UK Small And Medium Enterprises Research Articles

Does energy efficiency of UK SMEs affect their access to finance?

To effectively mitigate climate change, a crucial focus area is enhancing energy efficiency in firms and industries. This objective becomes even more imperative in light of the recent escalation in energy prices caused by the Russo-Ukrainian war. Given the limited financial resources of Small and Medium Enterprises (SMEs), facilitating their access to finance becomes a potential avenue for reducing carbon emissions. Based on our knowledge, this is the first study that analyses the potential impact of energy efficiency on access to finance for SMEs in the UK. We consider a dataset of 2855 UK firms from 2015 to 2021 collected from the Longitudinal Small Business Survey. We find that energy efficient companies and firms that show energy saving behaviours are facing fewer credit constraints. These results are robust if we control for several company characteristics, including age, size, turnover, industry, location, and legal status.

Machine Learning Cybersecurity Adoption in Small and Medium Enterprises in Developed Countries

In many developed countries, the usage of artificial intelligence (AI) and machine learning (ML) has become important in paving the future path in how data is managed and secured in the small and medium enterprises (SMEs) sector. SMEs in these developed countries have created their own cyber regimes around AI and ML. This knowledge is tested daily in how these countries’ SMEs run their businesses and identify threats and attacks, based on the support structure of the individual country. Based on recent changes to the UK General Data Protection Regulation (GDPR), Brexit, and ISO standards requirements, machine learning cybersecurity (MLCS) adoption in the UK SME market has become prevalent and a good example to lean on, amongst other developed nations. Whilst MLCS has been successfully applied in many applications, including network intrusion detection systems (NIDs) worldwide, there is still a gap in the rate of adoption of MLCS techniques for UK SMEs. Other developed countries such as Spain and Australia also fall into this category, and similarities and differences to MLCS adoptions are discussed. Applications of how MLCS is applied within these SME industries are also explored. The paper investigates, using quantitative and qualitative methods, the challenges to adopting MLCS in the SME ecosystem, and how operations are managed to promote business growth. Much like security guards and policing in the real world, the virtual world is now calling on MLCS techniques to be embedded like secret service covert operations to protect data being distributed by the millions into cyberspace. This paper will use existing global research from multiple disciplines to identify gaps and opportunities for UK SME small business cyber security. This paper will also highlight barriers and reasons for low adoption rates of MLCS in SMEs and compare success stories of larger companies implementing MLCS. The methodology uses structured quantitative and qualitative survey questionnaires, distributed across an extensive participation pool directed to the SMEs’ management and technical and non-technical professionals using stratify methods. Based on the analysis and findings, this study reveals that from the primary data obtained, SMEs have the appropriate cybersecurity packages in place but are not fully aware of their potential. Secondary data collection was run in parallel to better understand how these barriers and challenges emerged, and why the rate of adoption of MLCS was very low. The paper draws the conclusion that help through government policies and processes coupled together with collaboration could minimize cyber threats in combatting hackers and malicious actors in trying to stay ahead of the game. These aspirations can be reached by ensuring that those involved have been well trained and understand the importance of communication when applying appropriate safety processes and procedures. This paper also highlights important funding gaps that could help raise cyber security awareness in the form of grants, subsidies, and financial assistance through various public sector policies and training. Lastly, SMEs’ lack of understanding of risks and impacts of cybercrime could lead to conflicting messages between cross-company IT and cybersecurity rules. Trying to find the right balance between this risk and impact, versus productivity impact and costs, could lead to UK SMES getting over these hurdles in this cyberspace in the quest for promoting the usage of MLCS. UK and Wales governments can use the research conducted in this paper to inform and adapt their policies to help UK SMEs become more secure from cyber-attacks and compare them to other developed countries also on the same future path.

Influence of organisational culture on pro-activeness, innovativeness and risk taking behaviour of SMEs

The business performance of small and medium enterprises (SMEs) is influenced by their entrepreneurial orientation (EO). EO involves different dimensions like proactive behaviour, innovation, and risk-taking behaviour. It is to be noted that organisational culture (OC) plays a prominent role in achieving improved business performance. This is because SMEs that emphasise on their internal and external business environment are likely to sustain their survival in the highly competitive environment. The impact of organisational culture on innovation, proactive, and risk-taking behaviour of SMEs in UK was assessed. A quantitative method was employed to gather and analyse the primary data obtained through survey questionnaire. The analysis revealed that organisational cultures like group, rational, and developmental culture impact the proactiveness, innovativeness, as well as risk-taking behaviour of SMEs. Also, a significant correlation was observed between group, developmental, and rational culture on innovativeness of SMEs. Thus, it is inferred that organisational culture tends to have influence on SMEs' proactiveness, innovativeness, and risk-taking behaviours.

