scholarly journals Why do Small and Medium Enterprises Need to Access Informal Credit? The Case of Vietnam

2014 ◽  
Vol 1 (2) ◽  
pp. 1 ◽  
Author(s):  
Cao Thi Khanh Nguyet
Keyword(s):  
Rural Areas ◽  
Business Performance ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Credit Market ◽  
Business Environment ◽  
Informal Credit ◽  
Access To Credit ◽  
Out Of Sample ◽  
Medium Enterprises

For Vietnamese SMEs, the informal credit channel is still the most familiar financing source despite government’s efforts to widen access to formal credit. The present paper attempts to seek out new evidence to determine why SMEs’ access the informal credit market after excluding firms that consider family as the most important informal source out of sample. The empirical results strongly support three following hypotheses: (1) Firms that cannot be satisfied through formal credit market choose to access informal credit; (2) Firms access informal credit, in part, to reduce application cost and to provide immediate access to credit to seize investment chances; (3) Good business environment enables SMEs to decrease their reliance on informal credit. Moreover, we found that small firms, and firms located in rural areas were more likely to use informal credit than others. Furthermore, a higher age of owner and a good business performance both help firms decrease their reliance on informal credit.

scholarly journals Effects of Corporate Entrepreneurship Dimensions on Organizational Performance: Case of Small and Medium Enterprises in Holeta Town, Ethiopia

2021 ◽  
Vol 7 (4) ◽  
pp. 234
Author(s):  
Gemechu Abdissa ◽  
Abebe Ayalew ◽  
Csaba Bálint Illés ◽  
Anna Dunay
Keyword(s):  
Organizational Performance ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Secondary Data ◽  
Corporate Entrepreneurship ◽  
Business Environment ◽  
Explanatory Variables ◽  
Market Shares ◽  
Medium Enterprises ◽  
The Town

Small and medium enterprises are paying the lion’s share in the innovation-based economy of today’s competitive business environment. To this effect, this study observed the effects of corporate entrepreneurship (CE) dimensions on the performance of SMEs in the town of Holeta, Ethiopia. We used both descriptive and survey research designs to meet the specified target of the study. The researchers employed both primary and secondary data sources; the former were collected from 173 participants using both primary and secondary data. The result of this study indicates that all of the explanatory variables used were statistically significant and had a positive relationship with the performance of SMEs. Thus, we recommend that owners of small and medium enterprises pay special attention to practicing CE to increase their business performance, sustainability, and competitiveness. Entrepreneurs should also come up with new and attractive product and service features to take high market shares. Furthermore, forecasting potential challenges for firms and devising possible ways of solving the situation in advance can safeguard businesses from failure.

An examination of strategies under the financial tsunami

2010 ◽  
Vol 110 (9) ◽  
pp. 1319-1336 ◽  
Author(s):  
G.T.S. Ho ◽  
K.L. Choy ◽  
S.H. Chung ◽  
C.H.Y. Lam
Keyword(s):  
Hong Kong ◽  
Global Economy ◽  
Quantitative Research ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Content Type ◽  
Corporate Strategies ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to identify the factors, such as the different strategies adopted and the size of the company, that have a significant determining impact on the financial performance of companies in extreme circumstances.Design/methodology/approachThe research target of this paper is the small and medium enterprises (SMEs) in Hong Kong. This is quantitative research and it is done on a survey basis, which includes hypothesis setting and statistical analysis. In addition, constructive suggestions are given to companies after analyzing the current situation.FindingsIn total, ten factors from four dimensions are determined as the critical strategies for the company to adopt in an uncertain financial situation. The result shows the influence of different factors on return on investment for the companies with different backgrounds.Practical implicationsThe business environment today is full of turbulence and uncertainties; this, along with the fierce global competition, means that manufacturers are all struggling to survive. The financial tsunami that has swept across the global economy is believed to be the most catastrophic in living memory. Therefore, this research will be especially valuable and useful to companies which wish to achieve excellence in business performance in spite of such a global disaster.Originality/valueManufacturers worldwide have suffered badly from the impact of the financial tsunami. The SMEs in Hong Kong are certainly not an exception. However, under the same adverse conditions, some have been able to maintain their stability or even thrive. The findings suggest some specific corporate strategies which will enable companies to survive and remain competitive.

scholarly journals Factors Leading to Sustained Growth of SMES in the U.A.E: A Concept Paper

2020 ◽  
Vol 1 (2) ◽  
pp. 91-105
Author(s):  
Anand Tirupathi ◽  
Arindam Banerjee ◽  
Sadia Riaz
Keyword(s):  
United Arab Emirates ◽  
Business Performance ◽  
Success Factors ◽  
Small And Medium Enterprises ◽  
Research Problem ◽  
Business Environment ◽  
Long Period ◽  
Sustained Growth ◽  
Specific Objective ◽  
Medium Enterprises

