International Journal of Small and Medium Enterprises
Centre for Research on Islamic Banking & Finance and Business
BREAKING BARRIERS OR BUILDING BRIDGES? A SYSTEMATIC REVIEW OF WOMEN ENTREPRENEURSHIP IN SMES WITHIN EMERGING ECONOMIES
Women entrepreneurs in small and medium-sized enterprises (SMEs) in emerging economies play a critical role in employment generation, community development, and inclusive growth. However, their entrepreneurial journeys are shaped by structural finance gaps, gendered cultural norms, and institutional constraints that limit opportunities for enterprise development. This study examines the dual reality of "barriers" and "bridges" influencing women-led SMEs in emerging economies. The purpose of this research is to synthesise existing empirical evidence to understand how women both encounter and respond to these constraints. The study employs a systematic review of 17 peer-reviewed journal articles published between 2000 and 2024. Articles were identified through searches conducted in Scopus, Web of Science, and ResearchRabbit, following PRISMA 2020 screening and eligibility procedures that reduced an initial dataset of 154 records to 17 that met inclusion criteria. The results show that barriers cluster around four dominant themes: restricted access to finance, gender norms shaping entrepreneurial identity and choices, institutional voids in regulatory and market systems, and exclusion from formal entrepreneurial networks. Conversely, enablers or "bridges" include microfinance and informal credit channels, digital platforms supporting market access, women-led cooperatives and associations, and psychological resilience and agency among women entrepreneurs. The major findings of the review indicate that women entrepreneurs are not only constrained by structural factors but also act as institutional actors, developing adaptive strategies that reshape entrepreneurial ecosystems in their contexts. JEL Classification Codes: L26, M13, O14, O17, J16.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Women Entrepreneurship, SMEs, Emerging Economies, Finance, Gender Norms, Institutional Theory, RBV, Social Capital, Feminist Perspectives
Copyright (c) 2025 Olusola Sam-Sorungbe, Ishtiaque Mahmood, Evwiekpamare Olori, Mahmuda Begum http://creativecommons.org/licenses/by/4.0
HARNESSING SUCCESS: A QUALITATIVE STUDY OF BEST BUSINESS PRACTICES AMONG HIGH-PERFORMING SMES
Small and Medium Enterprises (SMEs) in developing economies often operate under challenging conditions, yet some consistently outperform others despite resource constraints and volatile markets. Most SMEs are led by single owners whose charismatic leadership and personal management style define the organization's direction rather than standardized processes. Understanding what drives such high performance remains a critical research gap. This study examines the strategies and managerial practices that contribute to the success of high-performing SMEs in Pakistan. Using a qualitative research design, semi-structured interviews were conducted with ten SME owners and managers representing diverse sectors, including manufacturing, services, and retail. The collected data were thematically analysed to identify common behavioural and strategic patterns associated with sustained performance. The results reveal that successful SMEs adopt a balanced approach that integrates strong customer orientation with innovative differentiation. They customize offerings to meet niche demands, focus on high-margin products, and avoid price-based competition. At the same time, they maintain strict cost control, streamline operations, and invest selectively to enhance efficiency. Leadership emerges as a central factor, with owners relying on intuition, personal networks, and hands-on involvement to respond quickly to external changes. The findings of this study suggest that the combined effects of charismatic leadership, innovation, and operational efficiency strengthen organizational resilience and enable SMEs to sustain competitive advantage even under adverse conditions. JEL Classification Codes: L25, L26, D22.
Small and Medium Enterprises (SMEs), High Growth, Business Strategies, Charismatic Leadership, Customization, Innovation, Cost Control
Copyright (c) 2025 Atif Bilal, Shumaila Zeb http://creativecommons.org/licenses/by/4.0
STRATEGIC ESG DISPARITY AND BANK PERFORMANCE: EVIDENCE FROM BANKS FINANCING SMEs IN EMERGING ECONOMIES POST COVID-19
This study examines the strategic disparity in Environmental, Social, and Governance (ESG) practices and their effects on bank performance in emerging economies during the post-COVID-19 period. Banks particularly those financing SMEs faced increased institutional pressure following the pandemic to integrate ESG into their operational strategies. However, the allocation of resources across the ESG pillars often varied significantly. This disparity, defined as the uneven commitment to the E, S, and G pillars, is considered a strategic response to institutional and financial constraints. The objective of this study is to examine, specifically in terms of return on assets (ROA) and return on equity (ROE). Employing a panel dataset of 398 publicly listed banks across 35 emerging countries from 2020 to 2023, many of which provide financing to SMEs, the study uses fixed-effects regression and multiple robustness checks to explore this relationship. The results suggest that banks with greater ESG disparities may yield higher returns, indicating that selective investment in specific ESG pillars may lead to greater returns. Meanwhile, the positive impact is less pronounced in countries with high climate risk. Subsample analyses further indicate that banks subject to mandatory ESG disclosures and more substantial commitments to environmental and social components outperform those that are not. The governance pillar, in contrast, has a relatively minor impact on ESG disparity and bank performance. These findings emphasize that ESG disparity is a deliberate strategy banks employ to optimize resource allocation and enhance performance outcomes in response to external. JEL Classification Codes: M14, G21, O16.
