Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miriam Borchardt ◽  
Charbel José Chiappetta Jabbour ◽  
José de Figueiredo Belém ◽  
Venkatesh Mani ◽  
Giancarlo Medeiros Pereira ◽  
...  
Keyword(s):  
Business Models ◽  
Raw Materials ◽  
Life Cycles ◽  
Small Enterprises ◽  
Base Of The Pyramid ◽  
Frugal Innovation ◽  
Content Type ◽  
Fashion Products ◽  
Poor Region ◽  
Micro And Small Enterprises

Purpose This study aims to examine the process of frugal innovation (FI) in micro- and small-enterprises (MSEs) at the base of the pyramid (BOP) through the analytical lens of business models. Design/methodology/approach A case study was conducted with 30 MSEs from three different industries in a very poor region in Brazil. Findings The findings indicate that, in cases where FI is intense and dynamic, the start of the FI process is based on the reinterpretation of fashion trends and influences from the business ecosystem while the consolidation of FI in MSEs occurs through the reconfiguration of resources. Additionally, this study shows that FI depends on conditions other than the production of frugal products for BOP consumers. Research limitations/implications This study points out that the presence of end-of-life non-BOP raw materials distributed by large distributors in the case of fashion products, along with the interaction between MSEs at the BOP and these distributors, trigger FI and are profitable for both. For non-fashion products with long life cycles, there is no demand for innovation. Originality/value This study addresses the research void present in the literature on FI by presenting the process of FI and the conditions that leverage or stagnate FI in MSEs at the BOP, as well as how business models are shaped by these conditions.

Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miriam Borchardt ◽  
Giancarlo Pereira ◽  
Alexandre Rodrigues Ferreira ◽  
Marcela Soares ◽  
Josiano Sousa ◽  
...  
Keyword(s):  
Middle Class ◽  
Low Income ◽  
Dynamic Capabilities ◽  
Disruptive Innovation ◽  
Target Market ◽  
Small Enterprises ◽  
Base Of The Pyramid ◽  
Frugal Innovation ◽  
Content Type ◽  
Micro And Small Enterprises

Purpose This paper aims to analyse the factors that influence frugal innovation (FI) in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input–process–output (I-P-O) framework was used as a tool to support the analysis of FI as a process. Design/methodology/approach A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry. Findings This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented. Originality/value The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

scholarly journals The Roles of Micro and Small Enterprises in Empowering Women: The Case of Jimma Town, Ethiopia

2019 ◽  
Vol 6 (2) ◽  
pp. 139
Author(s):  
Bizuayehu Daba Feyisa ◽  
Kaleb Amanu Tamene
Keyword(s):  
Women Entrepreneurs ◽  
Raw Materials ◽  
Data Gathering ◽  
Sampling Technique ◽  
Research Approach ◽  
Small Enterprises ◽  
Electric Power Supply ◽  
Self Confidence ◽  
Micro And Small Enterprises ◽  
Jimma Town

The main aim of this study was to assess the roles of Micro and Small Enterprises in Empowering Women in Jimma Town. In this study, the researchers employed purely qualitative research approach. Purposive sampling technique was employed as appropriate sampling technique to select research participants. In addition to this, the researchers also used data gathering tools such as in-depth interview and non-participant observations. The study found out that Micro and Small enterprises in Jimma Town have played significant roles in empowering some women entrepreneurs economically and socially by improving their livelihoods, enhancing their self-confidence, decision making capacity, financial autonomy, freedom of mobility and also boosting their social-interactions. The study also found out that women entrepreneurs have been facing serious challenges against their business such as lack of appropriate working and selling places, market linkages, loan, and shortages of raw materials and frequent interruptions of electric power supply. So, the researchers recommended that all concerned government institutions shall try their level best to address such problems to advance women’s empowerment through micro and small enterprises to the best level.

scholarly journals The Development of Digital in the Covid-19 Pandemic

2021 ◽  
Author(s):  
Maria Digna R. Nahak
Keyword(s):  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Asian Development Bank ◽  
Small Enterprises ◽  
Domestic Economy ◽  
Development Bank ◽  
Micro And Small Enterprises ◽  
Medium Enterprises ◽  
Almost All ◽  
The Impact

