scholarly journals Exploring the economic significance of small and medium enterprises

2015 ◽  
Vol 4 (1) ◽  
pp. 27-34 ◽  
Author(s):  
Ashenafi Beyene Fanta
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Economic Benefits ◽  
Scientific Investigation ◽  
Empirical Literature ◽  
Economic Significance ◽  
National Output ◽  
Medium Enterprises ◽  
Modeling Growth

This paper aims at providing a detailed account of economic significance of small and medium enterprises by drawing on the extant body of empirical literature. It has been noted that studies on the link between SME development and economic growth are inconclusive. While modeling growth in the SME sector and its impact on economic development is a matter of ongoing scientific investigation, we emphasized on the most conspicuous economic benefits of SMEs that includes, among others, job creation, contribution to national output, reducing income inequality and poverty. We believe this may help researchers frame their future investigations in line with the benefits discussed in the paper.

Considerations on the Advantages of Using Leasing in Small and Medium-Sized Enterprises

2021 ◽  
Vol 19 (163) ◽  
pp. 587-598
Author(s):  
George-Aurelian TUDOR ◽  
◽  
Ioan Codrut TURLEA ◽  
Elena MITOI ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Small And Medium Enterprises ◽  
Decisive Role ◽  
Quality Criteria ◽  
Modern Society ◽  
Economic Benefits ◽  
Management Control ◽  
Risk Appetite ◽  
Medium Enterprises

Throughout the evolution of our society, accounting has played an important and sometimes decisive role in making or influencing certain decisions. Accounting research can provide social and cultural studies with important insights into how society and culture is produced and shaped by calculations, technologies and management control practices. An exciting challenge and opportunity for young researchers is to explore the role and impact of accounting in companies as well as in non-governmental organizations, given the many times when the issue of further reform has arisen because of sensitive events in the lives of companies. Increasing quality criteria as well as lowering costs by using leasing as a form of financing has generated part of the evolution of modern society. Thus, the management of companies has constantly had to establish new and new strategies to bring companies to our reputation and esteem through higher performance indicators than in previous periods. The main objective of the article is to understand the concept of leasing financing, to get familiar to the use of leasing, also to validate the hypothesis that leasing means a good manner of financing for small and medium enterprises using a variety of different strategy of economic development and obtaining economic benefits, having as a start point a right interpretation of accounting politics highlighting the true and fair view of the company. In order to validate the hypothesis that leasing is a factor of economic growth, the authors conducted a questionnaire consisting of nine questions in which respondents expressed their opinion on leasing as a form of financing. Following the study, the authors concluded, within the sample analyzed, that the use of leasing is a factor of economic growth, having as a start point the company development strategy, and also, the risk appetite of the shareholders. Also, using the leasing as a manner of finance offered the opportunity for a quickly technological growth and real appearing of the modern historical challenge - globalization.

The Characteristics of SMEs in Dubai and Their Impact on Innovation

2020 ◽  
pp. 146-157
Author(s):  
Mercy Veronica Chaita
Keyword(s):  
Economic Growth ◽  
Crucial Role ◽  
Small And Medium Enterprises ◽  
New Technology ◽  
Job Creation ◽  
Organizational Practices ◽  
Economic Success ◽  
Innovation Activities ◽  
Medium Enterprises

This chapter explores the extent and characteristics of small and medium enterprises (SMEs) in Dubai and their innovative practices. Within this context, considerable emphasis is placed on evaluating the propensity of these SMEs to adopt new technology. SMEs are significant to the local entrepreneurship and innovation activities as well as improving competitiveness. Furthermore, these enterprises play a crucial role in job creation and are fundamental to economic growth. The connection between economic success in SMEs is fundamental since these firms are able to incorporate innovation into their operations and organizational practices.

scholarly journals Public outlook on small and medium enterprises as a strategic tool for economic growth and job creation in South Africa

2015 ◽  
Vol 4 (4) ◽  
pp. 412-418 ◽  
Author(s):  
Lawrence Mpele Lekhanya
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Primary Data ◽  
Research Approach ◽  
Survival And Growth ◽  
Analyse Data ◽  
Medium Enterprises