Copyright (c) 2025 Theodor J. Steinhagen, Andreas V. Ledwon http://creativecommons.org/licenses/by/4.0
THE IMPORTANCE OF COLLABORATIVE NETWORKS DIGITAL LEADERSHIP TO IMPROVE AIS OUTCOMES AND SUSTAINABILITY IN SMES
SMEs have a significant role in economic growth, especially in developing countries, including Indonesia. In Indonesia, SMEs can contribute to the gross domestic product by> 60% to increase economic growth. Despite having a strategic role, SMEs have many obstacles to surviving in an uncertain environment, so they need the right strategy to maintain good performance. Low technology adoption is also an obstacle for SMEs to compete due to inefficient company operations. Therefore, referring to the RBV theory, this study will describe the efficient use of resources so that the organization runs optimally. This study will test several factors that can improve AIS outcomes and be sustainability-oriented. This study will analyze whether collaboration and leadership networks can encourage the application of technology in SMEs. Researchers distributed 104 questionnaires to SME owners in Yogyakarta, which consisted of one city and four districts. This study uses primary data and the Smart PLS tool to test the hypothesis. This study was conducted for four months, from September to December 2024. This study provides methodological novelty because it tests the mediation effect of AIS outcomes that previous research still needs to explain. The study results indicate that collaboration networks and digital leadership can improve AIS outcomes and business sustainability. The results of this study provide an overview to SME owners that digital capabilities are critical because they can encourage SMEs to survive and compete with competitors. Furthermore, the most crucial point is support from the government to provide training so SME owners can improve their skills and understanding of the importance of technology. JEL Classification Codes: O32, D91, L25.
Copyright (c) 2025 Dekeng Setyo Budiarto , Rosa Dwi Andini Putri , Dian Indri Purnamasari http://creativecommons.org/licenses/by/4.0
TRANSFORMING BUSINESS STRATEGIES IN THE AGE OF DIGITAL INNOVATION
Amidst exploring digital transformation in business organizations, they have changed their business operational strategy due to digital change in the provincial capital of Punjab, Lahore, Pakistan. Businesses with digital innovations stay competitive, yet many obstacles exist to using digital tools. There were seven variables in this research. Using the cross-sectional methodology, data was collected from n=420 out of 500 (84%) through online surveys and physical interviews from October 2024 to February 2025. Insights were gathered using a standardized survey instrument of 30 items on a 5-point Likert scale. Using SPSS 28.0, descriptive and inferential statistical analyses were carried out. Cronbach's alpha (α) 0.7 it was found that all constructs satisfied the criterion. Correlational (r) and Regression analysis (r²) were used to evaluate the connections between the independent variables. The findings show that employee digital literacy (β = 0.24, p < 0.01) and the creation of digital infrastructure (β = 0.28, p < 0.01) greatly enhance the performance of business organizations. Additionally, increases in leadership and change management (β = 0.20, p < 0.05) and operational efficiency (β = 0.22, p < 0.05) have a favourable effect. Furthermore, compared to service business organizations (M = 4.08, SD = 0.91), manufacturing company organizations attain greater levels of digital adoption (M = 4.35, SD = 0.82). The study's conclusions highlight the necessity of a strategic approach to digital adoption and imply that digital transformation activities are essential to business organizations' growth and competitiveness. JEL Classification Codes: M5, M21.
Business Organizations, Digital Infrastructure, Management Digital Transformation, Lahore, Employee Digital Literacy, Operational Efficiency.
Copyright (c) 2025 Muhammad Ismail , Ambreen Zaineb , Hafsa Badar , Muhammad Yasir Tahir , Nurjahan Akter Monira http://creativecommons.org/licenses/by/4.0
UPSKILLING STRATEGIES FOR SME EMPLOYEES IN THE DIGITAL AGE
The domineering demand for upskilling employees in a Small Medium Enterprises (SMEs) for being competitive has brought to light by the growing demand for skilled workers in the digital age. The contemporary age’s growing demand for skilled workers shines through the human capital theory, thereby asserts that investment in staff training is imperative, developments of an organization. Insufficient research delays effective upskilling ingenuities in Pakistan. This study explores at how employees of Small and Medium Enterprises can advance their skills in the digital age, with a focus on technology tools, training techniques, financial and managerial skills. This study employed the qualitative methods for research by 5-point Likert-scale questionnaire survey to 411 employees from an event management company in Lahore, Pakistan. ‘Correlation’ (r) and ‘Regression’ (r2) analysis also shown positive values, which more supports our study hypothesis. Reliability shown that Cronbach’s alpha (ἀ) 0.81, it revealed that SME employees want to improve their skills in the digital transformation. The results show that respondents strongly agreed with the value of upskilling in improving their performance and the effectiveness of the Small and Medium Enterprises. The results indicate a noteworthy positive correlation between employee performance and upskilling, with 95.6% of respondents recognizing the value of upskilling and 71.5% strongly agreeing that it is necessary to improve their job serving work, which is proven by their understanding the benefits of technology and digital change. The findings of the study shed light on the advantages and maneuvers for upskilling SME employees in the digital age. JEL Classification Codes: M53, M12, O33, L26.
