scholarly journals How does public investment support change the capital structure and productivity of small enterprises? An empirical study of the food industry

2018 ◽  
Vol 21 (8) ◽  
pp. 1045-1059 ◽  
Author(s):  
Jindřich Špička
Keyword(s):  
Public Investment ◽  
Labour Productivity ◽  
High Growth ◽  
Average Treatment Effect ◽  
Small Enterprises ◽  
Small Companies ◽  
Rural Development Programme ◽  
Food And Beverage ◽  
The Difference ◽  
The Impact

The impact evaluations of public investments are essential for policymakers to evaluate the effectiveness of public resource allocation. European public investment subsidies target small companies to enhance their competitiveness and viability in the market. This article uses the average treatment effect and the difference-in-difference approach to evaluate the impacts of investment support from the Rural Development Programme and the Operational Programme Enterprise and Innovation on structural and economic indicators of small enterprises. This representative case study of 550 supported small companies from the Czech food and beverage industry during 2007-2015 clearly shows that investment subsidies increase the fixed assets, the credit-to-debt ratio and the labour productivity of supported companies versus nonparticipants. However, the discussion with recent studies indicates that this is not always positive for participants since high growth versus nonparticipants could result in crowding-out effects and increasing long-term and short-term debt that negatively impact technical efficiency.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

scholarly journals Financial Flexibility as an Investment Efficiency Factor in Asian Companies

2018 ◽  
Vol 20 (2) ◽  
pp. 137 ◽  
Author(s):  
Victoria Cherkasova ◽  
Evgeny Kuzmin
Keyword(s):  
Investment Efficiency ◽  
Small Companies ◽  
Investment Activity ◽  
Financial Flexibility ◽  
Investment Expenditure ◽  
Institutional Economic ◽  
The Difference ◽  
Debt Capacity ◽  
The Impact ◽  
Capacity Method

This study explores the impact of a company’s financial flexibility on the effectiveness of its investments.The number of companies that have financial flexibility was calculated with the application of thespare debt capacity method. The research identifies the impact of financial flexibility on investment activity and on the level of suboptimal investments. The data from 1,736 companies in theAsian region, during the 2005-2015time period, are presented. The Asian region has unique institutional, economic and commercial environments that present a great basis for this paper. The results of the research reveal that financially flexible companies spend more on their investment expenditure and conduct more effective investment policiesby reducing the level of over- and underinvestment. Financial flexibility helps companies to make effective investments during a crisis period, but the difference in the flexibility between developed and developing countries and between large and small companies was not observed.

scholarly journals APPLICATION OF IT TOOLS IN MANAGING SMALL AND MEDIUM-SIZED ENTERPRISES IN THE CONTEXT OF CREATING ENTREPRENEURIAL ORIENTATION

2018 ◽  
Vol 17 (4) ◽  
pp. 105-113
Author(s):  
Renata Lisowska
Keyword(s):  
Entrepreneurial Orientation ◽  
Quantitative Research ◽  
The Other ◽  
The Internet ◽  
Global Competition ◽  
Small Enterprises ◽  
Survey Questionnaire ◽  
Small Companies ◽  
The One ◽  
The Impact

The presence of small and medium-sized enterprises on the Internet in the era of increasing global competition has become a necessity. These entities have begun to notice the benefits that can be obtained by using modern IT tools in various areas of their operations. The aim of the paper is to analyse and evaluate the impact of the use of IT tools in various areas of SMEs’ operations on creating their entrepreneurial orientation. The implementation of such a goal required, on the one hand, a literature review and an analysis of current research on the IT tools used by small and medium-sized enterprises in the context of creating their entrepreneurial orientation, and on the other hand, conducting the author’s own research among small companies. Quantitative research was carried out from December 2017 to January 2018 among 400 small enterprises in Poland by means of a survey questionnaire using the CATI technique.

Financial Reforms, Financial Development, and Structural Change

2019 ◽  
pp. 190-217
Author(s):  
Enisse Kharroubi ◽  
Luiz A. Pereira da Silva
Keyword(s):  
Structural Change ◽  
Financial Development ◽  
Productivity Growth ◽  
Emerging Market ◽  
Labour Productivity ◽  
Financial Reform ◽  
Financial Reforms ◽  
Before And After ◽  
The Difference ◽  
The Impact

This chapter explores the interrelationships between financial reforms, financial development, and structural change. More specifically, it considers the impact of financial reform on changes in labour productivity and whether liberalizing the functioning of the financial sector and lifting a number of regulations through financial reforms affect structural change and growth. In this chapter, structural change is defined as the contribution of labour reallocation across sectors to aggregate productivity growth and the difference-in-difference methodology is used to compare the evolution of productivity growth—and its different sources including structural change—before and after a financial reform. This evolution is also contrasted with cases in which financial reform is absent. Drawing on a sample of advanced and emerging market economies, the chapter shows that labour productivity accelerates following periods of intense financial reforms. The results generally suggest that financial reforms positively affect productivity growth, in part through the contribution of structural change.

