Trust, but verify: fraud in small businesses

2015 ◽  
Vol 22 (1) ◽  
pp. 4-20 ◽  
Author(s):  
Bonita Kramer
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
Critical Issue ◽  
Business Owners ◽  
Financial Statement ◽  
Small Business Owners ◽  
Certified Public Accountants ◽  
Content Type ◽  
Preventative Measures ◽  
Practical Implications

Purpose – The purpose of this paper is to raise awareness about internal fraud in small businesses among small business owners, managers, and consultants. Design/methodology/approach – Recent statistics from international fraud surveys are presented, and the theory of why people commit fraud is described. The most common internal fraud schemes as identified in the international fraud surveys are explained, as well as some of the related red flags and preventative measures. Examples of actual internal frauds perpetrated in small businesses are discussed. Findings – This paper summarizes pertinent facts that repeatedly show small businesses are most vulnerable to fraud and suffer a disproportionate median loss when compared to larger businesses. External audits by Certified Public Accountants cannot be relied upon to detect fraud. Owners, managers, and advisors are strongly encouraged to have knowledge of how fraud can affect their organizations in order to prevent or detect fraud and avoid the devastating effect it can have on the small business’s viability. Practical implications – Fraud knowledge can help owners, managers, and advisors prevent small businesses from falling victim to fraud. Originality/value – This paper addresses a critical issue to small businesses, but has so far been largely neglected in the literature. While large financial statement frauds receive widespread publicity, they are relatively uncommon compared to asset misappropriation fraud schemes suffered by small businesses.

An investigation into independent small business owners’ perception of franchisee relationships

2015 ◽  
Vol 43 (8) ◽  
pp. 693-711 ◽  
Author(s):  
Rozenn Perrigot ◽  
Dildar Hussain ◽  
Josef Windsperger
Keyword(s):  
Small Business ◽  
Design Methodology ◽  
Business Owners ◽  
Qualitative Approach ◽  
Small Business Owners ◽  
Content Type ◽  
Business Sectors ◽  
Depth Interviews ◽  
Practical Implications

Purpose – The purpose of this paper is to explore independent small business owners’ perceptions of franchisees relationships with their franchisors, their fellow franchisees within the chain, their employees and their customers. Design/methodology/approach – The authors use a qualitative approach and, more specifically, 26 in-depth interviews conducted with independent small business owners from various business sectors. Findings – These independent small business owners perceive that franchisees have a dependency-based relationship with their franchisors; a competition-based relationship with their fellow franchisees; a rather complicated relationship with their employees; and a superficial relationship with their customers. Research limitations/implications – This study contributes to the franchising literature by presenting an outside-chain view of franchisees’ relationships with their franchisors, other franchisees, employees and customers. Practical implications – The findings may have practical implications for franchisors, enabling them to better understand the concerns of independent small business owners as potential franchisee candidates. Originality/value – The outside-chain view of franchisees’ relationships is innovative.

Developing organizations: a system of enquiry, action and learning

2017 ◽  
Vol 31 (1) ◽  
pp. 12-14
Author(s):  
Wayne Graham
Keyword(s):  
Health Services ◽  
Small Business ◽  
Organizational Development ◽  
Design Methodology ◽  
Action Learning ◽  
Organizational Outcomes ◽  
Business Owners ◽  
Content Type ◽  
Business Practitioners ◽  
Practical Implications

Purpose This paper aims to demonstrate the applicability of an action learning model to improve organizational outcomes. Design/methodology/approach This paper extends previous work by applying the system of enquiry, action and learning (SEAL) model using an action research methodology to a small business operating in the health services industry. Findings The SEAL model is a useful approach to introduce small business practitioners to the principles of organizational development (OD). Research limitations/implications The application is limited to one small business, and subsequent studies could apply the model to more organizations that operate in industries other than health services. Practical implications Business owners from this study and previous studies have found the model to be useful in the improvement of organizational outcomes. Originality/value The SEAL model is a simplified model that introduces principles of OD and has provided value to the business owners of this study.

SMEs and adoption of innovative technologies

2020 ◽  
Vol 36 (10) ◽  
pp. 25-28
Keyword(s):  
Risk Management ◽  
Small Businesses ◽  
Management Strategy ◽  
Design Methodology ◽  
Reading Time ◽  
Technological Innovations ◽  
Risk Management Strategy ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Exploiting new technological innovations can help increase the competitiveness of small businesses. But considerable risks are often involved in adopting such technologies. Knowledge risks are especially significant and it is imperative that firms become cognizant of such risks so that appropriate countermeasures can be devised and implemented as part of an effective risk management strategy. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. 

