CROWDFUNDING AS AN ALTERNATIVE FINANCING FOR SMES AND START-UPS IN MALAYSIA: AN INTRODUCTORY NOTE FROM THE LEGAL PERSPECTIVE

2021 ◽  
Vol 29 (2) ◽  
pp. 221-269
Author(s):  
Tan Wai Kit
Keyword(s):  
Small And Medium Enterprises ◽  
Alternative Source ◽  
High Expectations ◽  
Technology Advancement ◽  
Legal Perspective ◽  
Introductory Note ◽  
External Sources ◽  
Digital Disruption ◽  
Medium Enterprises ◽  
Start Ups

Small and Medium Enterprises (SMEs) and start-ups have consistently contributed to a country’s tax revenue, technology advancement, and innovation, job creation as well as economic outputs. However, they are facing great challenges or setbacks in securing funding from external sources. To overcome the fundraising issues or financing lacuna, many entrepreneurs have resorted to crowdfunding as an alternative source of their equity or debt financing. Crowdfunding, being a significant aspect of the recent fintech innovation and digital disruption, has been put under the spotlight and received high expectations from all stakeholders to be an effective solution to SMEs and start-ups. This article would be focusing on crowdfunding with financial returns, namely, equity crowdfunding (ECF) and crowdlending/peer-to-peer lending (P2P). The research methodology employed by this article is primarily based on the literature review of various legislations, scholarly articles, research papers, government policies, books, and other publications concerning the ECF and P2P from different disciplines. At the end of this article, the author opined that crowdfunding could be a useful alternative financing method for SMEs and start-ups in Malaysia as it helps the capital formation and bridges the financing gaps for them. Countless benefits could also be offered to the society and economy at large with the proper crowdfunding regulations in place. Upon reviewing the Guidelines on Recognised Markets issued by the Securities Commission Malaysia (Guidelines), the author argues that the Guidelines is a carefully crafted and balanced regulation, albeit there is room for improvement.

scholarly journals Extrapolative Collaborative Filtering Recommendation System with Word2Vec for Purchased Product for SMEs

2021 ◽  
Vol 13 (13) ◽  
pp. 7156
Author(s):  
Kyoung Jun Lee ◽  
Yu Jeong Hwangbo ◽  
Baek Jeong ◽  
Ji Woong Yoo ◽  
Kyung Yang Park
Keyword(s):  
Collaborative Filtering ◽  
High Performance ◽  
Recommendation System ◽  
Small And Medium Enterprises ◽  
Personal Information ◽  
Business Environment ◽  
Share Data ◽  
Artificial Intelligence Technology ◽  
Medium Enterprises ◽  
Start Ups

Many small and medium enterprises (SMEs) want to introduce recommendation services to boost sales, but they need to have sufficient amounts of data to introduce these recommendation services. This study proposes an extrapolative collaborative filtering (ECF) system that does not directly share data among SMEs but improves recommendation performance for small and medium-sized companies that lack data through the extrapolation of data, which can provide a magical experience to users. Previously, recommendations were made utilizing only data generated by the merchant itself, so it was impossible to recommend goods to new users. However, our ECF system provides appropriate recommendations to new users as well as existing users based on privacy-preserved payment transaction data. To accomplish this, PP2Vec using Word2Vec was developed by utilizing purchase information only, excluding personal information from payment company data. We then compared the performances of single-merchant models and multi-merchant models. For the merchants with more data than SMEs, the performance of the single-merchant model was higher, while for the SME merchants with fewer data, the multi-merchant model’s performance was higher. The ECF System proposed in this study is more suitable for the real-world business environment because it does not directly share data among companies. Our study shows that AI (artificial intelligence) technology can contribute to the sustainability and viability of economic systems by providing high-performance recommendation capability, especially for small and medium-sized enterprises and start-ups.

