scholarly journals The Effects of the RCS’s Application in the Value Added Tax Collecting Process on the Perception of SME Taxpayer in Korea’s Trade Activity: Transparency and Fairness in Trade

2018 ◽  
Vol 10 (11) ◽  
pp. 4132 ◽  
Author(s):  
Sung Yoon
Keyword(s):  
Bargaining Power ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Value Added ◽  
Positive Influence ◽  
Policy Implications ◽  
Steel Scrap ◽  
Value Added Tax ◽  
Charge System ◽  
Medium Enterprises

Value Added Tax (VAT) is the largest source of global tax revenue. However, it faces issues of tax avoidance, such as the black-market and missing trader intra-community fraud. Many studies have postulated that the introduction of the Reverse Charge System (RCS) will contribute to the enhancement of transparency and fairness in trade for small and medium enterprises (SMEs) that supply goods or provide services. This study analyzes SME taxpayers’ perception of transparency and fairness in trade resulting from the introduction of the RCS into the South Korean VAT system. In B2B transactions that handle gold, copper, and steel scrap, large companies often abuse their bargaining power over smaller firms by not paying VAT with their purchase or reducing the prices to equal VAT, leading to low trade transparency. When it comes to gold, copper and steel scrap trading, the imbalance in bargaining power results in one of the parties being unable to reap maximum benefits because of unfairness. SMEs with relatively weak bargaining power suffer from unfair trading practices such as price cutting and the imposition of VAT by their counterparts. Since the introduction of the RCS, however, SME taxpayers appear to believe that trade fairness has improved. This study’s findings reveal that SMEs are more likely to perceive improvement in trade transparency and fairness since the implementation of the RCS, indicating that the RCS has exerted a positive influence on SMEs. This study provides important policy implications for countries that intend to implement the RCS by offering empirical evidence of its benefits.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

scholarly journals Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Financial Capital ◽  
Moderation Effect ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

scholarly journals Pengaruh Kecerdasan Intelektual, Kecerdasan Emosional, dan Kecerdasan Spiritual Pemilik Pada Kinerja Usaha Mikro Kecil Menengah

2018 ◽  
pp. 1369
Author(s):  
Rio Surya Wijaya ◽  
I Made Sukartha
Keyword(s):  
Economic Development ◽  
Emotional Intelligence ◽  
Gross Domestic Product ◽  
Small And Medium Enterprises ◽  
National Development ◽  
Positive Influence ◽  
Spiritual Intelligence ◽  
Domestic Product ◽  
Research Subjects ◽  
Medium Enterprises

National development of a nation includes economic development and Micro, Small and Medium Enterprises (MSMEs). MSME performance needs to be examined because the contribution of the MSME sector to the Gross Domestic Product (GDP) has increased from 57.84% to 60.34% in the last 5 years. This study aims to determine the effect of intellectual intelligence, emotional intelligence, and spiritual intelligence of the owner on the performance of Micro, Small and Medium Enterprises. Research subjects are the performance of UMKM in Denpasar City. The sample determination technique used in this study is Probably sampling used using a simple random technique. There are 100 MSMEs as samples with a questionnaire statement totaling 71 statements. Based on the results of the analysis of research obtained intellectual intelligence has a positive influence on the performance of MSMEs, Emotional Intelligence has a positive influence on the performance of SMEs, and Spiritual Intelligence has a positive influence on the performance of SMEs. Keywords: Intellectual Intelligence, Emotional Intelligence, and Spiritual Intelligence.

From strategic orientation to social media orientation

2016 ◽  
Vol 23 (4) ◽  
pp. 1165-1190 ◽  
Author(s):  
Vincent Dutot ◽  
François Bergeron
Keyword(s):  
Social Media ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Positive Influence ◽  
Strategic Orientation ◽  
Content Type ◽  
Media Performance ◽  
Future Direction ◽  
Medium Enterprises ◽  
Media Orientation

Purpose The purpose of this paper is to develop and test a framework of small and medium enterprises’ (SMEs) strategic orientation (SO) and its impact on social media performance. Moreover, it introduces a new concept, social media orientation (SMO) (composed of sales and business development (SBD) and visibility) to add in the model. Design/methodology/approach A quantitative approach was used and, based on a study of 257 SMEs, analyses were performed. A smartPLS analysis was judged appropriate regarding the sample size. Findings Results show that entrepreneurial orientation (EO) and customer orientation have a positive influence on SBD which in turn has a positive influence on social media performance. Visibility is positively influenced by EO and has an indirect effect on social media performance. Social media performance is therefore directly influenced by SBD and indirectly by visibility. Research limitations/implications The authors complete previous research that called for the introduction of different SO on a same study and go further as the author highlight the role of EO on visibility (and not only on business or performance). A second contribution lies in the conceptualization of SMO (defined here with SBD and visibility) and third in the measurement of social media performance through growth and attention. Practical implications SMEs first need to develop their visibility, and then link it to SBD. Originality/value This research is one of the first to explore SMEs’ SO on social media and proposes a new concept defined as SMO. It gives SMEs future direction on how to perform on these platforms.

scholarly journals Implementing TRIZ with Supply Chain Management in New Product Development for Small and Medium Enterprises

