Sustainable Business Development Research Articles

Mudharabah Linked Waqf: Inovasi Model Pembiayaan Berkelanjutan untuk UMKM

This study aims to formulate an innovative financing model and sustainable business assistance through the mudharabah linked waqf scheme. The method used is descriptive qualitative in the form of reviewing scientific journals, books, official news, reports and related regulations which are analyzed by content analysis. Mudharabah linked waqf is an innovation and integration of financing to Micro, Small, and Medium Enterprises (MSMEs) where the composition of the source of funds comes from commercial funds and cash waqf funds managed by Koperasi Syirkah Berkah Bersama (KSBB) through a collaboration with Indonesian Muslim Entrepreneurs Community (KPMI) chapter Surabaya. Funds will be channeled to low-risk MSME projects recommended by KPMI Surabaya with duration of fewer than six months. The surplus of cash waqf will be distributed to social, education, economy and da’wah activites in the form of sustainable business development and fiqh muamalah assistance by KPMI Surabaya and the rest distributed as an incentive to reduce murabahah margins for startups. Risk mitigation is carried out through collateral requirements, guarantor, incentive-compatible contract applications to determine cash flows and related parties in the project, as well as post-project financial audits. This model has implications for strengthening the roles of KSBB and KPMI Surabaya in encouraging literacy, inclusion, and innovation in deepening sustainable Islamic financial products, in order to strengthen the economy of ummah in the real sector. Keywords: MSMEs, KSBB, KPMI Surabaya, Mudharabah Linked Waqf, Sustainability

Peer-to-peer lending: Exploring borrowers’ motivations and expectations

ABSTRACT This article explores the motivations, expectations, and satisfaction of small businesses using peer-to-peer lending platforms in five different European countries. We address a gap in the recent literature, which examines platforms and investments through the lens of risk management but often neglects the perspective of entrepreneurs. Our findings indicate that borrowers are primarily motivated by the need for immediate and flexible financial solutions and by the desire to diversify their funding sources and reduce reliance on traditional banking channels. Notably, our research reveals a significant lack of awareness among borrowers regarding the specific financial instruments they use to raise debt. Although we explore variations across countries and firm characteristics, our results do not show any significant differences. Future research could further investigate these issues, with a particular emphasis on the financial literacy of entrepreneurs, which policymakers suggest is crucial for fostering the orderly and sustainable financial development of small businesses.

The Impact of Market Power on Capital Misallocation: A Total Factor Productivity Perspective

The proper allocation of corporate capital is critical to sustainable business development, and misallocation of resources can impede sustainable economic growth and competitive markets. This study investigates the relationship between market power and capital misallocation in Chinese A-share listed companies, with a novel focus on the mediating role of total factor productivity (TFP). Using a comprehensive dataset of 20,818 firm-year observations from 2009 to 2021, we employ linear regression analysis to elucidate the mechanisms through which market power influences capital allocation efficiency. The results reveal a significant positive correlation between market power and capital misallocation, with TFP partially mediating this relationship. Specifically, a one-unit increase in the market power index is associated with a 1.106 unit decrease in TFP, and a 0.028 unit increase in the capital misallocation, indicating potential threats to long-term sustainability. This effect is more pronounced in non-state-owned enterprises, firms located in eastern regions, and those without shareholdings in financial institutions. These results contribute to the literature on market structure and resource allocation by providing empirical evidence of the detrimental effects of market power on capital allocation efficiency, operating through the channel of reduced productivity. Our findings have important implications for policymakers and firm managers, suggesting the need for targeted antitrust measures, promotion of market competition, and strategies to enhance TFP. This research advances our understanding of the complex interplay between market power, productivity, and capital allocation in emerging economies, offering valuable insights for addressing market failures, improving allocative efficiency and actively promoting sustainable business and sustainable socio-economic development in the Chinese context.

