Tag Archives: SMEs

Integrated Management System Implementation in SMEs: A Proposed model for Organisational Performance and Sustainability (Published)

Management systems are important for any organization especially to small and medium enterprises (SMEs) that face limitations in areas that larger firms have stability. One of the approaches to overcome these challenges and maintain business growth is implementing and following an integrated management system (IMS), as a model for improving the organizational performance and to maintain sustainable growth in a business. SMEs are global leaders in providing employment opportunities – around 60-70 % in developed economies and 99% of all business in OECD countries, hence sustaining them and enhancing their performance in the business market over larger firms is critical to retain employment opportunities in the future. IMS provides internal and external benefits, especially being more feasible and appropriate for SMEs by increasing competitiveness, stability in business, effective resources management and resilience during market challenges. However, it’s important to focus on the specific characteristics and factors that determine SMEs effective implementation of IMS. To overcome the various barriers limiting their business growth and organizational performance, the proposed conceptional model developed through this research study in conjunction with the associated factors would enable SMEs to effectively implement IMS to achieve organizational performance and sustainability. SMEs in order to maintain a competitive nature in the emerging business markets must adopt different strategies and mechanisms to address the challenges in technology and innovation, which are the prime impacting factors that define a clear road map for sustainable growth.  

Keywords: Integrated, Organisation, Performance, SMEs, Sustainability, management system

Working Capital Management –Performance Relationship: A Study of Small and Medium Enterprises in Akure, Nigeria (Published)

Despite the available potentials for sustainable growth and development of Small and Medium Enterprises (SMEs) especially in developing economies, poor management of working capital has continued to deny most SMEs the optimum performance needed to annex the inherent potentials in the business. The study therefore seeks to investigate the relationship between management of working capital and Performance of small and medium enterprises; assess various sources of financing working capital; evaluate working capital management and identify problems associated with the management of working capital of SMEs in Akure, Nigeria. The study adopted descriptive survey with primary source of data collection through a well-structured questionnaire, to elicit information from randomly selected respondents. Both the descriptive and inferential statistics were used for the analysis. The study discovered a significant and positive relationship between working capital and performance of SMEs; identified bank loan, loan from family members and friends, and personal savings as major sources of financing working capital. The study also revealed cash as mostly used of all other working capital components while ineffective management of cash appeared to be most worrisome of all the problems associated with working capital management in the study area. The study concluded that effective working capital management ensures that SMEs have enough funds for day to day running of the business, which suggests consideration for other sources of financing working capital such as cooperative societies among others, for optimum performance needed by SMEs to annex the potentials for sustainable growth and development.

Keywords: Akure-Nigeria, Management, Performance, Relationship, SMEs, Working capital.

Financial Management of Micro, Small, and Medium Enterprises in Cebu, Philippines (Published)

The study attempts to examine the influence of entrepreneurship marketing on performance of SMEs in Nigeria. Specifically, the study addresses the following objectives: To examine the influence of entrepreneurial marketing on the growth of SMEs in Nigeria and to investigate the extent to which innovativeness, pro-activeness, opportunity-driven, resource leveraging, risk taking, customer intensity and value creation influence the growth of SMEs in Nigeria. This research adopted a descriptive survey design. All the data used for the study were elicited from the sampled respondents through the use of questionnaire. The study population consists of all the 345 registered SMEs in Delta state, Nigeria. Simple random sampling technique was used to select 120 SMEs which represents the sample size for the study. Multiple regressions were the statistical tool used to test the hypothesis proposed for the study. Data were coded and analyzed using the Statistical Packages for Social Sciences (SPSS version 20.0). The findings of the study show that entrepreneurship marketing is a driven force of economic growth and also helps to enhance the development of new product/service for existing markets. More so, the study reveals that the SMEs operators in Nigeria mostly use traditional form of marketing to reach potential customers and to entrench their brands. Interestingly, only few of them use modern marketing technology to promote their products and services. It was thus recommended that SMEs should take advantage of the emerging global technology to improve their overall performance.