Purpose: Small and Medium Enterprises (SME) engaged in the business of Trading and Distribution in the United Arab Emirates are characterized by fluctuations in the business performance and growth.  Even though 95% of the businesses in the UAE are SME sector, the variations in the growth pattern lead to various challenges which the owner/manager sometimes fails to handle well.  The aim of this concept paper is to identify the factors contributing to the sustained growth of SME business in the UAE. Approach/Methodology/Design: The research problem for this study is “how to ensure sustained growth in business for Small and Medium Sized Enterprises in the United Arab Emirates”. The other studies on SME business have focused on SME performance but have not specifically focused on sustaining the performance and growing over a long period of time. This research will specifically focus on the factors contributing to sustained growth and this will be ascertained through quantitative survey of various SMEs in the UAE. Findings: This research aims to find the success factors which can be useful to the SME sector of the UAE in order to achieve sustained growth in business. As a result of this study, a possible matrix will emerge showing a framework to be applied for sustained growth of business for SMEs. Practical Implications: Sustained growth and longevity of the business remains the most important dream of every SME owner/manager, and the final recommendations of this research will result in a framework which would help SMEs in the UAE to have a sustained growth in business. Originality/value: The specific objective of this research is to find “factors that contribute to the sustained growth in business”. This would ensure that, despite the vagaries in the business environment, the SME owner will continue to have a stable business with sustained growth over a long period of time.

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

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.

scholarly journals ANALISIS PENGARUH LINGKUNGAN BISNIS, PERENCANAAN STRATEGIS DAN ORIENTASI KEWIRAUSAHAAN PADA KINERJA BISNIS DENGAN INOVASI SEBAGAI VARIABEL PEMEDIASI

2021 ◽  
Vol 12 (1) ◽  
pp. 82-101
Author(s):  
Siti Almaidah Siti Almaidah
Keyword(s):  
Strategic Planning ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Quality Of Data ◽  
Performance Achievement ◽  
Effective Performance ◽  
Main Driver ◽  
Medium Enterprises

Micro small and medium enterprises (MSMEs) in the structure of the Indonesian economy occupy the first place in quantity and is a new source in the growth of the domestic economy. During the economic crisis, MSMEs have a high endurance to sustain the Indonesian economy, can even survive the global crisis. Besides that MSMEs also have an important role including as the main driver of job creation, and economic growth both nationally and regionally. To deal with the rapidly changing business environment, MSMEs must have a competitive advantage, good strategic planning, entrepreneurial orientation, and effective performance achievement through innovation efforts. This study aims to test and analyze the influence of the business environment, strategic planning and entrepreneurial orientation on business performance with innovation as mediating variables. The sample in this study was 60 MSMEs in the Surakarta region, and sampling uses purposive sampling, with limits according to the criteria set out in the population and willing to be respondents. This study uses a survey research design. The method of analysis is carried out through testing the quality of data and hypothesis testing using path analysis techniques with SPSS tool version 20. The results showed that the business environment, strategic planning, entrepreneurial orientation had a positive and significant effect on innovation. Innovation variables are variables that mediate the influence of the business environment, strategic planning, and entrepreneurial orientation on business performance.

scholarly journals The Correlation of Business Creativity and Social Media with MSMEs Entrepreneurial Performance

2021 ◽  
Vol 12 (2) ◽  
pp. 132
Author(s):  
Dekeng Setyo Budiarto ◽  
Mei Islamiyati ◽  
Muhammad Agung Prabowo
Keyword(s):  
Social Media ◽  
Business Performance ◽  
Small Firms ◽  
Sampling Method ◽  
Small And Medium Enterprises ◽  
Term Survival ◽  
Entrepreneurial Performance ◽  
Medium Enterprises ◽  
Special Region

Micro Small and Medium Enterprises (MSMEs) in Indonesia plays a significant role in economic growth, especially by creating employment opportunities and, at the same time, reducing the unemployment rate. Small firms are high potential enterprises that need improvement in order to contribute to either micro- or macro-economic development in this country. Entrepreneurs need to strengthen their competitive advantage to ensure their long-term survival. Small firms face significant challenges that require them to devise an effective strategy to improve performance. The present study aims to investigate whether business creativity and social media among MSMEs correlate with entrepreneurial performance. The sample consisted of 120 MSMEs in the Special Region of Yogyakarta selected using the purposive sampling method. Respondents are owners or managers authorized with the responsibility for the survival of their enterprises. The results show that MSMEs entrepreneurs are using Instagram and that creativity-based MSMEs have better business entrepreneurial performance. The results imply that MSMEs entrepreneurs need to promote their products on social media and to improve their creativity to boost their business performance

Intellectual Capital in Malaysian SMEs

2015 ◽  
pp. 220-231
Author(s):  
Muhammad Khalique
Keyword(s):  
Intellectual Capital ◽  
Business Performance ◽  
Food Industry ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Business Environment ◽  
Customer Capital ◽  
Medium Enterprises ◽  
Three Components