Satisfaction level and competitiveness in subsistence small businesses

2018 ◽  
Vol 56 (5) ◽  
pp. 1108-1121 ◽  
Author(s):  
Carlos M. Jardón
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
Principal Component ◽  
Competitive Advantages ◽  
Satisfaction Level ◽  
Content Type ◽  
Wood Processing ◽  
Maximum Benefit ◽  
Manova Analysis ◽  
Practical Implications

Purpose Subsistence small businesses (SSBs) do not seek the maximum benefit; they only seek a benefit that enough satisfies their basic needs. In consequence, a dual behaviour of companies is expected and possibly the competitiveness of these companies is different. The purpose of this paper is to study the dual behaviour of SSBs and the differences about their competitive advantages. Design/methodology/approach Data were obtained by conducting surveys with owners and managers of wood processing companies located in a region of Misiones (Argentina). The results were checked by interviews in 2012 and 2015. The research uses principal component analysis and K-means to classify the different behaviour and MANOVA analysis to study the relationships. Findings The findings suggest two types of SSBs and show that competitive advantages are different into two groups of companies. Research limitations/implications The data used refer to a certain period of time, with interviews in next periods. Sample is in a particular region and sector and generalisations should be done carefully. The variables are measured with subjective questions. Practical implications The findings suggest instruments to change the strategy of unsatisfied SSBs to grow. Social implications The growth of SSBs is very important in poorest areas. The paper suggest governments’ politics that facilitate a stable environment for improving competitiveness of SSBs. Originality/value SSBs are very important in developing countries, but they are not sufficiently studied. The research shows the importance of satisfying principle in the competitiveness of subsistence entrepreneurs.

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.

An interview with Romira Young: opportunities and challenges for local small business owners in the tourism and hospitality industries in time of disasters

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anita Bledsoe-Gardner
Keyword(s):  
Small Businesses ◽  
Structured Interview ◽  
International Markets ◽  
Business Owners ◽  
Global Market ◽  
Global Network ◽  
Small Business Owners ◽  
Content Type ◽  
Small Minority ◽  
Tourism And Hospitality

Purpose The purpose of this interview aims to offer a means to better understand tourism as it relates to small businesses within a global network. Design/methodology/approach A semi-structured interview was used. Findings The key findings are in line with Masco’s (2017) research that asserts “change can be selective and/or optional for the tourism stakeholders (e.g. tourists, operators, destination organizations, policymakers, local communities, employees), the nature and degree of crises-led transformations depend on whether and how these stakeholders are affected by, respond to, recover and reflect on crises”, particularly small minority-owned tourist companies. Practical implications This interview provides a lens to better understand how small businesses operate within the global market and remain at the cornerstone for sustaining domestic and international markets. Originality/value This study highlights small minority-owned business and their ability to become resilient. This interview illustrated that grounded small businesses, while implored with challenges from natural disasters, also have the resiliency to overcome such challenges when the agency has the ability to provide “turn-key” services for their clients thereby providing clients a sense of agency and value-laden experiences via personalization of services.

The influence of symbolic and instrumental attributes of employer image on perceived industry attractiveness: differences between business owners and employees

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Katrin Schwaiger ◽  
Anita Zehrer ◽  
Teresa Spiess
Keyword(s):  
Quantitative Research ◽  
Design Methodology ◽  
Job Security ◽  
Business Owners ◽  
Content Type ◽  
Hospitality Sector ◽  
Hospitality Firms ◽  
The Right ◽  
Firm Owners ◽  
Practical Implications

PurposeThis study determines the influence of employer image on industry attractiveness in small and medium-sized hospitality firms by using the instrumental-symbolic framework adapted from marketing literature.Design/methodology/approachA total of 405 employees and 429 family firm owners in Bavaria were surveyed using a quantitative research design. The authors used linear and hierarchical multiple regression analyses for hypothesis testing using the variables included in the instrumental-symbolic employer image framework.FindingsThe study revealed differences in perception between employees and owners. Data showed that employees' ratings for instrumental attributes, such as job security and income options, and symbolic attributes, such as industry attractiveness, significantly differ from those of owners. Consistent with the instrumental-symbolic framework, owners' perceptions of symbolic attributes predicted their perceived industry attractiveness.Practical implicationsOwners may examine how their industry's image needs to be changed to gain positive perception by current and potential employees. Policymakers may benefit from the study’s results that may help them find the right focal points for strategies in promoting Bavaria's hospitality sector. As a result, an adequate and positive image is created that attracts workers for this sector.Originality/valueThe study addresses the rather under-researched stakeholder group of existing hospitality employees, particularly with respect to employer image. Furthermore, owners and employees are compared, regardless of their individually different relationships to the business. Employer image is connected with overall perceived industry attractiveness, stating that the industry comprises individual employing businesses and thus depends on employer image.

