scholarly journals Impact of Entrepreneurial Orientation, Access to Finance and Strategic Flexibility on SMEs Performance

2020 ◽  
Vol 7 (1) ◽  
pp. 1-23
Author(s):  
Wasif Sajjad ◽  
Amber Sajjad ◽  
Muhammad Asif
Keyword(s):  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Survey Method ◽  
Strategic Flexibility ◽  
Access To Finance ◽  
Paper Survey ◽  
Medium Enterprises ◽  
Positive Effect ◽  
Sports Goods

The sports goods manufacturing sector of Pakistan is comprised of 10,400 small and medium enterprises and annually contributes 6% to the country’s GDP. Despite its prominent role in promoting economic growth research on the sports goods manufacturing sector of Pakistan remains limited. This research analyzed the effect of entrepreneurial orientation, access to finance, and strategic flexibility on SMEs performance in the sports goods manufacturing sector of Sialkot, Pakistan. 400 SMEs were randomly selected out of 10,400 sports manufacturing SMEs in Sialkot, Pakistan. A pen and paper survey method was utilized to collect data from SMEs managers. Out of 400 SMEs contacted 372 agreed to participate in research. 372 usable questionnaires were received back. The results show that entrepreneurial orientation and access to finance have a significant positive effect on SMEs performance. Whereas, strategic flexibility was found to be insignificant in affecting SMEs performance.

scholarly journals The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia

2019 ◽  
Vol 8 (2S9) ◽  
pp. 634-641
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Equation Model ◽  
Strategic Flexibility ◽  
And Performance ◽  
Medium Enterprises ◽  
Positive Effect

The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.

scholarly journals Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia

2021 ◽  
Vol 14 (7) ◽  
pp. 286
Author(s):  
Betgilu Oshora ◽  
Goshu Desalegn ◽  
Eva Gorgenyi-Hegyes ◽  
Maria Fekete-Farkas ◽  
Zoltan Zeman
Keyword(s):  
Small And Medium Enterprises ◽  
Multiple Linear Regression Model ◽  
Financial Inclusion ◽  
Research Approach ◽  
Supply Side ◽  
Access To Finance ◽  
Secondary Sources ◽  
Medium Enterprises ◽  
Supply Side Factors ◽  
Positive Effect

The study examines the determinant factors that influence financial inclusion among small and medium enterprises (SMEs) in Ethiopia. The study uses an explanatory research design and a mixed research approach with both primary and secondary sources of data. More specifically, the study adopts a multiple linear regression model. The finding of the study reveals that; supply-side factors, demand-side factors, market opportunity, and collateral requirements have a positive effect on the firm’s access to finance. On the other hand, institutional framework factors, and the costs of borrowing negatively affect the firm’s access to finance. This study suggests concerned bodies sustain rapid and inclusive economic growth and hence eradicate extreme poverty and hunger, the policymakers must build an efficient, strong, and well-functioning financial market system that provides affordable and sustainable financial service to SMEs.

scholarly journals The Causal Effect of Access to Finance on Productivity of Small and Medium Enterprises in Vietnam

2019 ◽  
Vol 11 (19) ◽  
pp. 5451 ◽  
Author(s):  
Mai Huong Giang ◽  
Bui Huy Trung ◽  
Yuichiro Yoshida ◽  
Tran Dang Xuan ◽  
Mai Thanh Que
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Causal Effect ◽  
Bank Loan ◽  
Firm Productivity ◽  
Function Estimation ◽  
Access To Finance ◽  
The Government ◽  
Medium Enterprises

In many developing countries, obtaining financial services at affordable rates and fair terms has been a significant challenge for small and medium enterprises (SMEs). However, this issue has not been paid much attention in Vietnam, even though SMEs account for about 95% of total enterprises and the financial market of the country has not been well developed. This study investigates the causal effects of access to finance on productivity of SMEs operating in the manufacturing sector in Vietnam. Productivity was measured as the total factor productivity (TFP) obtained by production function estimation using the Levinsohn and Petrin approach. Regarding financial accessibility, two factors covered the extent to which firms might have a bank loan or overdraft facility were employed. To study the causal inferences of access to finance on firm productivity, the research adopted the difference-in-differences (DID) approach, as well as the propensity score matching (PSM) coupled with DID technique. The empirical results indicated that improving the financial accessibility could directly enhance firm productivity. Particularly, it was shown that firms having access to a bank loan could significantly improve TFP by approximately 8.6% in the DID model and about 9% in the PSM-DID model. Meanwhile, the firm average TFP increased by approximately 12.3% and 15.7% in simple DID and PSM-DID models, respectively, when firms had an overdraft facility. These findings suggest that the government should put more effort into assisting SMEs in generating bankable projects, and create a sound and healthy financial environment to stimulate firms’ access to finance, which will ensure their sustainability and growth.