scholarly journals Public Investment on Irrigation and Poverty Alleviation in Rural Laos

2021 ◽  
Vol 14 (8) ◽  
pp. 352
Author(s):  
Bounmy Inthakesone ◽  
Pakaiphone Syphoxay
Keyword(s):  
Water Resources ◽  
Public Investment ◽  
Adaptation Strategy ◽  
Positive Sign ◽  
Farm Income ◽  
Rural People ◽  
Resources Distribution ◽  
Scarce Water ◽  
The Difference ◽  
The Impact

The demand for water is rising rapidly, particularly in agricultural and environmental sectors. This has led to more competition to access limited and scarce water resources. Therefore, choosing an appropriate approach to manage water resources, distribution and allocation, to attain sustainable agriculture is critical for every country worldwide. The most well-known method to preserve or store water and adaptation strategy to climate change is irrigation. This paper wished to understand the impact of irrigation on farmers’ income in Laos, especially from rice, which is the main crop of rural people. The difference in differences (DID) method was employed to estimate the regression results. The DID was estimated by the pooled OLS of the effect on the log of households’ rice farm income and log of households’ total income with household head’s age, education, gender, household size, ethnicity and harvest areas variables pointing out the coefficients of the outcome variables of interest (after treatment) were 0.037 and 0.076 with positive sign but statistically insignificant. The result implies irrigation has no impact on rice products. In other words, irrigation does not increase households’ income. The finding indicates the type of irrigation, the location of the operation headquarters and the management system or governance are crucial factors for explaining the impact of irrigation on the rice products in Laos.

Effects of ski lift ticket discounts on local tourism demand

2018 ◽  
Vol 73 (4) ◽  
pp. 480-491 ◽  
Author(s):  
Martin Falk ◽  
Miriam Scaglione
Keyword(s):  
Average Treatment Effect ◽  
Control Group ◽  
Tourism Demand ◽  
Research Knowledge ◽  
Content Type ◽  
Positive Effects ◽  
Winter Sport ◽  
The Difference ◽  
The Impact ◽  
Overnight Stays

Purpose The purpose of this paper is to provide a first evaluation of the effectiveness of the early bird discount on ski lift tickets by estimating the impact on hotel overnight stays of the Saas-Fee destination. Design/methodology/approach The difference-in-differences (DID) approach is used to compare winter sport destinations with and without the price reduction before and after the introduction of the price discount. The sample is composed of the 54 largest Swiss winter sport destinations for the seasons 2013/2014 and 2016/2017. Findings DID estimations show an increase in overnight stays of Swiss residents by 50 per cent as compared to the control group. Quantile regression estimations for the conditional upper part of the overnight stays distribution reveal a lower average treatment effect of 38 per cent. However, DID estimates for total overnight stays (domestic and foreign) are much smaller – about 17 per cent – indicating that the price reductions are not effective in attracting foreign visitors. Results are not sensitive when taking into account a large number of control variables (elevation, size and snow making capacity). Research limitations/implications As tourists visiting winter sport destinations are interested in a mix of activities, lift ticket revenues or number of skier days should be used as an alternative outcome measure. Practical implications As positive effects on local tourism demand are mainly limited to Swiss tourists, such price strategies should be carefully considered. In the long term, the skiing market will stagnate or even shrink for several reasons (population ageing, climate change and changes in leisure preferences). Originality value This paper provides a first quantitative evaluation of price discounts in tourism research. Knowledge about the discounts and consumers reactions to sales promotions are of great interest to marketing managers in today’s competitive ski market.

scholarly journals Covid-19 impact on the Entrepreneurial practices in Small startups

2021 ◽  
Vol 2 (18) ◽  
pp. 373-396
Author(s):  
Eydaros Misky ◽  
◽  
Sultan Alzahrani ◽  
Mowffaq Oreijah ◽  
Keyword(s):  
Global Economy ◽  
The Other ◽  
Survival Strategies ◽  
Published Data ◽  
Small Enterprises ◽  
Review Of The Literature ◽  
Other Hand ◽  
Food And Beverage ◽  
The Impact

