SUSTAINING THE GROWTH OF RURAL SMEs:  EFFECT OF FINANCIAL ACCESS AND ENTREPRENEURIAL CHARACTERISTICS ON BUSINESS PERFORMANCE IN A FELDA SCHEME IN PAHANG

In Malaysia, Small and Medium Enterprises (SMEs) contribute more than one-third to the country’s gross domestic product (GDP). Past studies revealed that access to finance and entrepreneurial characteristics are often known as predictors of SMEs performance. Nonetheless, access to finance is still one of the pressing problems faced by SMEs in Malaysia. Studies on this topic have not been extensively explored particularly in the FELDA scheme. Hence, this paper attempts to investigate how access to finance and entrepreneurship characteristics affect SMEs business performance in the FELDA scheme. This study employed a survey research design. Data were collected from a sample of 368 SMEs and analysed using the Structural Equation Modelling (SEM). This study found the insignificant effect of access to finance on business performance. There was no significant effect of innovativeness and pro-activeness on business performance. Interestingly, risk-taking was directly related to SMEs business performance. Overall, findings imply that SMEs in the FELDA scheme have difficulties getting financial access, dare to take bold actions in business but they are lacking the propensity in introducing new business ideas and are not fast enough in taking advantage of new business opportunities. The paper recommends that government agencies should provide adequate business support and financial access to improve SMEs entrepreneurial capabilities and business performance.

Download Full-text

Effect of Entrepreneurial Marketing Dimensions on Small and Medium Enterprises Performance in Nasarawa State

Journal of Economics and Business ◽

10.31014/aior.1992.04.02.356 ◽

2021 ◽

Vol 4 (2) ◽

Author(s):

Hindu Jibril Amin ◽

Keyword(s):

Sample Size ◽

Value Creation ◽

Risk Taking ◽

Business Performance ◽

Small And Medium Enterprises ◽

Critical Role ◽

Entrepreneurial Marketing ◽

Explanatory Variables ◽

Research Population ◽

Medium Enterprises

Entrepreneurial Marketing (EM) Dimensions play a critical role in small and medium enterprises (SMEs) performance. The extant study explored the effect of EM dimensions on the performance of SMEs operating within Nasarawa State, Nigeria. EM was conceptualized as innovativeness, risk-taking, and value creation. The research population was 1979 registered SMEs in Nasarawa state, Nigeria. The sample size was 322 which was determined using Raosoft sample size calculator. Out of 322 sets of questionnaire distributed, 136 were validly filled and returned. The data collected were analyzed using Regression Analysis technique to test the study’s hypotheses using Statistical Product and Service Solutions software. Results specify that all three of the EM dimensions under study have significant effect on SME performance. In terms of contribution to the model, the explanatory variables were able to contribute 62.1 percent to the variable of interest (SME performance). On individual basis, innovativeness explained the most to the criterion variable. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of EM dimensions on SMEs’ performance. SMEs should be encouraged to embrace the entrepreneurial dimensions of innovativeness, risk taking, and value creation to increase business performance.

Download Full-text

Entrepreneurial Characteristics and Business Profile of Women Owned Small and Medium Enterprises (SMEs): A Case Study of the Tamale Metropolitan Area

Business Management and Strategy ◽

10.5296/bms.v7i1.8934 ◽

2016 ◽

Vol 7 (1) ◽

pp. 159 ◽

Cited By ~ 1

Author(s):

Eva Atu Alhassan ◽

Mabel Akosua Hoedoafia ◽

Elvis Adam Alhassan

Keyword(s):