SME Employees, Digital age, Upskilling Strategies, Human Capital Theory, Serving
Copyright (c) 2024 Muhammad Ismail, Muhammad Zohaib, Muhammad Yasir Tahir, Hashim Hussain, Fariha Tazin http://creativecommons.org/licenses/by/4.0
FROM CHALLENGES TO OPPORTUNITIES: WOMEN ENTREPRENEURS IN BANGLADESH AND THEIR PATH FORWARD
In a developing nation like Bangladesh, entrepreneurship plays a vital role in driving economic development. However, women face numerous challenges that hinder their success as entrepreneurs. Given that women make up half of the population, it is essential to promote their participation in entrepreneurial activities by addressing the obstacles they encounter and identifying available opportunities. This study examines the current landscape of women’s entrepreneurship in Bangladesh, focusing on the barriers faced by female entrepreneurs and the prospects for growth, along with strategies to turn these challenges into viable opportunities. To fulfill its objectives, the research employs survey data collected from 60 women entrepreneurs in Bangladesh through a structured questionnaire. Various statistical methods, including descriptive statistics, correlation analysis, ANOVA, and regression coefficients, are employed to present the findings in a clear and interpretable manner. The results reveal a positive correlation between women’s engagement in entrepreneurship and their potential for success, which contributes to their entrepreneurial endeavors. Conversely, the study identifies a weaker positive relationship between women’s entrepreneurial activities and the challenges they face in self-employment. Despite these obstacles, it is evident that women can enhance their entrepreneurial pursuits by effectively addressing the barriers in their way. The findings of this study advocate for government initiatives that promote women’s participation in entrepreneurship and provide the necessary support to overcome these challenges. Such initiatives are crucial for fostering sustainable economic growth in Bangladesh. By increasing women’s engagement in entrepreneurship, the nation can significantly advance its economic development goals. JEL Classification Codes: J16, J16, O10, O53.
Bangladesh, Challenges, Economic Development, Entrepreneurship Development, Prospects, Women Empowerment, Women Entrepreneurship.
IMPACT OF TECHNOLOGICAL CAPABILITIES, DESIGN INNOVATION, AND OPERATIONS ON THE PERFORMANCE OF SMALL AND MEDIUM TEXTILE ENTERPRISES IN GHANA
Many developing countries, especially those in sub-Saharan Africa, struggle with design innovation as a result of a lack of infrastructure, skilled labour, and financial constraint, hindering their ability to compete in the global economy. The study investigates the effect of technological capabilities, design innovation, and operations on the performance of Small and Medium Textile Enterprises (SMTEs) in Ghana filling the knowledge gap and contributing to economic development in the region. A quantitative approach was employed, and data were obtained from 80 SMTEs using a self-administered questionnaire. The results show that there is a significant correlation between technological capabilities and the performance of SMTEs, indicating that current technologies are making textile companies more productive and efficient, resulting in improved performance. The study also found that technological capabilities positively influence design innovation practices, which, in turn, positively relate to the performance of the enterprise. Moreover, there is a positive relationship between the technological capabilities and operations of the enterprises. The findings of the study are consistent with previous research and suggest that enterprises that invest in the appropriate technology can improve their design innovation, operations, and overall performance. The study recommends that SMTEs in Ghana must invest in technological capabilities that are suitable for their business needs to improve their operations, design innovation, and overall performance. Additionally, policymakers should provide adequate support to SMTEs to enhance their technological capabilities, design innovation, and operations through funding, training, and infrastructure development. JEL Classification Codes: O32, E22, D02, L25, L67.
Technological Capabilities, Design Innovation, SMTE Operations, Enterprise Performance.
Copyright (c) 2023 Isaac Abraham, Christiana Konamah Okai- Mensah, Ebenezer Kofi Howard, Benjamin Kwablah Asinyo
DETERMINANTS OF NATURAL RESOURCES BASED MICROENTERPRISES PERFORMANCE IN INDIA’S WESTERN HIMALAYAN REGION: A NAÏVE BAYES CLASSIFIER ANALYSIS
The natural resources-based Microenterprises are the major part of the economy of the western Himalayan region of Uttara hand, India, as the region is predominantly covered with reserved forests. The present study evaluates the performance of Microenterprises and the factors affecting it in the region using the primary data enumerated from 110 microenterprises sampled under four major categories of microenterprises, viz, agro and allied, Animal and allied, handicrafts and handlooms, and miscellaneous. The Naïve Bayes classifier approach has been applied to evaluate the performances (Loss-making, breakeven, profit-making, or high-profit making) of these microenterprises based on their performance determining factors such as ease of raw material availability, level of training received, technological advancement, and the extent of market knowledge, and also on the type of ownership and the employee's number. The Naïve Bayes classification accuracy on the training dataset was 100%, while accuracy on the test dataset ranged from 93% to 100%. The results revealed that agro-based microenterprises have a greater probability (0.67) of making a profit/high profit, while animal product-based microenterprises have a high probability of running into losses. A higher level of Market Knowledge contributes to a high probability (0.89) of making high profits. The higher level of technology and training provides greater chances/probability (0.72, 0.72) of making high profits. Self-help groups (SHGs) have shown a better probability of making profits. The study suggests promoting SHGs in the region, wider dissemination of the market knowledge (marketing strategy), and leveling up the training/technology of the microenterprise. JEL Classification Codes: O13, L26.
Naïve Bayes Classification, Microenteprises, Natural Resources, Performance, Factors.