Keywords: Entrepreneurial Marketing, Innovativeness, SMEs, pro-activeness, resource leverage, value creation

Entrepreneurship Marketing and Performance of SMES in Nigeria (Published)

The study attempts to examine the influence of entrepreneurship marketing on performance of SMEs in Nigeria. Specifically, the study addresses the following objectives: To examine the influence of entrepreneurial marketing on the growth of SMEs in Nigeria and to investigate the extent to which innovativeness, pro-activeness, opportunity-driven, resource leveraging, risk taking, customer intensity and value creation influence the growth of SMEs in Nigeria. This research adopted a descriptive survey design. All the data used for the study were elicited from the sampled respondents through the use of questionnaire. The study population consists of all the 345 registered SMEs in Delta state, Nigeria. Simple random sampling technique was used to select 120 SMEs which represents the sample size for the study. Multiple regressions were the statistical tool used to test the hypothesis proposed for the study. Data were coded and analyzed using the Statistical Packages for Social Sciences (SPSS version 20.0). The findings of the study show that entrepreneurship marketing is a driven force of economic growth and also helps to enhance the development of new product/service for existing markets. More so, the study reveals that the SMEs operators in Nigeria mostly use traditional form of marketing to reach potential customers and to entrench their brands. Interestingly, only few of them use modern marketing technology to promote their products and services. It was thus recommended that SMEs should take advantage of the emerging global technology to improve their overall performance.

 

Keywords: Entrepreneurial Marketing, Innovativeness, SMEs, pro-activeness, resource leverage, value creation

The Role of Religious and Cultural Diversity on SMES in Cross River State, Nigeria: Implications From SMES Management Perspective (Published)

This paper studied the role of religious and cultural diversity on SMEs in Cross River State, Nigeria:  Implications from SMEs management perspective. The primary aim of this research study was to find out the impacts that these diversity elements have on the growth and expansion of SMEs within the scope of the country as distinct from the existing general global studies. The research involved an initial pilot study with fifteen SME employees to validate the survey questionnaire which would be filled by their colleagues during the study. A further sixty seven respondents comprising SME employees from the four major geographical regions of Nigeria participated in completing the survey and their results were collated to determine the impacts of religiously and culturally based diversity measures on the growth and performance of the Nigerian SMEs. The diversity measures analyzed were selected on the basis of extensive review of past literature of the workplace diversity. The findings of this research showed some agreement with the results of past literature reviews in terms of affirming the presence of conflicts in the workplace due to diversity. The changes in human resource management practice recommended by this research will be very useful to both SME managers and business owners in harnessing the potentials of the multi-cultural and multi religious configuration of the country while reducing the disadvantages of such diversities. 

Keywords: Cultural Diversity, Implications, Management Perspective, Nigerian, Religious, SMEs

Review on International Financial Reporting Standards (IFRS) for Small and Medium Entities in Nigeria (Published)

The Nigerian Accounting Standard Board (NASB) provides guidelines on the implementation of national policy on preparation and presentation, recognition and measurement, and disclosure of corporate reporting on financial statement of an entities in Nigeria. International Accounting Standard Board (IASB) provides the framework for IFRS and IAS application on corporate financial reporting. The emerging of IFRS convergences by NASB on SMEs in Nigeria attract urgent attention. This study aims to measure the level of awareness of IFRS guidelines for SMEs operators in Nigeria and preview on the challenges facing the adoption and implementation of the IFRS for small and medium scale entities in Nigeria. This study adopted review approach to address the procedure of adoption of IFRS by SMEs in Nigeria. The study concluded that the awareness, policy and regulation on IFRS for SMEs in Nigeria were very low and the policies for the implementation process were not completely complied

Keywords: IAS and Globalization, IFRS, SMEs

Digital Transformation for Small & Medium Enterprises (SMEs): with Special Focus on Sri Lankan Context as an Emerging Economy (Published)

