Journal articles on the topic 'Capital investment processes of SMEs'
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Nugraheni, Ninis. "Crowdfunding-Based Fiduciary Warrant in Providing Capital Loans for Small and Medium Enterprises." Hasanuddin Law Review 6, no. 3 (December 8, 2020): 224. http://dx.doi.org/10.20956/halrev.v6i3.2201.
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Small and Medium Enterprises (SMEs) are organized through people's creativity in developing human and natural resources. However, investment challenges often affect their implementation and production processes, necessitating solutions, such as capital loans from banks and other entities. Crowdfunding is an online loaning service that provides easily accessible loans to SME startups, though a warrant to protect creditors from losing money to ingenuine people is necessary. Therefore, this study examines the appropriateness of a fiduciary warrant as a SMEs collateral object. When fiduciary is used as a loan warrant, debtors are allowed to use collateral objects in their production processes. To make a fiduciary warrant effective, legal protection is required. This study used juridical-normative that relied on legal norms in legislation and court verdicts dealing with societal organizational issues. The results showed that crowdfunding-based credit is an alternative with more straightforward procedures compared to conventional entities.
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Sah, Genesis Gyasi, and Judit Füredi-Fülöp. "The Effects of Proper Inventory Management on the Profitability of SMEs." Technium Social Sciences Journal 32 (June 9, 2022): 340–51. http://dx.doi.org/10.47577/tssj.v32i1.6634.
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A business must have or be able to generate enough cash and cash equivalent to meet its short-term liabilities if it is to continue and grow in business. Therefore, working capital management which helps an entity to, efficiently and effectively control current assets and liabilities is a key factor in the company’s long-term success; without working capital, the non- current assets will not function. The greater the extent to which current assets exceed current liability, the more solvent or liquid a company is likely to be. This paper observes the relationship between working capital management practices of small and medium enterprises (SMEs) and the performance and profitability of these businesses in the Kumasi Metropolis , to evaluate inflows and outflows of inventory to determine the rate at which certain goods are purchased in relation to others. This practice will also help ascertain seasons and times during which certain products experience higher demand and vice versa. This will reduce their over and/or under investment in inventories. The implication of the findings is that the government of Ghana should pursue policies aimed at encouraging training and improving the managerial skills of SME owner/managers as well as creating the enabling environment for the development of improved modern technologies to transform the business processes of these vital industries.
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Aziz, Zarith Delaila Abd, Norashikin Hussein, and Nor Azian Abdul Rahman. "The Influence of Entrepreneurial Ecosystem on SMEs Industry in Malaysia." Advances in Social Sciences Research Journal 9, no. 10 (October 28, 2022): 348–56. http://dx.doi.org/10.14738/assrj.910.13249.
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The rise of Small Medium Enterprise (SMEs) businesses leads to the dynamic and competitive environment. To excel in the market, companies have spent a substantial amount of money, time and resources by designing right strategies to sustain. However, this SMEs businesses faces few challenges such as small capital investment, short of talent, limited access to infrastructure and support mechanism. Despite the government’s several institutional and policy support for enhancing the capacity of this Small Medium scale enterprises, the results have fallen short of expectations. Given the increased demand for Small Medium Enterprise’s products, creating a viable entrepreneurial ecosystem model for SMEs in Malaysia is critical. This is because the entrepreneurial ecosystem is a system of interrelated components that influence the speed and ability with which entrepreneurs, particularly SMEs can create and scale new ventures in a sustainable manner. As a result, this study seeks (1) to analyse the demographic profile of Malaysian small and medium enterprise and (2), determine the extent at which entrepreneurial ecosystem affect the Small Medium Enterprise in Malaysia. This study is important to investors, the ministry, the government, academics and even business owners because it provides a comprehensive model for understanding the SMEs entrepreneurial processes and how ecosystems emerge, change and influence entrepreneurship activities.
