scholarly journals ROLE OF INSURANCE IN THE DEVELOPMENT OF INDIA’S MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

2019 ◽  
Vol 4 (2) ◽  
pp. 60
Author(s):  
Abhijit Chakraborty ◽  
Ashim Kr Das
Keyword(s):  
Significant Role ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Insurance Sector ◽  
Crucial Component ◽  
Stable Economy ◽  
Risk Protection ◽  
Medium Enterprises ◽  
Sustainable Economic Growth

This paper investigates the role of Insurance in the development of Micro, Small and Medium Enterprises (MSMEs) in India. MSMEs have been accepted as a crucial component of an economy irrespective of the phase of development it is in. It is estimated that more than 95% of the enterprises across the world are MSMEs, employing around 60% people in the private sector. The MSMEs are considered key elements in the development of every nation. In India, MSME sector contributed 28.77% in GDP in 2016-17 with 63 million enterprises and employment of 110 million people. Despite its size, MSMEs cumulatively act as foundation of a stable economy and plays a significant role in the sustainable economic growth of a nation. However, the inherent features of MSMEs including limited financial and managerial capability cause them to face financial and strategic risks. Sustainability of the MSMEs can be supported by eliminating the credit gap and ensuring enhanced access to finance. The provision of financial support by financial intermediaries like banks can be augmented with proper risk management by the MSMEs with the help of Insurance Sector. The study concludes that insurance can play a significant role in the development of MSMEs by providing them adequate risk protection and thus enhancing their access to finance

scholarly journals Access to Finance, Financial Development and Firm Performance – Evidence from Pakistan

2020 ◽  
pp. 49-68
Author(s):  
Waqas Ahmad ◽  
Zaheer Abbas ◽  
Zulfiqar Ali Shah
Keyword(s):  
Firm Performance ◽  
Financial Development ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Labour Productivity ◽  
Fixed Effect Model ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

scholarly journals Determinants of Firm Innovation in Indonesia: The Role of Institutions and Access to Finance

2015 ◽  
Vol 61 (3) ◽  
pp. 149 ◽  
Author(s):  
Edo Mahendra ◽  
Ubaidillah Zuhdi ◽  
Ratnawati Muyanto
Keyword(s):  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Local Level ◽  
Institutional Quality ◽  
Access To Finance ◽  
Firm Innovation ◽  
Medium Enterprises ◽  
Asymmetrically Distributed

This paper investigates the determinants of firm innovation in Indonesia. Using quality of local regulations index constructed by the Indonesia’s Regional Autonomy Watch (KPPOD) as measure of institutions, We found that better institutional quality at the local level was associated with more innovation and that firms experiencing major obstacle in access to finance were less likely to innovate. Access to finance is more critical for small and medium enterprises (SMEs) whereas institutional quality is more important for large firms. The positive impact of better institutions on innovation is asymmetrically distributed. Better local institutional quality disproportionately benefited non-constrained firms.AbstrakMakalah ini menyelidiki faktor-faktor penentu terjadinya inovasi pada perusahaan di Indonesia. Sebagai proksi kelembagaan digunakan variabel Peraturan Daerah yang dibuat oleh Komite Pemantuan Pelaksanaan Otonomi Daerah (KPPOD). Penelitian ini menemukan bahwa kualitas kelembagaan yang baik pada tingkat daerah erat kaitannya dengan tingkat inovasi yang lebih tinggi dan perusahaan-perusahaan yang mengalami kendala akses keuangan cenderung tidak melakukan inovasi. Faktor akses keuangan lebih menentukan bagi perkembangan inovasi perusahaan perusahaan kecil dan menengah sedangkan kualitas kelembagaan lebih menentukan bagi perusahaan besar. Dampak positif dari kelembagaan yang baik terhadap tingkat inovasi terdistribusikan secara asimetris dan faktor kelembagaan yang baik lebih berdampak positif terhadap perusahaan yang tidak mengalami kendala keuangan.Kata kunci: Akses Keuangan; Inovasi Perusahaan; Faktor Penentu Inovasi; Kesenjangan Inovasi; KelembagaanJEL classifications: O38; O53; G38

scholarly journals Role of ICT4D in the Growth and Development of SMES : A Solution To Digital Divide

2021 ◽  
pp. 294-303
Author(s):  
Masese Chuma Benard ◽  
Mbugua Samwel Thaiya ◽  
Korongo Julia Nduta ◽  
Joram Mutai Kiptoo ◽  
Dr. Nambiro Alice Wechuli
Keyword(s):  
Digital Divide ◽  
Significant Role ◽  
Growth And Development ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Secondary Data ◽  
Digital Era ◽  
Medium Enterprises ◽  
Productivity And Competitiveness

ICTs have played a critical role within the development of business particularly small and medium enterprises. During a modern digital era, technology is most vital pillar within the provision of data and knowledge for the growth of development, sustainability, productivity and competitiveness of small and medium enterprises. The primary goal of this study was to research on the role of ICT4D in the growth and development of SMEs: a solution to digital divide. The paper used secondary data. It was noted that small and medium enterprises take part in a significant role in Kenya’s economy. Enterprises in Kenya, more especially SMEs, have enjoyed the benefits and the potential of adoption and utilization of ICT within their operations. ICT has the potential of remodeling the business and improve.