The global Covid-19 pandemic that has plagued all countries of the world has affect all sectors of people's lives. In Indonesia, almost all sectors experience impacts, especially the economic ecosystem which has been become the focus of society. Furthermore, the Covid-19 pandemic has made the slowdown in the economic sector in Indonesia with its various derivatives. The Micro, Small and Medium Enterprises (MSME) sector which is part of the most important sector of the economy is very important feel. This is what worried by all parties, because it has made the MSME sector experienced a significant decline. Moreover, currently many MSMEs are experiencing various problems such as: decrease in sales, capital, hampered distribution, difficulty in raw materials, decreased production and the occurrence of many layoffs for workers and hunting which later became a threat to the national economy. MSMEs as a driver of the domestic economy and a middle labor absorber face a decline in productivity which results in a decrease in profits significant. Even based on the related Asian Development Bank (ADB) survey, the impact of the pandemic on MSMEs in Indonesia, 88% of micro businesses run out of cash or savings, and more than 60% of these micro and small enterprises have reduced their workforce work.

Influence of participation in “table banking” on the size of women-owned micro and small enterprises in Kenya

2015 ◽  
Vol 9 (4) ◽  
pp. 315-326 ◽  
Author(s):  
Castro Ngumbu Gichuki ◽  
Milcah Mulu Mutuku ◽  
Lydia Nkatha Kinuthia
Keyword(s):  
Data Collection ◽  
Women Entrepreneurs ◽  
Design Methodology ◽  
Secondary Level ◽  
Small Enterprises ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Growth ◽  
Micro And Small Enterprises

Purpose – The purpose of this study is to investigate the inability to access affordable credit in Kenya which hinders many women entrepreneurs from either starting their own or expanding existing enterprises and capital base. The emergence of table banking groups attempts to fill the existing credit gap. Design/methodology/approach – A cross-sectional survey involving 225 randomly selected women entrepreneurs who participate in table banking groups within Nakuru Municipality was conducted. Data collection comprised a questionnaire whose reliability coefficient was 0.83 at 0.05 confidence level. Findings – Results indicated that a majority women entrepreneurs aged between 20 and 60 years with 71 per cent of them married. Further, 44 per cent had attained secondary-level education, while no illiterate entrepreneurs participated in the study. A positive increase in the number of employees, after members participated in table banking groups, was realized. Credit received from table banking influenced changes in the size of enterprises. Originality/value – The study shows that availability, affordability and accessibility of credit from table banking groups led to positive growth of women-owned enterprises.

scholarly journals A relational view of horizontal collaboration among micro and small enterprises: a study of the brewery sector in Wales

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Lotfi ◽  
Maneesh Kumar ◽  
Vasco Sanchez Rodrigues ◽  
Mohamed Naim ◽  
Irina Harris
Keyword(s):  
Focus Groups ◽  
Relational Theory ◽  
Small Enterprises ◽  
Small Companies ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Informal Governance ◽  
Content Type ◽  
Micro And Small Enterprises ◽  
Horizontal Collaboration

PurposeThis study aims to explore how horizontal collaboration can help small and micro enterprises within the drink sector through the relational theory lens.Design/methodology/approachThe use of qualitative research methods, including focus groups and interviews, facilitated understanding the horizontal collaboration in micro and small companies within the Welsh brewery industry. Data collection involved conducting three focus groups and 13 interviews within the Welsh brewery sector in the UK. The collaboration phenomena were explained using the three elements of relational theory: relational rents, relational capitals and relational governance.FindingsMicro and small enterprises in the drink sector use collaborative initiatives in building new capabilities to generate relational rents. In addition, relational capitals and relational governance mechanisms were identified to support the horizontal collaboration among these enterprises.Research limitations/implicationsThe focus is on only one part of the drinks industry, i.e. the brewery industry; therefore, this study could be extended to other industries within the drink sector or across manufacturing industries.Practical implicationsThe micro and small enterprises can collaborate to achieve relational rent, but this collaboration requires strong relational capitals, such as trust. These partners need to change informal governance mechanisms that already exist towards more contractual formal mechanisms.Originality/valuePrior research has largely focused on vertical collaboration, with limited studies using the relational theory lens to explicate horizontal collaboration phenomena and no previous research in the context of micro and small companies. Relational rents, relational capitals and relational governance mechanisms are studied to provide insights into an effective collaboration in this context.