Small & Medium Enterprises (SME’s) constitutes for over 75% of the number of enterprises in Sri Lanka and contribute to 52% of the GDP of Sri Lankan economy. In any case, the development and extension of SME’s are constrained due to a multitude of factors that are yet to be investigated. Competition is often intense for SME’s in Sri Lanka and they can neither influence price nor quantity. The standard view of competitive advantages on differentiation or cost is a challenge for SME’s. They are probably not going to have the option to “lock” in clients and providers, build entry barriers or altogether lower cost. SME’s usually have limited resources in finance, skilled employees, in-house knowledge or management. Meanwhile, digital transformation is featured in many businesses enabling reshaping the strategy and business models. SMEs are also found as empirically investigated context with the concept of digitalization, but still further studies are claimed on it. Accordingly, this paper investigates how SMEs could be benefitted with digital transformation as a strategic initiation whilst challenges and cases are discussed in line within. It has followed comprehensive literature review as the main research tool and the paper is framed as a concept paper with the discussion on empirical insights. Authors made an attention on Sri Lankan SME sector as a specific context. Finally, it concludes the paper with some research directions and priorities for the future studies.

Keywords: Digital Transformation, SMEs, Sri Lanka, business models, competitive advantages

Les mécanismes de gouvernance des PME familiales en Afrique (Published)

The objective of this paper is to provide conceptual clarification of governance mechanisms based on a literature review applied to African family SMEs. The analysis of the literature review made it possible to understand the specificities of African family businesses through a better knowledge of their governance practices on the one hand, and by specific African management in the light of contemporary theories, on the other hand. The study analyses the cultural realities of the African field to propose an explanatory and interpretative framework in the context of African specific management.

Keywords: Africa, Chad, Culture, Family business, Governance, SMEs

Managerial Roles and Competitive Advantage: SMEs, Perspective from Lagos State Nigeria (Published)

The operation of small and medium sized enterprises (SMEs) has awakened the interest of experts globally due to the varied challenges from low market share, poor sales growth, and dwindling profit. These have made them less competitive, market/product failure, and sub-optimal performance, and at times closures. Hence, this study investigated the effect of managerial roles on competitive advantage of SMEs in Lagos State Nigeria. Cross sectional survey research design was adopted using structured questionnaire. The target population comprised 460 owner- managers of the selected SMEs in manufacturing, real estate, agricultural and services sector in the five main divisions of the State (Ikeja, Badagry, Ikorodu, Lagos Island, Epe). Multistage sampling technique was used. Pilot study was carried out to establish the validity and reliability of the research instrument. Cronbach’s Alpha coefficients for the constructs ranged from 0.790 and 0.946. Data were analyzed using descriptive and inferential statistics. Statistically and significant relationship was established between managerial roles and competitive advantage with adjusted R2 0.61, F-stat (4,450)=183.13, p<0.05. In addition, marketing (β = 0.529, t = 8.523, p<0.05), people management (β = 0.610, t = 13.055, p<0.05) significant affected competitive advantage while communication and negotiation exhibited insignificant effect on competitive advantage of SMEs in Lagos State. This study recommended that SMEs should actively invest in marketing and human resources to ensure competitive advantage.

Keywords: Competitive Advantage, Managerial roles, Marketing, SMEs, people management

The Role of Religious and Cultural Diversity on SMEs in Cross River State, Nigeria: Implications from SMEs Management Perspective (Published)

This paper studied the role of religious and cultural diversity on SMEs in Cross River State, Nigeria:  Implications from SMEs management perspective. The primary aim of this research study was to find out the impacts that these diversity elements have on the growth and expansion of SMEs within the scope of the country as distinct from the existing general global studies. The research involved an initial pilot study with fifteen SME employees to validate the survey questionnaire which would be filled by their colleagues during the study. A further sixty seven respondents comprising SME employees from the four major geographical regions of Nigeria participated in completing the survey and their results were collated to determine the impacts of religiously and culturally based diversity measures on the growth and performance of the Nigerian SMEs. The diversity measures analyzed were selected on the basis of extensive review of past literature of the workplace diversity. The findings of this research showed some agreement with the results of past literature reviews in terms of affirming the presence of conflicts in the workplace due to diversity. The changes in human resource management practice recommended by this research will be very useful to both SME managers and business owners in harnessing the potentials of the multi-cultural and multi religious configuration of the country while reducing the disadvantages of such diversities. 