Copyright (c) 2023 Ina Bahuguna, Ujjwal Kumar, Kusum Arunachalam, Vijay Shridhar, Archana Sharma
EXPLORING THE RELATIONSHIP BETWEEN SMEs FINANCING AND ENTREPRENEURS’ PERCEPTIONS ON THE DEVELOPMENT OF THE HOSPITALITY INDUSTRY IN SYLHET
By serving and gratifying clients, the hospitality business has a significant potential to stimulate economic growth and to increase shareholder wealth. The study's primary goal is to examine how SME financing has affected Bangladesh's growing hotel sector. Growth in services and jobs are important SMHE development determinants. The theoretical model displays how the researcher has conceptualized the relationships between the study's variables. We employed factor analysis, test of hypothesis, and descriptive analysis to conduct quantitative analysis for this paper using SPSS. In this work, both primary and secondary data have been utilized. Primary data collection will be done in the Sylhet districts (Sadar) utilizing standardized questionnaires that will concentrate on the borrower's perspective of SME funding. Secondary data was gathered from academic journals, theoretical evaluations of SME foundations, papers, Bangladesh Bank magazine reviews, and BBS reports. A survey will be undertaken to obtain feedback from the owners or managers of various hotels, restaurants, and managed food services in the districts of Sylhet (Sadar). The study found a strong correlation between organizational behavior measures and SME finance. This study also poses the possibility that the Sylhet region's hotel sector could improve its performance through smart SME financing. The study also suggested potential future uses of SME finance in hospitality firms in the Sylhet region. The framework includes the impact of SME financing on revenue, job growth, and their ‘customers. JEL Classification Codes: F62, F65, G21, G23.
SMEs Financing, Hospitality, Service Growth, Employment, Bangladesh.
Copyright (c) 2023 Md. Sajadul Islam Sarker, Md. Asraful Islam Chowdhury
DOES GENDER MATTER’S ON THE DECISION MAKING FOR THE TYPE OF DEBT FINANCING OF THE MANUFACTURING SMEs IN BANGLADESH?
Fostering the appropriate Small and Medium Enterprises (SME) financing is one of the most crucial ways of facilitating their success as well as the progress of a developing country. For that purpose, it is necessary to understand the financing behavior of the decision makers in the SMEs. Despite the indication of the importance of owner-manager gender in making debt financing decision, the literature is scant and inconclusive. Hence, this paper intends to investigate whether the gender of manager or owner is associated with more debt financing for fixed asset financing or for working capital financing. This paper analyses the World Bank Enterprise Survey data of 756 small and medium manufacturing firms of Bangladesh. In addition to using descriptive statistics, this study employs both parametric and nonparametric tests of hypotheses, including the Mann-Whitney U test. The findings suggest that female ownership, but not the management, is associated with more debt financing for working capital needs. However, no conclusive evidence of the role of gender on debt financing for fixed assets is found. The results support the theoretical evidence related to the interplay between gender and small firm capital and can arguably be explained as a result of females’ better access to short term microfinance, and gender-based screening errors of the lenders. Extension of research is suggested to uncover the reasons behind more debt financing by female owners for working capital needs. The findings imply that the policy makers may optimize the financial system so that female owners’ debt financing demand is conveniently met. In addition, lending organizations may attempt to target female-owned manufacturing SMEs of Bangladesh as their potential working capital loan customers. This paper is among the first studies in the developing, or at least in Bangladesh context to provide evidence on the association between gender of owner vs manager and the nature of debt financing of manufacturing SMEs. JEL Classification Codes: G320, D250, J160, M130.
SMEs Finance, Debt Finance, Gender, Working Capital, Owner-Manager.
Copyright (c) 2023 Md Mohan Uddin, Abul Bashar Bhuiyan, M Faruque Ul Islam, Rowshan Akter
SME FINANCING OF COMMERCIAL BANKS IN BANGLADESH: POLICY DIRECTIONS BASED ON SME LOAN BORROWERS’ VIEW
The importance of bank financing for the growth and development of Small and Medium Enterprises is extensively documented in the literature. SME finance is essential not only to starting an SME business but also to enhance the growth of the business. Unfortunately, SME businessmen are facing difficulties in getting and repaying all kinds of financing in Bangladesh. Moreover, because of financing problems, SMEs cannot enter the manufacturing industry spite many potentialities. This research aims to identify key financing obstacles encountered by Bangladeshi SMEs and recommend policy guidelines to tackle those obstacles. Necessary data were collected through a structured questionnaire from 200 SME loan borrowers of 10 commercial banks by using a simple random sampling technique. Descriptive analysis was performed to analyze collected data. The findings indicate some constraints related to SME financing, such as higher interest rates, complex documentation, etc. SME borrowers face various obstacles before and after the sanction of SME loans. Although some initiatives related to SME financing have been adopted recently, most are not yet implemented. Moreover, SMEs' existing financing policies are inadequate, poorly designed, and inconsistent. JEL Classification Codes: A19, B10, B25, C10, C53.
Small and Medium Enterprises, Commercial Banks, SME Financing.
ASSESSMENT OF INVESTMENT DECISIONS AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN FEDERAL CAPITAL TERRITORY, NIGERIA
This study evaluated the Assessment of Investment Decisions and Financial Performance of Small and Medium Enterprises in the Federal Capital Territory, Nigeria. Multi-stage sampling technique was adopted and used. Data were collected through the use of structured questionnaires from 400 sampled SMEs. Data were analyzed using, Descriptive Statistics, Correlation Matrix and Logit Regression Model. The results show there is a positive correlation between annual return i.e. financial performance and new property acquisition and a negative correlation existed with new plant and acquisition. The result of the logit model shows that the factors influencing investment decisions among SMEs were the coefficient of education (P<0.01) probability level. The coefficient of the competition level was negative and statistically significant at (P <0.05). Furthermore, the coefficient of the initial investment capital (P<0.05). The coefficient of the infrastructure was positive and statistically significant at (P<0.05). Therefore, the study recommends that Policy should be formulated towards educating and training SMEs owners to have more knowledge about business enterprise operations in order to be able to assess their financial performance, external funding and capital should be provided to SMEs at a lower and affordable interest rate, SMEs owners should be encouraged to be willing to invest more into their business to expand their business for more profit, local polices and local infrastructure to enhance SMEs participation in Federal Capital Territory AMAC should be provided. Media blitz could also be harnessed to augment policy awareness among SMEs. JEL Classification Codes: GQ321.