scholarly journals Financing MSMEs (Micro Small and Medium Enterprises) in Nigeria: Implications of Transaction Costs

2018 ◽  
Author(s):  
Oluseye Ajuwon ◽  
Sylvanus Ikhide ◽  
Joseph Akotey
Keyword(s):  
Financial Institutions ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Survey Method ◽  
Access To Finance ◽  
Access To Credit ◽  
Transactions Cost ◽  
Medium Enterprises ◽  
The Impact ◽  
Depth Interviews

This study investigated the roles of transactions cost in MSMEs access to finance. This was done by investigating the impact of transactions cost on access to credit from both MSMEs and financial institutions (commercial banks and microfinance banks). From the MSMEs’ side, borrowing experience, decision lag, firm size and borrowers’ distance to the loan office were investigated. On the financial institution’s side, the costs of information gathering, loan administration, monitoring and loan enforcement were investigated. We used the questionnaire survey method, in-depth interviews and case studies, as well as the annual financial statements of the banks. We identified interest rate and collateral value as constraints to access to finance for MSMEs. We also found financial institutions’ attitude to MSMEs access to credit was not friendly. Financial institutions need to do more to bring down transaction cost of lending. This hopefully can be achieved by investing more in agent banking which would lower operating costs, as well as spreading risk, and ultimately increase credit intermediation to small businesses.

scholarly journals Analisis faktor yang mempengaruhi kinerja UKM di pasar internasional

2020 ◽  
Vol 16 (1) ◽  
pp. 1-18
Author(s):  
Aglis Andhita Hatmawan
Keyword(s):  
International Trade ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
International Market ◽  
International Markets ◽  
Survey Method ◽  
Manufacturing Companies ◽  
Medium Enterprises ◽  
Network Capability

Small and medium enterprises (SMEs) are currently important players in international trade. Commitment from business actors and wider networks are required to not only penetrate the international market but also to survive and compete at the national and international levels. This study aims to analyze entrepreneurial orientation, network capabilities, and innovation on the performance of SMEs in the international market. This study used a survey method by giving questionnaires and interviews to 75 manufacturing SMEs in the district and city of Madiun. The results of this study indicate that all entrepreneurial orientation variables, network capability, and innovation have positive and significant effects on the performance of SMEs in the international market. This study contributes to the internationalization of SME's literature by analyzing the influence of entrepreneurship orientation, networking capabilities, and innovation on SME performance in international markets, especially for manufacturing companies.

scholarly journals Entrepreneurial Orientation and Performance of Selected SMEs in Southeast, Nigeria

2021 ◽  
Vol 6 (4) ◽  
pp. 108-115
Author(s):  
Ifeanyi E. Nuel Okoli ◽  
Kanayo Chike Nwosu ◽  
Miracle Ejike Okechukwu
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Access To Finance ◽  
Customer Base ◽  
Simple Regression Analysis ◽  
And Performance ◽  
Medium Enterprises ◽  
Poor Infrastructure

This study examines the effect of entrepreneurial orientation on performance of selected small and medium scale enterprises (SMEs) in Southeast Nigeria. The problems that led to this study include, inadequate access to finance, poor infrastructure, inconsistency with government policy, poor support (business development work), inadequate sales, too many taxes and obsolete technologies leading to massive failures. It has not been found that the epileptic growth of SMEs in Southeast Nigeria is not only due to the problems but also from the entrepreneurial orientation. The survey research method was employed in this study and the study relied on secondary and primary data. The population of this study was drawn from SMEs in the five states in the Southeast Nigeria. The study was done using three hundred and sixty six small and medium enterprises (SMEs). Complete enumeration was adopted. Simple regression analysis was used to analysis the hypotheses. The study revealed that there is a significant positive relationship between pro-activeness, innovativeness and risk taking on performance of SMEs in Southeast Nigeria. The study concluded that entrepreneurial-oriented firms tend to lead the industry with innovations, performing things in a better approach to satisfy customers and give the firm a better leverage. The study recommends that SMEs owners and managers should be committed to process and radical innovation in their dealings so as to increase and expand their customer base.

Sustainability - Oriented Innovation and Performance of Small and Medium Enterprises in South Africa

2019 ◽  
Vol 10 (1) ◽  
pp. 231
Author(s):  
Olawale FATOKI
Keyword(s):  
South Africa ◽  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Survey Method ◽  
Research Approach ◽  
Cross Sectional Survey ◽  
Design Data ◽  
Cross Sectional ◽  
Medium Enterprises

The purpose of this study is to investigate the effect of sustainability-oriented innovation (SOI) on the performance of small and medium enterprises (SMEs) in South Africa. The study adopted a multi-dimensional measure of performance (financial, social, environmental, innovation and quality). The study used the quantitative research approach and the descriptive and causal research design. Data was collected from one hundred and ninety eight owners/managers of SMEs in the manufacturing sector. The cross-sectional survey method (self-administered questionnaire) was used for data collection. The participants in the study were conveniently sampled. Descriptive statistics, factor analysis, correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used as a measure of reliability. The findings of the study indicate that economic, environmental and social dimensions of SOI have significant positive relationships with the five measures of performance. Limitations, areas for further study and recommendations to improve the SOI of SMEs are suggested.