scholarly journals Small and Medium Enterprises in the Middle East and North Africa Region

2021 ◽  
Vol 16 (5) ◽  
pp. 55
Author(s):  
Khaled Otman
Keyword(s):  
Middle East ◽  
North Africa ◽  
Small And Medium Enterprises ◽  
Policy Implications ◽  
Future Research ◽  
Mena Region ◽  
Access To Finance ◽  
Mena Countries ◽  
Medium Enterprises

In the Middle East and North Africa (MENA) region, Small and Medium Enterprises (SMEs) are now widely recognized as engines of economic development. This paper discusses the importance of SMEs in the MENA economic area and identifies the challenges and barriers facing SMEs in MENA countries. In addition, this study analyses the effects of two 'black swan' Coronavirus disease (COVID-19) phenomena and a decline in oil prices on the economy of MENA in 2020. The current study found that the most significant challenges were identified as lack of access to finance, lack of managerial expertise, inefficiencies of government, lack of a well-trained workforce, inadequate infrastructure, corruption and bureaucratic obstacles. Among these challenges, the lack of access to finance appears to be the major challenge and suggests that future research is required to identify the role of Islamic finance models in the financing of SMEs in MENA countries. This research provides all stakeholders with policy implications intended for enhancing the different features of SME improvement in the MENA region and generally in developing countries.

scholarly journals Role of Business Incubation in Sustaining Small and Medium Enterprises in the Kingdom of Eswatini

2020 ◽  
Vol 11 (6) ◽  
pp. 247
Author(s):  
Thobile Makhosazana Dlamini ◽  
Oyebanjo Ogunlela ◽  
Chux Gervase Iwu
Keyword(s):  
Significant Role ◽  
Statistical Approach ◽  
Small And Medium Enterprises ◽  
Literature Analysis ◽  
Business Incubators ◽  
Business Incubation ◽  
Entrepreneurial Skills ◽  
Medium Enterprises ◽  
Insight Into

What do business incubators do? Do they play a significant role in enhancing the entrepreneurial competitiveness of small and medium enterprises (SMEs)? Could they play any significant role in the development of SMEs? What are the types of entrepreneurial skills and strategies offered by business incubators in the Kingdom of (Note 1) Eswatini? These are the pertinent questions that were taken on in this paper through a desktop literature analysis, to understand the role and impact of business incubators. Themes that emerged helped to gain better insight into the roles of business incubators as well as how they overcome identified challenges. This paper concludes that further study on the role of business incubators in Eswatini may take the form of an extensive, statistical approach using empirical data to unearth business incubators’ impact on SMEs’ competitiveness and sustainability. Further to this, it is suggested that available frameworks and policies from other successful countries be examined for the benefit of the Kingdom of Eswatini.

scholarly journals MEDIATING ROLE OF ACCESS TO FINANCE ON THE RELATIONSHIP BETWEEN STRATEGIC ORIENTATION ATTRIBUTES AND SMEs PERFORMANCE IN NIGERIA

2017 ◽  
Vol 17 (3) ◽  
Author(s):  
Murtala Aminu Ibrahim ◽  
Mohd Noor Mohd Shariff
Keyword(s):  
Firm Performance ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Modern Technology ◽  
Strategic Orientation ◽  
Access To Finance ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

In spite of recognized significant contribution of SMEs to nations’ economy, Nigerian SMEsperformance is below expectation. This is because SMEs in Nigeria today faces severe limitationsin financing, management skill, marketing, modern technology and technical expertise. Theobjective of this study is to investigate the mediating role of access to finance on the positiverelationship between entrepreneurial orientation (EO), market orientation (MO), learningorientation (LO), technology orientation (TO) and SMEs performance in Nigeria. A sample sizeof 522 SMEs operating in Kano, Kaduna and Sokoto states of Nigeria were selected usingstratified simple random sampling techniques. Partial Least Squares-Structural EquationModelling was used to analyze the data. Hence, the data analysis was conducted using SmartPLS3.0. The results of path analysis indicate that access to finance mediates the positive relationshipbetween MO, LO, TO and the performance of small and medium enterprises in Nigeria. This isan important additional explanation for the existence of the relationship between these strategicorientations and firm performance. The results further suggest that SMEs need to use theirstrategic activities to improve their ability to obtain finances in order to perform well. Finally,recommendations for further research are also discussed.Keywords: SMEs; Strategic Orientation; Nigeria; Access to Finance; Firm Performance.

THE ACCESS TO GOVERNMENT FINANCIAL SUPPORT THROUGH LEGAL CHANNELS OF SMALL AND MEDIUM ENTERPRISES IN FOUR ASIA PACIFIC COUNTRIES

2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Mediation Effect ◽  
Asia Pacific ◽  
Survey Questionnaire ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.

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