scholarly journals The innovation challenge in micro and small enterprises (MSE)

2019 ◽  
Vol 16 (3) ◽  
pp. 235-252 ◽  
Author(s):  
Davi França Berne ◽  
Roberto Coda ◽  
Patricia Krakauer ◽  
Denis Donaire
Keyword(s):  
Added Value ◽  
Small Enterprises ◽  
Small Companies ◽  
Content Type ◽  
Metropolitan Regions ◽  
Process Improvements ◽  
Theoretical Contribution ◽  
Technological Advances ◽  
Micro And Small Enterprises ◽  
Degree Of Innovation

Purpose This study aims to measure the degree of innovation of micro and small industrial companies in the West and Southwest metropolitan regions of the city of São Paulo, through a survey with 203 firms in the metallurgy sector. Design/methodology/approach The research had a quantitative and descriptive focus and used as methodology the validated and international approach known as Innovation Radar. Findings The degree of innovation in these micro and small companies is low; thus, the authors could not characterize them as systemic innovators. Most of them are little innovative, although some were classified as occasional innovators. The dimensions organization, processes, presence, supply chain and added value were the least developed. Research limitations/implications To carry out similar studies in other Brazilian regions, to compare results and draw new conclusions, or even check if the degree of innovation present in micro-firms of these regions would not be even lower; to monitor the evolution of companies through a longitudinal study, to detect improvements in the degree of innovation; and to conduct a qualitative research that can deepen questions on the results of our study, such as the reasons why this type of company does not adopt innovative practices, or even the real suitability of the Innovation Radar model for micro and small enterprises (MSEs). We observed that some dimensions proved to be too sophisticated for these companies, such as R&D investments and the adoption of technological advances. Practical implications The study shows that the degree of innovation measured by the Innovation Radar is a useful and initial measure to check an innovative attitude in micro and small companies. It can also drive the actions that should be prioritized to stimulate the culture of innovation in SME. However, it does not allow to answer why this type of organization does not adopt innovative practices as a management attitude. Regarding its contribution, the authors expect that the paper may bring an awareness of managers and owners of micro and small companies for the need to foster innovative practices that can help increase the competitiveness and survival of this type of organization. Social implications In Brazil, despite the fact that MSEs represent 98 per cent of the existing companies, and are mainly responsible for job creation, their leaders have a low concern for innovative practices. Originality/value The study contributes to identify the degree of innovation of these firms, which comprise a representative and strategic segment of the city’s economy, by checking to what extent an innovative attitude is effectively present in this sector. The theoretical contribution of this study regards the appropriateness of mechanisms or methodologies created to measure the degree of innovation in large organizations. Dimensions such as technological platform, brand, innovative ambience, degree of organization or systematization of processes, which are frequently considered for companies in general, and especially for large ones, are not sufficient or, instead, too sophisticated to allow an effective measurement of the degree of innovation in MSE. Thus, this study provides information for designing more effective ways to evaluate the degree of innovation that take into account MSE’s specificities, which can be considered innovation efforts, such as simple process improvements, professional development of teams, and actions to seize ideas and opportunities, among others.

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.

scholarly journals Measuring the Degree of Innovation in Retail and Services’ Micro and Small Enterprises

2017 ◽  
Vol 13 (9) ◽  
Author(s):  
Cícero Eduardo Walter ◽  
Cláudia Miranda Veloso ◽  
Paula Odete Fernandes ◽  
Humberto Ribeiro
Keyword(s):  
Small Enterprises ◽  
Micro And Small Enterprises ◽  
Degree Of Innovation

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.