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Torres, Ana Isabel, Silvana Santos Ferraz, and Helena Santos-Rodrigues. "The impact of knowledge management factors in organizational sustainable competitive advantage." Journal of Intellectual Capital 19, no. 2 (March 12, 2018): 453–72. http://dx.doi.org/10.1108/jic-12-2016-0143.
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Purpose The purpose of this paper is to empirically test the relations among different knowledge management (KM) factors, such as human capital (HC), processes and information systems (IS) on organizational sustainable competitive advantage (CA), within the SMEs context. Design/methodology/approach Structured questionnaires were distributed to CEOs and managers of Portuguese organizations through an electronic survey. Partial least squares software was utilized to analyze the data. Findings The measurement model results identify and validate the dimensions of HC, processes and IS representing the KM construct. The structural model results demonstrate that HC and processes have a direct and significant impact on organizational CA, on the customer and financial dimensions, respectively. IS indirectly and significantly influence organizational CA, mediated by HC and processes. Research limitations/implications The sample size includes mostly service business and SMEs. Other organizations sectors, such as industry, should be analyzed in order to develop a comparative cross-sectorial study. Practical implications This study establishes suggestions for managers to make legitimate decisions concerning investments on knowledge assets and organizational capabilities that can foster business growth and sustainable CA within a SMEs context. Originality/value The authors propose a mediation mechanism showing that the relationship between IS and sustainable CA is not direct, but it is mediated by HC and processes. This mechanism points out some critical issues for the strategic knowledge and intellectual capital assets, as a source of organizational CA.
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Makur, Dharmawaty S. "DETERMINAN PENINGKATAN VOLUME PENJUALAN INDUSTRI KECIL MENENGAH OLAHAN PANGAN DI KABUPATEN GORONTALO." JSAP : Journal Syariah and Accounting Public 3, no. 2 (December 4, 2021): 41. http://dx.doi.org/10.31314/jsap.3.2.41-50.2020.
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This study aims to determine the effect partially or simultaneously on the brand image of IKM products, through government capital assistance and zakat routines on increasing sales volume of IKM food processed products in Gorontalo Regency. This research is a quantitative research. The data analysis technique used is multiple regression analysis.The results of this study indicate that (1) Simultaneously the brand image of IKM products, investment through government capital assistance and routine zakat together has a significant effect on increasing sales volume of IKM food processed products in Gorontalo Regency with a determinant value of 47.7%. While the remaining 52.3% can be explained by other variables not examined in the study such as product quality factors, product prices, promotions and location. (2) partially Image has a positive and significant effect on increasing sales volume of IKM food processed products in Gorontalo Regency. Investment through government capital assistance has a positive but not significant effect on increasing the sales volume of IKM processed food products in Gorontalo Regency. Zakat routines have a positive and significant effect on increasing sales volume of processed food products for SMEs in Gorontalo Regency.
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Williams, A., J. Davidson, S. Waterworth, and R. Partington. "Total quality management versus business process re-engineering: A question of degree." Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture 217, no. 1 (January 1, 2003): 1–10. http://dx.doi.org/10.1177/095440540321700101.
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An increasing number of manufacturing organizations are placing direct emphasis on operations improvement as a means of achieving competitive success. Small and medium enterprises (SMEs), however, generally lack the resources in capital, time and expertise to implement business process re-engineering (BPR), as has been advocated by a number of authors. This paper presents a comparative analysis of continuous improvement (CI) versus BPR approaches to operational change. Change implies risk, and SMEs naturally require a means for establishing levels of uncertainty and net return. Equally, the performance measures adopted by these two (respectively, bottom-up and top-down) approaches differ significantly and normally defy direct comparison. A dynamic systems simulation is developed from a case study within the plastics industry and is used to evaluate the implementation of either varying levels of improvement or natural processes in the case of BPR. Although it is an industry-specific model, the approach raises several implications. Of specific interest is the trade-off between performance improvement and cost, time frame and risk. Attention is also focused on evaluation of the threshold at which the two philosophies overlap and the point at which companies may make the transition between the two philosophies. The paper goes on to evaluate the decrease in the return of investment (ROI), as improvements impinge on other stages within the process, creating up- and downstream bottlenecks. It also evaluates the level of a single ‘natural process’, as a means of costing BPR implementation. The paper concludes with the definition of ROI curves, which are intended to inform SMEs in the selection of appropriate improvement strategies.