Теоретичні підходи до розвитку логістичних систем в умовах нестабільності економічного середовища

It has been established that modern conditions of economic instability are characterized by rapid changes in demand, supply, and other business parameters, forcing enterprises to seek new solutions to ensure their competitiveness. The necessity of flexible logistics systems management has been proven, allowing for adaptation to new challenges, enhancing the effectiveness of management practices, and ensuring sustainable business development. Theoretical approaches to developing logistics systems play a crucial role in addressing these tasks, particularly by implementing innovative technologies such as artificial intelligence, the Internet of Things (IoT), blockchain, and automation. The development of logistics systems is characterized as a complex and multidimensional task that requires flexibility, innovation, and sustainability to overcome economic risks. A logistics system structure is presented, including the main objective, core idea, goals, functions, principles, and the primary aim within the context of international logistics systems. The main directions for decision-making in conditions of economic instability are discussed, including risk and uncertainty analysis, resource and asset diversification, cost reduction, process optimization, flexible planning, innovation, digitalization, and a focus on resilience. The proposed theoretical approaches to developing logistics systems as adaptive, innovative, risk-oriented, customer-focused, and cooperative− contribute to effective functioning and adaptation in a rapidly changing economic environment. It has been demonstrated that important directions for ensuring the sustainability and competitiveness of businesses include: firstly, the adaptability of logistics systems to unstable conditions, which entails their ability to respond quickly to changes in market situations, economic crises, fluctuations in demand, and other external factors; and secondly, the integration of innovative technologies into local processes (digital platforms for monitoring; the use of big data; automation and robotics). Keywords: adaptability, economic instability, efficiency, logistics system, development, management, enterprise.

The Moderating Role of Entrepreneurship Education at the Diploma Level: Predicting Entrepreneurial Intention

This research focuses on the entrepreneurial intentions of diploma students in Indonesia, drawing data from respondents from several selected universities in Indonesia. These intentions are encouraged by entrepreneurship education, which plays an important role in developing students’ entrepreneurial behaviour. In recent years, Indonesia has emphasized the integration of innovative entrepreneurial concepts into university curricula. Entrepreneurship education can also contribute to sustainable business development. In the context of mass entrepreneurship and innovation, entrepreneurship education is important for promoting the restructuring of economic and business models, increasing development momentum, and following an innovation-driven development path. It is used as a moderator in this research to examine its contribution to the relationship between the independent variables used, because previous research exploring its moderating role in higher education circles have not fully confirmed said relationship. This study used a quantitative approach, with a sample size of 582 students consisting of selected universities on the islands of Java and Sumatra, because they have an entrepreneurship curriculum with the largest number of students in Indonesia. This study used an online questionnaire as a data collection medium. Questionnaires were distributed and filled in by respondents from August 2022 to March 2023. The results of the study reveal interesting findings regarding the moderating role of entrepreneurship education in strengthening and weakening the relationship between predictors of entrepreneurial intention. This study then used the theory of planned behaviour to form a research model. Keywords: entrepreneurial education, entrepreneurial intention, theory of planned behavior

Implementasi Nilai-Nilai Syariah dalam Proses Produksi UMKM Tempe Kupas Kulit Mbah Anik di Kecamatan Medan Deli

This study discusses the implementation of Sharia values in the production process of the small-medium enterprise (SME) "Tempe Kupas Kulit Mbah Anik," a business established in 1978 on Jln. Mangaan 1 gg. Ali, owned by Siti Nurhayani with four employees. Sharia principles in business practices, such as honesty, cleanliness, and fairness, serve as essential foundations for managing a food-related business. This research aims to examine the application of Sharia values at every stage of production, from raw material selection and processing to product distribution. The study uses a qualitative approach, collecting data through interviews and direct observation. The findings reveal that Sharia values are consistently applied in the SME's production processes, particularly in the selection of halal, high-quality raw materials, maintaining cleanliness in production, and treating employees fairly. The implications of this study suggest that implementing Sharia principles in SMEs has the potential to enhance consumer trust and foster sustainable and ethical business development. This study is expected to inspire other SMEs to incorporate Sharia principles in their operational practices.

The impact of InsurTech on advancing sustainable specialty agricultural product insurance in China

The development of specialized agricultural product insurance is crucial for perfecting China’s agricultural insurance system and promoting rural revitalization. Currently, specialized agricultural product insurance in China faces numerous challenges in key areas such as rate determination, risk assessment, and loss adjustment, which have become bottlenecks restricting its sustainable development. This paper explores how insurance technology (InsurTech) can enhance the ecological system of specialized agricultural product insurance through technological innovation and overcome these industry pain points. It elaborates on how InsurTech can enhance farmers’ interactive experience and satisfaction, improve the management efficiency of insurance companies, strengthen government regulation, and promote the sustainable development of the insurance business. Moreover, this study deeply analyzes the practical barriers in implementing InsurTech and proposes corresponding strategies, including establishing innovative incentive mechanisms, improving relevant policies and regulations, building a multidimensional data platform to achieve data interoperability, and strengthening the construction of digital rural infrastructure to enhance farmers’ technological literacy, thereby advancing the sustainable development of InsurTech in specialized agricultural product insurance.

