Sustainability In Small And Medium-sized Enterprises Research Articles

Sustaining small and medium-sized enterprises through financial awareness, access to digital finance in South Africa

Small and medium-sized enterprises (SMEs) have several critical challenges that threaten their capacity to survive and thrive. However, access and awareness to digital platform is fundamental to moderate the financial costs and develop financial productivity and sustain SMEs financially. Considering this, the purpose of this study is to get empirical information on the level of management awareness and usage of digital platforms in SMEs in South Africa. The methodological framework included a quantitative research strategy and positivist paradigm. Purposive sampling was utilized to collect data from 321 out of 700 SMEs owners, and the Cochran formula was used to explain the sample size. There were 321 surveys sent out, and 304 were filled out and returned (95% response rate). Descriptive analysis, Pearson’s correlation, and regression analyses from the Statistical Package for Social Sciences were used. The results of Pearson’s correlation coefficient establish a statistically significant relationship between access to digital finances and SME Sustainability (r = 0.334), as well as a statistically significant relationship between financial awareness and SME Sustainability (r = 0.549). The findings alert SMEs managers of the need to improve their digital platforms awareness in order to meet current financial demands and make better informed financial choices to improve company success. The results explain the advantages of trading using many digital platforms available in the country to improve the performance of their enterprises.

Green business process management for business sustainability: A case study of manufacturing small and medium-sized enterprises (SMEs) from Germany

Small and medium-sized enterprises (SMEs) have an important position in global sustainability since they are a prominent contributor to global pollution. It is challenging for SMEs to assess their level of business sustainability and identify actions to diminish environmental impact. Sustainability assessment models have been developed for this purpose, but a process focus is missing. Green business process management (Green BPM) aims at reducing the negative environmental impact of organizations through business processes rather than only considering final products and services. Combining literature from business sustainability and Green BPM, our study conceptualizes a Green BPM maturity model and, through multiple case study research, uses it to assess the Green BPM practices of ten manufacturing SMEs. The results reveal the level of business sustainability of SMEs based on six Green BPM factors: green attitude, strategy, governance, modeling, monitoring, and optimization. We further identify relevant benefits, pressures, and barriers that can drive or hinder Green BPM practices. Based on the findings, we make recommendations on how SMEs can accelerate their transition towards higher levels of business sustainability.

Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach

Small and medium-sized enterprises (SMEs) are constantly under pressure to grow. This pressure forces everyone involved to think about how best to run their business. Although there is much research on SME growth, previous research is fragmented and only addresses internal or external enablers. This study aims to construct an interaction model for all enablers that promote sustainable SME growth. An interpretive structural modeling (ISM) analysis is conducted to formulate an interaction model of enablers for SME growth. The results show that both internal and external enablers are crucial for SME growth. This study shows that the following internal enablers that are interrelated and strongly influence SME growth are MS (managerial skills), EO (entrepreneurial orientation), and OwS (ownership structure). In addition, external enablers such as CIL (customer involvement and location) and GS (government support) also play an important role in improving the performance of other factors for SME growth. In addition, this study also provides a guide for formulating strategies for SME sustainability. Effective policy formulation must be based on a correct understanding of the interdependence between enablers as a unified model of interaction. The interaction between the enablers highlighted and the level of the model would be helpful to all shareholders in finding appropriate strategies for SME growth.

The Role of Entrepreneurial Thinking Mediated by Social Media on the Sustainability of Small and Medium-Sized Enterprises in Iran

This study lends new insights into the hitherto-unexplored relationship between entrepreneurial thinking and the sustainability of small and medium-sized enterprises (SMEs) in Iran, mediated by social media. The goal was to investigate the effect of entrepreneurial thinking, mediated by social media, on the sustainability of SMEs in Iran from January to February 2022. The statistical population comprised 407 SME managers based in the Pardis Technology Park and the Science and Technology Town (Iran). Using Cochran’s formula, a sample of 197 SME managers was selected via the simple random method. The data were collected using a 5-point Likert scale questionnaire with 25 questions, the reliability and validity of which had been examined and confirmed. The data were analyzed in SmartPLS 3. The results revealed that entrepreneurial thinking plays a pivotal role in managerial decisions and is a crucial factor in the sustainability of SMEs in Iran. Managers, as creators and reformers of the internal business environment, can establish and enhance a strong link between business sustainability and employees’ ability to acquire entrepreneurial thinking.