 

Keywords: Cultural Diversity, Implications, Management Perspective, Nigerian, Religious, SMEs

The Empowerment of Micro and Small Industry of Wood Lathe by Department of Industry and Commerce :Case Study At Tanggung Village, Blitar, Indonesia (Published)

Along with the growth of micro and small industries of wood lathe, there are also some problems in its development. Therefore it is necessary to empowerment effort intensively and integrated executed by related institution which in this case is Department of Industry and Commerce. This paper aims to determine the empowerment of micro and small industries undertaken by the Department of Industry and Commerce, what are the constraining factors in the implementation and the efforts that have been done by the Department of Industry and Commerce in conducting the development of micro and small industries of wood lathe in Tanggung Village, Blitar, East Java. Observation method used is explorative method with inductive approach. Data is collected through observation, interview, and documentation. The results showed that there have been efforts made by The Department of Industry and Commerce in Blitar for micro and small industries of wood lathe. In the implementation of the empowerment activities, we found some obstacles such as difficulties in terms of resources, public responses, communications, and institutional.

Keywords: Department of Industry and Commerce, Empowerment, SMEs

Studying the Effect of Leadership Styles on the Business Performance of SMES in South-Eastern Region (Published)

This study aims to explore the effect of leadership styles on the business performance of SMEs in South-Eastern region. The research result is a science evident for managers to improve the business performance. The researcher surveyed 250 managers of small and medium enterprises (SMEs) and answered 12 questions but 212 samples processed. The primary sources of data collected from July 2017 to November 2018 in South-Eastern region. Simple random sampling technique. The Data analyzed Cronbach’s Alpha and the exploratory factor analysis (EFA), which used for multiple linear regression and using partial least squares method. Managers’ responses measured through an adapted questionnaire on a 5-point Likert scale. In addition, the findings of the study have two factors affecting the business performance of SMEs in South-Eastern region with significance level 0.05.

Keywords: BRVT., Business, Leadership, Performance, SMEs

Factors Affecting the Performance & Business Success of Small & Medium Enterprises in Sudan (Case Study: Omdurman) (Published)

Small and Medium Enterprises (SMEs) have an important role to play in the development of the country. This study attempts to identify the antecedents of business success in Omdurman- Sudan, with particular reference to small businesses. . In Sudan, the growth of SMEs is significantly low. The study examined eight factors that influence the SMEs business success. . Eight hypotheses were developed to find out factors that are affecting Business Success of SMEs in Sudan. SMEs characteristic, External Environment (competition), Customer and Markets, the way of doing business & cooperation, Resources and Finance have significant positive effect on the Business Success of SMEs in Omdurman-Sudan. The regression analysis result shown that the above factors are the most significant factors affecting business success of SMEs in Sudan

Keywords: Business Success, External Environment, SMEs, Sudan

Revisiting ICT Adoption Theories and Charting a Progressive Path for Future ICT Adoption Research in SMES (Published)

This paper attempts to develop an integrated framework that aims to challenge researchers on a progressive path for future ICT adoption research especially in SMEs. The paper accessed major databases of a number of top IS  journals in the field and reviews previous theories used to study ICT adoption, examine the progress made so far, and the limitations of these theories in an attempt to develop a framework, that aims to challenge  researchers  and  aid further contributions in this IS field. The study developed a framework informed by three theories; Structuration theory (ST), Actors Network Theory (ANT) and Adaptive Structuration theory (AST) and argues that   using such integrated theory to examine the process of ICT adoption will help to unveil the recursive nature, entities involved and the kind of research approach that may be applied. Hence, for research in this area to be progressive, entities in the framework must be considered amidst other influence. The framework also suggests adoption of ICT will be embraced faster by organizations especially small businesses if the entities involved are committed in conveying the right information thereby supporting SMEs in making adequate decisions. This work provides further insight into ICT adoption framework that may advance future research in the field of ICT adoption, assist SMEs in adopting and implementing ICT overtime. This is relevant given that the complexities associated with the adoption of ICT is becoming worrisome and SMEs have limited knowledge on issues relating to emerging ICTs. The framework may motivate SMEs in understanding diverse actors, factors and social structures affecting ICT adoption better and how to cope with them. The framework serves as an analytical instrument in explaining ICT adoption process and its outcomes characterized by conflicting views