CONTABILIDADE DE CUSTOS: A GESTÃO DE CUSTOS NO DESENVOLVIMENTO DE MICRO E PEQUENAS EMPRESAS PRESTADORAS DE SERVIÇO DE LIMPEZA

This article examines the impact of Strategic Cost Management (SCM) on the sustainable development of micro and small businesses in the service sector, with a focus on cleaning companies. The research investigates how SCM can be a vital tool for these businesses, enabling strict control over operational costs, which drives their competitiveness and ensures their market survival. The methodology is based on a literature review, analyzing theoretical approaches and previous studies on the application of SCM in small businesses. The results suggest that adopting strategic SCM practices not only improves operational efficiency but also strengthens the financial health and resilience of these companies in the face of economic challenges.

Effective Internal Control Towards Business Sustainability of a Selected Company in Shenzhen, China

In the vibrant and innovative landscape of Shenzhen, China, a certain company has achieved long-term sustainable business development through a series of efficient and rigorous internal control mechanisms, thereby setting a benchmark within the industry. As a pioneer of China's reform and opening-up, Shenzhen's business environment is marked by intense competition and rapid change, which imposes high demands on a company's adaptability and flexibility. The internal controls of this company not only address financial and operational risk management but also delve into the shaping of corporate culture and the fulfillment of social responsibilities. By constructing a comprehensive risk management system, optimizing internal processes, and enhancing information communication, the company has not only weathered market uncertainties but also progressively established a solid brand trust and market competitiveness. The effective implementation of internal controls has enabled the company to pursue economic benefits while achieving harmonious development in environmental, social, and governance (ESG) aspects, forming a unique sustainable business model. This model not only helps the company maintain a leading position in the rapidly changing market but also provides valuable experience and reference for other enterprises.

How components of ESG performance impact corporate risk-taking?

Corporate risk-taking (CRT) is crucial for sustainable business development. The focus of this study is to examine the relationship between components of ESG performance (ESGP) and corporate risk-taking. We conduct an empirical analysis using CSI ESG score data of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2009 to 2022. The conclusions are as follows: (1) ESGP exerts a facilitating effect on CRT. Specifically, environmental performance inhibit CRT, whereas social responsibility and corporate governance performance enhance CRT. (2) The facilitating effect of ESGP on CRT is more pronounced at lower levels of equity concentration. (3) ESGP enhances CRT by increasing the level of innovation and institutional investor shareholding. The contribution of this study is to help firms change CRT by adjusting the components of ESGP.

Green leadership: Sustainability Accounting Catalyst towards Digital Business Development

This research was conducted with the aim of developing descriptively the concept of green leadership as a catalyst for sustainability accounting towards digital business development. This study uses a qualitative method, with a literature review design. The secondary data sources tested were only articles or journals indexed by Scopus Q1, Q2, Q3, Q4 and International Journals. This research was conducted because there is still a scarcity of research themes on green leadership and digital business economics, especially sustainability accounting in Indonesia. This research is a development of the concept of accounting economics, especially green leadership towards the sustainable development of digital business.

Accessibility of Sustainable Beef Cattle Business Development in Mattiro Bulu District, Pinrang Regency

Beef cattle business development in Alitta Village, Mattiro Bulu Sub-district, Pinrang District, has great potential but also faces a number of challenges. In this context, this study aimed to assess resource accessibility in smallholder beef cattle farming based on the quality of farmers' human resources. Through qualitative methods and literature studies, primary data were obtained from interviews with farmers and business actors, while secondary data were obtained from relevant agencies. The results show that farmer characteristics, such as age, education, experience and training intensity, affect access to financial, technological and physical resources for beef cattle enterprises. Technology integration and innovation, smart marketing, and sustainable environmental maintenance are key strategies in developing this business. By implementing these strategies, Alitta Village can become a model for sustainable beef cattle enterprise development in the surrounding area, providing sustainable economic, social and environmental benefits to the community and surrounding environment

