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.

scholarly journals Performance of Micro and Small Enterprises in the Philippine Setting

2019 ◽  
Vol 2 (1) ◽  
pp. p15
Author(s):  
Arnold Quinto Malaluan
Keyword(s):  
Business Owners ◽  
Small Enterprises ◽  
Weighted Mean ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
Extension Activity ◽  
Micro And Small Enterprises ◽  
Descriptive Method ◽  
Micro Enterprises

The study was conducted to assess the performance of micro and small enterprises in Lipa City, Philippines using Cash Conversion Cycle. It was conducted among 375 managers and business owners in the area. Descriptive method was to collect the data and test the null hypothesis. Frequency/percentage, weighted mean, and composite mean were used as statistical tools. Results reveal that majority of the respondents were micro enterprises with a 1-9 employees that have been operating for 1-3 years; that the cash conversion cycle and its comparison of responses to the performance of micro and small enterprises found to be effective; that the cash conversion cycle in terms of years of existence, business category and number of employees are effective; that the cash conversion cycle to the performance of micro and small enterprises in terms of cash to accounts payable, accounts payable to inventory, inventory to accounts receivable,  and accounts receivable to cash are effective; that the comparison between the cash conversion cycle to the performance of micro and small enterprises and effectiveness when grouped according to years of existence, business category and number of employees were significant. Thus, the proposed extension activity can be considered and implemented by the concerned agency.

Assessment of small businesses activities in Ukraine

2019 ◽  
pp. 40-47
Author(s):  
Igor Ponomarenko ◽  
Kateryna Volovnenko
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Government Agencies ◽  
Small Enterprises ◽  
The Subject ◽  
Business Entities ◽  
The Impact ◽  
Micro Enterprises

The subject of the research is a set of approaches to the statistical analysis ofthe activities of small business entities in Ukraine, including micro-enterprises. The purpose of writing this article is to study of the features of functioningof small business entities in Ukraine. Methodology. The research methodology isto use a system-structural and comparative analysis (to study the change in thenumber of small enterprises by major components); monographic (when studyingmethods of statistical analysis of small businesses); economic analysis (when assessing the impact of small business entities on socio-economic phenomena andprocesses in Ukraine). The scientific novelty consists to determine the features ofthe functioning of small businesses in Ukraine in modern conditions. The influenceof the activities of the main socio-economic and political indicators on the activities of small enterprises in recent periods of time has been identified. It has beenestablished that there is flexibility in the development of strategies by small businesses in conditions of significant competition, which makes it possible to quicklyrespond to changing situations in specific markets. Conclusions. The use of acomprehensive statistical analysis of small businesses functioning in Ukraine willallow government agencies to develop a set of measures to optimize the activitiesof these enterprises, which ultimately will positively affect the strengthening oftheir competitiveness and will contribute to the growth of the national economicsystem.

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.

scholarly journals Are international small business owners really that different?

2019 ◽  
Vol 27 (1) ◽  
pp. 92-117
Author(s):  
Sarah Gundlach ◽  
Andre Sammartino
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Owners ◽  
Small Business Owners ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Individual Traits ◽  
Tolerance For Ambiguity ◽  
The Impact ◽  
Do So

Purpose The purpose of this paper is to investigate the impact of individual traits and attributes on the entrepreneurial and internationalization actions of Australian businesswomen, many of whom run small businesses. Design/methodology/approach This study is exploratory and quantitative, based on a questionnaire survey of 323 Australian businesswomen. Drawing upon the extant literature on internationalization, gender and entrepreneurship, the study explores two micro-foundational relationships of interest – personality and capability assessment differences between female business owners and their employed counterparts, and the impact of such traits and assessments on their internationalization. A further question is explored in terms of any differentials in perceptions of barriers in internationalization. Findings The findings show key personality dimensions do not differ dramatically between Australian businesswomen working in their own businesses (i.e. entrepreneurs) or as employees in organizations, while there are surprisingly few differences between women who are engaged internationally and those yet to do so. When comparing the female entrepreneurs and employees, in particular, the findings around tolerance for ambiguity and management efficacy are notably counterintuitive. This leads to the development of testable propositions to refine the causal claims in this domain. Practical implications The study calls into question the distinctiveness of entrepreneurs and entrepreneurial endeavors, at least for female businesswomen. Originality/value By including entrepreneurs and employees, women who have engaged internationally and those that are yet to do so, the study avoids some of the potential self-selection and confirmation biases inherent in studies of only entrepreneurs or small business owners. The investigation of individual traits, attributes and experiences as micro-foundations for internationalization motivations challenges existing theories of small business expansion.