IT readiness in small firms

2013 ◽  
Vol 20 (4) ◽  
pp. 807-823 ◽  
Author(s):  
Riccardo Spinelli ◽  
Romano Dyerson ◽  
G. Harindranath
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Business Owners ◽  
Small Business Owners ◽  
It Adoption ◽  
Content Type ◽  
Management Capability ◽  
And Cluster Analysis ◽  
It Application

Purpose – The aim of the paper is to explore conceptually and empirically the application of the concept of IT readiness to small firms. Design/methodology/approach – The approach taken was a questionnaire administered to small manufacturing business owners in the Liguria region of Italy. Data were analysed using factor and cluster analysis. Findings – IT readiness concept appears valid with the emergence of three constructs: strategic vision; project management capability; and IT application infrastructure. The date analysis yielded four distinctive and varying profiles of small business owners. Research limitations/implications – This quantitative study exploring a cross section of small firms suggests antecedents to change have been ignored relative to IT adoption decisions. Practical implications – Provision of policy and support services requires a much more nuanced approach to small businesses. Originality/value – There are very few studies of IT readiness in the literature, making the paper original in its intent. The construction of the IT readiness concept appears robust when subjected to empirical testing and yields a number of specific small business profiles with respect to IT.

scholarly journals Role of Micro-Influencers in Affecting Behavioural Intentions

2020 ◽  
Vol 8 (4S5) ◽  
pp. 189-192
Keyword(s):  
Social Media ◽  
Small Businesses ◽  
Behavioral Intentions ◽  
Business Owners ◽  
Social Media Marketing ◽  
Small Business Owners ◽  
Qualitative Nature ◽  
Practical Implications ◽  
A Current

Purpose – Micro-influencers are often positioned between common social media users and celebrities. Using them for endorsements is a current and prospective aspect of social media marketing. This paper studies the credibility of microinfluencers and their impact on behavioral intentions of their followers. Designing – This paper take benefit of the qualitative analysis on responses received from 135 Instagram users who follow at least one micro-influencer and have purchased at least one product promoted by them. Responses from 15 microinfluencers and 08 small business owners (who have roped in regional micro-influencers) have also been studied. Findings – The paper identifies that micro-influencers are gaining much popularity in India, since the users find them relatable and trustworthy. The attractive advertisements (in form of posts & stories) leave an impact on followers and also shape their purchase and viral intentions. Research limitations/implications- The methodology adopted for this paper is of qualitative nature and the responses collected from various sources were verified against the available literature. Same could be done in qualitative terms. Practical implications - The use of micro-influencers for social media marketing is on the rise. Studying their impact especially for small businesses that can’t spend on other cost intensive advertising alternatives becomes relevant. Originality/value -This research contributes to studying microinfluencer role in affecting the behavioral intentions of social media users in India. Not many studies have been conducted in this regard and even less considering Instagram as a platform

Fundamental analysis and the use of financial statement information to separate winners and losers in frontier markets: evidence from Vietnam

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tuan Ho ◽  
Y Trong Nguyen ◽  
Hieu Truong Manh Tran ◽  
Dinh-Tri Vo
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Screening Tool ◽  
Abnormal Returns ◽  
Financial Statement ◽  
Supporting Evidence ◽  
Fundamental Analysis ◽  
Content Type ◽  
Listed Firms ◽  
Practical Implications

PurposeThe pupose of the paper is to study the usefulness of Piotroski (2000)'s F-score in separating winners and losers in Vietnam.Design/methodology/approachThe authors adopt a portfolio analysis and regression analysis on a sample of 501 of listed firms between 2009 and 2019 in Vietnam.FindingsThe authors find that a hedge strategy that buys high-F-score firms and sells low-F-score firms yield market-adjusted return of over 30 percent annually, which is statistically and economically significant. The hedge strategy based on F-score is not only profitable for value (high book-to-market [BM]) firms but also earn abnormal returns in a sample of growth (low BM) firms, suggesting that the usefulness of F-score strategy is not just a phenomenon in value firms as documented in previous literature.Research limitations/implicationsWhilst the authors' paper documents economically significant returns obtained from the F-score strategy, the authors do not examine what drives the abnormal returns.Practical implicationsThe results provide supporting evidence for the use of financial statement analysis as a screening tool to improve the performance of value investment in Vietnam stock market and for the training of financial reporting and fundamental analysis in universities.Originality/valueThe authors' research is the first study examining the F-score strategy in Vietnam that provides insights about the usefulness of fundamental analysis in separating winners and losers in a frontier market and contributes to the literature on fundamental analysis and market efficiency in emerging and frontier markets.

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