Processes ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 614
Author(s):  
Yun-Sheng Lin ◽  
Mingchih Chen
Keyword(s):  
Supply Chain ◽  
New Product Development ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
New Product ◽  
Sustainable Business ◽  
Chain Management ◽  
Business Operation ◽  
Medium Enterprises ◽  
Value Added Products

Due to the impact of globalization, the competition between enterprises has become fierce and led the supply chains of many industries to be reorganized. One of the consequences is that the operation of many small and medium enterprises (SMs) had become very difficult. Hence, many of SMEs in Taiwan have gone bankrupt and some of them have moved to other places where they have lower production costs, in order to survive; this not only hollowed out the industries but also disconnected the supply chains in their mother countries. Because Taiwan’s SMEs are generally poor in innovation, this study explored the implementation of the theory of inventive problem-solving (TRIZ) with alignment of new product development (NPD) and supply chain management (SCM) to strengthen the innovation and productivity of new products, so that SMEs can refer to its use to aid sustainable business operation. We considered an SME in Taiwan as a case to study and investigate the strategies that it employed to achieve survival and sustainability. By examining the practical applications of the NPD of the case company, which was based on the TRIZ and NPD SCM alignment, we found that value-added products may be created despite unfavorable industry environments, by implementing and coordinating the TRIZ and three product-related variables, namely innovating, modularity, and variety. This study explored practical alternatives for SMEs to develop various value-added products that meet customers’ changing requirements and succeed in competitive markets to achieve a sustainable business operation. Considering SMEs are crucially important to the economic equality and development of countries and that SMEs may only survive for a short time when operating in changing supply chain environments, this study can be used as a reference for the management of SMEs and future academic research in related fields.

scholarly journals Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

2017 ◽  
Author(s):  
Sirajuddin Omsa ◽  
Ibrahim H. Abdullah ◽  
Hisnol Jamali
Keyword(s):  
Bargaining Power ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Differentiation Strategy ◽  
Medium Enterprises ◽  
Wooden Furniture ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Competitive Forces

Five competitive forces that comprise bargaining power of buyers, bargaining power of suppliers, threat of newentrants, threat of substitute products or services, and intensity of rivalries have been studied by many researchers for several years. However, linking them with Porter’s generic strategy in order to gain financial and market performance in the Micro, Small and Medium Enterprises (MSMEs) context is very rare. The main purpose of this study is to analyze how those fivecompetitive forces affect generic strategies developed by Porter and how the generic strategies affect firm performances. Questionnaire, survey and deep interview were conducted to figure out the implemented generic strategies by the owners of MSMEs of wooden furniture in East Java, Indonesia. Smart partial least square (PLS) was used to analyse the data. The results show that power of buyers (PoB) significantly affects only differentiation strategy (DS), power of supplies (PoS) significantly affects cost leadership strategy (CLS) and focus strategy (FS) but does not significantly affect differentiation strategy (DS), and threat of rivalries (ToR) significantly affects differentiation strategy (DS) and focus strategy (FC). In regards to the relationship between generic strategies and firm performances (FP), the results of this study show that both DS and FS significantly affect FP, while CLS does not significantly affect FP. Based on these findings, it is suggested that the owners of MSMEs wooden furniture in East Java (Indonesia) consider PoB, PoS, and ToR before performing DS and FS to gain much greater firm performances in the future.

scholarly journals Tax incentives for R&D in the context of the development of fiscal space

2021 ◽  
Vol 2021 (10) ◽  
pp. 81-97
Author(s):  
Nataliya FROLOVA ◽  
Keyword(s):  
Small And Medium Enterprises ◽  
Value Added ◽  
Tax Incentives ◽  
Aircraft Industry ◽  
Tax Credit ◽  
Tax Exemptions ◽  
Fiscal Space ◽  
Tax Benefits ◽  
Basic Features ◽  
Medium Enterprises

The article deals with the main R&D expenditure based tax incentives such as tax credit and enhanced allowances in the context of the development of fiscal space due to their impact on innovative activities of loss-making, small and medium enterprises as well as startups. The author disclosed basic features of R&D expenditure based tax incentives in comparison with tax exemptions and accelerated depreciation. Cross-country comparisons in OECD revealed that it is often a case when SMEs and startups enjoy R&D tax credit and enhanced allowance with higher rates. In addition, they can also claim full reimbursement of unused tax benefits for R&D while large companies can only count on partial or even non-reimbursement of unused tax benefits and limited carry over period. Implied tax subsidy rates on R&D are analyzed through different OECD countries, as well as through enterprises different in size and profitability. In 2019 the largest R&D tax benefits were offered to profitable SMEs in France (ITSR was 43%) and Portugal (ITSR was 39%). The ITSR methodology is used to work out scenarios of introduction of R&D expenditure -based tax incentives in Ukraine. Calculation results are presented. The state of R&D tax incentives in Ukraine in the case of aircraft industry is analyzed. The introduction R&D expenditure -based tax incentives is argued as a replacement of tax exemptions which are currently used as a measure for R&D promotion in the aircraft industry in Ukraine in terms of improvement of R&D tax support efficiency and spur successful development of high value-added industries as an important prerequisite for the development of fiscal space in Ukraine.

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