In spite of the key role played by the Small and Medium enterprises in economic development, there has been little effort to look at what needs to be done to improve survival and growth of SMEs. There is still a general lack of in-depth understanding from policy makers and other relevant stakeholders of how SMEs can be used as a strategic tool for economic growth and job creation in South Africa. These misperceptions and misunderstand leads to continuous failure to SMEs survival and growth. This study seeks to address this research gap. The study investigates the public views on what needs to be done to grow South African economy through the development of SMEs. Quantitative research approach was used to collect and analyse data for the study. Primary data was collected from four (4) provinces of South Africa. 230 people participated in the study. Questionnaires were emailed to each respondent and follow-ups were made via telephone. It was found that many SMEs fail within five years of their existence due to the various reasons. The most critical of these were related to lack of access to finance, lack of management experience as well as human capital. Study further revealed that most the SMEs owners/managers do not have business management related skills but rather they are just ordinary entrepreneurs.

Financing SMEs Through the Islamic Qard al-Hasan

2020 ◽  
pp. 54-64
Author(s):  
Auwal Adam Sa'ad ◽  
Anwar Bin Allah Pitchay
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Developing Nations ◽  
Government Agencies ◽  
Job Opportunities ◽  
Medium Enterprises ◽  
Sustainable Economic Growth ◽  
Sme Financing

Financing small and medium enterprises (SMEs) is one of the most important mechanisms to boost economic growth in both developed and developing nations. The contributions of SMEs in many countries' gross domestic product (GDP) have been overwhelming. SMEs improve job creation in all sectors of the economy and contribute to the people's economic wellbeing. However, many SMEs are not getting financing from their respective counties due to strict regulations and interest rate hike. With this kind of regulations and high interest, many brains are wasted, and many ideas are vanishing with the job opportunities attached them. Government agencies are therefore in need to innovate different ways to facilitate SME financing and support new businesses for achieving and maintaining sustainable economic growth. This chapter proposes an Islamic FinTech and its mechanisms to achieving this vital initiative using the Islamic benevolent loan “Alqard al-hasan.”

scholarly journals Small and Medium Enterprises (SME’s) Funding and Deposit Money Banks in Nigeria

2020 ◽  
pp. 64-73
Author(s):  
Okere, Peter .A ◽  
Njoku, Gospel O ◽  
Nwosu Eleazar C
Keyword(s):  
Economic Growth ◽  
High Risk ◽  
Growth And Development ◽  
Electricity Generation ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Economic Growth And Development ◽  
Sustainable Water Supply ◽  
The Government ◽  
Medium Enterprises

This study theoretically investigated the reasons why banks are reluctant in granting credit facilities to the Small and Medium Enterprises (SMEs) in Nigeria. The study identified the indispensable roles of SMEs as the most viable engine for job creation, economic growth and development, and the need for the development of the Small and Medium Scale Enterprise (SMEs) in Nigeria. Adopting the theoretical approach, the study observed that banks are willing and capable to provide the necessary funds needed by SMEs but so many factors have hampered them. SME operators are compelled to provide their own electricity, water and, in some cases access roads to offset deficiencies in public infrastructural facilities. This is detrimental to viability and efficiency in production and is considered as high risk by the banks. Banks as a business entity have to make profit and maintain enough liquidity needed to meet up with other obligations of other stakeholders. The inability of the deposit money banks to extend the needed credits to the SMEs is due the unfriendly environment in which these SMEs operate. This study therefore recommends that government should totally adopt the Indian Model of SMEs development. Again, the environment for doing in Nigeria should be improved by the government most especially the electricity generation, sustainable water supply, quality roads.