Financing needs of micro-enterprises along their evolution

2020 ◽  
Vol 36 (2) ◽  
pp. 263-284
Author(s):  
Ruslan Prijadi ◽  
Permata Wulandari ◽  
Putri Mega Desiana ◽  
Fajar Ayu Pinagara ◽  
Maya Novita
Keyword(s):  
Small Businesses ◽  
Development Stage ◽  
Business Owners ◽  
Capital City ◽  
Small Enterprises ◽  
Formal Institutions ◽  
Content Type ◽  
Structural Problems ◽  
Micro And Small Enterprises ◽  
Micro Enterprises

Purpose The purpose of this paper aims to investigate micro enterprises financing in Indonesia and examines how this financing differs, depending on the enterprise’s development stage. This research also identifies some structural problems related to micro-financing and provides workable solutions. Design/methodology/approach This research uses the entrepreneurial network model of Schutjens and Stam (2003) to examine how Indonesian micro and small enterprises (MSEs) evolve even before they become regular small businesses. Content analysis is used on 10 micro-enterprises from Jakarta, the capital city of Indonesia and its surroundings. Financing issues at each stage of enterprise development are identified and deeply examined. Findings This research not only confirms the significant financing problems micro-enterprises face but also clarifies that these problems are unique to each stage of the MSEs’ development. One insight is that most micro-enterprises do not use funding from formal institutions. That is, business owners rely more on funding from non-formal institutions. This is because these enterprises’ managers generally cannot prepare loans application and/or they are lack of knowledge/training on financing matters. They hesitate to borrow from formal financial institutions, as the rates are high but the processing time is longer than those of the loan sharks. Originality/value This research contributes to the field of entrepreneurial finance by identifying the structural problems inherent in micro-finance and providing workable solutions for overcoming these problems.

Management accounting use in micro and small enterprises

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tonatiuh Najera Ruiz ◽  
Pablo Collazzo
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Management Accounting ◽  
Traditional Approach ◽  
Relative Weight ◽  
Small Enterprises ◽  
Exploratory Research ◽  
Content Type ◽  
Relevant Implication ◽  
Micro And Small Enterprises

Purpose The purpose of this paper is to explore if and how micro and small firms apply management accounting (MA) techniques. Design/methodology/approach The study is based on 36 semistructured interviews with micro and small firm owners/managers in Mexico. Content analysis is used to identify how these enterprises use MA tools. Findings Micro and small firms consistently use MA tools. Most of them have some sort of planning, set objectives, have a costing system – even if budgeting is unusual – and use one or two metrics to monitor performance. Research limitations/implications This is exploratory research with a limited and nonrandom sample. Only a limited number of MA tools were studied. Practical implications Micro and small firms’ use of MA tools. This is arguably important because these enterprises use these techniques in a way that is different from the traditional approach used in bigger corporations. A relevant implication emerging from the findings, as a contribution to practice would be the need to include MA for micro and small businesses in formal training and textbooks. Originality/value On top of providing and assessing empirical evidence on a debate that has been so far largely theoretical, and on the back of the relative weight of micro and small enterprises in any given economy, this paper aims at reinforcing awareness on the need to further the study of the decision-making process in such firms.

