Understanding and Adoption of E-Finance in Small and Medium Enterprises (SMEs) in Developing Countries

The lack of access to finance is hindering growth and development to small and medium enterprises (SMEs), particularly in developing countries. Access to finance can be facilitated by ICT and e-finance, which can reduce the cost of financial services and increase access to international markets. However, in spite of the potential benefits of e-finance, developing countries have been reported to be lagging behind in terms of e-finance adoption as compared with developed nations. The reason for non-adoption could be due to barriers such as lack of ICT infrastructure, data privacy and security concerns. The purpose of this chapter is to investigate the extent of understanding and adoption of e-finance by SMEs. A survey of SMEs in two developing countries, South Africa and Bangladesh, was conducted. The results of the survey revealed that access to financial products and services was the highest rated benefit of e-finance to respondent SMEs, whereas regulatory environment and policy was the highest rated barrier.

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Supporting Small and Medium Enterpries to Access Technological Innovation State Fund: International Experience and Lessons for Vietnam

VNU Journal of Science Economics and Business ◽

10.25073/2588-1108/vnueab.4141 ◽

2018 ◽

Vol 34 (1) ◽

Author(s):

Huong Vu Thanh ◽

Thu Anh Nguyen ◽

Mai Thi Thanh Nguyen

Keyword(s):

Developing Countries ◽

Technological Innovation ◽

Financial Support ◽

Technology Innovation ◽

Small And Medium Enterprises ◽

International Experience ◽

Advanced Technologies ◽

Medium Enterprises ◽

Developed Nations ◽

State Fund

Technological innovation state funds supporting small and medium enterprises (SMEs) are not common in the developing countries like Vietnam, but are common in the developed nations like the European countries and Korea. The financial and non-financial support of these funds has contributed significantly to the development of many SMEs. Learning from the funds which have successfully facilitated SMEs in innovating and developing advanced technologies is meaningful to the Vietnamese sicence and techonology management bodies and state funds. This article will review the experience of some typical fund in supporting SMEs, thereby providing some lessons for technology innovation Funds of Vietnam to create a more favorable environment for SMEs to access funds.

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

Sustainability ◽

10.3390/su11195451 ◽

2019 ◽

Vol 11 (19) ◽

pp. 5451 ◽

Cited By ~ 4

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.

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Conservation servitudes in South Africa

The South African Journal of Environmental Law and Policy ◽

10.47348/sajelp/v26/a4 ◽

2020 ◽

Vol 26 ◽

pp. 105-133

Author(s):

Marthán Theart ◽

Kirstin Meiring

Keyword(s):

Economic Growth ◽

South Africa ◽

Developing Countries ◽

Small And Medium Enterprises ◽

Access To Finance ◽

Insolvency Law ◽

The Social ◽

Legal Challenges ◽

African Context ◽

Medium Enterprises

Small and Medium Enterprises (SMEs) play a significant role in the economy of developing countries. Although SMEs contribute to economic growth, they still struggle with access to finance and cash flow constraints. The coronavirus (COVID-19) pandemic worsened this situation, making it necessary for countries to develop rescue regimes suitable for financially distressed SMEs. Focusing on Nigeria and Kenya – which represent the largest economies in West Africa and East Africa respectively – this paper critically sheds light on the socio-legal challenges posed by extant insolvency law regimes in both countries and their unsuitability for driving SME rescue. As a conversation starter in the African context, the authors identify transplanted concepts and structures which make SME rescue a futility, in the light of local circumstances, while proposing solutions tailored to the social milieu of both countries.

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Remittances

Business Development Opportunities and Market Entry Challenges in Latin America ◽

10.4018/978-1-4666-8820-9.ch014 ◽

2016 ◽

pp. 289-305

Author(s):

Reny Mariane Bake

Keyword(s):

Developing Countries ◽

Latin America ◽

Financial Services ◽

Small And Medium Enterprises ◽

Development Aid ◽

Skilled Workers ◽

International Remittances ◽

Medium Enterprises ◽

Official Development Aid ◽

Global Population

International remittances to developing countries are growing and are more than foreign direct investment or the official development aid. More of the 3.2% of global population are living abroad and the trends will increase in the next decades, involving skilled and no skilled workers. Developing countries in Latin America receives 15% of all international remittances and six countries (México, Guatemala, Dominican Republic, Colombia, El Salvador and Honduras) in the region received more of the 70% of all the remittances in 2013. By coincidence, this six countries have a lack to develop and large pockets of poverty, much of which is concentrated in those areas from which migrants come. The remittances are palliatives to poverty in their countries and help their families to reduce their poverty. In many cases, the remittances are the seed for new small and medium enterprises in Latin America, with not enough access to financial services.

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Remittances

Wealth Creation and Poverty Reduction ◽

10.4018/978-1-7998-1207-4.ch019 ◽

2020 ◽

pp. 344-356

Author(s):

Reny Mariane Bake

Keyword(s):

Developing Countries ◽

Latin America ◽

Financial Services ◽

Small And Medium Enterprises ◽

Development Aid ◽

Skilled Workers ◽

International Remittances ◽

Medium Enterprises ◽

Official Development Aid ◽

Global Population

International remittances to developing countries are growing and are more than foreign direct investment or the official development aid. More of the 3.2% of global population are living abroad and the trends will increase in the next decades, involving skilled and no skilled workers. Developing countries in Latin America receives 15% of all international remittances and six countries (México, Guatemala, Dominican Republic, Colombia, El Salvador and Honduras) in the region received more of the 70% of all the remittances in 2013. By coincidence, this six countries have a lack to develop and large pockets of poverty, much of which is concentrated in those areas from which migrants come. The remittances are palliatives to poverty in their countries and help their families to reduce their poverty. In many cases, the remittances are the seed for new small and medium enterprises in Latin America, with not enough access to financial services.

