Why Does Economic Growth Occur in Some Cities and Not Others? The Importance of Small Amounts of Capital for Small Businesses Innovation

2010 ◽  
Author(s):  
Thomas E. Vass
Keyword(s):  
Economic Growth ◽  
Small Businesses

THE ROLE OF HUMAN CAPITAL IN GAINING AND SUSTAINING COMPETETIVE ADVANTAGE OF COMPANIES

2018 ◽  
Vol 28 (5) ◽  
pp. 1557-1562
Author(s):  
Visar Ademi
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Private Sector ◽  
Small Businesses ◽  
Formal Education ◽  
Good Practice ◽  
Education Institution ◽  
Business Community ◽  
Guest Speaker ◽  
Practical Training

In today’s global competitive arena the term “knowledge economy” is no mere slogan. It points to the very real fact that economic activities are increasingly knowledge intensive and that in this globalized world, success will come to those that are able to generate and harness knowledge in order to stay ahead of the pack. Research shows that in economies that do not have sufficient infrastructure, natural resources or may be designed as high cost base locations, comparative advantage has shifted to knowledge-based activities that cannot be transferred around the world without a significant cost. High knowledge and skills based economies will most likely be able to attract and retain investments in industries with a strong future. It is no secret that good education lies at the heart of economic growth and development. At the same time, improving the quality and relevance of education is enormously difficult not least because there is no one single policy measure that will do so effectively.Macedonia is not exclusion to this fact. The Macedonia’s employers and employees face a huge talent management dilemma. Analyses by all relevant institutions (World Bank, NGOs) and interviews with multiple representatives from the private sector companies indicate that while the labor pool is growing (supply side), it does not provide the skills needed by employers (demand side) so, that they could be competitive and further grow in today’s market. Employers are nearly unified in their criticism of an education system that produces graduates with limited practical experience and no soft skills transferable to the workplace. This is largely due to a lack of experiential education, competency based curricula, pragmatic guidance, which fails to meet the needs of the business community. The burden falls most often on employers to provide practical training, usually on the job. While in-company training is good practice, the scale of the skill gap requires a cost and internal training capability that many enterprises cannot afford, creating a disincentive for businesses to hire new employees.The dilemma has impacted job seekers (official unemployment in Macedonia is around 28% as of December 2017) and contributes to lower overall economic growth. It is especially problematic for micro and small enterprises (MSEs), which make up a large proportion of employment in Macedonia. MSE size and limited capacity makes their employees skills, experience and multitasking capabilities that much more critical for growth. Additionally, MSEs often lack the resources necessary to effectively train and maximize the productivity of their staff. As a result, sustained employment growth within Macedonia must include the development of a pipeline of skilled employees for microenterprises, including bolstering the capacity of small businesses to organize and train their workers. On the other side, the formal education institution dislike they way the private sector manages their employees. According to many of them, this is due to the fact that companies believe that their performance in the market is not directly linked with the human capital performance. In addition, education holds to the belief that private sector companies are not engaged enough in creating the next pool of talents in Macedonia. When they are invited to participate in the classrooms as expert of guest speaker, hire or engage students they show little interest. To conclude, the education institution believes that private sector companies in Macedonia consider the investment in human capital as a cost and not an investment.

scholarly journals A Critical Appraisal of Goods and Services Tax in India

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Rabinarayan Samantara
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
Critical Appraisal ◽  
Tax Rates ◽  
Indian Market ◽  
Tax Base ◽  
Employment Opportunities ◽  
Mass Consumption ◽  
Goods And Services ◽  
The Impact

The present paper attempts to make a critical appraisal of Goods and Services Tax (GST), implemented in India from 1st July, 2017. In addition to explaining the structure of GST in India as well as the tax rates under it, the present paper attempts to analyse the impact of GST on certain major industries or sectors within the Indian economy. Although GST has certain obvious advantages including exemptions and low compliance burden for small businesses, lower tax rates for mass consumption goods, increase in tax base and tax collections, etc., it is noteworthy, however, that GST has certain limitations as well. In spite of this, it must be accepted that GST has helped in ensuring a common Indian market through the elimination of multiplicity of taxes as well as ‘ tax on tax ‘. It is expected to accelerate economic growth, help generate more of employment opportunities, and lead to increased tax base as well as increased revenue generation

scholarly journals SWOT-ANALYSIS AS A TOOL FOR DETERMINING A SMALL ENTREPRENEURIAL STRUCTURE DEVELOPMENT STRATEGY

2021 ◽  
pp. 59-66
Author(s):  
Khrystyna Danylkiv ◽  
Oksana Sadura
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Small Businesses ◽  
Matrix Method ◽  
Banking Sector ◽  
Swot Analysis ◽  
External Environment ◽  
The State ◽  
Retail Trade ◽  
Strategic Analysis

