other affected countries regarding cash flow relief, work resumption and consumption stimulation are given to assist SME survival and economic recovery from the disaster situation.

Dimensions of Intercompany Cooperation in the Construction Industry and their Relations to Performance of SMEs

Cooperation between companies is widely believed to have positive impact on their performance. However, there is insufficient empirical research on relationships between these constructs in small and medium-sized enterprises (SMEs) in the construction industry. Moreover, cooperation is a complex and multidimensional phenomenon, and it is interesting how different dimensions of cooperation may influence the company’s performance. To bridge the research gap, the following study is performed, which: (1) identifies dimensions of intercompany cooperation, and (2) examines the relationships between dimensions of cooperation and the performance of SMEs. Eight dimensions of cooperation were identified, based on 125 observations obtained from Polish construction SMEs. It appears that a company’s openness to cooperation is dependent on the company’s maturity and the competition between partners. Surprisingly, no significant connection was observed between the cooperation, financial performance and the change in the number of employees. It is considered that the cooperation in the construction industry, although not related to financial performance in a significant or direct way, is common and may be essential for the survival of SMEs.