COVID-19 has disrupted the global economy and the pandemic impact on businesses has been devastating. The majority of the enterprises suffered the lockdown consequences and the entrepreneurial small startups have been the most to struggle from the pandemic impacts such as financial deficiency, drop in sales, loss of customers, and shut down permanently. Due to their lack of skills and experience, they couldn’t diversify their product sources and distribution. On the other hand, some small startups have gained huge profits due to the pandemic which included online commercials for sanitizers and masks, and some specialize in food and beverage products. This paper research reviews the impact and the survival strategies for entrepreneurial small startups during the ongoing crisis of COVID-19. A review of the literature includes reviewing all the relevant scientific published data and an included case study represents a practical example that highlights the impact of COVID-19 on the small enterprises.

scholarly journals Evaluation of Effects of Investment Support in the Czech Dairy Industry

2016 ◽  
Vol 64 (4) ◽  
pp. 1345-1351 ◽  
Author(s):  
Zdeňka Náglová ◽  
Jindřich Špička ◽  
Martin Gürtler
Keyword(s):  
Rural Development ◽  
Economic Efficiency ◽  
Labour Productivity ◽  
Dairy Industry ◽  
Development Programme ◽  
Economic Indicators ◽  
Debt Ratio ◽  
Rural Development Programme ◽  
Market Situation ◽  
The Impact

The article deals with investment subsidies which were drawn by enterprises of the dairy industry in 2007–2013. It is a subsidy within the Rural Development Programme 2007–2013 and the National subsidies. This article aims to assess whether these subsidies have contributed to higher economic efficiency of enterprises. The impact of investment grants to economic indicators (sales, debt ratio, labour productivity and production consumption) is evaluated. 35 dairy enterprises that drew investment grants, were analyzed in total. According to the results, grants from national sources have a greater impact on the economy of businesses. National subsidies improve labour productivity, sales and production consumption. Impacts of subsidies drawn from the Rural Development Programme are less noticeable. These subsidies affect only the production consumption by its decreasing. The market situation in 2008 and 2009 also influenced the rated indicators.

scholarly journals Effects of the investment support in the Czech meat processing industry  

2017 ◽  
Vol 63 (No. 8) ◽  
pp. 356-369 ◽  
Author(s):  
Spicka Jindrich ◽  
Naglova Zdenka ◽  
Gurtler Martin
Keyword(s):  
Labour Productivity ◽  
Development Programme ◽  
Bank Loans ◽  
Debt Ratio ◽  
Meat Processing ◽  
Processing Industry ◽  
National Programme ◽  
Rural Development Programme ◽  
Support Programme ◽  
The Impact

The goal of the paper is to quantify and evaluate the effects of investment subsidies in the Czech meat processing industry. The investment subsidies should enhance the economic results of the supported companies and increase their competitiveness. The analysis is based on the fixed-effect modelling of balanced panel data of 130 meat processors in the period 2008–2013. It quantifies the impact of investment subsidies from the Rural Development Programme (RDP) and the national support programme (Decree of MoA) on profitability, labour productivity, credit debt ratio and the efficiency of production consumption. The conclusions can be generalized for medium-sized and large companies. The results show that investment subsidies from the RDP had not such a significant effect as expected. Investment subsidies from the RDP affected only the labour productivity of large meat processors and the ROA of non-family companies. However, they should preferably help small and medium-sized companies to be more competitive. Subsidies from the national programme increased the profitability of family-owned and medium-sized companies and changed the capital structure of the supported companies which used more bank loans for upgrading the technology.  

scholarly journals The impact of insecurity and violence on the sales of Micro and Small companies in the city of Valle de Santiago, Guanajuato

2019 ◽  
pp. 1-8
Author(s):  
María Guadalupe Uribe ◽  
Bibiano Bravo ◽  
Patricia Del Carmen Mendoza
Keyword(s):  
Economic Development ◽  
Local Level ◽  
Quantitative Approach ◽  
Small Enterprises ◽  
Small Companies ◽  
Micro And Small Enterprises ◽  
A Priority ◽  
The Impact ◽  
The Relationship ◽  
The City

Nationwide, 63.0% of companies consider insecurity and crime as a major problem that affects them. (INEGI, 2018). On 2018 in Guanajuato, 93.3% of companies considered it unsafe, with an increase of 38.3% over 2016 (INEGI, 2018). Their municipalities are no exception, in the case of Valle de Santiago, we seek to analyze the relationship between insecurity and violence with respect to annual sales of micro and small enterprises, the research is conducted through a cross-descriptive design, with a quantitative approach, through the questionnaire as an instrument, obtaining a sample of 550 companies. As a result of the research it was obtained that 90.7% of the directors of the micro and small companies express to be worried by the insecurity and violence that occurs in the municipality and therefore an impact is observed in the annual sales according to the calculation of the R square, obtaining 0.765. Given the importance that micro and small enterprises have for the economic development of the municipality, the issue of insecurity and violence must be considered a priority due to its growing incidence, not only at the local level.

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