The aim of this chapter is to shed light on the concept and application of intellectual capital in the food industry in Kuching, Malaysia. There is no doubt that intellectual capital is a most important strategic asset for the success of organizations. In a competitive business environment, intellectual capital has been a vital element of success, particularly in Small and Medium Enterprises (SMEs). The purpose of this study is to examine the role of intellectual capital in order to enhance the business performance of SMEs operating in the food industry in Kuching, Malaysia. In this chapter, three components of intellectual capital, namely human capital, customer capital, and structural capital, are employed to examine the role of intellectual capital in SMEs. A structured questionnaire with a five-point Likert Scale was used to gather the data from the targeted respondents by using a convenience-sampling technique. A total of 200 questionnaire sets were distributed to the targeted respondents. From the total distributed questionnaires, a total of 194 respondents gave their feedback. Four research hypotheses were addressed to find the objectives of this study. To test the proposed research hypotheses, multiple regression technique was used. The findings of this study show that the three components of intellectual capital collectively and individually have positive and significant relationships with the business performance of baking SMEs. Subsequently, the four hypotheses of this study were supported. This chapter is a preliminary study about the baking SMEs operating in the food sector in Malaysia.

scholarly journals Variations in Performances in Chinese Small and Medium Enterprises

2009 ◽  
Author(s):  
Mohamad Hanapi Mohamad ◽  
Ching Ing Sung
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Firm Strategy ◽  
Business Environment ◽  
Performance Outcomes ◽  
Chinese Entrepreneurs ◽  
Medium Enterprises ◽  
Multivariate Relationship

Malaysia, like many developing countries, is encouraging local businesses to take greater role in the management of its economy. While incentives and deregulation measures are offered, variations in performances still persist. Researchers have long been interested in explaining the variance in firm performance, as even those firms operating in the same industry and in the same business environment show differences in performance outcomes. Numerous paradigms in the literature have been employed to explain the variance in business performance, including the Classical Industry Organisation, the Revisionist school, the New Industrial Organisation school, the PIMS paradigm, the Austrian school, and the Resource-based school. This paper investigates the combined effects of managerial characteristics of owners/managers and business strategy on the firm performance of Chinese small and medium enterprises (SMEs) in Malaysia. Using multivariate relationship, the results of the study did not show any significant correlation between the managerial characteristics of the owners/managers and firm performance outcomes among the Chinese entrepreneurs. Nevertheless, a significant amount of variance in performance outcomes can be explained by firm strategy. Furthermore, several significant correlations were found between managerial characteristics and business strategy.  

scholarly journals BUSINESS ENVIRONMENT, INNOVATION CAPABILITY AND BUSINESS PERFORMANCE: EMPIRICAL STUDY OF JAKARTA’S FLOUR BASED FOOD SMEs

2009 ◽  
Vol 8 (1) ◽  
Author(s):  
V. Rachmadi Parmono ◽  
Y. Eko Widodo
Keyword(s):  
Business Performance ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Innovation Capability ◽  
Managerial Implication ◽  
Product And Process Innovation ◽  
Product And Process ◽  
Medium Enterprises ◽  
The Relationship

This study is concerned on the relationship between innovation capability and business performance in small and medium enterprises context. The existing studies generally have analyzed the issues pertaining of innovation capability in large business or knowledge intensive firm context. By researching of the innovation capability of small and medium enterprises (SME’s), it will review innovation capability in a broader and novel context. The SME’s operate in a competitive environment and are not very advanced technologically. This research proposes statistical hypotheses to study these based on data samples. By employing path analysis, This research test the relationship between innovation categories and business performance. The result of our study show that government regulation directly affects to innovation capability, product and process innovation capability directly affect business performance in SME’s. Finally, managerial implication will be discussed.

scholarly journals Sustainable development reporting and sustainable financing: Challenges for small and medium enterprises

2020 ◽  
Vol 9 (18) ◽  
pp. 49-61
Author(s):  
Milica Pavlović ◽  
Ksenija Denčić-Mihajlov
Keyword(s):  
Sustainable Development ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Professional Associations ◽  
Business Environment ◽  
Integrated Reporting ◽  
Socially Responsible ◽  
Doing Business ◽  
Medium Enterprises ◽  
The Impact

In a dynamic business environment, the importance of doing business in accordance with the principles of sustainable development is recognized not only by large companies, but also by small and medium enterprises, which are the "driving force" of modern economies. Having in mind the commitment to socially responsible business and the requirements of the modern business environment, it is necessary to inform stakeholders about the impact of companies on society and the environment, as well as socially responsible activities that companies carry out due to changes in conditions and ways of doing business. Accordingly, it is necessary to implement integrated reporting, which would include, in addition to traditional financial, nonfinancial indicators of business performance. In order to adopt an internationally recognized methodology for evaluating the performance of sustainable development, certain initiatives have been taken by regulators, standard setters and professional associations. Due to their characteristics, small and medium-sized enterprises require special guidelines when compiling reports on sustainable development. The focus of this paper is on the challenges that these companies face in disclosing information on sustainable development indicators. Special attention is paid to the costs of this type of reporting, the lack of necessary resources and the ownership structure.

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