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.

Entrepreneurship in Africa – a classificatory framework and a research agenda

2015 ◽  
Vol 6 (2) ◽  
pp. 148-163 ◽  
Author(s):  
John Kuada
Keyword(s):  
Small Businesses ◽  
Research Agenda ◽  
Design Methodology ◽  
Poverty Reduction ◽  
Job Creation ◽  
Tax Revenue ◽  
Small Enterprises ◽  
Absolute Poverty ◽  
Content Type ◽  
Degree Of Innovation

Purpose – The purpose of this paper is to provide a classificatory framework for mapping out entrepreneurs and small businesses with growth potentials in Africa. Design/methodology/approach – The study undertakes a review of the existing development economics and entrepreneurship literature to determine the need for the framework and how to proceed in developing it. Findings – The literature review informs that although enterprise-led growth provides a greater promise for absolute poverty reduction, policymakers lack guidelines on how to identify those with highest potentials for job creation and tax revenue generation. Furthermore, African entrepreneurs can purposefully be classified in terms of their motives and degree of innovation. The classification produces a 2×2 matrix that maps out the growth capabilities of businesses found in a given country or community. Research limitations/implications – The framework provides researchers and policymakers with descriptive categories that can guide their strategies and decisions. Originality/value – Introducing innovation-imitation dimension into the classificatory framework extends and improves previous typologies of small enterprises available in the literature.

scholarly journals Individual creativity factor in proactive crisis management in micro and small enterprises

2021 ◽  
Vol 11 (1) ◽  
pp. 10-26
Author(s):  
Tugay Ulku ◽  
Cetin Bektas
Keyword(s):  
Regression Analysis ◽  
Crisis Management ◽  
Positive Relationship ◽  
Small Enterprises ◽  
Test Analysis ◽  
Jel Codes ◽  
Simple Regression Analysis ◽  
Micro And Small Enterprises ◽  
Simple Regression ◽  
Micro Enterprises

In crisis situations, the survival of businesses depends on the policies which they apply. Businesses that have been able to internalise the concept of crisis management and prepare an environment for their employees that can turn the crisis into an opportunity will be able to survive the crisis moments with the least damage. In this study, it is aimed to determine the effect of individual creativity factor on proactive crisis management, which is necessary for the success of crisis management. Within the scope of the study, the data were collected from 118 participants who were working in micro and small enterprises in Tokat province via questionnaire. t-Test, analysis of variance, correlation analysis and simple regression analysis were applied to obtained data. As a result of the analysis, it has been determined that individual creativity and proactive crisis management have a positive relationship (r = 0.505; Sig. = 0.000) and individual creativity positively effects proactive crisis management (R2 = 0.255; p = 0.000; ß Change = 0.16).   Keywords: Individual creativity, proactive crisis management, micro enterprises, small enterprises. Jel Codes: M1, M10, M19  

scholarly journals A evolução do grau de inovação de indústrias de transformação da região metropolitana do Recife

2015 ◽  
Vol 13 (3) ◽  
pp. 594
Author(s):  
Breno José Burgos Paredes ◽  
Guilherme Alves de Santana
Keyword(s):  
Small Businesses ◽  
Organizational Innovation ◽  
Local Development ◽  
Manufacturing Industries ◽  
Small Enterprises ◽  
Economic Activities ◽  
Industrial Setting ◽  
Need To Evaluate ◽  
Micro And Small Enterprises ◽  
Degree Of Innovation

