Can government financial support enhance job creations: insights from Oman

Purpose Promoting and supporting entrepreneurship is a critical pillar of Oman’s vision 2040. The need to understand to what extent the effectiveness of public funds given to micro and small enterprises in Oman as well as to understand the characteristics of the funds that can drive the impact of such government financial support programs on those enterprises motivated us to conduct this study. Therefore, the purpose of this study is to investigate the impact of the government loan support programs on job creation in micro and small enterprises in Oman. Design/methodology/approach Hypotheses were tested using data collected from 1,127 micro and small enterprises that received loan supports from the Government of Oman. The authors explored the impact of a set of predictors on a dependent variable (job creation) to understand to what extent do the supported micro and small enterprise characteristics significantly influence job creations in the enterprises. Multiple regression and General Linear Model Multivariate Analysis statistical techniques were used to test the hypotheses. Findings There is a positive relationship between government supported firms’ characteristics and job creation for both nationals and expatriates’ employment. The empirical results suggest that, when compared with the micro enterprises, the small enterprises were able to create more jobs for nationals than for expatriates, although the effect of the support program on job creation was significant for both groups. Originality/value This paper contributes to the literature debate on the effectiveness of Oman’s entrepreneurship policy. Using multivariate analysis, the study analyzes the public support program for enterprises in Oman and how it can be improved to support the Oman 2040 Vision.

The transition toward the business formality of the Peruvian MSEs: How does the perception of entrepreneurs and the sector influence?

PurposeThe formalization of a company is a process that requires compliance with standards established by government institutions. In developing countries, many businesses start this process, but do not finish it, with different levels of formality. The objective of this research is to analyze how the perception of entrepreneurs about bureaucratic procedures and the sector determine the level of formality regarding an established company that has taken the first step to formality.Design/methodology/approachThe National Survey of Micro and Small Enterprises (MSEs) is used with a sample of 4,619 Peruvian MSEs with more than three years of operation within the manufacturing and services sector. The data are analyzed with the ordered logistic regression technique.FindingsThe results show that the more favorable the perception of entrepreneurs about the ease of bureaucratic procedures, the higher the level of business formality; and companies in the manufacturing sector are less formal than those in the services sector. In addition, the perceptions of entrepreneurs positively moderate the level of formality in the case of companies in the manufacturing sector.Originality/valueLevels of formality in established companies are analyzed, defined by the compliance degree with the requirements to be a formal company. The literature on business informality in emerging countries is expanded, particularly in Latin America, incorporating the analysis of the formalization process.

Impact of Covid-19 Pandemic on Mses and Cooperatives and Strategic Recovery in New Normal Era

The purpose of this study is to examine the economic impact of Covid-19 on the performance of micro, and small enterprises (MSEs) and cooperative institutions; how the strategies and formulate a recovery strategy in the new normal era. The main data used are primary data collected through interviews to MSE and microfinance institutions. The analytical method used is descriptive statistics and econometric models. The before and after analysis shows the significantly different costs and benefits of MSEs before and after the pandemic. The analysis shows that in the pandemic Covid-19 period, all MSEs decreased performance, most experienced a decrease in business turnover (6 percent) and similarly with cooperative institutions, their turnover decreased to 55%. The strategy of the cooperatives to maintaining its performance is to provide relaxation, improve efficiency by reducing employees, and ask for a reduction in profit-sharing payments to creditors; while the MSE strategy if the cooperatives does not provide loans for a while is 60 percent of MSEs seeking loans from relatives, 25 percent borrowing from other microfinance despite high-interest rates and 15 percent selling their household assets.

Entrepreneurship during crisis: Innovation practices of micro and small tour operators

Innovation as a response strategy to a crisis needs further understanding for small enterprises. This exploratory research investigates if, why, and with whom entrepreneurs in micro and small enterprises engage in innovation activities during the atypical context of the COVID-19 crisis in the tourism sector. The multiple case study with three German entrepreneurs in the tour operator market shows that micro and small enterprises despite their size hold the capacity to initiate and manage several innovation projects of different types and in different stages of the innovation value chain simultaneously during a crisis. To do so, the entrepreneurs preferably engage participants with strong social ties, independent from a place. The perceived benefits are both related to the innovation output (e.g. generate income), and the innovation activities (e.g. increased motivation of staff, increased trust of customers during the crisis). Further research is encouraged on the long-term effects of innovations resulting from a crisis.

EXPORT OF INDONESIAN MSEs AND THE ROLE OF PARTNERSHIP

There have been many theoretical and empirical studies on the main factors `determining the ability of micro and small enterprises (MSEs) in developing countries to export. However, so far, there has been very little attention to the role of partnerships between MSEs and large enterprises (LEs), government agencies, banks, or others. The purpose of this study is to fill this gap in the existing literature with the case of MSEs in the manufacturing industry (called micro and small industries or MSIs) in Indonesia. It is a descriptive study that analyses secondary data from a national survey conducted by the Indonesia Central Statistics Agency in 2019. It reveals that the most common form of partnership is marketing partnership. The finding may suggest that MSIs that have partnerships with LEs or others are more able to export than their counterparts without partnerships.Keywords: : MSMEs, MSEs, MSIs, PartnershipJEL: M31, L25, D22