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Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region

Journal of Innovation and Entrepreneurship ◽

10.1186/s13731-021-00168-2 ◽

2021 ◽

Vol 10 (1) ◽

Author(s):

Marus Eton ◽

Fabian Mwosi ◽

Constant Okello-Obura ◽

Abanis Turyehebwa ◽

Gilbert Uwonda

Keyword(s):

Financial Services ◽

Service Providers ◽

Small And Medium Enterprises ◽

International Markets ◽

Financial Inclusion ◽

Cross Sectional ◽

Correlation And Regression Analysis ◽

Small Medium Enterprises ◽

Medium Enterprises ◽

The Cost

AbstractThe growth and failure of small and medium enterprises has been a topic of discussions world over among policymakers and researchers. This study was guided by the following objectives: to examine the contributions of small medium enterprises (SMEs), to determine the challenges affecting small medium enterprises, to examine how financial inclusiveness supports the growth of small medium enterprises, and to establish the relationship between financial inclusion and growth of small medium enterprises. The study used a cross-sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SME growth. The study further also revealed that the cost of acquiring and servicing financial services is high; there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure, and risk averse. The cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

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Risks in Adoption and Implementation of Big Data Analytics

International Journal of Risk and Contingency Management ◽

10.4018/ijrcm.2021070101 ◽

2021 ◽

Vol 10 (3) ◽

pp. 1-11

Author(s):

Rajasekhara Mouly Potluri ◽

Narasimha Rao Vajjhala

Keyword(s):

Big Data ◽

Data Analytics ◽

Data Privacy ◽

Small And Medium Enterprises ◽

Big Data Analytics ◽

Small Companies ◽

Privacy And Security ◽

Adoption And Implementation ◽

Research Outcome ◽

Medium Enterprises

The research investigates the risks in adopting and implementing big data analytics in Indian micro, small, and medium enterprises (MSMEs). The researchers outlined a survey questionnaire for accumulating reactions from managers working in 50 Indian micro, small, and medium-sized enterprises on behalf of five vital commercial sectors. The application and use of big data analytics offer several significant problems for small companies as an investment in hardware and software resources are substantial. This study's findings provided experimental evidence on five critical challenges that Indian MSMEs face while adopting and implementing big data analytics: lack of human resources, data privacy and security, shortage of technological resources, deficiency of awareness, and financial implications. This study's findings emphasize the challenges that MSMEs face while leveraging big data analytics benefits. The research outcome will promote MSMEs' organizational leadership in planning and developing short-term and long-term information systems strategies.

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Informal Firms and Financial Inclusion: Status and Determinants

Journal of International Commerce Economics and Policy ◽

10.1142/s1793993314400110 ◽

2014 ◽

Vol 05 (03) ◽

pp. 1440011 ◽

Cited By ~ 8

Author(s):

Subika Farazi

Keyword(s):

Informal Economy ◽

Financial Services ◽

Developing World ◽

Small And Medium Enterprises ◽

Financial Inclusion ◽

Access To Finance ◽

Medium Enterprises ◽

Operational Constraint

Many firms in the developing world — including a majority of micro, small, and medium enterprises (MSMEs) — operate in the informal economy. The informal firms face a variety of constraints, making it harder for them to do business and grow. Lack of access to finance is often cited as the biggest operational constraint these firms face. This paper documents the use of finance and financing patterns of informal firms, highlights differences between use of finance by formal and informal firms, and identifies the most significant characteristics of informal firms that are associated with higher use of financial services.

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CONSTRUCTION OF THE SUCCESS FACTORS OF IKAT WEAVINGS (A CASE STUDY OF AN IKAT WEAVING CRAFTSMAN UNDER THE BIA BEREK IKAT WEAVING GROUP – BELU REGENCY)

Jurnal Ilmu Sosial dan Humaniora ◽

10.23887/jish-undiksha.v10i3.34403 ◽

2021 ◽

Vol 10 (3) ◽

pp. 407

Author(s):

Ignatia Thomasita Bau Mau ◽

Atim Djazuli ◽

Helmy Djawahir

Keyword(s):

Financial Services ◽

Success Factors ◽

Small And Medium Enterprises ◽

Woven Fabrics ◽

Structured Interviews ◽

Cash Flow Management ◽

Digital World ◽

Fixed Assets ◽

Medium Enterprises ◽

The Cost

This study discusses the success factors in running a woven handicraft business experienced and immediately felt by several ikat craftsmen in one group of Bia Berek weaving in the city of Atambua, Belu Regency, East Nusa Tenggara. This is to direct the informant to answer all the success factors that have occurred and let the qualitative research model be used as a method in this research. The research used semi-structured interviews, and the informant reveals as widely as possible the informant regarding other factors that are also the key to success in running a business. These success factors include the proper management of current assets (supplies of woven fabrics) and fixed assets (weaving equipment and equipment and business premises), the ability to manage business turnover, cash flow management, the ability to process all business costs in the cost structure, management of revenue on weaving business, having personal savings and investing in non-bank financial services, increasing the marketing of woven fabrics, using technology for business innovation in the digital world, prioritizing the quality of woven fabrics produced, utilizing culture and tradition as business opportunities and potential, building profitable cooperation with local government of Belu Regency. The twelve factors that have been classified into financial and non-financial factors are constructed in a new model design that can be used as learning materials for micro, small and medium enterprises in improving their business by taking into account all the success factors that occur in their business.

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