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Khusna, Izzah, and Wido Prananing Tyas. "Tipologi Home-based Enterprises di Sentra Industri Makanan Olahan Bandeng Kota Semarang Berdasarkan Tiga Modal Sustainable Livelihood." Teknik PWK (Perencanaan Wilayah Kota) 11, no. 2 (June 3, 2022): 112–25. http://dx.doi.org/10.14710/tpwk.2022.29846.
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The Center for Milkfish Processed Food Industry are scattered in several areas, three of which are located in Semarang Barat, Gayamsari, and Semarang Utara districts which has the largest milkfish production and investment value in Semarang City. Inside, there are Home-based Enterprises (HBE) for milkfish processing with various characteristics. There are 3 main points indicated that the existence of HBE for milkfish processing is a potential that can be developed, including SMEs, culinary tourism, and thematic villages. To develop that, it is necessary to identify the character of each HBE unit in the three districts. This study aims to identify the typology of HBE at the Center for Milkfish Processed Food Industry in Semarang City to identify the characters and prerequisites for the development of HBE types by using 3 sustainable livelihood asets as the determinant of research variables. The results showed that there were 3 types of HBE which formed by 51 units. Small HBEs is a group that tends to have lower capabilities in natural, human, and financial capital than other types. Middle profile HBEs is a group identified with abilities in a higher educational background and broader marketing. High profile HBEs is a group with higher capabilities in natural, human and financial capital than other types, so that it is possible to have a more stable and sustainable livelihood.
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Huda, Nurul, Aris Munandar, and Syamsinirwani Syamsinirwani. "The Effect of Entrepreneurship Competency and Adaptability of Business Environment to Financial Performance of Small an Medium Business Units in Bima City." JURNAL TERAPAN MANAJEMEN DAN BISNIS 4, no. 2 (September 1, 2018): 131. http://dx.doi.org/10.26737/jtmb.v4i2.831.
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The number of SMEs and the absorption of large manpower does not contribute greatly to the value of production and investment in the agro-industry sector and non-agro industry sector is a reflection of most SMEs in Bima city. This problem occurs because there are so many considerations of it, one of them is lack of competence of SMEs business sector, the limitations in the ability to adapt with the environment changes including market of innovation, access to information and financing, the difficulty in the procurement of capital and cheap, the limitations in innovation, technology changing that will affect all business performance of SMEs. The higher social competence (interaction, social relations, and social adaptation) owned by entrepreneurs, the greater financial success that entrepreneurs will achieve and improve business performance. The research method used is explanatory research by using a survey sampling approach. Conventionally, explanatory research is used to explain the relationship between variables through hypothesis testing. Then, the questionnaires will be distributed 156 SMEs in Bima city where the questionnaire have tested the validity and reliability then processed by using SPSS so that the accuracy of analytical tools can be reliable. The long-term goal to be achieved is increasing the competitive advantage and performance of SMEs throughout Bima city. The specific targets of this research are the enhancement of competitive advantage and performance of SMEs in Bima city with the entrepreneurial competence that is able to build business network and assimilate to external environment changes that encourage the efficient use of resources, improving the ability to build business networks, multiple sources of economic growth, create employment, networking in collaboration with business partners and enhancement of competitiveness, a better service for clients and customers are need to be improved where they are not dependent on imported products that undermine the society economic tenacity, the ability to express themselves in constructing social relationship. The results of the t-test statistic for the obtained variable are t-count of 5.964 with a t-table value of 1.645 (5.964 ˃ 1.661) with a significance value of 0.000 less than 0.05 (0.000 < 0.05), the hypothesis that "Entrepreneurship competency influences SME financial performance in Bima City”. The results of the t-test statistic for the obtained variable are t-count of 0.373 with a t-table value of 1.645 (0.373 < 1.645) with a significance value of 0.710 greater than 0.05 (0.710 ˃ 0.05), hence the hypothesis that "Environmental Adaptability Business influences the financial performance of SMEs in Bima city.
