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

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.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tonatiuh Najera Ruiz ◽  
Pablo Collazzo

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.


2019 ◽  
Vol 46 (6) ◽  
pp. 1157-1173
Author(s):  
Maman Setiawan ◽  
Nury Effendi ◽  
Ratni Heliati ◽  
Alfi Syahrin Ario Waskito

Purpose The purpose of this paper is to investigate the technical efficiency (TE) of micro and small enterprises (MSEs) and its determinants in the Indonesian manufacturing sector covering comprehensive subsectors. Design/methodology/approach This research uses the data from the micro and small industry survey sourced from the Indonesian Bureau of Central Statistics for the period 2010–2015. The TE is estimated using data envelopment analysis (DEA) with bootstrapping approach. The TE is also estimated at the firm-level survey data, classified at the five-digit level of the International Standard Industrial Classification system. In addition, a truncated regression model is applied to estimate the effects of the determinants on the TE. Findings This research finds that there is a low average TE of the MSEs for the subsectors investigated. It is also found that the TE is associated with firm size, location, export orientations on domestic and world markets, firm age, level of technology, and owner education. Originality/value The literature investigating the TE of the MSEs and its determinants is still rare in Indonesia. Most of the previous research limited the studies for specific subsectors and/or specific small regions. Therefore, this research has a contribution in measuring the TE of the MSEs for comprehensive subsectors as well as its relation with the determinants in the Indonesian manufacturing sector. Also, the DEA with bootstrapping approach is applied to estimate the TE of the firms based on each relevant subsector, which is rare in the previous research of the Indonesian MSEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Brenda Silupu ◽  
Belen Usero ◽  
Ángeles Montoro-Sánchez

PurposeThe formalization of a company is a process that requires compliance with standards established by government institutions. In developing countries, many businesses start this process, but do not finish it, with different levels of formality. The objective of this research is to analyze how the perception of entrepreneurs about bureaucratic procedures and the sector determine the level of formality regarding an established company that has taken the first step to formality.Design/methodology/approachThe National Survey of Micro and Small Enterprises (MSEs) is used with a sample of 4,619 Peruvian MSEs with more than three years of operation within the manufacturing and services sector. The data are analyzed with the ordered logistic regression technique.FindingsThe results show that the more favorable the perception of entrepreneurs about the ease of bureaucratic procedures, the higher the level of business formality; and companies in the manufacturing sector are less formal than those in the services sector. In addition, the perceptions of entrepreneurs positively moderate the level of formality in the case of companies in the manufacturing sector.Originality/valueLevels of formality in established companies are analyzed, defined by the compliance degree with the requirements to be a formal company. The literature on business informality in emerging countries is expanded, particularly in Latin America, incorporating the analysis of the formalization process.


IMP Journal ◽  
2016 ◽  
Vol 10 (2) ◽  
pp. 260-275 ◽  
Author(s):  
Milena Ratajczak-Mrozek ◽  
Magdalena Herbeć

Purpose – The purpose of this paper is to identify in what way micro and small firms from low-technology industries which are dependent on foreign companies can ensure that they derive benefits from these relationships and what is more, in what way government policy should support this. Design/methodology/approach – A longitudinal study of a furniture company has been used. The company’s relationship with its large foreign customer is analysed from the perspective of the market-oriented power dependence and the IMP interdependence concept. Additionally the secondary sources of information about Polish furniture industry have been used in order to present its international specificity. Findings – The analysis shows that micro and small firms may derive benefits from their relationships with foreign entities due to their flexibility and the creation of heavy resources based on the standards of cooperation. Policies supporting exports and internationalisation cannot be isolated activities which end with the creation of foreign contacts and initiating transactions. Policy makers should concentrate on the support of the knowledge and experience exchange in terms of maintaining contacts with foreign entities as well as creation of a favourable framework of conditions for companies. Practical implications – The recommendations may be applied to design a policy supporting micro and small enterprises representing low-technology industries from economies with a limited internal market. Originality/value – The paper compares the perspective of a market-orientated power-dependency concept with the IMP interdependency approach. This sheds a light by adding an analysis of how to best utilise interdependencies on both sides of the supplier-customer interface. Both opportunities and hindrances resulting from the relationship between small firms and larger foreign companies are highlighted. Thanks to this approach a discussion is conducted in order to illustrate the policy implications of supporting micro and small enterprises from low-technology industries.


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 ◽  
...  

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shromona Ganguly

PurposeThis article analyses the structural change in microenterprises located at India's unorganised manufacturing sector in terms of output mix, choice of technique and productivity during the last few decades.Design/methodology/approachBased on data collected from a quinquennial survey of unorganised firms, this study attempts productivity analysis by using the growth accounting technique.FindingsThe paper finds that there is a significant structural change which has occurred in the small firm sector in Indian manufacturing. The share of capital-intensive industries has increased substantially in recent years. Further, though small firms are more labour intensive, the labour productivity and total productivity of these firms are very low. The falling labour productivity and rising capital intensity indicates replacement of labour with capital in Indian small firm sector.Practical implicationsLow productivity of the sector is a cause for concern and this needs to be addressed by making the sector more competitive in the world market. To achieve this, policies should be designed so that small firms reach the efficient scale of production.Originality/valueThis is the first paper which examines structural changes in the Indian MSME sector. The findings have strong implications for creation of a viable ecosystem of entrepreneurship in the country.


2020 ◽  
Vol 32 (4) ◽  
pp. 245-257 ◽  
Author(s):  
Antonios Panagiotakopoulos

Purpose This study aims to explore the impact of management training on organizational performance in the small business context to evaluate whether formal management learning interventions bring organizational benefits to small enterprises. Design/methodology/approach A qualitative approach was adopted consisting of 100 interviews with small firm owners/managers and employees working in 50 Greek small enterprises operating in the manufacturing and services sectors. Participant firms consisted of 25 small enterprises (9 manufacturing firms and 16 firms in the services sector) whose owners/managers have completed various formal training interventions (i.e. accredited seminars and workshops, business and management courses, etc.,) and 25 small enterprises (16 manufacturing firms and 9 firms in the services sector) whose owners/managers have not completed any sort of formal business training and have never attended formal management courses. Findings The findings revealed that management training in small businesses had a positive impact on organizational performance. In particular, those respondents that completed formal training interventions argued that their firms achieved increased profitability during 2017 and 2018; improved staff productivity; very low staff turnover rate; and enhanced staff satisfaction and motivation compared with the less-trained owners of small firms in the same sector. The participants pointed out that their formal education in business and management has enabled them to realize the importance of employee learning and job design for staff motivation, whereas it has helped them to manage change more effectively. Practical implications The present findings have major implications for practitioners (i.e. small firm owners/managers), as they point to a positive link between management training and organizational performance, thus encouraging them to invest in their self-development. Originality/value The existing evidence around the impact of management training on firm performance has been based mostly on quantitative research in large organizations. However, the available empirical studies fail to explore in-depth how formal management training can help smaller enterprises achieve improved organizational performance. Against this background, the present study sheds new light on this area.


Author(s):  
Castro Ngumbu Gichuki ◽  
Milcah Mulu Mutuku ◽  
Lydia Nkatha Kinuthia

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Lotfi ◽  
Maneesh Kumar ◽  
Vasco Sanchez Rodrigues ◽  
Mohamed Naim ◽  
Irina Harris

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.


2020 ◽  
Vol 36 (2) ◽  
pp. 263-284
Author(s):  
Ruslan Prijadi ◽  
Permata Wulandari ◽  
Putri Mega Desiana ◽  
Fajar Ayu Pinagara ◽  
Maya Novita

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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