The price of a disadvantaged location: Regional variation in the price and supply of short-term credit to SMEs in the UK

ABSTRACTAccess to inexpensive short-term credit from banks is vital for many small and medium enterprises (SMEs), which face liquidity problems because of an imbalance between cash outflows and receipt of outstanding payments. This article investigates the key determinants of short-term credit access and pricing for UK SMEs, disentangling between regional effects and firm-specific effects (that is, credit risk ratings). We use a large dataset of 30,183 responses to six waves of the SME Finance Monitor survey. While there are underlying differences at the firm level in risk behavior across regions, our key finding is that, faced with the same risk, banks do react fairly to funding applications in terms of access but not price at the regional level. We conclude that regional differences directly and indirectly affect the way banks allocate and price short-term credit. There is evidence of a peripheral region price penalty.

E-readiness in construction (ERiC): self-assessment framework for UK small and medium enterprise building services providers

ABSTRACTThe construction industry’s ability to innovate in order to improve its practices has been widely debated. As organisations in other sectors globally are addressing technology challenges, is the UK construction industry e-ready? Of particular concern is the plethora of small and medium enterprises (SME) that constitute over 80% of the UK construction industry. There are noticeable SME laggards in the uptake of new processes and technologies. This paper aims to assess the e-readiness levels of UK SME building services provider in order to leverage the advantages of technology opportunities in the future. The resultant self-assessment ERiC framework enables SMEs to quantify and measure e-readiness from an organisation, technical and process perspective.

Strategic roles of actors in emerging information communication technology (EICT) adoption in SMEs

PurposeThe purpose of this paper is to examine how small and medium enterprises (SMEs) are involved in emerging information and communication technology (EICT) adoption by concentrating on the adoption process and the role played by various actors in the process. Information and communication technology (ICT) adoption research, especially in SMEs, has moved from a simple adopters’ participation process to involving diverse actors that continually interact and influence the process. SMEs need to constantly interact with various human and non-human actors to keep up with the EICT adoption. However, this has proved difficult.Design/methodology/approachThis study adopted a qualitative method to examine the dynamic process of EICT adoption in service SMEs in the UK, and deployed both unstructured and semi-structured interviews in two separate rounds with 26 participants drawn from Crunch Online Database and Luton Business Directory. The participants include managers, customers, government agencies, SMEs consultants and information technology (IT) vendors, with the help of purposeful random sampling.FindingsThe study develops a framework informed by actor network theory (ANT) concepts and found that using ANT to examine the process of adoption helps to unveil the recursive nature of the process and the roles of actors which vary from one stage to another. The finding reveals that adoption of EICT is not straightforward; rather, it is evolutionary and dynamic, and small business managers’ play an important role in the process amidst other actors influence. The framework supports businesses of all types. Although ICT applications are influenced by diverse actors including IT experts, customers and vendors, the decision of SME managers regularly shape the values and beliefs of other actors if adequate information are conveyed by the numerous actors. Therefore, adoption of EICT is embraced faster by organizations, especially small businesses, if diverse actors are committed in conveying the right information to the key actors, thereby helping them to make adequate decision, and streamline their business processes.Research limitations/implicationsThis study is limited by its focus and other factors. Studying the opinions of small service UK SMEs limits the power of generalizing the identified causal relationships; therefore, extended measures are required on accounts of environmental, cultural, geographical and sectorial differences. While some errors seemed unavoidable when measures appear subjective and prone to common error biases, the study advised on recognizing the overriding influence of the roles at each stage of the adoption process to be proactive in committing resources.Originality/valueThis work is of value to practitioners and academics, as it provides further insight into ICT adoption framework by showing how the diverse actors guarantee EICT adoption in small service(s) businesses. This is relevant given that SMEs have limited knowledge of new ICT and understanding diverse actors and their roles in the adoption process would enhance their knowledge of the analysts in the context of new technology adoption and to cope with EICT continually amidst of the roles of actors in the adoption process. The framework serves as an analytical instrument in explaining ICT adoption process and its outcomes characterized by conflicting views.

The effect of matching on perceived export barriers and performance in an era of globalization discontents: Empirical evidence from UK SMEs

In this study we examine the effect of matching, a comprehensive networking concept, on the perceived export barriers and export performance of small exporting firms. We introduce matching as a moderating variable affecting the link of perceived internal/external export barriers to export performance. Using a sample of 106 UK-based exporting small and medium enterprises (SMEs), we find that matching alleviates the negative impact of perceived internal export barriers on export performance. Furthermore, the empirical results show that export experience and export commitment reduce managers' perceived internal and external export barriers. The study shows that matching, as a networking-tool at multiple levels, can help to overcome export barriers, thus providing a mechanism to offset challenges opened up through nationalistic policies.

