scholarly journals Barriers and potential solutions for MSMEs in developing economies: Evidence from India

2021 ◽  
Vol 19 (4) ◽  
pp. 325-337
Author(s):  
Bishwajeet Prakash ◽  
Indrajit Kumar ◽  
Jainendra Kumar Verma
Keyword(s):  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Developing Regions ◽  
Potential Growth ◽  
Factors Affecting ◽  
Analysis Technique ◽  
Medium Enterprises ◽  
Bihar State

Micro, small and medium enterprises (MSMEs) have emerged as an accelerator of economic growth with a sizeable contribution in job creation, innovation development, and reduction of regional disparities in most world economies. This paper investigates the influence of external and internal factors affecting the growth of MSMEs in poor-performing Bihar state, India. The objective of the study is to identify the major deep-rooted causes for the inability of MSMEs to compete in developing states and identify potential solutions. The study is based on an empirical database; it tested various dimensions of MSMEs barriers in their potential growth. The target group included MSMEs of Bihar state, India, using a sample of 450 entrepreneurs. The paper adopted a multistage stage sampling and multivariate analysis technique. The results showed that there are twelve major potential barriers, both endogenous and exogenous, faced by MSMEs, such as availability of raw materials, financial issues, labor force challenges, technology inefficiency, power/electricity scarcity, poor marketing, competition, knowledge-related challenges, government and administration problems, infrastructure inefficiency, etc. The findings show that these barriers affect the promotion and growth of MSMEs in developing regions. In future, it is suggested to focus on the implementation of good governance that helps to remove effectively the major barriers of MSMEs in underdeveloped states, such as Bihar, India.

scholarly journals Factors Affecting the Distribution of Micro, Small and Medium Enterprises (MSME) Financing in Islamic Banks

2020 ◽  
Vol 5 (1) ◽  
pp. 38
Author(s):  
Annisa Masruri Zaimsyah
Keyword(s):  
Small And Medium Enterprises ◽  
Design Method ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Internal Factors ◽  
Factors Affecting ◽  
Macroeconomic Conditions ◽  
Islamic Bank ◽  
Analysis Technique ◽  
Medium Enterprises

Purpose:This study aims to analyses of the influence of the external and internal factors on medium and small micro Enterprise financing in Indonesia Islamic Bank exsternal factors consist of inflation, BI Rate and Exceng Rate, while the internal factors consists of ROA, CAR, BOPO, FDR and NPF. Design/Method/Approach: The analysis technique used in this study is multiple regression with OLS approach. The data used this study are monthly data from 2014-2018. Data obtained from OJK and Bank Indonesia reports.Findings: The finding results of this study, change in macroeconomic conditions (external factor) will indirectly have an impact on the internal conditions od Islamic Bank and will have an impact on intermediation function, especially for the MSME sector, while partially the factors that influence MSME financing are only in inflation and Exceng rates, CAR, BOPO, NPF. FDR and BI Rate does not affect MSME financing because Islamic Bank do not use the interest system but instead use the profit sharing system.Originality/Values: The main contribution of this study to industry platetrs, Islamic bank and policy makers. Islamic bank must make more efferts to provide financing for MSME. Islamic Banks must be innovative and creative in creating and offering new products related to financing to MSME.

scholarly journals ANALYSIS OF MARKETING STRATEGY IN AN EFFORT TO ATTRACT CONSUMER BUYING INTEREST ON MSME PEYEK SARI MENIR GUNUNG KIDUL

2021 ◽  
Vol 9 (2) ◽  
pp. 166
Author(s):  
Wulan Probo Bintari ◽  
Agus Dwi Cahya ◽  
Novita Wulandari
Keyword(s):  
Marketing Strategy ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Rapid Development ◽  
Marketing Mix ◽  
Analysis Technique ◽  
Marketing Mix Strategy ◽  
The Right ◽  
Medium Enterprises

Marketing strategy has an important role for Micro, Small and Medium Enterprises (MSMEs). The important role of the right marketing strategy will be able to attract consumers to buy the products. Currently, MSMEs in Indonesia are experiencing very rapid development, especially in the culinary field. "Sari Menir" is a MSME that produces peyek snack which is located at RT005/RW002, Plembon Lor, Logandeng, Playen, Gunungkidul, Yogyakarta. The purpose of this study is to analyze the implementation of marketing strategies in an effort to attract consumer buying interest in Sari Menir MSME. This study uses a descriptive approach with qualitative methods. The technique of determining the place using purposive area method. The research source was selected by purposive sampling method. The resource person in this study were Mrs Ratna Anjarwati as the manager and the daughter of MSME Sari Menir founder. Data collection techniques using interview and documentation methods. The data analysis technique was carried out through stages of data reduction, data display, and drawing conclusions. The results showed that Sari Menir MSME using the marketing mix strategy in an effort to attract consumers buying interest. The marketing mix strategy carried out by Sari Menir MSME as follows: Maintaining product quality by using good quality raw materials; Set the right and appropriate price; Using direct and indirect distribution channels to reach strategic locations; Take part in exhibitions and apply word of mouth as promotional advice.