EFEK PENULARAN COVID-19 BAGI USAHA MIKRO KECIL (UMK) PERSPEKTIF UNDANG-UNDANG CIPTA KERJA

Pagebluk corona resulted in a critical health condition of the public and disrupted the economy of the archipelago. The impact of the corona pagebluk in Indonesia; business sector, especially the Micro Small Business (UMK) sector. Some MSE actors have difficulty paying debts and employee salaries and even fire their employees, funding difficulties so that they are constrained in buying raw materials, declining buyers, closed access so that distribution and production are hampered. Micro and Small Enterprises (UMK) are the most important pillars in the Indonesian economy. The large number of Indonesian MSEs is related to all the obstacles in the field, especially during the Covid-19 pandemic. The normative legal method is used in this study, the focus is on 'secondary data' covering primary; secondary; tertiary legal materials. Qualitative approach with descriptive research nature. The government's efforts to raise the MSE class for a long-term strategy through the CK Law. A legal entity business unit makes it easier for MSEs to run their business. This makes it easier for MSEs to get capital assistance from banks. With the help of definite capital, it will be easier for his business to develop. In order to survive and develop, MSEs make several legal efforts, register their businesses, obtain halal permits and certificates, register brands, make cooperation agreements with relevant agencies, form or join MSE organizations. MSEs as the biggest supporter of the economy must receive special attention from the Indonesian government, so that they can become masters in their own country. All matters relating to government policies in tackling COVID-19 must consider the economic aspect, so as to avoid a deep downturn in MSEs actors. Pagebluk corona mengakibatkan kegentingan kondisi sehat khalayak dan mengacaukan perekonomian nusantara. Imbas pagebluk corona di Indonesia; bidang bisnis, terutama sektor Usaha Mikro Kecil (UMK). Beberapa pelaku UMK mengalami kesulitan membayar hutang dan gaji karyawan bahkan memecat karyawannya, kesulitan pendanaan sehingga terkendala dalam membeli bahan baku, menurunnya pembeli, tertutupnya akses sehingga penyaluran dan produksi terhambat. Usaha Mikro Kecil (UMK) merupakan pilar terpenting dalam perekonomian Indonesia. Banyaknya UMK Indonesia berkaitan dengan segala hambatan di lapangan, terutama dimasa pandemi covid-19. Menggunakan metode hukum normatif, fokusnya “data sekunder” meliputi “bahan hukum primer;sekunder;tersier”. Pendekatan kualitatif dengan sifat penelitian deskriptif. Upaya pemerintah untuk menaikkan kelas UMK untuk strategi jangka panjang melalui UU CK. Unit usaha berbadan hukum memudahkan UMK menjalankan usahanya. Sehingga memudahkan UMK mendapat bantuan modal dari bank. Dengan bantuan permodalan yang pasti maka usahanya akan lebih mudah berkembang. Agar dapat survive dan berkembang UMK melakukan beberapa upaya hukum, mendaftarkan usahanya, mendapatkan perijinan dan sertifikat halal, mendaftarkan merek, membuat perjanjian kesepakatan kerjasama dengan instansi terkait, membentuk atau bergabung dalam organisasi UMK. UMK sebagai pendukung perekonomian terbesar harus mendapat perhatian khusus dari pemerintah Indonesia, sehingga bisa menjadi tuan di negerinya sendiri. Segala hal yang berhubungan dengan kebijaksanaan pemerintah dalam menanggulangi cov-19 harus mempertimbangkan segi ekonomi, sehingga menghindari keterpurukan mendalam pelaku UMK.

Job Quality In The Micro And Small Business Sector In Ethiopia: Evidence From Firm-Level Data

Using a large dataset from the 10 largest cities in Ethiopia, this paper studies what entrepreneurial characteristics and attributes contribute to quality job creation in the micro and small enterprises (MSE) sector. We measure job quality in two ways – i) using wage and contract, and ii) health and occupational safety variables. We find that micro and small enterprises that create quality jobs tend to be operated by highly educated and experienced entrepreneurs. This highlights the role of human capital in quality job creation and poverty reduction. Further, we find that micro and small enterprises that create quality jobs tend to be larger in size and managed by professionally recruited managers.

Percepción de la filosofía de RSE, de directivos de mypes del sector servicios en Piedras Negras Coahuila

El objetivo de esta investigación es analizar las acciones orientadas a conocer la filosofía de responsabilidad social empresarial (RSE) por parte de los directivos para determinar el grado de voluntad que tienen para contribuir al desarrollo sostenible. El estudio es descriptivo y transversal, contempló una población de 100 empresas con una muestra representativa de 80 micro y pequeñas empresas (mypes). La recopilación de la información se hizo a través de un instrumento que contempla 16 ítems en una escala tipo Likert. De manera general, los resultados mostraron que las empresas encuestadas, en su mayoría, no cuentan con conocimientos formales de la filosofía de RSE, lo que permite identificar las áreas de oportunidad en este campo y colaborar en su desarrollo responsable en favor de la sustentabilidad. AbstractThe objective of this research is the analysis of actions oriented towards the understanding of social corporate responsibility (CSR) by managers to determine the degree of willingness they have in contributing to sustainable development. This is a descriptive and cross-section research which contemplated a population of 100 enterprises consisting of a representative sample of 80 micro and small enterprises (MSE). The information gathered was performed through an instrument which contemplated 16 items on a Likert scale. In general, results show that the majority of enterprises surveyed lack formal knowledge of CRS philosophy, allowing the identification of areas of opportunities in this field and collaborating to their responsible development in favor of sustainability.