Survival Of SMEs Research Articles

Scaling-Up SMEs Survival in Emerging Markets: The Forensic Approach

This study investigates the usefulness of forensic accounting in scaling up the survival of SMEs by means of fraud detection, reduction and prevention using the Nigerian scenario. The study sample is made up of 315 SMEs Owners in Imo state, River state, Enugu State, Anambra State, Delta state and 222 professional Accountants in Nigeria, making a total of 537 respondents. The data for our study were gathered using questionnaires administered on physical contact with respondents, phone interviews and online e-questionnaires arranged in five Point Likert-Scales. Z-test method was used as statistical tool for hypotheses tests at 5% significance level. Evidence generated reveals forensic accounting has significant effect in unmasking sophisticated fraudulent activities in SMEs. Conclusively, forensic accounting has been shown to be very useful in detecting, reducing and preventing fraud which is the root-cause of business failure in emerging markets, yet, barely-recognised at that level. Given that SMEs are considered the engine of growth and development in an economy, greater attention needs to be paid to tackling the issue of high SME mortality rates. By recommendation, the Owners of SMEs should introduce forensic accounting in their system when necessary or in a pattern of once yearly for first three years in operation and then reduced to perennially after three years and later on increased to five years. It is further recommended that Organisations providing financial support to SMEs internationally and locally like Jumia, United Nations (UN) and even financial institutions and Government should provide basic education on the dangers of fraud to the SMEs and add a forensic Accountant’s report as additional criteria to SMEs funding support in the third year.

Synergy between Small to Medium Enterprises and Financial Performance: A Case Study of Bulawayo the Former Industrial Hub of Zimbabwe

The synergy between SMEs and Economic performance has for long been acknowledged by governments but not sufficiently researched on how they contribute to economic growth. The decision to conduct this research was prompted by the desire to fill in knowledge gap manifesting among policy makers, entrepreneurs and academics on the extent to which the symbiotic relationship between SMEs financial performance predicate economic performance. Questions such as what is finance for SMEs and what is being used to secure finance by Small Ventures were elucidated. Mixed approach as well as primary source of information was used which was the major highlight on how finance influence venture operation when collecting data. Descriptive statistics were used to determine distribution of economic-performance variables and test for independence of association of variables that were assessed Results indicated that development and survival of most SMEs hinges on funding. Furthermore, SMEs performance in terms of investment and returns rely heavily on finance. There was an interrelationship on how economic performance stimulates development and productivity of Small Ventures and vice versa. It was recommended that decision makers and relevant ministries introduce necessary policy that understand, collaborate, and link SMEs and financial performance to promote economic growth. Further the research encouraged the need for a standalone financial policy be designed towards SMEs growth needs and address market imperfections.

The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period

PurposeThe purpose of this paper is to reveal the impact of strategic competitive innovation types on the financial performance of SMEs during a very critical period: the COVID-19 pandemic. Four strategic competitive innovation types are considered in this study: marketing innovation, organizational innovation, product innovation and processes innovation.Design/methodology/approachTo examine empirically the relationship between strategic competitiveness and financial performance, data were collected from a sample of 426 Lebanese SMEs belonging to seven different sectors.FindingsThe empirical findings of principle component analysis model (PCA) and multiple regression model (MR) reveal that the ability to innovate is essential to an SME’s survival during a crisis. The results of this study confirm the existence of a positive impact of marketing innovation and processes innovation on the financial performance of SMEs during the COVID-19 pandemic.Practical implicationsMoreover, results suggest that, in Lebanese SMEs, product innovation and organizational innovation do not have any impact on the financial performance during the pandemic period.Originality/valueThis research focused on strategic competitive innovation as a broadly considered essential condition for the survival of SMEs during the COVID-19 crises.