Artikel Tentang Perencanaan dan Pengembangan Bisnis

The important process known as business planning and development allows an organization to establish the strategies, goals, and tactics necessary to grow and succeed in the long term. Businesses are faced with many complex challenges in the current era of globalization, ranging from intense competition to rapid market changes. Therefore, careful business planning is essential to anticipate changes and take advantage of emerging opportunities. In this abstract, business planning and development is very important in today's dynamic business environment. Internal and external environmental analysis, goal setting, strategy development, resource allocation, and implementation are the main steps in the business planning process, which will be discussed thoroughly. In addition, this abstract will show how leadership, innovation, and information technology help business planning and development well. Organizations can optimize performance, increase competitiveness, and better face challenges by emphasizing holistic and sustainable business planning and development. Understanding market, consumer and industry trends is important amidst global uncertainty. Therefore, this abstract emphasizes how important it is to monitor the business environment and be flexible when changing business planning strategies to adapt to changes.

Exploring AI-driven solutions for Libyan agriculture: Current applications and strategic pathways

This paper aims to investigate the usability of AI in the agriculture sector for Libyan business development. The study employs an online survey with an interview with an expert to gather insights from participants operating in the agriculture sector in Libya. The survey comprises a set of questions covering various aspects related to AI adoption in agriculture business development. The collected data helped to assess the current utilization of AI technologies, identify potential areas of improvement, and explore the perceptions and expectations regarding AI's future role in Libyan agriculture. The findings provide a valuable general insight into the current state of AI adoption in agriculture sector in Libya, highlighting both the progress made and the areas where further efforts are needed to fully leverage the potential of AI technologies for sustainable and efficient agricultural practices. The finding indicated that addressing challenges related to infrastructure, data availability, and capacity building will be crucial in realizing the full potential of AI in Libyan agriculture. Collaborative efforts between stakeholders and supportive policy frameworks are essential for successful AI integration and the transformation of agricultural practices in Libya. These results help to support policymakers, businesses, and stakeholders interested in leveraging AI to enhance agricultural practices and promote sustainable business development in Libya.

Peran Jaringan Sosial dalam Kewirausahaan di Banjarmasin: Tinjauan Sistematis terhadap Keterhubungan dan Dampaknya terhadap Kesuksesan Bisnis

This study presents a systematic literature review (SLR) to explore the role of social networks in entrepreneurship within the context of Banjarmasin. The research investigates how social connections affect business success, focusing on the influence of networking in developing sustainable ventures. By analyzing peer-reviewed articles published over the last decade, the study identifies key themes, including community support, collaboration, network strength, and access to resources, which act as significant drivers for business growth. Both formal and informal networks are found to play essential roles in enhancing entrepreneurial outcomes. The findings suggest that optimizing these social networks is crucial for achieving sustainable business development. This study offers practical insights for entrepreneurs and policymakers, aiming to provide strategies that leverage local social capital for improved business performance in Banjarmasin.

Network Integration as a Tool for Sustainable Business Development

Business enterprises are required to adopt new economic models and business strategies in line with global trends such as the green agenda, the shortening of innovation cycles, digitalization (networking platforms) and socio-economic security. The models of network integrations (clusters, industrial symbioses, innovation ecosystems, etc.) are developing faster than other business models. Networking allows businesses to synergetically, based on the principles of collaboration, trust and self-organization, increase intellectual, innovative, social, and environmental values, which leads to economic growth and sustainable development. Through networking integration, the business performance of all participants in multi-company projects can be improved, regardless of their size and activities. The purpose of this study is to develop a methodological framework for assessing the synergistic effect and the level of collaborative maturity of participants in network industrial integration. This paper provides a comprehensive analysis and evaluation of network business integration efficiency. The authors’ methodology is based on the AHP hierarchy method, expert evaluation and Harrington’s level of desirability. The methodology is validated on Russian industrial integrations: industrial cluster of Nizhny Novgorod region; pipeline valve manufacturing cluster; South Ural industrial cluster producing spare parts and assembly units for roadbuilding, construction and agricultural vehicles. The results show that the level of collaborative maturity of business partners and the synergies from network integration effect the sustainability of business development. Recommendations for businesses are provided to improve their network integration and collaborative maturity. Furthermore, the findings allow the authors to define directions for further research, considering the interests of the business community, regional authorities, and financial institutions, and provide a framework for researchers to investigate the link between industrial network integration and economic growth.