Investigating the relationship between government support and SMEs’ sustainability through financial and green lenses

PurposeTo be successful on a global scale, small- and medium-sized enterprises (SMEs) need government support (GS) for innovation, sustainability and creativity. GS has always been a constructive influence on enterprises. This paper aims to examine the role of GS in assessing financial literacy (FL), access to finance (AF) and green value co-creation (GVC) for the sustainability of SMEs.Design/methodology/approachThis study’s sample comprises SMEs in Lahore, Pakistan. Data collection started in December 2021 and ended in February 2022. Using convenient sampling, 320 responses were collected from SMEs and included in data analysis. Hypotheses were tested, and model fit was checked through the software AMOS 22.FindingsIt has been examined that GS plays a pivotal role in acquiring FL, AF and GVC for the sustainability of SMEs.Research limitations/implicationsIncreasing the sample size will give a more demonstrative picture as the population size is quite large. Future researchers should design causal relationships, linking these variables through longitudinal research.Originality/valueNo study has been conducted on SMEs of developing economies using these variables. This study contributes to the literature by providing a comprehensive model and identifying GSs importance in achieving SMEs’ sustainability through financial and green lenses. This research significantly impacts government policymakers and SMEs by giving them insight into the importance of green practices, financial capabilities and SMEs’ sustainability.

Gender diversity and financial and environmental performance in SMEs: A systematic literature review

Small and medium-sized enterprises (SMEs) represent the most widespread business model so their environmental impact cannot be overlooked. The topic of sustainability in SMEs, current and well-debated in literature, has been investigated from different perspectives. Some studies have looked at the benefits and barriers related to the adoption of sustainable production policies, others the relationship with corporate performance, and still others the drivers of sustainability. The latter studies find founders/chief executive officer’s (CEO) proactivity and sensitivity to environmental issues as important drivers of the business sustainable development process. However, limited are the studies that analyze the role and potential of the whole board of directors on SMEs’ not only financial but also sustainable performance. This study provides a systematic literature review (SLR) to understand the main strands of research that investigated the relationship between board diversity and financial and sustainable performance. The results show that several studies have found a relationship between board diversity and financial performance, while there are still limited studies that analyze the relationship between board diversity and sustainable performance. This study not only provides a valuable knowledge base for the academic community on what has been addressed on the topic to date but also provides important new research directions, stimulating scientific contributions that analyze diversity on Boards in its several forms (ethnicity, gender, age, culture, religion) to understand which of these most stimulates SME sustainability.

Https://revistaft.com.br/the-impact-of-fiscal-policies-and-incentives-on-sme-sustainability-and-financial-performance/

The studies reviewed underscore the significant impact of fiscal policies and government incentives on the sustainability and financial performance of small and medium-sized enterprises (SMEs). Tax deductions and targeted incentives play a crucial role in alleviating financial pressures, enabling better resource management, and fostering growth and competitiveness. The research by Picas et al. (2021) reveals how various fiscal incentives and government support influence the profitability of Portuguese SMEs, with findings indicating that while tax incentives positively affect profitability, some government incentives do not have substantial impacts. Bhalla, Kaur, and Sharma (2022) explore the effects of India’s Goods and Services Tax (GST) reform, demonstrating improvements in financial performance through reduced borrowing costs and better working capital flow. Wang, Shen, and Tang (2021) analyze China’s VAT reform, highlighting its role in enhancing firms’ financing capabilities by decreasing borrowing costs and promoting credit availability. Zhao, Li, and Li (2022) focus on the effects of environmental taxes on high-tech enterprises, finding that these taxes drive green innovation but have varied impacts depending on firm ownership type. Finally, Bartolacci, Caputo, and Soverchia (2019) provide a bibliometric analysis of research trends in SME sustainability and financial performance, identifying key research themes such as innovation, corporate social responsibility, and green management. Collectively, these studies emphasize the need for targeted fiscal policies and effective tax management to support sustainable business development. They offer valuable insights for policymakers and business leaders to craft strategies that enhance SME growth and innovation amidst financial challenges.