THE IMPACT OF ENTREPRENEURS CHARACTERISTICS ON THE PERFORMANCE OF SMALL MEDIUM ENTERPRISES: THE CASE OF THE KINGDOM OF SAUDI ARABIA (KSA)

This study seeks to examine the effect of entrepreneurial competencies (innovation, leadership, networking and risk-taking) on the survival of SMEs in KSA. The literature review evaluates the relationship between each of the entrepreneurial competencies and their effect on survival of SMEs worldwide. We have opted to adopt a descriptive research design. The findings reveal that entrepreneurial competencies (innovation competency, leadership competency, networking competency and risk-taking competency) of the SME owners/managers (entrepreneurs) have a positive and significant effect on the survival of SMEs in KSA. The study recommends SMEs should embrace innovation competency as a means of enhancing survival and leadership competency which is the key aspect for both survival and performance. SMEs should also embrace networking competency as a way of gaining competitive advantage and widening customer base, adopting the calculated risk-taking strategies in their operations.

The role of angel investment for technology-based SMEs: Evidence from China

This paper comprises an empirical study on the role of angel investment in the Chinese IPO market. Using a novel dataset on 743 deals of 404 angel-backed firms from 2002 to 2013 and tracing the firms' growth history to 2017, we found that angel investment is institutionalized in the Chinese market. Based on this current situation, we develop an innovative angel investment resource factor and show that an abundance of angel resources can reduce short-term information asymmetry and generate a positive but lagging effect on SMEs' long-term performance. Furthermore, we find that these angel-backed firms have a lower stock price crash risk after IPOs, which also explains the time-lag effect of angel investment on their market performance in the early stage of IPOs. Our results are resistant to several endogeneity tests and provide insights into the multifaceted contributions to the aftermarket performance and survival of technology-based SMEs and the sustainable development of angel institutions in emerging markets.

BANK CREDIT AND TRADE CREDIT AFTER THE FINANCIAL CRISIS: EVIDENCE FROM RURAL GALICIA

Access to external finance is a key challenge for the creation, survival and growth of SMEs. This article delves into the “weak funding” handicap of rural small firms (SEs): the access to bank financing and the substitutive role of trade credit for entrepreneurs in rural areas when they faced bank credit constraints. Considering SEs in Galicia (Spain), a paradigmatic case in Europe of rural areas in demographic decline with a strong impact of the Spanish sovereign and banking crisis of 2008–2012. There’s evidence of firms in rural areas facing a differential negative flow of bank credit during the financial crisis, especially in the manufacturing and construction sectors, that dissipated afterwards. Then, using a panel data approach that considers the determinants of trade credit, the complementary and substitutive hypotheses are tested to estimate the impact of bank credit restrictions over trade credit.

FDI Inflow Activities and Ghanaian SMEs Strategic Decision-Making Process: Mediating Role of Interfirm Value Co-Creation

Foreign direct investment (FDI) inflow activities are seen as a threat to the survival of resource-constrained SMEs in Ghana. Hence, this preconception stifles collaborations between foreign and local businesses. Therefore, to justify the need for such collaborations, we estimate the relationship between FDI inflow activities and SMEs’ strategic decision making as well as the mediating role of interfirm value co-creation using the structural equation model. Using data survey responses of 856 Ghanaian SMEs, we find positive significant relationships between FDI inflow activities, environmental sustainability decisions, economic sustainability decisions, and social sustainability decisions. Further, interfirm value co-creation mediates the positive relationship between FDI inflow activities and economic sustainability decisions. So, SMEs should embrace FDI inflow activities in the country and create knowledge from the technology and human expertise of these businesses. Again, policymakers should devise forward-thinking strategies to stimulate an information-sharing ecosystem promoting collaboration between domestic and foreign-owned businesses in Ghana.