Purpose. The aim of the article is strategic analysis of the state of development of LLC “GALYCHMED”, identification of positive and negative trends and changes, identification, and awareness of the factors that cause inhibition of its development, search for priority ways and directions of development of the analysed enterprise. Methodology of research. To achieve this goal, a toolkit of research methods was used, namely: economic-statistical and calculation-analytical – to study the opportunities and threats to the external environment of the operation of LLC “GALYCHMED”, the strengths and weaknesses of the studied enterprise; matrix method of strategic analysis (SWOT-analysis) – to comprehensively reflect the results of the analysis of the external and internal environment of LLC “GALYCHMED”; problem-oriented – to substantiate the strategic directions and the potential scenario of solving the issues of development of the analysed enterprise; tabular – for visual display and effective perception of statistical data; induction and deduction – for concluding; logical – for the consistent generalization of theoretical and practical provisions of scientific research. Findings. SWOT analysis was performed according to the stages of filling in the SWOT matrix, processing (summarizing) results, and analysis of results. It is noted that the main purpose of SWOT analysis as a matrix method is to obtain reliable data on the company’s capabilities and threats to its promotion in the market of goods and services, so before SWOT analysis are the following tasks: identifying marketing opportunities that meet the company’s resources; identification of marketing threats and development of measures to neutralize their impact; identifying the strengths of the enterprise and comparing them with market opportunities; identification of enterprise weaknesses and development of strategic directions for overcoming them; identification of competitive advantages of the enterprise and formation of its strategic priorities. It is established that the influence of the macroenvironment is negative and the mesoenvironment is positive. The most important factors of positive influence are the attitude of the buyer to the product, the population, the attitude of people to work, and so on. Among the most negative factors are inflation, the social situation in the country and the world (COVID-19), financial crisis, slowing economic growth, the purchasing power of the population, industry competitors, potential competitors, and more. The following advantages of the analysed enterprise are determined: the goods sold by the enterprise; quality of services; state of the sales system; market share; availability of credit; enterprise assets; net profit. It is proved that the unstable financial market due to the pandemic, the devaluation of the national currency, the situation in the banking sector, losses in the area of environmental protection in eastern Ukraine, as well as other factors negatively affected the trading activities of LLC “GALYCHMED”. In most retailers, costs have risen and profits have fallen, prompting more conservative pricing and spending cuts. Originality. The application of SWOT analysis has been further developed, which allows to selection measures to ensure the economic growth of the enterprise, systematize problem situations, identify and use new potentials faster than competitors, avoid dangers, make informed decisions about small business development, and prevent irrational use of financial assets. This technique is an effective, affordable, cheap way to assess the state of the problem and management situation in small businesses. Practical value. The results of the SWOT analysis are recommended for use by the researched enterprise (LLC “GALYCHMED”) and other retail enterprises to determine the development strategy, for market analysis and study of competitiveness, but each time it must be adapted to the specifics of the enterprise. Key words: SWOT analysis, strengths, and weaknesses of the enterprise, opportunities and threats, external environment, economic environment, financial and economic situation, retail trade, strategic planning, demography, political environment.

China's boom in entrepreneurship comes at a heavy cost

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Small Businesses ◽  
High Tech ◽  
Rural Migrants ◽  
Content Type ◽  
Economic Growth Model ◽  
Promotion Policies ◽  
The Government ◽  
Start Ups

Subject Entrepreneurship in China. Significance The government is pinning its hopes on entrepreneurship to foster a new economic growth model and develop the poorer, rural areas of the country. Recent policies take a two-pronged approach, targeting urban graduates and rural migrants separately. Impacts Policies targeting high-tech innovative start-ups have high potential to boost the quality and quantity of economic growth. Entrepreneurship-promotion policies aimed at start-ups and small businesses will mostly benefit already established enterprises. The supply of credit available to entrepreneurs will fail to meet their huge and growing demand for financing.

scholarly journals Government support of small businesses in the 2020 crisis conditions from the market approach viewpoint

2020 ◽  
Vol 208 ◽  
pp. 03037
Author(s):  
E.R. Zakirova ◽  
N. Yu. Lebedeva ◽  
N.V. Pogosyan
Keyword(s):  
Economic Growth ◽  
Small Business ◽  
Market Economy ◽  
State Policy ◽  
Small Businesses ◽  
Business Development ◽  
Government Support ◽  
Current State ◽  
Market Approach ◽  
Crisis Conditions

The paper offers a situational overview of small business as a driver of economic growth in Russia during the 2020 crisis and the main aspects of current state policy on market-based support of that sector. The analysis also highlights major barriers that have arisen lately impeding the efficiency of governmental efforts to support small business. However, new aspects stimulating business development in market economy emerge together with the obstacles.

scholarly journals The development of small business in the sphere of consumer market and services as a factor of economic growth (on materials of the Republic of Khakassia)

Servis plus ◽  
2017 ◽  
pp. 78-92
Author(s):  
Елена Кочеткова ◽  
Elena Kochetkova ◽  
Светлана Трусова ◽  
Svetlana Trusova
Keyword(s):  
Economic Growth ◽  
Small Business ◽  
Small Businesses ◽  
Regional Level ◽  
High Rate ◽  
Consumer Market ◽  
Goods And Services ◽  
The Russian Federation ◽  
The Republic