Creditworthiness and access to finance of SMEs in Malaysia: do linkages with large firms matter?

2020 ◽  
Vol 27 (2) ◽  
pp. 197-217 ◽  
Author(s):  
Shaista Wasiuzzaman ◽  
Nabila Nurdin ◽  
Aznur Hajar Abdullah ◽  
Gowrie Vinayan
Keyword(s):  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Group Analysis ◽  
Large Firms ◽  
Kuala Lumpur ◽  
Access To Finance ◽  
Content Type ◽  
Significant Difference ◽  
Medium Enterprises ◽  
The Relationship

PurposeThis study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.Design/methodology/approachSurvey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).FindingsIt is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.Originality/valueThis study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.

scholarly journals Disintegrated Market Orientation and Firm Performance: Moderating Effect of Entrepreneurial Orientation

2021 ◽  
Vol 7 (1) ◽  
pp. 155-168
Author(s):  
Jawad Hussain ◽  
Palwasha Bibi ◽  
Ashfaq Ahmad ◽  
Hazrat Bilal
Keyword(s):  
Organizational Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Survey Method ◽  
Future Research ◽  
Limited Attention ◽  
Strategic Orientations ◽  
Using Data ◽  
Medium Enterprises

The interplay between strategic orientations has received limited attention in manufacturing small and medium enterprises (SMEs).The existing studies have repeatedly called for investigating the impacts of multiple strategic orientations on organizational performance. Moreover, prior research called for disintegrating the strategic orientation and assessing their effects on organizational performance. Thus, this study is the first of its nature – disintegrating the market orientation (MO) construct and using data from 213 SMEs of Pakistan, collected through survey method, which reports on how the deployment of entrepreneurial orientation (EO) as moderator produces synergistic effect and strengthens the MO dimensions –organizational performance links. The results indicate that the MO dimensions are positively and significantly related to organizational performance. Moreover, EO significantly and positively moderates the MO dimensions and organizational performance relationships. The study provides avenues for future research.

scholarly journals PENENTU KEUNGGULAN BERSAING PADA UMKM : APAKAH KOMPETENSI DIGITAL DAN ORIENTASI KEWIRAUSAHAAN PENTING ?

AdBispreneur ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 63
Author(s):  
Sofi Maya Sari ◽  
Yunizar Yunizar ◽  
Dina Sartika
Keyword(s):  
Human Resources ◽  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Digital Competence ◽  
Technological Developments ◽  
Medium Enterprises ◽  
Positive Effect

One of the efforts to improve the competitive advantage in rapid technological developments, especially in Micro, Small and Medium Enterprises (MSMEs), is to maximize the potential of human resources. However, at this time human resources MSMEs’owners are not acceptable in digital competence and low ability to improve entrepreneurial orientation. The role of human resources consisting of digital competence and entrepreneurial orientation leads to the competitive advantages of micro, small and medium enterprises. The study used a quantitative approach, using multiple regression analyses to analyze a questionnaire sample of 180 micros, small, and medium enterprises manufacture of food products in Bandung City. Results showed digital competence and entrepreneurial orientation have positive effect on competitive advantage. Salah satu usaha untuk dapat meningkatkan keunggulan bersaing ditengah perkembangan teknologi yang pesat khususnya pada Usaha Mikro, Kecil, dan Menengah (UMKM) adalah dengan memaksimalkan potensi dari sumber daya manusia yang dimilikinya. Namun begitu saat ini sumber daya manusia atau pelaku usaha mikro, kecil dan menengah kurang akseptabel dalam penguasaan kompetensi digital serta rendahnya kemampuan dalam meningkatkan sikap orientasi kewirausahaannya. Peranan sumber daya manusia yang terdiri dari kompetensi digital dan orientasi kewirausahaan ini mengarah kepada keunggulan bersaing usaha mikro, kecil, dan menengah. Penelitian ini menggunakan pendekatan kuantitatif, dengan menggunakan analisis regresi berganda untuk menganalisis sampel kuisioner sebanyak 180 pelaku UMKM industri pengolahan makanan di Kota Bandung. Hasil penelitian mengungkapkan bahwa kompetensi digital dan orientasi kewirausahaan berpengaruh positif terhadap keunggulan bersaing.

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