The Impact of the Entrepreneur’s Educational Level on the Employment Creation by New Small and Medium Enterprises

2014 ◽  
pp. 183-200
Author(s):  
João Zambujal-Oliveira ◽  
Luis Contente
Keyword(s):  
Higher Education ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Business Owner ◽  
Employment Change ◽  
Negative Effects ◽  
Regional Employment ◽  
Heterogeneous Effects ◽  
Medium Enterprises ◽  
Start Ups

This chapter examines the effects of different types of start-up rates on subsequent employment change. Longitudinal data on start-ups and employment in Portuguese regions in the period 1996–2007 is used for the analysis. The study addresses whether diverse types of new small- and medium-sized enterprise formation have heterogeneous effects on regional employment generation. It is found that, for the range considered, the seven types of start-ups led to significant and negative effects on the average variation of regional employment. It is also observed that these effects were more negative for start-ups with at least one business owner with higher education in engineering and for start-ups with at least one business owner with higher education in management. The last conclusion is that the share of highly skilled employees has a statistically significant and positive impact on the average employment change and, therefore, on regional development.

scholarly journals An Analysis of Smes Market in History of Azerbaijan

2021 ◽  
Vol 129 ◽  
pp. 09006
Author(s):  
Jamila Hasanova Vagif
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Local Market ◽  
Research Database ◽  
History Of ◽  
Business Objects ◽  
Medium Enterprises ◽  
Start Ups ◽  
The Impact ◽  
Modern Technologies

Research background: World experience shows that small and medium business in a civilized form is an important condition for the restoration of not only the economy. Periods of recession, stagnation and stabilization at a time when small and medium enterprises are the acceptable form of activity were observed. Purpose of the article: The purpose of the study is to identify the weaknesses of small and medium enterprises in the local market, to analyze the main stages of development of such enterprises in Azerbaijan. The research database includes works on the issues of local and foreign authors, decisions of the Cabinet of Ministers and the Ministry of Economy of Azerbaijan, normative-legal acts, statistical materials. The results will serve as the basis for further actions- the formation of innovative databases for data processing and analysis, the correct creation of the management structure of many business objects, the support of know-how and start-ups, financial literacy and the reduction of profit leakage. The novelty and practical results of investigation: The importance of the impact of modern technologies and innovations on business development is also explained. The problems of business, which can hinder the diversification of the economy, were considered.

Financial Inclusion, P2P Lending, and MSMEs

2022 ◽  
pp. 60-81
Author(s):  
Tulus Tambunan
Keyword(s):  
Economic Development ◽  
Financial Crisis ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Asian Financial Crisis ◽  
Aggregate Data ◽  
Financial Inclusion ◽  
Alternative Source ◽  
P2p Lending ◽  
Medium Enterprises

In Indonesia after the Asian financial crisis of 1997–1998, wide reforms were carried out, and “inclusive” economic development were adopted. One component of inclusive economic development is “financial inclusion.” This implies an absence of barriers that might deter micro, small, and medium enterprises (MSMEs) from obtaining financial services. However, the portion of bank credit received by MSMEs is still small. Therefore, financial technology (FinTech) is welcome as an alternative source of funding for MSMEs. This chapter discusses three related issues, namely financial inclusion, MSMEs, and P2P lending. It concludes that Indonesia still has a long way to go to achieve full financial inclusion. This chapter suggests that with the presence of P2P lending, the number of MSMEs, especially MSEs, in Indonesia that have access to formal financing will increase. Even though aggregate data are not available, the interviews with a small number of owners of MSEs who received P2P loans suggest that the presence of P2P lending companies give some benefits for MSEs.

scholarly journals Firm’s Finance and Influence of Global Financial Crisis in the Selected European Countries

2018 ◽  
Vol 66 (2) ◽  
pp. 583-593
Author(s):  
Lucie Szczeponková
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Banking Crisis ◽  
European Countries ◽  
Financial Constraint ◽  
Systemic Crisis ◽  
External Sources ◽  
Medium Enterprises