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Vnukova, Nataliya. "Activation of expansion of access to means of financing implementation of innovative projects of small and medium enterprises." Law and innovations, no. 2 (30) (June 2, 2020): 17–23. http://dx.doi.org/10.37772/2518-1718-2020-2(30)-2.
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Problem setting. A small and medium-sized enterprise (SME), which must be flexible and generate demand for its own innovative products, transforms knowledge into innovative capital. Under these conditions, all areas of intensification of financing of innovative entrepreneurship become especially relevant. In 2020, the Strategy for the Development of Small and Medium-Sized Enterprises in Ukraine expires, so the task is to develop new strategic directions for change, preferably on an innovative basis. The main obstacle to starting a business is the low level of access to finance. The issue of intensifying the financial support of innovative entrepreneurship is relevant due to the shortage of own financial resources of economic entities and the difficulty of attracting investment, the need to reduce the cost of lending. Analysis of resent researches and publications. Zyanko V.V., Pochtovyuk A.B., Pukala R., Volkova N.I., Sviridova K.D. were engaged in problems of financial maintenance of innovative activity of the enterprises, problems of crediting of small and average business in Ukraine. Issues of innovative activity of business are unique in conclusion that the most important obstacle is the problem of unavailability of funds to advance the innovation process at all stages, sources of funding for SMEs studied Kuzmenko A. Yu., Svistun L.A. Target of research. Development of theoretical provisions and practical recommendations for determining the means of enhancing access to finance for SMEs in an innovative society. Article’s main body. The current changes in intensifying the expansion of access to finance in entrepreneurship through the development of lending with state support, the stimulation of the regulator of financial institutions to finance innovative entrepreneurship are considered. An innovative approach to the use of automated DSS Decision Making Helper is presented to assess the level of activation of the expansion of access to funding for the implementation of innovative projects for SMEs. Conclusions and prospects for the development. The economic crisis and significant growth of Fintech services in finance will increase the search for innovative means of financing the innovative development of SMEs, including loans with state support, factoring, financial leasing, venture financing, etc. It is necessary to improve the strategic goals of financial support of innovative entrepreneurship. The use of modern software tools is recommended to be widely used as a direct way to intensify all processes, in particular, to decide on the choice of means of financing the implementation of innovative SME projects.
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Abanis, Turyahebwa, Byamukama Eliab Mpora, Arthur Sunday, and Marus Eton. "Capital Structure, Investment Decision and Financial Performance of SMEs in Uganda." International Journal of Scientific Research and Management 10, no. 07 (July 14, 2022): 3679–88. http://dx.doi.org/10.18535/ijsrm/v10i7.em03.
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The paper explored the relationship between capital structure, investment decision and financial performance of SMEs in Uganda a case of Central Uganda. The study adopted a descriptive, cross-sectional and correlational design. The sample size was 226 SMEs in Central Uganda. The findings point to a moderate significant positive relationship between capital structure, investment decision and financial performance of SMEs. Capital structure and financial performance of SMEs (r = 0.642, P-value = 0.000), investment decision and financial performance of SMEs (r = 0.488, P-value = 0.000). From the results, we confirm that capital structure, investment decision, predict up to 66.2% of the change in financial performance of Small and Medium Enterprises in Central Uganda. The results show good model fits and fig.2 defines the model of capital structure and investment decisions on financial performance of SMEs in Uganda and is encompassed of 4 proportions of capital structure in terms of Equity, Long term Debt, Short term debt as well as investment decisions and their predictive power on financial performance of SMEs in Uganda. Figure 2 and table 1 and 2 clearly indicate that capital structure and investment decisions are significantly associated with return on assets (ROA) which in turn leads to improved financial performance. The study recommends an appropriate mix of capital structure coupled with premeditated investment decisions so as to have improved financial performance of SMEs in Uganda. The current study underwrites to academic research by providing empirical proof to support theories pertinent to the elucidation of financial performance. The study was anchored on Pecking Order theory together with Modigliani&Miller theory and the results depict the behaviours that managers have while making decisions concerning capital structure and investment decisions. With such, the precursors of capital structure, investment decisions on financial performance of SMEs in Uganda and other related developing countries has been revealed.