Re-structuring small and medium sized enterprises for better survival in the post-COVID-19 world

ABSTRACT The impact of COVID-19 on small- and medium-sized enterprises (SMEs) was globally felt as a result of sanctions on several economic sectors such as transportation, tourism, and business education. As a result, there was a reduced demand for goods and services to about 41.3 percent of the global businesses, while others were temporarily closed due to the pandemic. The main objective of this study was to explore the impact that COVID-19 had on entrepreneurship and the restructuring mechanisms by the SMEs in the post-COVID-19 pandemic world. The study established the restructuring and support mechanisms necessary for cushioning and sustaining the enterprises. The findings might be significant in informing the policymakers on the precise global economic situation resulting from COVID-19 and way forward measures for the sustainability of SMEs.

The Level of Sustainability and Digitalization of Small and Medium-sized Enterprises in Slovakia

The article focuses on small and medium-sized enterprises (SMEs), their barriers and successes, associated with the transition to a sustainable and digital economy before the COVID-19 pandemic. Emphasis is placed on comparing the level and identifying differences in the transition to digitalization and sustainability of SMEs in Slovakia with the Europe Union's (EU) average. The comparison of the level of SMEs in Slovakia and the EU average is focused on the barriers associated with the introduction of digitalization; approaches applied in the adoption of digital technologies; already applied types of digital technologies; measures taken in relation to environmental and social sustainability; the existence of a strategy to support becoming a sustainable business and barriers to sustainability. Based on the input data, which are drawn from a survey published by Flash Eurobarometer 486 (FL486), interesting findings and contrasts were reached between SMEs in Slovakia and the EU average.

Contemporary Management Practice Applying the Dynamic Absorptive Capacity Measurement Model (PM4AC) for Improved Business Sustainability

The Colombian industrial sector faces various problems, such as contributing to the development of business and innovation capacities to overcome the difficulties associated with poverty, low competitiveness and low complexity. A key challenge is to develop mechanisms that allow companies to adapt to a globalized competitive environment. In this regard, projects and their management represent an opportunity for greater flexibility. This work presents a model developed to quantify dynamic absorption, understood as the ability to identify the value of new external knowledge, absorb it as internal knowledge and apply it to serve business purposes. The measured indicator is adapted to a dynamic organization environment and provides a project with the ability to interact with and monitor variables. For modeling, variables observed across 148 small and medium-sized enterprises (SMEs), belonging to Colombian organizations, were collected using questionnaires and structural equation modeling (SEM) to determine analysis dimensions, and subsets of dynamic absorptive capacity as latent variables from this information. The dynamic absorptive capacity measurement model (PM4AC) describes a normalized fit index (NFI), comparative fit index (CFI) and RMSEA of 0.935, 0.986 and 0.042, correspondingly. The contribution of this model is designed to improve and make available a new framework of business sustainability leadership, using the PM4AC tool. Finally, the objective of this study is to provide a model developed to quantify the dynamic absorption capacity for SMES. Furthermore, as most of the research involves technology firms, we seek to better understand the business sustainability in SMEs.