Impact of public intervention on micro and small enterprises performance in Ethiopia

2018 ◽  
Vol 13 (5) ◽  
pp. 1108-1131 ◽  
Author(s):  
Manex Bule Yonis ◽  
Tassew Woldehanna ◽  
Wolday Amha
Keyword(s):  
Support Programs ◽  
Outcome Analysis ◽  
Small Enterprises ◽  
Business Practices ◽  
Public Intervention ◽  
Content Type ◽  
The Public ◽  
Micro And Small Enterprises ◽  
The Impact ◽  
Non Parametric

Purpose The effectiveness of any government interventions to support small firms is always a concern in achieving improvements in enterprise performances. The purpose of this paper is to evaluate thoroughly the impact of micro and small enterprises’ (MSEs’) support programs on core intermediate and final outcomes of interest. Design/methodology/approach The impact evaluation employs a non-parametric matching procedure for parametric outcome analysis using the propensity score matching (PSM) method. Aiming at a doubly robust evaluation process, the study applies parametric analyses than non-parametric permutation-based tests to investigate the causal effects of the public intervention. Findings The study reveals that the public intervention encouraged MSEs to develop innovative business practices and improve their human capital development process. Moreover, the intervention had a positive effect in expanding employment opportunities in urban areas. Contrariwise, the study shows that support beneficiaries are not at an advantage in investment intensity. The lower level of investment intensity on fixed capital resulted inefficiency among the recipients. Moreover, the intervention did not have an effect on changing the net-asset over time for the recipients. Practical implications This study implies that the support programs need to be dynamic and also targets on creating innovative high-growth MSEs. Originality/value This paper is fairly original and provides policy makers and MSE promoters/facilitators evidence-based information on the effectiveness of the support services, with looking at firm-level analysis.

When one business model is not enough for a social business

2017 ◽  
Vol 33 (1) ◽  
pp. 10-12 ◽  
Author(s):  
Heiko Gebauer ◽  
Caroline Saul ◽  
Mirella Halidmann ◽  
Sasha Kramer
Keyword(s):  
Business Model ◽  
Business Models ◽  
Costs And Benefits ◽  
Engaged Scholarship ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Key Factor ◽  
Basic Sanitation ◽  
Practical Implications

Purpose This paper aims to illustrate how managing multiple business models can become a key factor for succeeding in base-of-the-pyramid markets. Design/methodology/approach Case study was conducted through an engaged scholarship approach. Findings The authors highlight that companies can manage multiple business models, if they are following these three steps: recognition of costs-and-benefits, improvement and growth and creation of synergies. Practical implications The study provides guidance on how to manage multiple business models. Social implications This paper discusses Sustainable Organic Integrated Livelihoods, a social enterprise, which provides basic sanitation in bade-of-the-pyramid markets. Originality/value Operating more than one business model could cause often strategic failures. Sustainable Organic Integrated Livelihoods explored the advantages of having multiple business models in following three steps: recognition of costs-and-benefits, improvement and growth and creation of synergies.

Environmental management training for micro and small enterprises: the missing link?

2017 ◽  
Vol 24 (2) ◽  
pp. 297-312 ◽  
Author(s):  
Sue Cassells ◽  
Kate V. Lewis
Keyword(s):  
Environmental Management ◽  
Small Firms ◽  
Manufacturing Sector ◽  
Personal Responsibility ◽  
Management Training ◽  
Small Enterprises ◽  
Content Type ◽  
Exposure Effect ◽  
Parametric Testing ◽  
Micro And Small Enterprises

Purpose Micro and small enterprises face growing expectations from stakeholders to behave responsibly in respect of environmental management. However, many continue to exhibit patterns of relative disengagement with both environmental management and associated training. The purpose of this paper is to explore the attitudes and experiences that underpin both. Design/methodology/approach The paper is based on survey data from 148 owner-managers of micro and small firms in New Zealand’s manufacturing sector. Binary logit regression and non-parametric testing were employed to examine influences on engagement with both environmental management and environmental training. Findings There is a lack of knowledge of, and participation in, training related to environmental management. Awareness tends to be from firms already engaged in training; signalling a potential circularity of exposure effect. A distinct division in attitude exists between those who identify with personal responsibility and autonomy as the pathway to responsibility in respect of their firm’s environmental impact and those who cede to the collective actions of other communities to dictate engagement (i.e. industry associations and government). Research limitations/implications The survey is based on the perceptions of the respondents to the survey statements and as such it is a self-assessment. Originality/value The paper is one of few that investigate the challenge of securing engagement with training and development in environmental management by micro and small enterprises in the New Zealand context.

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