Alguns fenômenos vêm influenciando de forma marcante as atividades econômicas do estado de Pernambuco, como a globalização e a recente alocação de grandes indústrias. Neste cenário, às Micro e Pequenas Empresas localizadas na região exercem papel fundamental no desenvolvimento local, devido sua representatividade no fomento à economia. Partindo da necessidade de avaliar o cenário inovativo industrial pernambucano, este estudo mensura a evolução do grau de inovação organizacional de indústrias de transformação localizadas em Recife/PE. Para tanto, aplicou-se o diagnóstico Radar da Inovação em 30 Empresas de Pequeno Porte do setor. Os resultados apontaram que o setor apresenta um comportamento inovador ocasional, obtendo um Grau Médio de Inovação (GMI) inferior a 3,0. Dimensões voltadas a relacionamento, processos e ambiência inovadora se destacaram de forma positiva por causa do número de inovações realizadas e da evolução do grau médio de inovação.Abstract: Some phenomena have influenced markedly the economic activities of the state of Pernambuco, as globalization and the recent allocation of large industries. In this scenario, the Micro and Small Enterprises located in the region play a key role in local development, because their representation in stimulating the economy. Starting from the need to evaluate the Pernambuco innovative industrial setting, this study measures the evolution of the degree of organizational innovation in manufacturing industries located in Recife / PE. To this end, we applied the Innovation Radar diagnosis in 30 Small Businesses of the sector. The results showed that the sector presents an innovative casual behavior, providing a Middle Degree of Innovation (GMI) below 3.0. Dimensions focused on relationships, processes and innovative ambience stood out positively because of the number of innovations made and the evolution of the average degree of innovation.Keywords: Innovation; Industrial innovation; Industry of Pernambuco; Innovation Radar. 

scholarly journals QUE SUCEDE SI ERES PARTE DE LAS MICRO Y PEQUEÑAS EMPRESAS MYPES DE SUCRE DURANTE EL COVID 19.

2021 ◽  
Vol 14 (23) ◽  
pp. 64
Author(s):  
Iván Marcelo Poveda Velasco
Keyword(s):  
Economic Crisis ◽  
Small Businesses ◽  
Technical Analysis ◽  
Small Enterprises ◽  
Survey Questionnaire ◽  
General Manager ◽  
National Policies ◽  
The Face ◽  
Micro And Small Enterprises ◽  
Technological Means

En Bolivia las micro y pequeñas empresas (MYPES) han resultado uno de los sectores productivos más afectados en por la crisis económica, que se ha visto agravada por las medidas de la emergencia sanitaria ante la pandemia COVID 19, según la consideración de representantes del sector como también por analistas.Para conocer el criterio de la Gerente General de CAINCO Chuquisaca Ing. Lucia Montalvo sobre la realidad de este sector y por su parte considerar lo que piensan los actores directos como son los propietarios de MYPES, consultando a 117 empresas, se ha trabajado con la guía de una entrevista y un cuestionario de encuesta respectivamente, realizando un análisis profesional y técnico de los resultados obtenidos.Las MYPES requieren de forma inmediata de un apoyo en base a políticas nacionales para financiamiento y créditos con bajos intereses y plazos no menores a 5 años.Requieren capacitar a su personal en medios tecnológicos, ventas a través de portales digitales y páginas WEB.Palabras clave: Micro y Pequeñas Empresas MYPES, CAINCO, financiamiento y crédito, tecnología. AbstractIn Bolivia, micro and small enterprises (MYPES) ​​have been one of the productive sectors most affected by the economic crisis, which has been aggravated by the measures of the health emergency in the face of the COVID 19 pandemic, according to the consideration of representatives of the sector as well as by analysts.In order to know the criteria of the General Manager of CAINCO Chuquisaca Ing. Lucia Montalvo on the reality of this sector and for his part to consider what the direct actors think such as the owners of MYPES, consulting 117 companies, we have worked with the guide of an interview and a survey questionnaire respectively, carrying out a professional and technical analysis of the results obtained.The MYPES immediately require support based on national policies for financing and credits with low interest and terms of no less than 5 years.They require training their staff in technological means, sales through digital portals and WEB pages.Keywords: Micro and Small Businesses MYPES, CAINCO, financing and credit, technology.

Sign in / Sign up

Export Citation Format

Share Document