Major Barriers to Manufacturing SMEs Growth and Survival: Evidence From Emerging Economy Pakistan

SMEs play a tremendous role in increased national economic development and consider the backbone of the economy around the world. It contributes a great share in the GDP of Pakistan and a huge number of the workforce involved. However, despite such great importance, the SMEs growth in Pakistan face numerous challenges for access to financial resources, market information, and procurement contract. Hence the main aim behind this study is to investigate the influence of these barriers on manufacturing SMEs' growth and survival. A structured questionnaire was distributed among 172 managerial level employees of manufacturing SMEs to explore the influence of financial resources, market information, and procurement contract on the growth of SMEs by incorporating the Structural Equation Model (SEM). The study shows that the lack of access to financial resources, market information, and procurement contract negatively influence the growth and survival of SMEs. Therefore, it needs a certain action to eliminate such barriers for SMEs' sustainable growth and survival. This study suggestion will help to contribute to policymakers and industry players to overcome such barriers.

Influence of Resilience on Survival of Small and Medium Enterprises

The study assessed the influence of resilience skill for the survival of SMEs in Edo State. Two research questions guided the study, while research question two was hypothesized and tested. 236 respondents were used using a proportionate sampling technique from a population of 1117 business owners. This is 23.63% of the population. A descriptive survey was used. A reliability coefficient of 0.77 was obtained with the use of Cronbach alpha formula. Data were obtained with the aid of a questionnaire. The research question was answered with mean, while t-test for the hypothesis. From the result, it was discovered that resilience skill influences SMEs survival. The two groups of entrepreneurs used for the study did not show any significant difference in possession of resilience skill for SMEs survival. It was concluded that resilience skill is needed by entrepreneurs to a high extent. It was also concluded that males do not differ significantly from female entrepreneurs in possessing resilience skill for SMEs survival. Consequently, it was recommended that appraisal of SMEs operations should be on a consistent basis to check for lapses, make improvement and increase customers’ goodwill, among others.

Environmental Factors and Sustainability of Small and Medium Businesses in Lagos Metropolitan Area, Lagos State, Nigeria

The study evaluated the effects of environmental factors on the sustainability of selected SMEs in Lagos metropolitan area.The research employed quantitative methodology using survey questionnaire. A total of 103 questionnaire copies were returned in analysable format from the SMEs' owners/managers and analysed using percentages, correlational analysis, ANOVA and Multiple Regression. Findings revealed significant negative correlation between the environmental factors and Lagos SMEs' sustainability at r = 0.336, P < .05. In more detailed terms, nine major factors, all with p < .05, individually impacted the SMEs sustainability in the following descending order: Inadequate Power Supply, Inadequate Infrastructure, Inconsistent Government Policies, Customer Dissatisfaction, Lack of Employee Commitment, Managerial Inefficiency, Harsh operating environment and Regulations, Firm's Location, and Inappropriate Technology.The study concluded that environmental factors, both organisational (internal factors) and government related (external factors) impact the sustainability and survival of SMEs in the Lagos Metropolitan area of Lagos State, Nigeria.

Policy related factors affecting the survival and development of SMEs in the context of Covid 19 pandemic

Based on the context of Thanh Hoa province, the research proposes the model of policy - related factors from the action of government (at all level) influencing on the survival and the development of SMEs The research was conducted by collecting data from 512 SMEs in Thanh Hoa province The results indicate that tax supporting policy and the preferential policies of the bank were crucial factors affecting the development of enterprises during the Covid 19 pandemic, directly Other factors included insurance policy, capital support packages of Government, the act of public administration and the role of professional association which were considered as important elements affecting the enterprise’s development Based on the results, the study proposes policy implication in order to support SMEs overcome difficulties during the coronavirus pandemic © 2020 by the authors;licensee Growing Science, Canada This is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC-BY) license (http://creativecommons org/licenses/by/4 0/)

Pribavljanje i selekcija ljudskih resursa i organizacijska kreativnost u malim i srednjim poduzećima