scholarly journals The Vietnam SME Data, 2005–15

2020 ◽  
pp. 14-38
Author(s):  
Hanna Berkel ◽  
John Rand ◽  
Finn Tarp ◽  
Neda Trifkovic
Keyword(s):  
Economic Growth ◽  
Government Policy ◽  
Small And Medium Enterprises ◽  
Job Creation ◽  
Evidence Based ◽  
General Knowledge ◽  
Policy Recommendations ◽  
Doi Moi ◽  
Analytical Work ◽  
Medium Enterprises

Since the initiation of the Doi Moi reforms in 1986, it is widely believed that Vietnam’s small and medium enterprises (SMEs) have critical characteristics that contribute to the country’s impressive economic and social development over recent decades. Specifically, SMEs represent a source of economic growth, savings, job creation, and increased competition. Despite their vast potential, general knowledge on their characteristics as well as the opportunities and constraints they were facing was lacking, thus making it difficult for evidence-based government policy recommendations to be formulated. This chapter sheds light on the Vietnam SME database covering surveys over 2005–15, and represents the basis for the analytical work in books chapters. The authors outline the purpose behind the data collection—including sample design, firm and owner characteristics, attrition—comparing the data with the characteristics of Vietnam’s overall enterprise population.

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

Another failed M&A: misaligned business models as culprit

2017 ◽  
Vol 38 (5) ◽  
pp. 18-26
Author(s):  
Gaël Le Floc’h ◽  
Laurent Scaringella
Keyword(s):  
Customer Value ◽  
Multinational Enterprises ◽  
Business Models ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Content Type ◽  
Recent Debate ◽  
Definition Of ◽  
Medium Enterprises

Purpose Literature on business models (BMs) has grown ve ry rapidly since the beginning of the twenty-first century, and although the theoretical and empirical literature has developed significantly, the number of practical and management-oriented studies remains relatively low. A recent debate in the field has focused on the definition of BM invariants: sensing customer needs, creating customer value, sustaining value creation and monetizing value. Extant empirical studies have mainly focused on multinational enterprises (MNEs) and successful BMs; however, this study concentrates on the failure of BMs in the case of small and medium enterprises (SMEs). An important source of a BM’s failure is the misalignment between MNE and SME involved in an acquisition. Design/methodology/approach Looking through the lens of the four BM constants, the aim of this study is to examine the case of the acquisition Domestic Heating (an SME) by Ventilair (an MNE). Findings Although both separate entities were achieving good results and each had a specific BM, the acquisition produced poor results mainly due to the misalignment of the two BMs. The findings lead the authors to make recommendations to practitioners on avoiding BM misalignment during an acquisition. Originality/value The authors encourage practitioners to enhance communication, promote organizational experiments, acknowledge specificities of both entities, foster employee commitment and ensure homogeneity in IT system usage.

scholarly journals New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union

2015 ◽  
Vol 9 (4) ◽  
pp. 25-31
Author(s):  
Xénia Szanyi-Gyenes ◽  
György Mudri ◽  
Mária Bakosné Böröcz
Keyword(s):  
Economic Growth ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Added Value ◽  
Easy Access ◽  
The European Union ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Eu

The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs. JEL classification: Q18

scholarly journals MSMEs as Engine of Economic Growth in Nigeria: Challenges and Prospects of Scalability

2018 ◽  
Vol 2 (1) ◽  
pp. 1-10
Author(s):  
Emmanuel Okokondem Okon
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Technological Systems ◽  
Economic Growth And Development ◽  
Area Of Concern ◽  
Medium Enterprises ◽  
A Company

Growing or expanding the Micro, Small and Medium Enterprises (MSMEs) sector of the economy is one key strategy to achieve economic growth and development. Micro, Small and Medium Enterprises (MSMEs) scalability (growth or expansion) have become an area of concern for economic growth in developing economies. People use the term in reference to computer or other technological systems, but those in business also use the word to describe the adaptability of a company (Thibodeaux, 2015) in today‘s fast-paced business environment where the focus on customer satisfaction is at an all-time high. This article discusses the concept of scalability as it relates to business and non-scalable components of business process as well as the importance of being scalable. It also looked at some of the challenges and practices that prevent effective scalability of MSMEs in Nigeria and the way forward.

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