Women Entrepreneurs ◽

Business Performance ◽

Formal Education ◽

Small And Medium Enterprises ◽

Tertiary Education ◽

Simple Random Sampling ◽

Vital Role ◽

Cross Sectional ◽

Entrepreneurial Characteristics ◽

Medium Enterprises

Despite the vital role of women entrepreneurs in the economic development of their families and countries, it has been revealed that they have low business performance compared to their male counterparts. In this paper, an analysis of the business profile and entrepreneurial characteristics of women owned Small and Medium Enterprises in the Tamale Metropolis has been carried out. A cross-sectional design was used to collect quantitative and qualitative data from a variety of women entrepreneurs. Women entrepreneurs who have benefited from microcredit were selected using simple random sampling. They were then categorized based on their economic activities. The study found that, the level of education of the respondents was generally low; over 69% had no formal education, 20% had primary education, 9.5% had secondary and 1% had tertiary education. Furthermore, 54.2% of the enterprises were managed by the entrepreneurs’ themselves whiles 7.8% were run by the owner and other non-family employees. Also Only about 3% of the businesses surveyed were registered.

Download Full-text

Organization-stakeholder relationship and performance of Iranian SMEs

International Journal of Islamic and Middle Eastern Finance and Management ◽

10.1108/imefm-11-2018-0407 ◽

2020 ◽

Vol 13 (3) ◽

pp. 417-436

Author(s):

Alireza Jalali ◽

Mastura Jaafar ◽

T. Ramayah

Keyword(s):

Risk Taking ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Equation Modeling ◽

Cluster Sampling ◽

Content Type ◽

Stakeholder Relationships ◽

And Performance ◽

Medium Enterprises ◽

Stakeholder Relationship

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.

Download Full-text

FACTORS THAT DETERMINE THE PERFORMANCE IMPROVEMENT OF SMALL AND MEDIUM ENTERPRISES IN JAKARTA

Jurnal Entrepreneur dan Entrepreneurship ◽

10.37715/jee.v8i2.1123 ◽

2019 ◽

Vol 8 (2) ◽

pp. 38-45

Author(s):

Rudy Santosa Sudirga

Keyword(s):

High School ◽

Performance Improvement ◽

Product Innovation ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Equation Modelling ◽

Analysis Technique ◽

Medium Enterprises ◽

Age Range

The research of factors that determine the performance improvement of small and medium enterprises in Jakarta is based on the background of increasing small and medium enterprises sector in Jakarta. The benefits of this study are to find out what factors are most influential on the performance of small and medium enterprises in Jakarta. The authors took a number of 200 samples of small and medium enterprises in Jakarta, and the research data analysis technique is multiple regression with Structural Equation Modelling IBM SPSS Amos version 23. The results of respondents who answered the questions were dominated by respondents with a high school education background 152 people (76%), with ages ranging between 41–50 years 117 people (58.5%), and having income turnover above 90 million rupiah per month 122 people (61%), so it can be categorized that the majority of small and medium business entrepreneurs are educated in high school and are still in the productive age range. The results showed that the Business/Product Innovation, Business Competence, Business Capital, and Population had a significant effect on Business Performance, while variables Environmental Factors have no significant effect on Business Performance.

Download Full-text

The adoption of social media by small and medium enterprise: a systematic literature review

Indonesian Journal of Electrical Engineering and Computer Science ◽

10.11591/ijeecs.v24.i2.pp1220-1227 ◽

2021 ◽

Vol 24 (2) ◽

pp. 1220

Author(s):

Ahmed Abdullah Alhamami ◽

Noor Azuan Hashim ◽

Roshayati Abdul Hamid ◽

Siti Ngayesah Ab. Hamid

Keyword(s):

Social Media ◽

Literature Review ◽

Systematic Literature Review ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Combination Of Theories ◽

Medium Enterprise ◽

Fierce Competition ◽

Medium Enterprises

Social media (SM) has become a necessity and a method to confront challenges and fierce competition. More than half of the population are using SM. However, its implication for small and medium enterprises (SMEs) is not well documented and researched. Therefore, the purpose of this study is to review the literature pertaining to the adoption of SM by SMEs. A systematic literature review was conducted using specific keywords and database. This has resulted in reviewing 28 related articles. The findings was presented using frequency analysis. Number of articles are increasing steadily especially in emerging markets with large number of studies deploying the exploratory nature. The most widely used theory is the technological-organizational-environmental framework (TOE) and the sample size of the reviewed studies is adequate. Increasingly the structural equation modelling are being used. However, the use of intervening variable is minimal. The finding also showed that organizational and environmental context variables are the most important predictors of SM adoption by SMEs while the consequence of this adoption on business performance is mixed. There is a need for more studies to discover the consequence of adopting SM by SMEs using a combination of theories.