In modern business conditions, human resources have become the most important resource of enterprises, and many authors point out that this is especially true for SMEs, in which, due to their specificity, human resources create a competitive advantage of the company and affect its survival and development. SMEs are faced with a strong, global competition of large enterprises and in order to survive and grow in the market, they must find specific strengths within themselves, develop and use them. Creativity is one of the most powerful tools that enable SMEs competitiveness, survival and development in the market. The basic objective of this research is to determine whether there is a correlation between recruitment and selection of human resources and organizational creativity in SMEs. The survey was conducted in SMEs in the Federation of B&H in 2019. An original questionnaire was created for the research, which collected the opinion of top managers on the recruitment and selection of human resources and organizational creativity in small and medium-sized enterprises. Data have been analysed using IBM SPSS Statistic 25.0. From the statistical procedures, the following were used: Shapiro-Wilk's test, Pearson's coefficient of correlation, Mann-Whitney U test and t-test for independent samples. The results of the survey showed that there is a correlation between the recruitment and selection of human resources and organizational creativity in SMEs and that there are differences in the correlation between the recruitment and selection of human resources and organizational creativity in the enterprises in terms of their size.

The Real Effects of Bank Branch Closings and Restructurings

We study the effect of the reform of the banking system in Spain on the economic activity and survival of small and medium firms. We include both the effects of branch closings and restructurings that result from banks' M&As. By including branch restructurings, we are able to explicitly account for the transition from traditional systems for evaluating credit risk based on soft information to automatized credit scoring systems that are typical in consolidated banks. We find that both branch closings and restructurings have a significant negative impact on the operational activities and the probability of survival of SMEs. The effects are larger and more significant in the short-term but also persist in the long-term, specially for those firms that have a low number of bank relationships to start with. We also find that firms with larger credit scores are more able to maintain their relationship with the restructured branch or to replace a branch after it is restructured or closed. In this way, these firms are able to mitigate or even eliminate the negative effects of the reform.

한국 상장 중소기업의 소유구조와 생존확률

본 연구에서는 생존분석을 응용하여 한국 상장 중소기업의 생존확률을 추정하고, 소유구조와 기업생존 간의 관계를 분석하였다. 분석기간은 1998년부터 2017년까지이다. 표본은 한국거래소 유가증권시장과 코스닥시장에 상장된 총 12,704개(연도-기업) 중소기업을 대상으로 하였다.BR 실증분석 결과를 요약하면 다음과 같다. 첫째, 한국 상장 중소기업의 경우 생존기간 10년까지는 비교적 높은 생존확률을 보여 기업실패 가능성이 낮은 것으로 나타났다. 그러나 10년 이후에는 생존확률이 크게 하락하면서 전형적인 계단함수 형태를 보였다. 전체 표본기업을 제조업, 유통·서비스업, 건설업 등으로 분류하여 각 업종의 생존곡선을 비교했을 때 약 10년 생존기간까지는 3개 업종의 생존확률에 큰 차이가 없는 것으로 나타났다. 그렇지만 이후 기간에서는 제조업과 건설업에 비해 유통·서비스업종의 생존확률이 급속히 하락하는 것을 발견하였다.BR 둘째, 한국 상장 중소기업에 있어 소유구조는 기업의 생존에 주요한 영향 요인이라는 것을 확인하였다. 내부지분율이 높은 기업은 생존 가능성이 높다는 것을 알 수 있었다. 내부지분율이 높으면 내부 경영자와 외부주주 간의 정보불균형이 축소되고, 이해가 일치되어 대리인문제가 완화됨으로써 기업생존 가능성이 높아지는 것으로 이해할 수 있었다. 또한 이사회에 사외이사비율이 높을수록 기업의 생존 가능성이 높아진다는 것을 알 수 있었다. 이사회에 사외이사가 많이 포함될수록 이사회의 전문성이 높아지고, 사외이사가 경영자를 통제·감시함으로써 기업의 생존 가능성이 높아지는 것으로 이해할 수 있었다.