This article focuses on the nature and role of small business in the sphere of consumer market and services as an important condition of economic growth. The article presents the analysis of the state of small business in the federal subjects of Russia - the Republic of Khakassia, and summarizes its development, the structure of small business by the number of enterprises in different activities. The authors estimate the small business in the sphere of consumer market and services and present the peculiarities and problems of development of entrepreneurial structures in the sphere of consumer market and services at the regional level (on the example of Republic of Khakassia). The consumer market remains one of the most important factors of economic growth in the Republic of Khakassia. The authors determine the factors contributing to the development of small business on regional level and their impact on economic growth. They note that just small businesses do not require large upfront investment and guaranteeing a high rate of turnover of resources and they can most quickly solve the problems of the formation and saturation of market with goods and services. Small businesses can quickly respond to changing consumer demand and thus they can provide the necessary balance in the consumer market. This study is limited to the territory of the Republic of Khakassia, however, the information can be applied and used in other regions of the Russian Federation, as well as in the preparation of textbooks and articles.

scholarly journals Transformation of the taxation system and its influence on enterprise development in the Republic of

2011 ◽  
Vol 2 ◽  
Author(s):  
Furkat Bazarov
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
Tax Burden ◽  
Tax Rates ◽  
Enterprise Development ◽  
Tax System ◽  
The Republic ◽  
Tax Changes ◽  
Taxation System ◽  
Small Business Taxation

The research studies impacts of new tax changes to the small businesses, unemployment and to economic growth in Uzbekistan. The study shows that the tax policy directed on perfection of tax mechanisms, reduction of tax rates aimed to raise economic efficiency of manufacturing and increasing individual income. As a result from year to year the tax burden is reduced and the taxation order becomes simpler. Empirical analysis shows that only for last seven years the general tax burden in economy was reduced with 40 to 27 percent. The author found problems existing in small business taxation and generalizes recommendations for simplification of tax system and tax administration. 

scholarly journals An Assessment of the Impact of the Tourism Sector on Regional Economic Development in Gauteng Province, South Africa

2021 ◽  
Author(s):  
Daniel F. Meyer
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Small Businesses ◽  
Growth And Development ◽  
Local Market ◽  
Gauteng Province ◽  
Economic Growth And Development ◽  
Tourism Sector ◽  
Effective Policy ◽  
The Impact

South Africa is facing three main developmental problems, including high levels of poverty, unemployment, and inequality. The tourism sector allows for a relatively easy entry into the local market for small businesses and entrepreneurs and has the potential to create jobs and subsequently, income. Tourism development could be utilised as a driver for economic growth and development. The main objective of this research was to assess the impact of the tourism sector on economic growth and development in South Africa, focusing on the Gauteng Province which, is the economic hub of the country and even Africa. The methodology utilised was based on a quantitative design, using secondary time series pooled panel data approach including, all the municipal entities in the region. Annual data from 2000 to 2019 were used to analyse the impact of tourism on economic growth and development. Tourism variables include measurements such as tourism spending and international tourism trips. Results confirm the tourism-growth nexus and the sector allows ease of market entry for small businesses, resulting in employment creation and income for the poor in developing regions if promoted via effective policy implementation, even in regions where tourism is not the leading sector.

scholarly journals ANALYSIS OF THE CURRENT CONDITION OF SMALL AND MEDIUM-SIZED BUSINESSES IN THE REPUBLIC OF KAZAKHSTAN

THE BULLETIN ◽  
2021 ◽  
Vol 3 (391) ◽  
pp. 14-18
Author(s):  
A. Azimkhan ◽  
R.B. Sartova ◽  
А.К. Bakpayeva
Keyword(s):  
Economic Growth ◽  
Small Businesses ◽  
State Level ◽  
The State ◽  
Business Community ◽  
Special Role ◽  
Social Stratum ◽  
Relevant Today ◽  
The Republic ◽  
Sustainable Economic Growth

This article has the aim to explore the policy of supporting of small and medium-sized businesses. Over the years, the independent states have managed the problems of the economy. The contribution of small businesses to the economy, the replenishment of revenue items in budgets of the different levels, and the creation of new jobs have become one of the decisive factors of the development in the states. Small and medium-sized businesses significantly contribute to the formation of the competitive environment and the establishment of market balance. Currently, small and medium-sized businesses represent fairly powerful social stratum of the society, real and serious economic force. At the present stage, the relationship between business and government has acquired the special role, improving the technology of their interaction; the problem of self-organization of the business community is relevant today as it was only few years ago. Small and medium-sized enterprises (SMEs) are the fundamental link that determines the state level of development in order to ensure sustainable economic growth. This sector of the economy has huge potential for solving many problems of the economic growth of the state, such as undeveloped competition, inefficient use of material and non-material resources, dependence of the domestic demand on imports, unemployment, poverty, etc. Issues of SMEs development in the Republic of Kazakhstan are among the most important and highest state level.

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