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Novandalina, Arini, Fidyah Yuli Ernawati, and Andhy Tri Adriyanto. "RISK ATTITUDES, MENTAL ACCOUNTING AND OVERCONFIDENCE IN INVESTMENT PLACEMENT DECISION DURING AND POST COVID-19." International Journal of Economics, Business and Accounting Research (IJEBAR) 6, no. 1 (March 23, 2022): 498. http://dx.doi.org/10.29040/ijebar.v6i1.4453.
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The Small and Medium Enterprises is the main pillar the people's economy. SME investment decisions related to how entrepreneurs place their funds is a very determining factor in company performance. The purpose of this study is to analyze and explain: 1) The influence of risk attitudes on company performance through decisions on the placement of working capital funds for small and medium enterprises (SMEs), 2) The effect of risk attitudes on company performance in SMEs 3) the effect of working capital fund placement decisions on the performance of SMEs. The study population was all garment, weaving, carving and batik SMEs in Jepara.
The sampling technique is non-probability sampling, using assessment sampling. This study found that overconfidence behavior and risk attitude have a significant influence on investment decision making. Mental accounting doesn’t have a significant influence on investment decision making. The more investors are willing to face risks and the higher the overconfidence will increase investment decisions. The number of investors who are risk seekers in the capital market is a natural thing because stock investment is included in the high-risk investment category. Mental accounting can not influence the investment decision making.
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Šimić Šarić, Marija. "SMEs perspective on venture capital investment criteria - A study of Croatian SMEs." Management: Journal of Contemporary Management Issues 22, no. 1 (June 28, 2017): 117–33. http://dx.doi.org/10.30924/mjcmi/2017.22.1.117.
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Afrifa, Godfred Adjapong. "Net working capital, cash flow and performance of UK SMEs." Review of Accounting and Finance 15, no. 1 (February 8, 2016): 21–44. http://dx.doi.org/10.1108/raf-02-2015-0031.
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Purpose – This paper aims to examine the influence of cash flow on the relationship between net working capital and firm performance. Design/methodology/approach – The paper uses unbalanced panel data regression analysis on a sample of 6,926 non-financial small and medium enterprises in the UK for the period from 2004 to 2013. Findings – The results indicate a strong concave relationship between net working capital and performance in the absence of cash flow; however, the relationship becomes convex after taking cash flow into consideration. The results further show that firms with cash flow below the sample median exhibit lower investment in working capital, but firms with cash flow above the sample median have higher investment in working capital. The results suggest that managers should consider their firms cash flow when determining the appropriate investment to be made in working capital, so as to improve performance. Practical implications – Overall, the results suggest that whilst firms with limited cash flow should strive to reduce investment in working capital, firms with available cash flow should increase investment in working capital to improve performance. Originality/value – This current study incorporates the relevance of cash flow in assessing the association between working capital management and firm performance.
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Seo, Hyeon Sik, and YoungJun Kim. "INTANGIBLE ASSETS INVESTMENT AND FIRMS’ PERFORMANCE: EVIDENCE FROM SMALL AND MEDIUM-SIZED ENTERPRISES IN KOREA." Journal of Business Economics and Management 21, no. 2 (March 3, 2020): 421–45. http://dx.doi.org/10.3846/jbem.2020.12022.