Small and medium enterprises (SME) are key in creation of new jobs and they significantly involved on GDP, innovations and economic growth. These firms very often rely on financial extraneous sources, but acces to these finance is significant business barrier. It means that SME face to financial constraint. This financial constraint is exacerbated by the financial crisis. The goal of this article is to clarify influence of the systemic banking crisis on use own and external sources of finance within small and medium enterprises in the selected european countries. The influence of global financial crisis on firm’s finance in selected european countries is estimated by the method Difference-in-Difference (DiD) in combination with panel data. The results show, that companies in regions hit by the systemic banking crisis had a lower share of long-term investments funded by share issues in 2009 or 2012, compared with companies in regions not affected by this crisis in 2005, 2009 or 2012, and companies in regions affected by the systemic crisis in 2005 and higher share of long-term investments financed from ekvity capital. During the financial crisis the conditions for providing extraneous sources to private entities are diminishing, and especially small and medium-sized businesses are forced to use other sources of funds.

scholarly journals Peningkatan Aktivitas Pemasaran UMKM Melalui Pengembangan Website D’real Potatoes di Jakarta

2020 ◽  
Vol 2 (1) ◽  
pp. 17-25
Author(s):  
Frangky Selamat ◽  
Bagus Mulyawan ◽  
Hetty Karunia Tunjungsari
Keyword(s):  
Community Engagement ◽  
Business Model ◽  
Business Models ◽  
Small And Medium Enterprises ◽  
General Description ◽  
Website Development ◽  
Start Up ◽  
Marketing Activities ◽  
Medium Enterprises ◽  
Start Ups

ABSTRAK Memulai sebuah usaha startup adalah sebuah perjuangan yang penting dalam proses kewirausahaan. Startup mempunyai bisnis model yang berbeda dengan bisnis yang konvensional. Startup memiliki terobosan yang tidak dimiliki oleh bisnis konvensional sebelumnya. Model bisnis adalah gambaran umum dari proses pengembangan ide bisnis, mulai dari perencanaan sampai produk diproduksi dan dipasarkan. Menjalankan sebuah usaha mikro, kecil dan menengah (UMKM) tidak sama dengan menjalankan sebuah startup. Namun UMKM dapat dikembangkan menjadi sebuah startup bila didukung dengan pengembangan bisnis model secara optimal. Pengabdian masyarakat (Abdimas) ini dilakukan untuk membantu UMKM berkembang dengan meningkatkan aktivitas pemasarannya melalui pengembangan website. Ini adalah langkah awal untuk mengembangkan sebuah UMKM menjadi sebuah startup berbasis digital ABSTRACT Launching a start-up (starting a business) is an ideal assessment for the entrepreneurial process. A startup is a business that has a different business model compared to existing conventional businesses. There is a breakthrough in the pre-existing business model. Business model is a general description of a business creating, conveyed and discussed value, from the products produced. Establishing and running a Micro, Small and Medium Enterprises (MSMEs) is not the same as a start-up business. However, MSMEs can develop into start-ups if they are properly developed, by providing a more tangible touch in designing their business models. This community engagement activity carried out to help one of the fostered MSMEs to grow its business by increasing marketing activities through website development. The development of a website can boost marketing activities and become the first step for MSMEs to grow as digital-based startup business.

scholarly journals Towards a theory regarding open innovation and entrepreneurship: a meta-synthesis from qualitative studies in small and medium enterprises and start-ups

2017 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
Eduardo Gomes Carvalho ◽  
Joel Yutaka Sugano
Keyword(s):  
Case Studies ◽  
Entrepreneurial Orientation ◽  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Research Question ◽  
Qualitative Case Studies ◽  
Innovation Activities ◽  
Medium Enterprises ◽  
Start Ups ◽  
Innovation And Entrepreneurship

<p>Open innovation is still after a decade an emergent topic in literature and, because of this, there are few gaps to be explored. Two of these gaps are the relationship between open innovation and entrepreneurship and open innovation in small and medium enterprises (SMEs), because most studies focus on large enterprises. Our research question in this study is: what do case studies report in terms of open innovation in start-ups or SMEs that would be related to entrepreneurial orientation? Our study is a meta-synthesis of qualitative case studies following the stages presented by Hoon (2013). A theory was developed and presented considering the entrepreneurial orientation dimensions and open innovation activities. In the concluding section, limitations and suggestions in terms of future works were presented.</p>

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