Investment, Decision, Financial Performance, Small and Medium Enterprise, Nigeria.
Copyright (c) 2022 Victor Obinna Njoku, Chritiana Amarachi Ukaoha, Luka Anthony, Dolapo Benjamin Ajibare, Oladayo Daniel Oluleye
MICRO, SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE CONSTRAINTS IN ETHIOPIA: DEMAND SIDE ANALYSIS
Despite the immense importance of micro, small and medium enterprises (MSMEs) to job creation and the alleviation of abject poverty, significant numbers of MSMEs cannot realize their full potential because of limited access to finance and other factors, mostly in developing countries. The study investigates micro, small and medium enterprises' access to finance constraints in Ethiopia from a demand-side perspective. This study employed a descriptive analysis using survey data collected from 814 randomly selected sample enterprises. The results show that about 76% of the MSMEs were established by initial capital majorly generated from their own savings, family or friends, Equub, and saving and credit cooperatives among others. The remaining 24% accessed their initial capital from formal financial institutions. From the total, 39.4% of MSMEs did not apply for loans due to high collateral requirements, complex application procedures, unfavorable interest rates, insufficient loan size, maturity, and grace period, and lack of transparency. The study results also reveal that 22%, 46%, and 32% of the MSMEs are partially credit constrained, fully credit constrained, and non-credit constrained, respectively. The difference between the average demand and the loan supplied is estimated to be 3241, 11444, and 30949 USD for each micro, small, and medium-sized enterprise, respectively. The total estimated finance gap for all MSMEs is 31.7 billion USD. The findings of this study suggest the establishment of public credit guarantee schemes, cash flow-based lending, and psychometric testing for credit scoring and automating the MFIs' services to improve MSMEs' access to finance. JEL Classification Codes: G21, G23, G32.
Bank and Microfinance Financing, Collateral Asset, Formal and Informal Finance Source, Loan Access, MSMEs Finance Gap.
Copyright (c) 2022 Temesgen Woldamanuel Wajebo
MICRO, SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE CHALLENGES IN SUPPLY SIDE PERSPECTIVE IN ETHIOPIA
Empirical evidence shows that the contribution of Micro, Small and Medium Enterprises Empirical evidence shows that the contribution of Micro, Small and Medium Enterprises (MSMEs) to gross domestic product growth, job creation, and poverty alleviation is high. Because of limited access to finance and other factors, a significant number of MSMEs, particularly in developing countries, cannot realize their full potential. The study investigates the micro, small, and medium enterprises' access to finance challenges from the supply-side perspective in Ethiopia. The study employed descriptive analysis using survey data collected from purposely selected 11 banks and 9 micro-finance institutions (MFI). The results show that the lack of collateral, unavailability of financial records, poor pre-loan savings, low loan repayment rate, business feasibility problems, credit information asymmetry, attitudinal problems of the MSMEs, and diversion of the loan are demand-side constraints. From the financial institution’s perspective, the result shows that the liquidity problem, the influence of unfair competition from government banks, the lack of competent human resources, political leaders’ intervention, especially in MFI, corruption, the COVID-19 pandemic, political instability, and inadequate capital are major obstacles. Macroeconomic conditions related to challenges such as foreign exchange shortages, inflation, and trade imbalances are also mentioned as major obstacles. According to the findings of this study, designing and implementing business skill development in mindset, business planning, business bookkeeping, and financial reports can help MSMEs access loans. For financial institutions, the study suggests cash flow-based lending products, applying psychometric testing for credit scoring, improving the governance of the government-affiliated MFIs, and automating the MFIs. JEL Classification Codes: G21, G23, G32.
Bank and Micro Finance Institutions financing, Access to Finance, Supply Side Challenges, Micro, Small and Medium Enterprises, Ethiopia.
A SURVEY ON RESPONSES OF COTTAGE, MICRO AND SMALL ENTERPRISES SECTOR DURING COVID-19 IN BANGLADESH
This study examines the short-term impact of COVID-19 restrictions on small-sized enterprises based on phone and social media interviews. This research aimed to study Cottage, Micro, and Small Enterprises (CMSEs) during the covid-19 pandemic and analyze the policy measures taken afterwards. Affected by problems of logistics challenges, labour shortages, and drops in demand, most Small and Medium Enterprises (SMEs) were temporarily closed at the time of the first wave of covid-19 during our survey. We found several challenges encountered by the CMSEs owners during the early outbreak of Covid-19. This study used a descriptive analysis method of primary data obtained directly from field surveys and secondary data from Bangladesh Bank and SME foundation. This study focuses on the Dhaka city area during the Covid-19 pandemic. After reining in COVID-19, authorities eased lockdown restrictions in August 2020, and most of the small businesses had reopened by this time. Considering their issues and problems, the Government of Bangladesh and Bangladesh Bank have taken several policy measures to mitigate the loss of SME owners during the pandemic. These policies are also mentioned at the end of the study. JEL Classification Codes: A19, B10, B25, C10, C53.
SMEs, Covid-19, Perceived Impact, Bangladesh.