Working Capital Management Practices of UK SMEs: The Role of Education and Experience

This paper reports the results of an investigation into the effect of education and work experience possessed by managers on the working capital management practices of Small and Medium Enterprises (SMEs) listed on the Alternative Investment Market (AIM), from the perspective of financial directors. The analyses are based on questionnaire distributed to 248 AIM listed SMEs. The paper employs the T-test, one-way ANOVA and post hoc test on responses from 72 managers of AIM listed SMEs. The results show that managers with the highest qualification and many years of work experience have the ability to confidently managing all aspects of WCM, and therefore have the best WCM practices. Specifically, the results indicate that managers possessing professional qualification are more competent and therefore able to manage all WCM components. Also, managers with 21 years or over of work experience have the best WCM practices.

Working Capital Management Practices of UK SMEs: The Role of Education and Experience

This paper reports the results of an investigation into the effect of education and work experience possessed by managers on the working capital management practices of Small and Medium Enterprises (SMEs) listed on the Alternative Investment Market (AIM), from the perspective of financial directors. The analyses are based on questionnaire distributed to 248 AIM listed SMEs. The paper employs the T-test, one-way ANOVA and post hoc test on responses from 72 managers of AIM listed SMEs. The results show that managers with the highest qualification and many years of work experience have the ability to confidently managing all aspects of WCM, and therefore have the best WCM practices. Specifically, the results indicate that managers possessing professional qualification are more competent and therefore able to manage all WCM components. Also, managers with 21 years or over of work experience have the best WCM practices.

Strong ties, Substantive Embeddedness and Innovation: Exploring Differences in the Innovative Performance of Small and Medium-sized Firms in UK Manufacturing

Recent work on small and medium enterprises (SMEs) and networks has emphasised the importance of external ties in enhancing firms' innovative performance. Drawing upon survey data from 360 SMEs, this paper explores differences in the strength of UK SMEs' collaborative ties—in a range of activities—with partner firms and industry institutions across five industrial sectors. In doing so, it asks whether differences in the degree of substantive embeddedness are related to innovative performance. The paper finds evidence that substantive embedded ties along the value chain appears to matter for SME innovators, while links with institutions are only significant in industry specific contexts. Copyright © 2011 John Wiley & Sons, Ltd.

The impact of e‐business on capital productivity

Purpose – The purpose of this paper is to provide evidence of the influence of different e‐business technologies on capital productivity (CP). Productivity measurement is a useful tool to gauge business performance. However, currently there is little empirical evidence to support the impact of e‐business technologies on productivity.Design/methodology/approach – In this paper, an empirical investigation of 132 small and medium enterprises (SMEs) in the UK telecommunication sector was carried out, using a hierarchical regression. In doing so, three different types of technologies that may be associated with e‐business (i.e. internet‐based applications, groupware applications, and collective systems) were considered.Findings – The main findings are that any improvement in CP is significantly influenced by groupware applications and collective systems. Therefore, the UK SMEs and other large companies might be over‐investing in the development of web sites to support their internet presence, while under‐inves...

Knowledge Management: Case Studies in SMEs and Evaluation of an Integrated Approach

To date, very few publications have been found that describe how small and medium enterprises (SMEs) are adopting knowledge management (KM). The same is true concerning attempts to develop a framework to help them implement it. To redress this, this paper presents the results of four case studies conducted in UK SMEs to examine their KM implementation effort. In addition, a new integrated framework developed by the authors was evaluated to determine its applicability in this business sector. The methodology employed to conduct the studies is described and each of the cases is then presented. The results are analysed and key lessons or findings gathered from the companies are highlighted. Comments received from the companies with respect to the integrated framework were positive and favourable. It is hoped that the information accrued from the case studies, together with the integrated framework, will help to pave the way for SMEs to accomplish KM.

Skills required in developing electronic commerce for small and medium enterprises: case based generalization approach

There has been a rapid growth in electronic commerce worldwide. However, the UK government and other governments had noted that electronic commerce uptake among Small and Medium Enterprises (SMEs) has been slow. In this paper we examine the skills and knowledge required for successful electronic commerce projects in the UK SME sector based upon detailed case studies in three SME organisations from the Northwest region of England over a two year period. B2C electronic commerce appears to involve a greater requirement for skills relating to website animation, website promotion, content management, and relevant legislation compared to B2B electronic commerce. Conversely, B2B electronic commerce potentially requires more detailed knowledge of electronic data interchange technologies compared to B2C electronic commerce.