Keywords: ANT, AST, Adoption framework, ICT, SMEs, ST

Assessing the Effect of Lead Time Management on Customer Satisfaction (Published)

The Microfinance Industry (MFI) emerging from the banking industry, lead time management is very important since the sector is highly dependent on very recent technology and customer service efficiency ethics which is capable of drastically reducing lead times. Customers are also highly informed and their demands and expectations are high. Customers want instant solutions when it comes to their financial or banking services. It is therefore important for microfinance companies to effectively manage their lead times to achieve higher levels of customer satisfaction. This study adopts the methodology of a hybrid approach consisting of qualitative and quantitative approaches in examining the impact of lead time on customer satisfaction in the microfinance industry, a sub sector of SMEs in Ghana. Sample size of 150 staff and customers mostly petty traders was considered from five selected branches of Talent Microfinance Company limited. In selecting the sample size of the petty traders for the survey, the Slovin’s sampling method was used. The study findings revealed that that minimizing waiting time in a bid to enhance customer satisfaction level can typically improve the competitiveness of microfinance services in Ghana as these are deemed the basic requirements for social development as well as for human civilization. Furthermore, establishing a scientific, workable and efficient banking system improves efficiency and enhances the competitiveness for banks to be an important society role. This is a requirement for banking industries own development, and a new inevitable challenge for modern Ghanaian financial institutions to increase the banking management development. The study recommends among several others that there is the need for improvement in academia or higher learning in Ghanaian microfinance institutions to link with other financial institutions in Ghana and identify gaps in the knowledge, values, skills and attitudes of their graduates most especially in TMCL.

Keywords: Customer Satisfaction, Ghana, Lead Time, MFIs, SMEs

Perceived Benefit of Computerized Accounting System on the Operational Efficacy of Small and Medium Scale Enterprises in Maiduguri Metropolis (Published)

The aim of this study is to examine the Perceived Benefit of Computerized Accounting System on the Operational Efficacy of Small and Medium Scale Enterprises in Maiduguri Metropolis. The study used primary data only. Questionnaires were administered on the sampled respondents of 182 out of the population of 334. Of the 182 sample size validly and correctly returned questionnaires for data analysis was 124. The sampled respondents were in three categories: Non Automated (NA); Partially Automated (PA); and Fully Automated (FA). The Data were analyzed using descriptive analysis and test of hypothesis formulated using SPSS 20.0. The Hypothesis was tested using Analysis of Variance (ANOVA). The results obtained indicted significant differences in the test (i.e. P ≥ 0.05). The study found out that there was operational efficacy in terms of receivables accounts management. The study recommends that SMEs should embrace the use of CBAS for better competitiveness, improvement in business operation and performance.

Keywords: Computerized Accounting System (CAS), Operational Efficacy, Receivables accounts, SMEs

Design Model Development of Madura Herbal Medicine Industry (Published)

Madura herbal medicine industry is the Micro, Small and Medium Enterprises (SMEs) which has been run for generations by the ancestors of the people of Madura and has evolved over time. Based on data from the Department of Industry and Trade in 2016 that there is 47 herbal medicine industry in Madura with the magnitude of the regions, 15 are in Bangkalan, 3 were in Sampang, 22 were in Pamekasan, and Sumenep 7 are in. Community economic development through SMEs is essential considering its primacy as the lifeblood of a national economy. In 2016 Asean Economic Community (AEC)  began to be applied, so that competition in the trade of ASEAN countries is very strict. Hence the need for research on the design of models of the development of Madura herbal medicine industry. This research uses a descriptive design that aims to describe aspects that are relevant to Madura herbal medicine industry. The results of this study, there are three sub-models, namely the development of herbal industry Madura; (1) Design Sub Management Model that includes a database of herbal medicine industry, organizational structure, job description of labor, (2) Design Sub Production Model which includes the production technology, product standardization, product packaging design (3) Design Sub Marketing Model that includes pricing standardization, utilization of information technology, cooperation with distributors and local governments. So hopefully with their reviews, their three draft sub models will assist in the development of Madura herbal medicine industry

Keywords: Madura Herbal Medicine Industry, SMEs, Sub Model.