Download Full-text

Entrepreneurial Orientation and Performance of Selected SMEs in Southeast, Nigeria

European Journal of Business Management and Research ◽

10.24018/ejbmr.2021.6.4.946 ◽

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.

Download Full-text

The Importance of Entrepreneurial Orientation's Dimensions in Influencing the Organizational Performance of Food and Beverage SMEs

Advances in Social Sciences Research Journal ◽

10.14738/assrj.712.9289 ◽

2020 ◽

Vol 7 (12) ◽

pp. 81-99

Author(s):

AKRAM Abdulsamad ◽

Noor Azman Ali ◽

Anuar Shah Bali Mahomed ◽

Haslinda Hashim ◽

Abdulwahab Jandab ◽

...

Keyword(s):

Organizational Performance ◽

Risk Taking ◽

Structural Equation ◽

Positive Impact ◽

Small And Medium Enterprises ◽

Equation Modeling ◽

Cross Sectional ◽

Beverage Industry ◽

Food And Beverage ◽

Medium Enterprises

The study is attempted to examine and analyze the important influence of entrepreneurial orientation components - risk-taking, innovativeness, and proactiveness- on the organizational performance of Yemeni Small and Medium Enterprises within the food and beverage industry. The model of study is tested on 459 owners/Managers of SMEs by employing the analysis of Partial Least squares structural equation modeling (PLS-SEM), as well as Importance-Performance Map Analysis (IPMA). After utilizing the cross-sectional approach, the results illustrated that the innovativeness and risk-taking have a significant and positive impact on organizational performance, but their effect was less than proactiveness. Moreover, the analysis of importance-performance pointed out that proactiveness more important than innovativeness and risk-taking in determining organizational performance. The model of study expounded 34% of the whole variance in SME's performance. Moreover, it provided the implications of practical and theoretical.

Download Full-text

Change Management, Digital Maturity, and Green Development: Are Successful Firms Leveraging on Sustainability?

Sustainability ◽

10.3390/su12104019 ◽

2020 ◽

Vol 12 (10) ◽

pp. 4019

Author(s):

Anna Irimiás ◽

Ariel Mitev

Keyword(s):

Change Management ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Business Environment ◽

Survey Study ◽

Strategic Action ◽

Green Development ◽

Medium Enterprises ◽

The Relationship

The purpose of this paper is to capture firms’ perceptions on the relationship between change management, digitalization, business performance, and green development. The adaptation of digital technologies has challenged the business environment, leading to a major incorporation of the role of entrepreneurs in the process of fostering green development. Building on data from a survey study with 270 Small and Medium Enterprises (SMEs) and large companies located in a relatively developed Hungarian region and adopting the Strategic Action Field (SAF) theory, firms’ perceptions on change management, digital maturity, and green development were explored. The data was analyzed using partial least squares structural equation modelling (PLS-SEM). Results revealed that change management has a direct positive effect on digital maturity and on business performance and has a small effect on companies’ commitment towards green development. This paper contributes to the debate on the relationship between digitalization and green development within entrepreneurial organizations.