Factors Affecting the Performance of Micro, Small and Medium Enterprises (MSMEs) in Indonesia during COVID 19 Pandemic

2021 ◽  
Vol 12 (1) ◽  
pp. 88-88
Author(s):  
Ririn Wulandari ◽  
Wei-Loon Koe
Keyword(s):  
Economic Growth ◽  
Social Order ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Economic Indicator ◽  
Business Owners ◽  
Production Costs ◽  
Market Demand ◽  
Factors Affecting ◽  
Medium Enterprises

Due to the Covid 19 pandemic, Indonesia's economic growth in the first quarter of 2020 has fallen to 2.97; it recorded -5.35 in the second quarter and -3.49 in the third quarter (Mulyani, 2020). This decline in growth has undoubtedly shaken micro, small and medium enterprises (MSMEs). According to the Ministry of Cooperatives for Micro, Small and Medium Enterprises (2020), 18.83% of MSMEs suffered hampered production, 22.9% experienced decreased demand, 18.87% faced difficulties in obtaining raw materials and 20.01% encountered hampered distribution. MSMEs in Indonesia contribute 60.4% of GDP and 97% of employment (Economic Indicator, 2019). However, they were severely affected by the Covid 19 pandemic. Therefore, examining the performance of MSMEs during the period of COVID 19 pandemic is crucial. Moreover, the pandemic has resulted chaotic economic conditions and changes in social order. Economic chaos and changes in social order could either strengthen or weaken the resilience of MSMEs. According to Tencer & Cadoso (2014), innovation arises because of chaos and unhealthy market domination. Ivanus & Repanovici (2016) mentioned that MSMEs need to have clear innovation strategy, adjust to market demand, make changes in production costs and show product quality in order to increase the economic growth. As supported by Christensen et al. (2018), MSMEs innovate to ensure their business continuity is maintained. Thus, innovation is particularly important for business survival in the era of Covid 19 pandemic. However, Martinez-Vergara and Vall-Pasola (2020) found that some businesses did not innovate. As such, there is a need to scrutinize further on the influence of business owners' characteristics on innovation and its effect on performance. Keywords: Characteristics, Innovation, Micro small and medium enterprises (MSMEs), Performance

scholarly journals Factors Affecting the Success of Bumiputera Entrepreneurs in Small and Medium Enterprises (SMEs) in Malaysia

2015 ◽  
Vol 1 (9) ◽  
pp. 40-45 ◽  
Author(s):  
Che Mohd Zulkifli Che Omar
Keyword(s):  
Urban Communities ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
National Income ◽  
Skilled Workers ◽  
Limited Participation ◽  
Factors Affecting ◽  
Left Behind ◽  
Rural And Urban ◽  
Medium Enterprises

Bumiputera entrepreneurs often said to be left behind in achieving success in the economic development. This study was conducted to identify factors that influence success of Bumiputera entrepreneurs in small and medium enterprises (SMEs) in Malaysia and the factors leading Bumiputera entrepreneurs involved in business. In the era of globalization, SMEs represent an important industry in the development of the national economy. SMEs create employment opportunities for the rural and urban communities and increase national income. Among the key factors that influence the success of Bumiputera entrepreneurs in small and medium enterprises in Malaysia include weaknesses in management, failures in marketing, and difficulties in obtaining financial assistance. Some of the challenges faced by Bumiputera entrepreneurs, small and medium enterprises (SME) are their limited participation in the international market, the shortage of skilled workers, a problem to market the product in the supermarket and the lack of raw materials. Therefore, Bumiputera entrepreneurs must deal with these issues in order not to go bankrupt.

scholarly journals Factors affecting SMEs’ development in Vietnam

Accounting ◽  
2022 ◽  
Vol 8 (2) ◽  
pp. 161-160 ◽  
Author(s):  
Dang Thi Mai Huong ◽  
Vu Viet Ninh ◽  
Nguyen Dinh Hoan ◽  
Dinh Quang Toan ◽  
Nguyen Thi Hong Van ◽  
...  
Keyword(s):  
Economic Development ◽  
Development Strategy ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Factors Affecting ◽  
Manufacturing Enterprises ◽  
Strategic Direction ◽  
Main Factors ◽  
The Government ◽  
Medium Enterprises

The enterprise's system, along with households and the government are the main factors in the production and consumption of the economy, which plays an extremely important role in the development of any country. Besides the large enterprises, which are often considered as the locomotives of the economy’s development, people are increasingly interested in a significant number of small and medium enterprises (SMEs) whose position and role has been confirmed through the actual economic development of many countries and economies. In Vietnam, the development of SMEs has been creating a driving force for economic growth and has become an important strategic direction in the country’s socio-economic development strategy. The article focuses on determining the factors affecting the development of small and medium-sized manufacturing enterprises in Vietnam. At the same time, the current paper evaluates factors affecting the development of these enterprises. The main factors expected to be focused on in the research include the level of production technology, government policies, raw materials, labor, management capacity, corporate social responsibility, green growth orientation, and global epidemics.