A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) constitute an extremely large percentage of most nations’ businesses. These companies are also expressing growing concerns about sustainability and its strategic integration into operations. However, SMEs have been prevented from making investments in sustainability by the absence of a holistic view of this topic, an overemphasis on an economic perspective, and the consequent devaluation of environmental and social perspectives. In this context, greater importance needs to be given to investigating SME sustainability and building a transparent, holistic, and realistic business model. The present study combines cognitive mapping and the best worst method (BWM) to identify determinants of sustainable entrepreneurship in SMEs. These techniques were applied in two meetings with a panel of specialists with knowledge about and experience in this subject matter. The insights obtained during the two panel meetings allowed the proposed process-oriented approach to assist decision-makers in analyzing a sample of SMEs and selecting the ones that best match the following clusters of decision criteria: (1) entrepreneur profile; (2) firm internal characteristics; (3) economic factors; (4) other external factors; and (5) market. The results were validated by four representatives of the Portuguese Institute for Small and Medium-sized Enterprises and Innovation (Instituto de Apoio às Pequenas e Médias Empresas e à Inovação (IAPMEI) in Portuguese). The study’s contributions and limitations are also discussed.

Institutional Barriers and Facilitators of Sustainability for Indonesian Batik SMEs: A Policy Agenda

The implementation of sustainability-oriented practices in small- and medium-sized enterprises (SMEs) has been discussed frequently over the years. Recent studies on sustainability have focused mainly on links between ecological and economic sustainability. This exploratory study aims to explore institutional barriers and facilitators regarding the implementation of sustainability-oriented practices in the Indonesian batik industry and to provide policy recommendations. The Indonesian batik industry is well-known for its cultural heritage and for being part of the Indonesian identity. Batik products are mostly hand-crafted by women crafters. The study used in-depth insights from two focus groups conducted with entrepreneurs active in the batik industry, while also building on earlier empirical insights. The lack of customer knowledge and socio-cultural and regulatory factors were found to be barriers to sustainability in batik SMEs. Ecological, technological, socio-cultural, and political factors were found to facilitate achieving sustainability objectives. This study contributes to the sustainable entrepreneurship and women entrepreneurship literature by considering facilitators and barriers as they are experienced by batik entrepreneurs and by furthering the conceptualization of sustainable entrepreneurs as either “committed” or “followers”.

Sustainability in Small and Medium-Sized Enterprises: A Systematic Literature Review and Future Research Agenda

Main aim: This paper examines the main topics of research in the literature studying the topic of sustainability in small and medium-sized enterprises (SME), and aims at presenting a future research agenda. Method: We conducted a systematic literature review based on articles published between 2000 and 2020. From an initial set of 88 papers taken from WoS in the period under analysis, 42 papers were effectively analyzed. Main results: The results of an in-depth reading reveal four clusters representing the main topics of research in the field: sustainability and SMEs’ performance; green and environmental management issues; social and cultural issues and their impact on sustainability policies; values, skills, and capabilities. Key findings suggest that the following angles of research appear to be underexplored: theoretically grounded research; research using large samples; articles examining sustainability reporting; research looking into non-manufacturing sectors; work examining settings in developing countries; research undertaking international comparisons; articles exploring the complementarity between the literature on sustainability in SMEs and on family-owned businesses; and the influence of the social and cultural context on SMEs’ engagement with sustainability. Main contribution: This paper offers insights to academia, practitioners, and policy makers to help SMEs engaging with sustainability and may assist also the latter to develop strategies to improve SMEs’ social and environmental reporting. Given the current pandemic crisis, and the urgency for sustainable business practices, we expect to contribute to expanding knowledge in this field of research.

Corporate Social Responsibility of SMEs: Learning Orientation and Performance Outcomes

Responsibility and sustainability are today a key part of doing business globally. However, the attention of scholars and policymakers has mainly been on large multinational enterprises, with small and medium-sized enterprises (SMEs) receiving less attention. Recent studies have noted the importance of learning for SMEs to engage in corporate social responsibility (CSR), but it is not yet known how the learning orientation of SMEs impacts their CSR, and how the development impacts the internationalization and performance of SMEs, which are research gaps that recent studies have noted. Shedding light on those dynamics is also important from a practical perspective since in most countries SMEs constitute a large majority of firms in both amounts and total employment. The present study contributes by illustrating how CSR impacts different types of performance in SMEs, and how the learning orientation of SMEs predetermines their CSR. Regression analyses conducted on an empirical sample of Finnish SMEs indicate that CSR in SMEs has an impact on certain types of performance and that their learning orientation determines their CSR. Therefore, the study contributes to the literature on responsibility and sustainability in SMEs, and to that SME internationalization, by shedding light on the antecedents and outcomes of CSR for SMEs.