Download Full-text

PENGARUH BUSINESS KNOWLEDGE TERHADAP BUSINESS PERFORMANCE MELALUI BUSINESS SKILL DAN INNOVATION PADA UMKM KOTA PADANG DI ERA INDUSTRI 4.0

Jurnal Benefita ◽

10.22216/jbe.v5i1.4405 ◽

2020 ◽

Vol 5 (1) ◽

pp. 39

Author(s):

Hasmaynelis Nelis Fitri ◽

Ramdani Bayu Putra Bayu Putra ◽

Lusiana Lusiana Lusiana

Keyword(s):

Significant Influence ◽

Indirect Effects ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Analysis Tool ◽

Business Skills ◽

Business Knowledge ◽

Medium Enterprises ◽

The City

The increasingly strong pressure of change in the industrial era 4.0 has forced all entities to make changes. Therefore the purpose of this study is to find out and analyze the effect of the influence of business knowledge on business performance through business skills and innovation in micro, small and medium enterprises (MSMEs) in the city of Padang in the industrial era 4.0. The population and sample of this study were 225 MSMEs in Padang City. The model of this study is structural equation modelings (SEM), with an analysis tool using SmartPLS 3. The findings of this study conclude that there is a positive and significant influence of business knowledge, business skills, innovation on business performance. In addition, it was also found that business knowledge has a positive and significant effect on business skills and innovation. While indirect effects through innovation variables are found in the fact that innovation cannot play a role in strengthening the influence of business knowledge on business performance. But the indirect effect through the variable business skills, found a significant effect of business knowledge on business performance. Desakan perubahan yang semakin kuat di era industri 4.0, telah memaksa semua entitas untuk melakukan perubahan. Oleh karena itu tujuan penelitian ini adalah untuk mengetahui dan menganalisis pengaruh pengaruh business knowledge terhadap business performance melalui business skill dan innovation pada Usaha mikro kecil dan menengah (UMKM) di Kota Padang di era industri 4.0. Populasi dan sampel penelitian ini adalah 225 UMKM di Kota Padang. Model penelitian ini adalah structural equation modelings (SEM), dengan alat analisis menggunakan SmartPLS 3. Temuan penelitian ini menyimpulkan terdapat pengaruh positif dan signifikan business knowledge, businee skills, innovation terhadap business performance. Selain itu, juga ditemukan bahwa business knowledge berpengaruh positif dan signifikan terhadap business skills dan innovation. Sedangkan pengaruh tidak langsung melalui variabel innovation ditemukan fakta bahwa innovation tidak dapat berperan dalam memperkuat pengaruh business knowledge terhadap business performance. Namun pengaruh tidak langsung melalui variabel businee skills, ditemukan pengaruh yang signifikan business knowledge terhadap business performance.

Download Full-text

Pengaruh Keluarga dan Lingkungan Ekonomi Terhadap Kinerja Usaha Tahu di Kabupaten Bogor

Jurnal Agribisnis Indonesia ◽

10.29244/jai.2016.4.1.17-26 ◽

2017 ◽

Vol 4 (1) ◽

pp. 17

Author(s):

Febrina Mahliza ◽

Wahyu Budi Priatna ◽

Burhanuddin Burhanuddin

Keyword(s):

Structural Equation ◽

Business Performance ◽

Sampling Method ◽

Raw Materials ◽

Small And Medium Enterprises ◽

Economic Environment ◽

Equation Modeling ◽

Performance Culture ◽

The Family ◽

Medium Enterprises

Micro, small and medium enterprises (MSMEs) has an important role in the national economy. Many MSMEs in Indonesia are family businesses, one of them is “tofu” production in Bogor. Although these businesses are constrained by the prices of raw materials, most of them can survive. The purpose of this study were (1) to analyze the characteristics of the “tofu” business (2) analyze the influence of the family and the economic environment on the performance of the “tofu” business. 114 respondents are collected using purposive sampling method. Data are analyzed using the approach of Structural Equation Modeling (SEM). This study shows that based on the revenue, “tofu” businesses are micro, small and medium enterprises. The results also suggest that the culture and economic environment significantly affect the business performance. Culture can improve business performance, while the economic environment can decrease the business performance.

Download Full-text