Microfinance as a tool for sustainable development of small and medium-sized businesses in Kyrgyzstan

The article explores the role of microfinance in the development of SMEs in Kyrgyzstan. The authors analyze the significance of this tool for the country's economy and offer practical recommendations for its use. The results of the study emphasize the importance of the potential of microfinance in the support and development of small and medium-sized businesses, contributing to the improvement of socio-economic indicators. At the same time, state support for the activities of SMEs, in particular ensuring access to financing, including microfinance, remains one of the most pressing problems of the Kyrgyz economy, requiring an integrated approach and careful attention from the authorities.

Financial Strategies for Sustainability: Examining the Circular Economy Perspective

Circular economy (CE) research has advanced significantly in recent years in areas like environmental science, engineering, and technology. Governance presents CE strategies as imperative and compelling, often linked to efforts to achieve sustainable business development. However, the financial quantification of a CE is still underexplored and heterogeneous, with multiple research streams exploring the financial dimension. The aims of this study are twofold: (i) to analyze the productivity of the scientific literature and the conceptual evolution of circularity as it relates to financial strategies; and (ii) to formulate future research directions addressing a CE in close connection with financial sustainability knowledge. Bilbiometrix R-package 2023.12.1 and VOSviewer version 1.6.20 were used to analyze a sample of 279 articles retrieved from WoS and Scopus using the PRISMA protocol. The analysis covered the period 2010–2023, with the diachronic thematic analysis revealing four key themes: (1) CE and green financial performance; (2) environmental impact of CE; (3) performance approach of CE and metrics; (4) CE and sustainable development. Building on previous knowledge, we developed an integrated and multidisciplinary framework of CE embedded in financial performance. Future research agenda shaped by the emerging themes and research gaps can support managers, shareholders, or governance in incorporating CE policies into operational activities and strengthening sustainable circularity knowledge.

Governance of Village-Owned Enterprises in Promoting Economic Growth

background: The governance of Village-Owned Enterprises (BUMDes) plays a critical role in fostering sustainable development in rural areas. Specific background: This research explores the governance practices of BUMDes Kerto Emas, emphasizing the principles of transparency, cooperation, participation, and inclusiveness. Knowledge gap: Previous studies have not sufficiently examined how sustainable practices are implemented within the operational framework of BUMDes, especially concerning product management and website functionality. Aims: This study aims to assess the current governance indicators applied in BUMDes Kerto Emas, particularly regarding sustainability and the integration of digital platforms. Results: The findings reveal that while BUMDes Kerto Emas has made significant strides in governance, challenges remain in achieving sustainability, particularly in the underutilization of digital platforms for product display. Novelty: This study introduces a new perspective by linking sustainable business development with the need for improved online presence in village-owned enterprises. Implications: The research suggests that enhancing product offerings and optimizing digital platforms are essential for achieving long-term sustainability, providing a framework for improving governance in similar rural enterprises. Highlights : Governance principles must focus on transparency and cooperation for sustainable BUMDes operations. Digital platforms play a crucial role in enhancing product visibility and sustainability. Continuous evaluation is needed to optimize governance for long-term sustainability. Keywords: Governance, BUMDes, Sustainability, Participation, Digitalization

Analysis of BUMDes Business Development Program Implementation for Village Prosperity

The general background implementation of village-owned enterprises (BUMDes) is essential for promoting village prosperity through sustainable business development. The specific background this study specifically examines the operational effectiveness of BUMDes Sinar Mitra Gemilang within a local context. The knowledge gap despite the establishment of various business units, limited research evaluates the implementation strategies and outcomes of BUMDes programs, particularly regarding the challenges encountered during execution. The aims the aim of this study is to analyze the implementation of the BUMDes business development program, focusing on the factors influencing its success and the obstacles that hinder optimal performance. The results findings reveal that communication between BUMDes and the community is inadequate, human resources lack quantity despite being qualified, and community participation requires improvement. Additionally, the organizational structure is ineffective due to insufficient human resources. The novelty this study contributes to existing literature by applying Edward III's policy implementation theory and utilizing qualitative methods to provide insights into the practical aspects of BUMDes operations. The implications the implications highlight the need for enhanced communication, increased community engagement, and a stronger organizational framework to improve the overall effectiveness of BUMDes programs, ultimately aiming to enhance community welfare and ensure business sustainability. Highlights: Communication improves program effectiveness. Resource quality and quantity affect operations. Local government support enhances community engagement. Keywords: BUMDes, Implementation, Community Participation, Organizational Structure, Communication