The impact of SMEs’ sustainability on competitiveness

PurposeRecently, researchers have shown an increased interest in sustainable development. Indeed, national and international governments call for urgent transformations into sustainable development, where firms are affected and affecting this situation. However, recent evidence has shown that small and medium-sized enterprises (SMEs) present low interest, commitment and maturation levels on sustainability; they seem to neglect and question the actual impact of transforming sustainability as a priority in their operations. Thus, this paper aims to measure the impact of sustainability on competitiveness in SMEs.Design/methodology/approachThis is empirical research on sustainability and competitiveness in SMEs with a quantitative approach through structural equation modeling. Three hundred twenty-five surveys were applied to SMEs’ manufacturing, construction, trade and services, operating in Mexico. Before measuring variables’ multiple correlations, tests were carried out to establish the validity and reliability of the model. The data collection, validation and analysis were carried out with statistical package for social sciences and analysis of moment structures.FindingsThe results indicate a significant positive effect of SMEs’ sustainability on competitiveness. The adjusted measurement model shows validity and reliability through the various tests applied. Thus, firms should not view sustainability as detrimental to their competitiveness.Originality/valueBecause firms are crucial in the urgent sustainability transformation, recent research has shown their low commitment and maturation to sustainability. This research’s originality empirically measures and demonstrates sustainability’s impact on SMEs’ competitiveness. Therefore, empirically testing this impact becomes essential and original to provide better insights into SMEs’ needs to be uncovered, prioritied and done in their specific and evolving contexts.

Financial Budgets of Technology-Based SMEs From the Perspective of Sustainability and Big Data.

In this contemporary world, the words data and sustainability play a crucial role in determining the financial budgets of small and medium-sized enterprises (SMEs). Usually, it is stated that the survival of small and medium-sized enterprises (SMEs) is directly proportional to the growth and sustainability factor of the nation. The economic sustainability of a nation is dependent on appropriate functioning of SMEs. Any kind of direct impact on the working of SMEs will have its impact on the whole economy of a nation. There are different factors such as lack of financial capacity, low market demands, restrictions with regard to the capital, and barriers in the supply chain that affect the sustainability of SMEs worldwide. Nevertheless, small, and medium sized enterprises around the world are greatly investing on skills, innovation, and other capital related resources to mark up the demands of the external market. The main objective of this study is to examine the financial budgets of technology-based SMEs from the perspective of sustainability and big data. For this, the study collects data through a questionnaire from 1,800 Small and Medium Sized Enterprises. Based on a detailed and careful examination of the data, only 1,400 of the responses received were considered valid (79.75%). To test the hypothesis stated, the study employs structural equation modeling. This will help the researcher to examine the direct effect of financial budget and technology adaption of SMEs from the perspective of sustainability and big data. Results of the study stated that SMEs sustainability and big data are directly and positively related to the financial budget planning of technology-based SMEs. The study also found that big data plays an important role in the businesses, specifically for their own growth.

A framework for the systematic implementation of Green-Lean and sustainability in SMEs

Evidence suggests that smaller organisations find the implementation of combined operations- and environmental Sustainability improvement initiatives such as Green-Lean and Sustainability (GLS) challenging. This paper, therefore, develops a framework for the systematic implementation of Green-Lean and Sustainability in small and medium-sized enterprises (SMEs) to achieve long-term improvement of environmental, social and economic processes and performance. A literature assessment of theories, frameworks, and concepts was employed in the study to better comprehend the difficulties confronting the modern business world. In addition, the research employed expert perspectives from the lean, green-lean, and sustainability fields to propose, develop, test, and validate a framework for addressing business concerns. The research uncovers considerable implementation problems, such as employee motivation and integration, responsibilities, and measurements. It also underlines the success factors for the implementation process, such as management, firm- goals and strategy, reviews and audits, vision, and guidance by lean, green and sustainability frameworks. The novelty in this research lies in the approach where Green-Lean and Sustainability are combined and applied in an SME context. The presented framework offers the potential to be implemented in SMEs that operate in different sectors and contexts and are affected by different environmental and social considerations.