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While many studies have examined the relationship between investment in intangibles assets and performance in large corporations, current research is lacking in regard to intangible investments in small and medium enterprises (SMEs). This study looks at SMEs in which intangible investments would usually be minor because they tend to consider intangible investment as an inefficient cost and concentrate on investments in tangible assets. This paper aims to contribute to the current literature and suggests that investment in the intangible assets of (human capital, advertising, R&D) is essential for SMEs pursuing superior firm performance. Actual data collected from 173 SMEs in Korea were analyzed employing hierarchical regression methodology. Results indicate that all three intangible resources have a positive effect on a firm’s profitability and value. Interestingly, this research finds that investment in advertising has the most influential impact on a firm’s profitability and value. This study has implications for SMEs in achieving their profitability and value. The results in this study highlight that intangible investment is not a waste of money for SMEs, and that business managers could strategically utilize these three key contributors (human capital, advertising, R&D) and adopt investment in intangible assets to accomplish their managerial goals.
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Ibrahim, Abdul-Jalil, and Monzer Kahf. "Instruments for investment protection when structuring Islamic venture capital." Journal of Islamic Accounting and Business Research 11, no. 9 (September 17, 2020): 1907–20. http://dx.doi.org/10.1108/jiabr-01-2019-0025.
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Purpose This paper aims to explore how Sharīʿah-compliant instruments can be used to protect investments and attract investors to Islamic venture capital (IVC). Equity investments in Islamic finance are trailing behind their potential value. This is partly due to the limited instruments available to protect investors, as most of the tools used in conventional venture capital (VC) are deemed Sharīʿah non-compliant. Design/methodology/approach The research amends and uses Wright Robbie’s (1998) VC structure and how it can be used to finance small and medium-sized enterprises (SMEs). The study uses secondary data reported in the literature and the expertise of the Sharīʿah scholarship. Findings There are Sharīʿah-compliant instruments available for IVC that can be used to protect investments and incentivize potential investors to promote investments in SMEs. At the various stages of the IVC process, preference shares, perpetual mudharabah, diminishing musharakah, musharakah with murabahah, musharakah with qard, negligence clauses, liquidation preference, warrants and supermajority clauses can all be used with appropriate conditions to protect investors and offer incentives for them to invest in IVC. Practical implications The research provides a method for screening and evaluating potential deals for SMEs using an amended VC called an IVC scheme with a focus on Sharīʿah-compliant investment protection instruments. The method can promote SMEs and entrepreneurship and financial inclusion for Sharīʿah-compliant investors. Originality/value This study contributes new ideas to how IVC can be structured, taking into consideration Sharīʿah constraints. The paper addresses investors’ protection and incentives to attract Sharīʿah-compliant investors, which have been lacking in the literature.
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Yang, Sijing, and Jing Cui. "Modelling Investment Choice Preference of Government Venture Capital Guiding Funds." Discrete Dynamics in Nature and Society 2021 (September 8, 2021): 1–9. http://dx.doi.org/10.1155/2021/5244937.
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The continuous development of the government venture capital guiding funds (hereinafter referred to as the “government guiding funds”) has provided financial support and development opportunities for the development of many small- and medium-sized enterprises (SMEs), and government guiding funds have been paid attention by more and more entrepreneurs and investors of SMEs. This paper takes the SMEs listed on the National Equities Exchange and Quotations (“NEEQ,” known as the New Third Board) as a research sample, systematically examines the factors that influence the selection of investment objects of government guiding funds, and studies the preference of government guiding funds from the aspects of financial characteristics and corporate governance of SMEs. The research results show that on one hand, ownership concentration, date of establishment, and asset size are significantly related to government guiding funds, while the return on equity (ROE), the asset-liability ratio, liquidity of assets, growth rate of main business income, and the operating net profit ratio failed to pass the significance test; on the other hand, operating profit ratio, investment interests, asset size, and the amount of investment of government guiding funds are significantly related, while investment rounds, date of establishment, ownership concentration, ROE, asset-liability ratio, liquidity of assets, and operating net profit ratio failed the significance test.