Innovation in family firms: an empirical taxonomy of owners using a mixed methods approach

Purpose The increasingly competitive manufacturing sector has made innovation crucial for the continued survival of family-owned SMEs. However, family firm owners are highly heterogenous and their diverse characteristics influence their approach to innovation. The purpose of this paper is to provide solutions to two heterogeneity related innovation problems: first, the failure of generic innovation policy advice to address the specific types of family firm owners; and second, the difficulty for owners in understanding how their innovation approach compares to their competitors. The solution is to create a taxonomy of family firm owner-innovators which creates innovator types. This taxonomy addresses these two problems: first, the taxonomy enables policy advice to be tailored to a particular innovator types; and second, the taxonomy allows owners to understand the strengths and weaknesses of their particular approach to innovation. Design/methodology/approach The approach is to develop a taxonomy through exploratory factor analysis (n=1,284) and firm owner interviews (n=27) in a mixed methods study. Socio-emotional wealth theory interprets the findings. Findings The findings present a taxonomy of family firm innovators which contains five types: the spontaneous radical, the statist altruist, the patient opportunist, the curious traveller and the insular denier. Research limitations/implications There are two major limitations: first, a taxonomy is static and does not include the temporal dimension of innovation which can change according to the firm lifecycle stage and, by implication, the changing preferences of a maturing firm owner; and second, the mixed methods approach of using two data sets which themselves used differing definitions of “family firm” has introduced the possibility that the constructs developed from the quantitative study may not have the precision or clarity of a study that uses a single data set with a single definition. Practical implications The practitioner implications from the research stem from the diagnostic potential of the taxonomy. SME family firm owners can establish their innovation approach by using the taxonomy to decide which type of innovator they are and by adopting an innovation approach that counterbalances the weaknesses of their type. Social implications The social implications are to improve the innovation potential of the family firm community by offering practical support to their innovation activities. Originality/value The originality of the research is in its contribution to knowledge on the role of ownership type in directing the innovation approach of SME family firms. The value of the research is in offering a theoretically informed original taxonomy that is of both academic and practical value.

El género del CEO como determinante de la supervivencia de la empresa: el caso de las pymes agroalimentarias españolas

Esta investigación, motivada por la literatura previa, tiene como objetivo estudiar el efecto del género del CEO en la supervivencia de las pequeñas y medianas empresas (pymes) del sector agroalimentario español a lo largo del tiempo. La elección de España se debe a que es uno de los países con mayor tasa de supervivencia de las pymes. Con este fin, se llevó a cabo un análisis empírico de los patrones de las pymes del sector agroalimentario durante el período 2000-2015. Para ello, se siguió el método de Kaplan-Meier para un análisis univariante de la supervivencia, y una regresión lineal para el análisis multivariado. Los resultados muestran que las pymes del sector agroalimentario tienen más probabilidades de sobrevivir si son dirigidas por mujeres. En este sentido, esta investigación pone de manifiesto la necesidad de promover y desarrollar políticas y programas que faciliten la presencia de mujeres en este tipo de puestos de responsabilidad.

Customer Relationship Management and Small and Medium Enterprises Performance: Pragmatic Evidence from Oyo State, Nigeria

Introduction: Customer Relationship Management (CRM) has been noted for survival strategy for business organizations especially in today's customer-oriented business world and intensely competitive environment.
 Aim: This study sought to examine the influence of CRM on the performance of SMEs in Oyo State, Nigeria.
 Study Design: Purposive sample technique was adopted to select 20 SME operators each from Ibadan, Oyo Town, Iseyin, Ogbomoso, and Saki, respectively totaling 100 participants as a sample size for the study. The data collection instruments for the study were structured questionnaires designed for the study. Data analysis was performed with the aid of mean, standard deviation, Pearson Product Moment Correlation Co-efficient (PPMCC) and Ordinary Least Square (OLS) method of estimation.
 Results: The results revealed that CRM measured by customer orientation, service quality and personalized of services have a significant influence on SMEs’ performance. In conclusion, customer relationship management is an alternative paradigm to the survival of SMEs in today’s cut-throat competitive environment.
 Conclusion: Based on the findings, the study recommended that SME operators should always treat their customers like Kings and Queens and their opinion should be sought before making a decision that is binding on them. Also, SME operators should be designed with a feasible customer relationship strategy that can identify potential and profitable customers to enable tailoring products and services to their needs.