Financial Literacy in Micro-Scale Enterprises Operating in Forest Products Sector

Enterprises are one of the main components of the economic system and they are indispensable for maintaining the sustainability of economic activities. The majority of these enterprises are small and medium-sized enterprises (SMEs). Sustainability of SMEs depends on their good financial management. Inadequate financial literacy causes SMEs’ owners to make inaccurate financial decisions. The forest products sector is mostly composed of micro-scale enterprises in which financial problems are common. Therefore, this study aims to reveal the financial literacy status of the owners of micro-scale and wood-processing enterprises. For this purpose, 78 enterprises were selected as study population. Data were collected by applying a structured questionnaire to 43 of these companies by the face-to-face interview method. The structured questionnaire consisted of multiple-choice and open-ended questions and statements prepared on the Five Likert scales. Data were analysed by using the Independent-Sample T-Test, Mann-Whitney U-Test and correlation test. The reliability coefficient of the data was found to be 0.791. Of the enterprises, 58 % produced in the furniture sub-sector and 42 % in the wood products sub-sector. This study provides evidence that there was no statistically significant difference between the knowledge means of economics and financial behaviour of the furniture and wood products sectors. However, the enterprise owners’ knowledge of financial analysis positively affected their financial literacy and financial behaviour.

Sustainability Drivers of Small and Medium Sized Firms: A Review and Research Agenda

While increasing awareness of issues such as raising energy prices, increasing customer concerns about the safety of products and services, and the reduction of carbon emissions influence firms, scarce studies focus on small and medium-sized enterprises (SME). This study seeks to systematically analyse the literature focused on sustainability of SMEs. Bibliometric analysis of 220 articles included in the WoS database (Clarivate Analytics) database and visualization with VOSviewer software let us reveal the cooccurrence of author keywords, bibliographic coupling sources and references, leading journals, and countries. The second step of the research is based on a systemic review of 25 articles with the purpose of reviewing empirical findings in the field of firm-level sustainability of SMEs. The analysis has led to thematic commonalities considering resources and capabilities, strategy, stakeholders, human capital, and innovations. The paper fills the literature gap on systematic analysis of SME and sustainability and develops recommendations on how to address prevailing research gaps.

FACTORS AFFECTING MANAGEMENT ACCOUNTING PRACTICES IN THAILAND: A STUDY ON SMES IN THE FOOD AND BEVERAGE INDUSTRY

Thailand is a primary tourist destination known for its culture and tradition, dazzling cityscapes, profound nature immersions, excellent beaches as well as food. The food and beverage industry in Thailand has seen growth in both manufacturing and export sectors in 2021 yet, small and medium-sized enterprises (SMEs) in this sector are facing immense pressure to compete and grow their businesses as they overcome the hurdles of the COVID-19 pandemic. Many large firms today in Thailand grew from SMEs, hence the sustainability and growth of SMEs may lie through the application of management accounting practices (MAPs). Based on the review of past literature, this study aimed to investigate the relationships of variables such as competitive strategy, total quality management, organization structure and just-in-time on MAPs of SMEs in the food and beverage industry of Thailand. Data was collected using online questionnaires from 145 respondents ranging from business owners, managers, and accountants from SMEs in Thailand. The results of this study found that competitive strategy and total quality management had significant positive relationships with MAPs in the Thailand SMEs food and beverage industry. The scientific novelty of this research is that both organizational structure and just-in-time were insignificant. The implications of the research findings of this study are discussed.