Copyright (c) 2022 Saila Sarmin Rapti, Ishrat Sharmin, Mehedi Hasan
THE INDIVIDUALIZATION OF ERP IN SMES FOR SUSTAINABLE DEVELOPMENT
This paper aims to prove that software such as Enterprise Resource Planning (ERP) is not designed properly and is out of the awareness of most Small and Medium Enterprises (SMEs). The Expectation-Confirmation model took role as a way of understanding this behavior and the application of a questionnaire of validation in three specific areas: sales, inventory management and customer satisfaction to 47 hair salons in Bolivia, Chile, China, Colombia, Ecuador, Mexico, Peru, The U.S. and Taiwan. A concise finding is that in fact, managers, owners and employees in hair salons are not aware of the existence of ERP solutions and the possible application to their business so that their sustainable development is achieved; also, the main finding is that 87% are willing to learn and acquire it. JEL Classification Codes: A19, B10, B25, C10, C53.
ERP, SMEs, Standardization, Innovation, Individualization, Sustainability.
Copyright (c) 2022 Wurong Shih, Julián Nevárez Montes
CONFIRMATORY FACTOR ANALYSIS INTELLECTUAL CAPITAL, KNOWLEDGE MANAGEMENT AND COMPETITIVE ADVANTAGE OF MSMEs
Micro, Small and Medium Enterprises (MSMEs) are the most important pillars in the Indonesian economy and the high number of MSMEs in Indonesia cannot be separated from the existing problems. The problems faced by MSMEs cause the low competitiveness faced by MSMEs. The competitive advantage generated by MSMEs comes from superior resources which are reflected in the company's intellectual assets (intellectual capital). SMEs that can create a competitive advantage must have different resources from their competitors. One of the resources that can be highlighted is knowledge resources. The purpose of this study is to analyze confirmatory factors intellectual capital, knowledge management and competitive advantage. Analysis of the data used in the study using confirmatory factor analysis (CFA) techniques, the results of the study show that the indicator that is considered to have the largest or strongest contribution in forming the intellectual capital variable is human capital. The indicator that is considered to have the largest or strongest contribution in forming the Knowledge Management variable is the use of knowledge and the indicator that is considered to have the largest or strongest contribution in forming the variable of competitive advantage is not easy to replace. JEL Classification Codes: O34, D83, L15, L26.
Intellectual Capital, Knowledge Management and Competitive Advantage.
Copyright (c) 2021 Suharto SM, M. Taufiq Noor Rokhman, Ahmad Jamil
THE ROLE OF COST MANAGEMENT STRATEGIES FOR SME BUSINESS: A CONCEPTUAL FRAMEWORK
The main purpose of this research is to concern analytic knowledge of the role of cost management strategies for SMEs business and create financial sustainability. SME enterprises are playing a key role in creating entrepreneurship and eliminating unemployment in every country by raising capital through various means. In this case, the expected triumph will not come unless there is a proper concept on cost management. The effectiveness of Cost Management policy for perspective Planning in the finance with a point of next and accelerate growth in SMEs business. The authors have been used a conceptual model and employed secondary data, and developed hypotheses based on the significance of research objectives. The theoretical analysis carries out the standard cost management strategies with advantages and disadvantages, and financial management is providing remarkable knowledge to SME organizations and entrepreneurs as well as emphasized for creating specific strategies based on business. The article has been conducted current theoretical knowledge, and only analyzes the accomplishment of management policies on the enhancement of SMEs business field that limits the scope of the research quarry. This research contributes to the potential knowledge and delivers an applicable conceptual framework for the 21st century of the various small and medium business sectors. JEL Classification Codes: M31, B20, M39.
Cost management, SMEs business, 21st century, ADB, OECD.
Copyright (c) 2021 Zahirul Alam Kajal, Mukut Sikder, Ashamoni, Paruss Panhwar
FACTORS INFLUENCING CONSUMERS’ PERCEPTION TOWARDS MOBILE PAYMENT USAGE IN MALAYSIA
The advancement of smartphone technologies has led to many promising services such as payment through mobile or smartphone itself. In Malaysia, mobile payment usage is still low because consumers prefer to make payment transactions using other devices like laptops, computers, and credit card machines. Even though the adoption is still low but it shows an increasing trend. The purpose of this paper is to find factors influencing consumers’ perceptions of mobile payment usage. This study proposes three factors which are ease of use, trust, and security for the measurement. This quantitative study employed convenience sampling as the sampling technique and a total of 259 consumers as the respondents. All three factors were found could influence the consumers’ perception of mobile payment usage. Since this study is only limited to only three factors, there should be other factors to be included in future studies such as perceived cost, perceived benefits, cashback, rewards and many more. The conduct of this study will be beneficial to both service providers as well as the businesses using the services for improving their business models and business strategies.
Mobile Payment, Consumer Perception, Ease of Use, Trust, Security.
Copyright (c) 2021 Nur Hazwani Mohamad Roseli, Nurul Huda Najihah Azhar, Muna Kameelah Sauid, Zuhairah Hasan, Yuhanza Othman
THE DIGITAL ACCOUNTING ENTREPRENEURSHIP COMPETENCY FOR SUSTAINABLE PERFORMANCE OF THE RURAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES): AN EMPIRICAL REVIEW
A year has passed since the Covid-19 pandemic hit the world and no one could have imagined that it would leave such a massive impact on the world economic landscape. The most affected groups are the Rural Micro, Small, and Medium Enterprises (MSMEs) and micro-entrepreneurs. With the implementation of the Movement Control Order (MCO), the business owners are in dilemma in the way to sustain and maintain their businesses. They need to scrutinize the ability of their businesses to continue operations amid the Covid-19 pandemic. Besides, these business owners were forced to explore new strategies to interact with customers and to simplify transaction processes. A new shift or new normal of the spending habits are formed where individuals are more interested to perform online shopping, and this creates an ideal market environment for business owners to accelerate, test, and launch new experience-driven mobile applications and websites across all their digital platforms. Hence, this study is an empirical attempt to formulate the digital accounting competency model for rural MSMEs. The available online empirical recourses by the name of digital accounting entrepreneurship and sustainable performance of the rural MSMEs in different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald full text, Scopus, and EBSCO HOST were used for the review. The review findings hitherto show that digital accounting entrepreneurship has a significant role in ensuring the sustainable performance of the rural MSMEs, especially for entrepreneurial competency, marketing capability, knowledge sharing, financial resources, technology usage, drive change and engagement, and individual competency is considered the most influencing factors toward sustainable performance among the rural MSMEs in the world. This finding, therefore, warrants a more in-depth analysis to develop a digital accounting entrepreneurship competency model.
