Pandemic recovery in Africa: A case for strengthening insolvency laws for rescuing small and medium enterprises

2021 ◽  
Vol 8 (2) ◽  
pp. 74-103
Author(s):  
Williams C Iheme ◽  
Sanford U Mba
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Cash Flow ◽  
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.

Conservation servitudes in South Africa

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.

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

scholarly journals New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union

2015 ◽  
Vol 9 (4) ◽  
pp. 25-31
Author(s):  
Xénia Szanyi-Gyenes ◽  
György Mudri ◽  
Mária Bakosné Böröcz
Keyword(s):  
Economic Growth ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Added Value ◽  
Easy Access ◽  
The European Union ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Eu

The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs. JEL classification: Q18

Inadequately educated workforce and financing obstacles: international evidence from SMEs in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imad Jabbouri ◽  
Omar Farooq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor Performance ◽  
Capital Requirements ◽  
Informal Credit ◽  
Policy Makers ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.

A Cloud Computing Adoption Framework for Developing Countries

2020 ◽  
pp. 661-679
Author(s):  
Anh D. Ta
Keyword(s):  
Economic Growth ◽  
Cloud Computing ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor People ◽  
Living Wage ◽  
Cloud Computing Adoption ◽  
The Creation ◽  
Medium Enterprises ◽  
New Jobs

This chapter explores Cloud computing adoption strategies for small and medium enterprises (SMEs) and microenterprise that can enhance the economic growth of local industries in developing countries. This focus is based on the recognitions that (1) economic growths of local industries reduce poverty through the creation of new jobs for poor people to earn a living wage and support their families, and (2) there is a lack of research on Cloud computing adoption strategy that addresses the unique constraints of small and medium enterprises (SMEs) in developing countries.

Opportunities and Challenges for Sustainable Business Strategic Planning in Small and Medium Enterprises (SMEs)

2018 ◽  
pp. 153-167
Author(s):  
Mauricio Quintero-Angel ◽  
Claudia C Peña-Montoya ◽  
Carlos Hernán Fajardo-Toro ◽  
Andres Aguilera-Castillo
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Environmental Impact ◽  
Small And Medium Enterprises ◽  
The Other ◽  
Sustainable Business ◽  
Weak Sustainability ◽  
Strong Sustainability ◽  
The World ◽  
Medium Enterprises

Approximately 90% of companies are Micro, Small, and Medium Enterprises (MSMEs) and Small & Medium Enterprises (SMEs). Their importance in the economy lies in the fact that they account for almost 60% of the jobs in the world, number which could be greater in developing countries. All these companies have an environmental impact that is almost imperceptible when observed individually, but if observed and analyzed as a whole, this impact is actually relevant. It is therefore important for these companies to include the concept of sustainability within their processes, which is difficult given the informal way they have managed their activities and processes. On the other hand, there are two paradigms that rule the concept of sustainability, weak sustainability and strong sustainability. As it will be presented in this chapter, both concepts are opposed and companies are normally oriented towards weak sustainability, because they are more interested in economic growth than in caring for the environment.

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

2017 ◽  
pp. 159-184
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

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.

A Cloud Computing Adoption Framework for Developing Countries

2017 ◽  
pp. 175-199 ◽  
Author(s):  
Anh D. Ta
Keyword(s):  
Economic Growth ◽  
Cloud Computing ◽  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Poor People ◽  
Living Wage ◽  
Cloud Computing Adoption ◽  
The Creation ◽  
Medium Enterprises ◽  
New Jobs

This chapter explores Cloud computing adoption strategies for small and medium enterprises (SMEs) and microenterprise that can enhance the economic growth of local industries in developing countries. This focus is based on the recognitions that (1) economic growths of local industries reduce poverty through the creation of new jobs for poor people to earn a living wage and support their families, and (2) there is a lack of research on Cloud computing adoption strategy that addresses the unique constraints of small and medium enterprises (SMEs) in developing countries.

Cash Waqf Crowdfunding Model for SMEs

2020 ◽  
pp. 338-353
Author(s):  
Rashedul Hasan ◽  
Abu Umar Faruq Ahmad
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Islamic Finance ◽  
Access To Finance ◽  
Relevant Publication ◽  
Medium Enterprises ◽  
Structured Literature Review ◽  
Sme Financing

Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for SMEs and proposes specific solutions to the credit risk of SMEs. Authors used a structured literature review approach to analyse relevant publication to provide evidence on the application of cash Waqf as a viable source of Islamic finance for the SME sector. The donation-based cash Waqf model for SME financing is developed under the lens of stakeholder theory and Maqasid al-Shari'ah. The model is expected to provide greater insight to Waqf institutions on their role to operationalise the conceptual model in fostering the growth of SMEs and change the perception of stakeholders about the dynamics and potential of cash Waqf in economic development.

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

2020 ◽  
pp. 1149-1174
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

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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