Australia—The Hidden Jewel

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Natural Resources ◽  
Value Chain ◽  
Global Economy ◽  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease

The twenty-first century is being touted as the Asian century. With its stable economy, good governance, education system, and above all the abundant natural resources, will Australia to take its place in the global economy by becoming more entrepreneurial and accelerating its rate of growth, or will it get infected with the so-called Dutch disease? It has been successful in managing trade ties with fast-developing economies like China and India as well as developed countries like the United States. It has participated in the growth of China by providing iron ore and coal. Because it is a low-risk country, it has enabled inflow of large foreign capital investments. A lot will depend on its capability and willingness to invest the capital available in entrepreneurial ventures, its ability to capture the full value chain of natural resources, and to export the finished products instead of raw materials, while building a robust manufacturing sector.

scholarly journals What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy

2021 ◽  
Vol 13 (2) ◽  
pp. 952 ◽  
Author(s):  
Zengming Zou ◽  
Yu Liu ◽  
Naveed Ahmad ◽  
Muhammad Safdar Sial ◽  
Alina Badulescu ◽  
...  
Keyword(s):  
Emerging Economies ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Customer Behavior ◽  
Policy Makers ◽  
Management Commitment ◽  
Top Management Commitment ◽  
Medium Enterprises ◽  
Corporate Social ◽  
Depth Interviews

The topic of corporate social responsibility (henceforth referred to as CSR) has been a central topic during the last decade, but the majority of the existing literature discusses CSR relationship with large organizations. Whereas, its contribution in small and medium enterprises (henceforth referred to as SME) sector has received little attention. There have been some studies that focused on CSR activities in SME sector quantitatively in the context of developing economies like Pakistan, but the fact is, to date, SME sector of Pakistan is not participating actively in CSR-related activities due to some constraints. The present study is a pioneer attempt, to explore CSR barriers that restrict SME sector of Pakistan from practicing CSR initiatives. For this reason, the present study explores these barriers qualitatively in order to gain in-depth knowledge of different CSR barriers. In doing so, we conducted semi-structured in-depth interviews from 9 SMEs in Lahore city of Pakistan. We performed thematic analysis, which produced five relevant themes of CSR barriers, including: Lack of resources, lack of regulations, lack of top management commitment, lack of CSR knowledge, and passive customer behavior. Our analysis further showed that lack of resources is the most related barrier that hinder SMEs to be engaged in CSR activities. This paper contributes to CSR literature in emerging economies’ context. Through an increased awareness of barriers, policy makers and practitioners may take necessary steps to improve CSR practices in SMEs.

scholarly journals Factors Affecting Small and Medium Enterprises Success: An Exploratory Study

2013 ◽  
Vol 64 (3) ◽  
Author(s):  
Abdul Karim Kanaan Jebna ◽  
Ahmad Suhaimi Baharudin
Keyword(s):  
East Asia ◽  
Cash Flow ◽  
Exploratory Study ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
South East Asia ◽  
Factors Affecting ◽  
Competitor Orientation ◽  
Growing Economy ◽  
Medium Enterprises

Small and medium enterprises (SMEs) are the main contributor toward prospering the Malaysian economy [1]. Despite the fact that Malaysia is a fast growing economy in South-East Asia, death of SMEs is unavoidable. An exploratory study was conducted to investigate the factors that have an impact on business performance and success in Malaysia. Interviews with SMEs from different industries were conducted. Several factors were found to contribute to the success of business. The factors are classified into financial and non-financial determinants. These factors include customer satisfaction, service quality, experience, business expansion, competitor orientation, solving problems, cash flow, and the amount of sales and revenue. Building on these interviews, a discussion and conclusion have been provided.

scholarly journals Product Development for Competitive Advantage of Micro, Small, and Medium Enterprises of Ikat Woven Fabric in Kediri

2019 ◽  
Vol 10 (2) ◽  
pp. 75-86 ◽  
Author(s):  
Rita Ambarwati ◽  
Andre Saputro ◽  
Aditya Galih Fathurochman ◽  
As'ad Rizal
Keyword(s):  
Product Development ◽  
Competitive Advantage ◽  
Quality Function Deployment ◽  
Raw Materials ◽  
Small And Medium Enterprises ◽  
Woven Fabric ◽  
Quality Cost ◽  
The Third ◽  
Plastic Materials ◽  
Medium Enterprises

The research aimed to provide the solutions for the method of selecting product development strategies based on competitive advantage criteria including Quality, Cost, Delivery, Service, and Morale (QCDSM). The research was done in Micro, Small, and Medium Enterprises (MSMEs) of Ikat woven fabric in which the collecting data used questionnaires for the customers. The questionnaire was regarding the criteria for competitive advantage for MSMEs of Ikat woven fabric in Kediri. The analysis methods applied Importance-Performance Analysis (IPA) and Quality Function Deployment (QFD) based on the criteria of competitive advantage. The results show that the MSMEs of Ikat woven fabric should replace plastic materials into recyclable materials, ensure that raw materials do not contain dangerous and poisonous materials, choose coloring materials that do not contain dangerous and poisonous materials, choose the third parties to deliver products, weigh dye materials according to their composition and measurement, and utilize domestic raw materials.

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