Analytical Review of Small and Medium Scale Enterprises in Nigeria (Published)

The primary purpose of business is the supply of goods and services to satisfy the societal needs. Wherever people live in conurbations, there is always the need for goods and services. These goods and services are supplied by institutions such as the family, the voluntary organization, the business firms, local, state and federal government. Also, the importance of credit facilities from both the bank and non-bank financial institutions cannot be overemphasized in enhancing the development of SMEs in the country. However, only the effect of initial capital (CAP) and non bank credit facilities (NBK) is significant and responsive towards the enhancement of performance of SMEs while credit facilities from banks are insignificant with respect to SMEs development. Lastly it concluded that government agencies such as the National Directorate of Employment should intensify efforts geared towards training programmes for SMEs.

Keywords: Enterprise, Entrepreneurship, Environment, Growth, SMEs

Analysis of Managerial Factors on the Performance of Small and Medium-Sized Enterprises (SMEs) in Manufacturing Sector in Ho Chi Minh City- Vietnam. (Published)

This paper was conducted by qualititative and quantititative approach, and the primary data was collected from SMEs in manufacturing sector in Ho Chi Minh City (HCMC). The main objectives of this study is to analyze the factors affecting the SMEs’ performance in manufacturing industry in Ho Chi Minh City. In the first stage, the authors applied the deep-interview to the experts to discover the factors in contemporary management based on the management theories effecting on the performance of Vietnamese SME(s) in HCMC. In the second stage, the researcher used the quantitative approach to collect data from 200 people who work in the Vietnamese SMEs in manufacturing sector in HCMC. In general, in these factors, the most affecting factor to SMEs in the manufacturing sector in HCMC, Vietnam was Organizational Commitment, next was Business Planning, Controlling, and final one was Strategy Implementation. In conclusion, H1, H2, H3, H4 for the theorical research model were accepted. 

Keywords: Business planning, Contemporary management, Organizational Commitment, Performance, SMEs, Vietnam

A Descriptive Analysis of the Influence of Entrepreneurial Orientation Dimensions On the Performance of SMEs in Kenya (Published)

Small and medium-sized enterprises (SMEs) play an important role in the world economy. They contribute substantially to income output and employment. Indeed, they dominate the world business. In spite of this, studies have failed to identify and assess the corporate entrepreneurship dimensions that lead to good performance, especially in Kenya. As such, based on a study of SMEs in Kenya, this paper examines the relationships that obtain between Entrepreneurial Orientation (EO) and firm performance among SMEs. Specifically, the study sought to find out the effect of entrepreneurial innovativeness, risk-taking and proactiveness on firm performance. The study was guided by the resource based view (RBV), contingency theory, theories of entrepreneurship and the marketing theory. It adopted explanatory research design using a census sample with the target population being all the top 536 medium sized firms between 2006 and 2013. Data was collected using a questionnaire and analyzed using descriptive statistics, Pearson’s bivariate correlation, multiple regression and moderated regression analysis. Results revealed that entrepreneurial innovativeness, risk taking and proactiveness have a direct positive relationship with performance of SMEs. From the findings, the study recommended the need to intensify initiatives that encourage a better understanding of EO dimensions in boosting firms’ competitive positions and superior performance; firms should be more entrepreneurial in order to attain superior performance and survive the intensively competitive market environment. They should continuously innovate, especially through new product development, being first to enter the market with new products and in the use of creative new solutions that lead them to be recognized by competitors as leaders in innovation. SME owners/managers also need to enhance their risk-taking behaviour by encouraging staff to take risks with new ideas, make effective changes to their products and be willing to accept at least moderate levels of risk, engage in risky investments and have the courage to seize new opportunities, even if this may involve great financial risks

Keywords: Entrepreneurial Orientation Dimensions, Influence, Kenya, Performance, SMEs