The emergence of carbon accounting

2019 ◽  
Vol 11 (3) ◽  
pp. 505-522 ◽  
Author(s):  
Morgane Le Breton ◽  
Franck Aggeri
Keyword(s):  
Environmental Accounting ◽  
Carbon Accounting ◽  
Low Carbon ◽  
Small Companies ◽  
Public Authorities ◽  
Content Type ◽  
Strategy Of Development ◽  
Theoretical Contribution ◽  
The Social ◽  
Public Organisation

Purpose This paper forms part of the social and environmental accounting literature. The purpose of this paper is to study how the strategy of development and dissemination of a carbon accounting tool by a public organisation affects the actions of companies. Design/methodology/approach It is based on the Foucaldian concept of a strategic dispositif whose components and evolution over time will be analysed. The methodology will be based on a case study of ADEME, the French Environment and Energy Management Agency, through the preparation and dissemination of Bilan Carbone® – the French greenhouse gas accounting tool – between 2000 and 2017. Findings The results highlight the specific features of the dispositif formed by carbon accounting in France, namely, the integration of small companies, use of the tool to directly support actions and financial independence. Practical implications The theoretical contribution of this work consists in showing the benefits of the concept of a strategic dispositif to understand the action of companies in terms of the transition towards low-carbon strategies. Social implications Its empirical contribution lies in the emphasis placed on the specific role of public authorities in tackling climate change within the sphere of carbon accounting methodologies largely dominated by private organisations. Originality/value The theoretical contribution of this work consists in showing the benefits of the concept of a strategic dispositif to understand the action of companies in terms of the transition towards low-carbon strategies.

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.

The demand for qualified personnel: a case study on Northern Italy

2017 ◽  
Vol 7 (1) ◽  
pp. 51-69 ◽  
Author(s):  
Sonia Bertolini ◽  
Valentina Goglio
Keyword(s):  
College Graduates ◽  
School Administrators ◽  
Qualitative Interviews ◽  
Added Value ◽  
Working Relationships ◽  
Small Companies ◽  
Content Type ◽  
Long Run ◽  
Qualified Personnel

Purpose The purpose of this paper is to contribute to the debate on the employability of graduates from the standpoint of employers by presenting original empirical evidence from a case study on Piedmont, in Northwestern Italy. Design/methodology/approach The empirical material of this paper provides an encompassing view of the educational system and of the labor market, based on qualitative data collected from 98 qualitative interviews and two focus groups that involved employers, teachers, school administrators, and public service authorities. Findings Despite important differences between big and small companies, the findings show some common traits that influence decisions on hiring: interpersonal skills, reliability, and motivation to learn and adapt to change are highly valued; social networks play a central role in finding a job, with consequences in terms of equality of opportunities; firms tend to establish long working relationships with the new hirees (especially college graduates), considering them as investments whose potential will be fulfilled in the long run. Originality/value The focus on the aspect of the demand is the added value of this paper. In fact, while scholars have largely addressed the supply of human capital, the demand side has received little attention and little evidence is available on employers’ decision-making process in hiring new personnel. In addition, the Northwest of Italy is known for its good economic performance but also has some potential weaknesses due to a production system that is rather traditional. Although geographically delimited, the case study provides interesting insights on the employers’ demand, which can be generalized to other contexts. The findings of this work can also have significant applications in other European contexts with similar characteristics, particularly Southern European countries.

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 The importance of Marketing for Micro and Small Enterprises

2020 ◽  
pp. 28-40
Author(s):  
Vinícius Cardoso de Oliveira ◽  
Carla Viana Dendasck
Keyword(s):  
Small Business ◽  
Support Service ◽  
Digital Marketing ◽  
Small Enterprises ◽  
Small Companies ◽  
Basic Principles ◽  
Strategic Posture ◽  
Business Support ◽  
Micro And Small Enterprises

According to (Sebrae-Brazilian Micro and Small Business Support Service), in 2018, micro and small companies accounted for 52% of employment positions, and correspond to 99% of existing companies in Brazil. However, even with this representativeness 58% of these companies manage to exceed five years of existence. It is estimated that this high percentage of mortality of organizations is related to the lack of planning and adoption to the basic principles of administration. This article aims to conduct a reflection, using the methodology of bibliographic review, on the importance of marketing for these organizations, as well as the need for entrepreneurs to adopt a strategic posture through marketing possibilities, especially in relation to Digital Marketing, thus ensuring the sustainability of the organization.

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.

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