Accounting Entrepreneurship, Competency Model, Digital Entrepreneurship, Sustainable Performance, MSME.
Copyright (c) 2021 Farhana Hasbolah, Mohamad Hafiz Rosli, Hanissah Hamzah, Siti Aisyah Omar, Abul Bashar Bhuiyan
IMPACT OF SOCIAL CAPITAL TOWARDS STRATEGIC CAPABILITIES OF MANUFACTURING SMEs IN MALAYSIA
Research on SMEs in Malaysia has become more significant nowadays as SMEs in Malaysia contribute national income to the country. Internationalisation of SMEs is imperative as smaller firms operating international business today develop their own capabilities and competitive advantage. Thus, it is important for SMEs especially those in emerging countries like Malaysia to look into their social capital and put their efforts to strategize their capabilities to respond to the global competition and business opportunities. This study was conducted to examine the impact of social capital towards the SMEs capabilities before they adopt the best strategic approach to face challenge situations at hand. A quantitative approach was employed in this study and a total of 187 responses from manufacturing SME exporters were received and further analyzed using Partial Least Square (PLS) technique. The results demonstrated that social capital of manufacturing SMEs in Malaysia has significant impact only on innovation, marketing and technology capabilities but not market-linking and management capabilities.
Social Capital, Strategic Capabilities, Manufacturing SMEs.
Copyright (c) 2021 Siti Normah Awang Tuah, Noor Hazlina Ahmad, Hasliza Abd Halim
DETERMINANT ANALYSIS OF ENTREPRENEURIAL INTENTION AMONG MILLENNIAL IN YOGYAKARTA, INDONESIA
This study aims to analyze the determinant of millennial entrepreneurial intention in Yogyakarta. The subject in this study was the people resident in Yogyakarta with the age of 19 to 39 years old. Respondents were selected using a purposive sampling method. The data were gathered using questionnaires and analyzed by using multiple linear regression analysis. The finding of this study shows that overall the attitude, perceived behavioral control, family background, entrepreneurial knowledge, and social media have a positive and significant impact on entrepreneurial intention simultaneously. Whereas separately the results show that attitude, behavioral control, family background, and social media have a positive and significant impact on entrepreneurial intention while entrepreneurial knowledge has a negative and insignificant of the millennial generation in Yogyakarta. Overall, this research provides some crucial insights for Yogyakarta’s local government to highlight possible steps for policy makers as a reference for entrepreneurship development.
Millennial, Entrepreneurial Intention, Yogyakarta.
Copyright (c) 2020 Lilies Setiartiti, Nur Azizah Ramadanty Sadik
INTERNATIONALIZATION OF SMEs: BETWEEN GLOBAL VALUE CHAINS AND E-COMMERCE
Throughout the lines of this article, we tend to expose the different theoretical approaches to the internationalization of Small and Medium-Sized Enterprises (SMEs). In particular, this paper aims to present the main approaches proposed not only in the literature but also in the shadow of the new international behaviors of SMEs, to question their scope. Moreover, this contribution seeks to draw attention to new types of internationalization among SMEs, in this case, participation in Global Value Chains (GVCs) and electronic commerce (e-commerce).
Internationalization, SMEs, Theoretical approaches, Global Value Chains, E-commerce.
Copyright (c) 2020 Mohammed Sqalli Houssaini, Jean Jeaslin Decossa, Aya Slaoui
To What Extent Do the Investment Programs in the Infrastructure Sector Comply with the Determinants of National Competitive Advantage?
The paper has examined what needed has to spend on infrastructure projects that would support the private sector, create real work opportunities, and improve productivity. We’re also not spending evenly on sectors that could contribute to a sustainable economic stimulus, make our products more competitive, and attract investment capital. The PIF has in fact taken on this role. Even though it cannot cover everything, it is working in a number of sectors, including communications, energy, and housing—all sectors that spur growth.The fiscal situation, as any observer of Palestine’s economy knows, remains unstable. Obviously expenditure goes primarily to salaries and current expenditures as a result of the extraordinary circumstances. And obviously this situation can only deepen Palestine’s dependence on donors.
Copyright (c) 2018 Orobah Ali Barghouthi
To What Extent Do the Investment Programs in the Small and Medium Enterprises Sector Comply with the Determinants of National Competitive Advantage?
