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.

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.

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.

To be independent or balance interdependence?

IMP Journal ◽  
2016 ◽  
Vol 10 (2) ◽  
pp. 260-275 ◽  
Author(s):  
Milena Ratajczak-Mrozek ◽  
Magdalena Herbeć
Keyword(s):  
Small Firms ◽  
Policy Implications ◽  
Small Enterprises ◽  
Sources Of Information ◽  
Content Type ◽  
Secondary Sources ◽  
Foreign Companies ◽  
Micro And Small Enterprises ◽  
The Creation ◽  
Technology Industries

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.

Standardization Efforts in Small Businesses

2021 ◽  
Vol 12 (5) ◽  
pp. 53-67
Author(s):  
Ying Yan Tan
Keyword(s):  
Competitive Advantage ◽  
Small Businesses ◽  
Small Firms ◽  
Small Enterprises ◽  
Work Processes ◽  
Future Studies ◽  
Conceptual Paper ◽  
Service Experiences

Services are products or ways businesses differentiate from others to attract customers. Characteristics of service, which include intangibility, perishability, and dependence on individuals who perform the services, make it valuable asset and competitive advantage to firm when well-managed. It is crucial for quality services to be preserved through standardization though there are different individuals who bring customers through service experiences. Service standardization involves consistency in work processes, attitudes, and ability to create similar experiences to customers who patronage the firm. The author believes that standardization of manpower quality is a way to service standardization. Standardization efforts can be found in many flexible practices in small enterprises, which are thought to be peculiar ways small firms survive competition. The conceptual paper covered questions from the author about service standardization, which will lead to future studies to go behind the scene of service standardization efforts in SMEs and their impacts on Malaysian small firms.

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.

Confronting the unprecedented: micro and small businesses in the age of coronavirus disease 2019

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alessandro Bressan ◽  
Abel Duarte Alonso ◽  
Seng Kiat Kok
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
Small Firms ◽  
Theory Of Planned Behaviour ◽  
Theoretical Framework ◽  
Wine Industry ◽  
Online Questionnaire ◽  
Content Type ◽  
Key Stakeholders

PurposeThe purpose of this study is to understand how micro and small firms are navigating through the coronavirus disease 2019 (COVID-19) threat, and the alternatives they are implementing to coexist with the ongoing crisis. To this end, Italy's socioeconomically and traditionally significant wine industry is examined. The study considers insights of the theory of planned behaviour (TPB) and develops a theoretical framework, which proposes various emerging theoretical dimensions, including proactiveness, support-reliance and resourcefulness.Design/methodology/approachWinery owners–managers were contacted and invited to partake in the study completing an online questionnaire. Overall, 167 useable responses were collected.FindingsWhile facing the loss of vital income through decreasing demand and exports, participants resort to exploiting various initiatives, including “reinventing” their firms. Their observations also recognise the vital supporting role of various key stakeholders, first and foremost family members, as well as clients and staff. Concerning how owners-managers envision managing their firm post-COVID-19, two predominant groups are identified, one strongly favouring modern-day alternatives, and the second committing to the firm's traditional business model. Overall, the different predictors of the TPB, namely attitude, subjective norms and perceived behavioural control emerged.Originality/valueThis study is one of the first that empirically analyses micro and small firms in a socioeconomically and traditionally significant industry during an unprecedented event. In addition, the proposed theoretical framework provides a roadmap and guide to examine, understand and assimilate the entrepreneurial journey through a devastating event.

Prediction model of business success or failure for Palestinian small enterprises in the West Bank

2018 ◽  
Vol 10 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Samir D. Baidoun ◽  
Robert N. Lussier ◽  
Maisa Burbar ◽  
Sawsan Awashra
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
West Bank ◽  
High Rate ◽  
Business Failure ◽  
Business Success ◽  
The West ◽  
Content Type ◽  
Random Guessing

Purpose The aim of this study is to examine the factors that lead to success or failure of a small business in the West Bank of Palestine. Design/methodology/approach This study methodology is a survey research, testing the Lussier model of business success and failure with a sample of 246 small businesses (90 failed and 156 successful) to better understand the reasons of their success or failure using logistic regression statistical analysis. Findings The model is significant (p = 0.000); it will predict a group of businesses as successful or failed more accurately than random guessing 99 per cent of the time. The model will also predict a specific small firm as successful or failed 94 per cent of the time vs. 50 per cent for random guessing. The r-square is very high (r = 0.70), indicating that the model variables are, in fact, significant predictors of success or failure. Results indicate that having adequate capital, keeping good records with financial controls, making plans and getting professional advice on how to manage the firm are the most important factors for the viability and success of small businesses. Practical implications With the high rate of small business failure globally, results of this study provide a list of variables that contribute to the success of small firms. Firms that focus on these important factors will increase their odds of success. Thus, avoiding failure, firms better utilize resources that contribute to economic growth. Originality/value This is the first study that looks at success and failure of small businesses in Palestine. There is no one single accepted theory that may be applied to small businesses. This paper aims to further contribute to the global validity of Lussier success and failure model moving toward a theory to better understand why some businesses succeed and others fail.

scholarly journals Effects of public procurement of R&D on the innovation process: evidence from the UK small business research initiative

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kostas Selviaridis
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Market Failure ◽  
Public Procurement ◽  
Innovation Process ◽  
Business Research ◽  
Content Type ◽  
Research Initiative ◽  
The Uk

Purpose The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation. Design/methodology/approach PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts. Findings The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct. Research limitations/implications The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts. Social implications The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme. Originality/value The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

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.

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