Driving Factors and Developing of the Implementation of E-Business in SMEs

The research explores driving factors and developing the implementation of ebusiness in SMEs. This paper discusses the following issues 1. The purpose of ebusiness implementation 2. Internal and external factors that encourage the implementation of e-business. 3. Problems that developed during e-business implementation 4. Benefits of implementing e-business. Based on the result of FGD with 18 SMEs, it can be concluded that: (1). The main aspects of the most prominent goals are the efforts of SMEs in improving the company's competitive advantage in general from aspects of the results of business implementation on line, improving the quality of service to customers, and increasing the work productivity of the service of company employees. (2). Before implementing SMEs e-commerce must pay attention to several key successes to build it, both by providing complete and clear information on goods and services, and facilitating trade activities and paying attention to problems that will arise from the ebusiness activities. (3). SMEs have a long-term strategic perspective regarding the implementation of e-business both from the perspective of competition and the survival of long-term SMEs.

The Analysis of the Factors Affecting the Implementation of Virtual R&D in Iranian Tile and Ceramic Companies Using Structural Equation Modeling Approach

Authors: Abolfazl Akhondzadeh, ORCID: https://orcid.org/0000-0001-8160-3425 Master of Science, PhD Candidate, Researcher, Yazd University of Science and Art, Iran Pages: 86-96 DOI: http://doi.org/10.21272/sec.3(4).86-96.2019 Download: Views: Downloads: 43 6 Abstract The final goal of this study is to provide a model with structural modeling approach of virtual R & D implementation in Iranian ceramic tile companies and small and medium-sized industries and services are one of the broadest fields of activity of manufacturing and economic enterprises that are of great importance. Accordingly, the establishment and expansion of research and development systems in order to infuse new sciences and technologies into this industry is of great importance. Over the past few decades, in a highly competitive market, the development of new products has long been considered as a major contributing factor to the survival and growth of SMEs and manufacturing units and economic enterprises have a great desire to create and develop R & D and investment systems for their efficiency so the necessity of conducting this research was created for Iranian companies because SMEs are considered as engines of economic growth, particularly in developing countries and in a day-to-day market for freedom, the survival and continuity of SMEs depend on their ability to enhance their performance and production that are in accordance with international standards. The questionnaires and interviews used to examine the research questions. It was distributed among 114 experts after ensuring the reliability and validity. The research strategy is a survey-correlation questionnaire that has been compiled by a researcher-made questionnaire. The results of this study showed that the technology structure in virtual teams does not directly affect the implementation of virtual R & D. The knowledge structure of the individuals and the process structure can have a direct effect on the implementation of virtual R & D in the other hand this paper acknowledges the progress made over the past several decades, it focuses on the challenges and limits of Iranian Tile and Ceramic Companies. Keywords: virtual research and development, small and medium-sized industries, interpretive structural modeling, virtual teams.

Introducing ITIL Framework in Small Enterprises

Given the critical consequences that IT can have on the survival of SMEs in a competitive environment, ITSM practices have becoming a necessity for SMEs that must be investigated. ITIL is criticized as being appropriate for large enterprises and less for SMEs. Thus, it calls for tailoring this framework while taking into consideration the specific realities of small companies. In this context, this article provides a practical tool formally developed according to the design science research approach, and it addresses an area of relevance to both practitioners and academics and suggests solutions that can help managers to personalize IT service practices to suit the characteristics of small scale enterprises. Results show that the flexible nature of the proposed framework has enabled to overcome the main difficulties of ITIL components implementation in small scale environments. It is found that the integrated use of balanced scorecard perspectives and ITIL practices can help SMEs to better implement ITIL components, achieving in that way a better alignment between the business and the IT.