The analysis of the researcher was corroborated by the expert opinion.In the interview researcher said that, the base is small and medium enterprises, the Palestinian economy is dominated by small and medium family-owned businesses: more than 85% of all establishments are owned by a single individual. Private and public shareholder companies and partnerships constitute less than 11% of all firms. The first and most important step is to establish governance in SMS & Establishing partnerships in shape of fund of funds, we have 6 funds, 60 million fund for industry, fund for agriculture, fund for microfinance, fund for Gazza, Jerusalem, fund convertible process, is not money wise but convincing the owners to change the way of working is the most impediment.According to Porter, competitive advantage results from the presence of world- class institutions that first create specialized factors and then continually work to upgrade them. Additional steps to be undertaken according to Mustafa, SMEs widen and open new markets and further invest in local markets and sponsor high-tech industries. The analysis of the researcher was corroborated by the expert opinion.In the interview researcher said that, the base is small and medium enterprises, the Palestinian economy is dominated by small and medium family-owned businesses: more than 85% of all establishments are owned by a single individual. Private and public shareholder companies and partnerships constitute less than 11% of all firms. The first and most important step is to establish governance in SMS & Establishing partnerships in shape of fund of funds, we have 6 funds, 60 million fund for industry, fund for agriculture, fund for microfinance, fund for Gazza, Jerusalem, fund convertible process, is not money wise but convincing the owners to change the way of working is the most impediment.According to Porter, competitive advantage results from the presence of world- class institutions that first create specialized factors and then continually work to upgrade them. Additional steps to be undertaken according to Mustafa, SMEs widen and open new markets and further invest in local markets and sponsor high-tech industries.
SMEs, National Competitive Advantage, Palestinian Economy
Small and Medium Enterprises (SMEs) Financing in Bangladesh: A Review of Literature
The paper has talked about writing accord among approach creators, financial specialists, and business specialists that small and medium enterprise (SMEs) are drivers of monetary development. A sound SME segment contributes unmistakably to the economy through making greater work openings, creating higher generation volumes, expanding sends out and presenting advancement and enterprise skills.The dynamic job of SMEs in creating nations safeguards them as motors through which the development targets of creating nations can be accomplished.
Copyright (c) 2018 K. M. Anwarul Islam, Md. Rezaul Karim Miajee
Surviving hypothesis proposes that organizations receive the best rewards from the Internet by coordinating business frameworks and by changing business forms. For sure, such incorporation is the ultimate result of development models that hypothesize organizations move in stages starting with one utilize then onto the next. In any case, there is little proof that little and medium-sized endeavors accomplish more than create sites and receive email. In this paper contextual investigations of 12 SMEs are utilized to investigate the selection of Internet technologies.The key issues restricting Internet reception are considered. A key model is then built up that recommends the criteria for selection are needy upon SME proprietors' demeanor to development. This prompts the improvement of an unexpected (or "transporter") display instead of a "phases" model of Internet appropriation. This examination has vital arrangement suggestions as, in any event in the UK and in Europe, government SME e-business reception assistance is predicated upon a selection "ladder".If no step or stages show is proper for SME then government consolation to move starting with one dimension then onto the next is confused. The transporter demonstrates distinguishes four jobs for Internet advances in SMEs – brochureware, support, opportunity and system. These are driven by business development arranging and saw Internet esteem.
Supply Chain Management and MSMEs Growth in Developing Countries: A Focus on North Central Region of Nigeria
Today’s business environment for Micro, Small, and Medium Enterprises (MSMEs) as well as large, global companies is more fluid and complex than ever before. Companies are adapting their supply chains to respond to increasingly competitive market conditions and to deliver higher revenue and greater value to their shareholders and customers. The study employed retrospective design. Respondents were selected using purposive sampling to arrive at the desired sample of the owners of Micro, Small, and Medium Enterprises in selected states of the north-central Nigeria. The 5-point Likert scale was employed to allow for precise responses on some issues raised regarding their supply chain management. Given the data gathered and generally ranking the totality of the Micro, Small, and Medium Enterprises in terms of least performance based on the indicators used, the result shows that the Micro, Small, and Medium Enterprises performed least on Total Delivered Cost followed by Operating Costs, Performance to Plan, Inventory, Supply Variability, Demand Variability, and Customer Service. In order to succeed, Micro, Small, and Medium Enterprises in Nigeria, particularly in the north-central states need to be able to increase inventory velocity, achieve the shortest possible cycle times, continually improve their supplier performance and drive their sales and market share.
Supply Chain Management, Key Performance Indicators, MSMEs, Growth, North Central, Nigeria.
Copyright (c) 2018 Emmanuel Okokondem Okon
Impact of Monetary Policy on Small Scale Enterprises Financing in Nigeria
Small and Medium Scale Enterprises play vital roles in the economy which are usually instrumental in achieving macroeconomic goals. This has attracted the attention of monetary authorities to institute policiesto boostconducive environment for SMEs to thrive. This study therefore empirically investigates the impact of monetary policy on SMEs financing in Nigeria spanning from the first quarter of 1992 to the last quarter of 2016. The time series data were subjected to unit root test to ascertain the stationarity of the variables and thereafter, cointegration and Error Correction Model (ECM) technique were used for the analysis. The residuals of the analysis were further subjected to various diagnostics tests. The result revealed that interest rate has a positive and significant impact on the SMEs financing in Nigeria. On the other hand, inflation rate was found to have a significant but negative impact on SMEs financing in Nigeria. Money supply and exchange rate were found to be insignificant in impactingSMEs financing. Based on this finding, the study recommends that, monetary authorities should give special attention to SMEs in specific sectors by creating special windows through various financial institutions to grant low interest rate so as to grant SMEs access to funds.This will boost business growth and consequently achieve macroeconomic goals.
Monetary Policy, SMEs, Interest rate, Inflation rate, Exchange rate, ECM.
Copyright (c) 2018 Ebire Kolawole,Onmonya Lucky O