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Bertoni, Fabio, María Alejandra Ferrer, and José Martí Pellón. "Financial market imperfections, control aversion and venture capital in Spanish SMEs." Corporate Ownership and Control 7, no. 4 (2010): 252–65. http://dx.doi.org/10.22495/cocv7i4c2p2.
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Information asymmetries and control aversion limit the capacity of Small and Medium Enterprises (SMEs) to take advantage of growth opportunities. In this work we analyse to what extent Venture Capital (VC) can play a positive role by allowing a temporary shareholder to reduce the investment dependency on internally generated funds. We study a sample of 322 Spanish VC-backed SMEs at the expansion stage, and a one-by-one matched sample of non-VC-backed firms. We find that both groups of firms exhibit a significant sensitivity of investments to cash flows before the initial VC investment. VC, however, is effective in reducing investment cash flow sensitivity in the post-investment period in the group of VC-backed companies.
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Idehen, Amadin Victor. "Capital investment decisions of small and medium enterprises in Benin-City, Nigeria." International Journal of Research in Business and Social Science (2147- 4478) 10, no. 3 (May 1, 2021): 101–8. http://dx.doi.org/10.20525/ijrbs.v10i3.1099.
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The study examined the capital investment decision of small and medium enterprises ( SME’s) in Nigeria. The objective of the study is to determine if small and medium enterprises in Nigeria utilize investment techniques. The survey research method was employed to carry out the study. Data were elicited through the use of questionnaires and oral interviews. These data were analyzed and presented using a statistical technique such as tables and percentages. The result revealed that most small and medium enterprises in Nigeria utilized investment techniques in their investment decision. Based on the above findings, it was recommended that SMEs in Nigeria should be encouraged to employ the services of qualified professionals or someone who has knowledge on basic techniques for investment decisions, the government should organize frequent training for SMEs on financial and investment decisions.
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NGUYỄN KHÁNH, DUY, OANH NGUYỄN THỊ HOÀNG, TÂM NGUYỄN DUY, THÀNH PHẠM TIẾN, and VŨ TRƯƠNG THANH. "Investment in Human Capital and Labor Productivity in Southern Key Economic Zone An Application of Propensity Score Matching Method." Journal of Asian Business and Economic Studies 215 (January 1, 2013): 61–86. http://dx.doi.org/10.24311/jabes/2013.215.01.
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This paper investigates the determinants of human capital investment in the form of formal training (off-the-job training) and estimates effects of this investment on productivity using Propensity Score Matching (PSM) method. We use data from a survey of small and medium enterprises (SMEs) in Vietnam (completed in 2010) with detailed information about training and several firm characteristics. Our estimates reveal that investment in human capital currently does not have the considerable contribution to the improvement in productivity of SMEs. This result does not support the universalistic perspective in strategic human resource management (SHRM) theoretical model
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Kamall Khan, Yasmin, Jati Kasuma, and Azrin Ali. "The Challenges of Small and Medium Businesses in Managing Human Capital towards SMEs Performance – A Qualitative Study." Asian Journal of Business and Accounting 15, no. 1 (June 30, 2022): 311–43. http://dx.doi.org/10.22452/ajba.vol15no1.10.
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Manuscript type: Research paper Research aims: Currently, machinery is replacing most human capital to save cost, but the value of human capital that contributes to the performance of SMEs is invaluable. SMEs were used to explain the connection between human capital and SMEs performance in South Australia. Design/Methodology/Approach: Five case studies on SMEs in South Australia were used in this study. The analysis of qualitative data entailed data coding, within-case analysis, and cross-case analysis. Research findings: The cross-case analysis result is unsurprising considering that all five firms depend on their employees to work and keep the firm in operation. The cross-case analysis results are mixed in respect to the connection between human capital and the several types of performance measurement. The results, therefore, need to be interpreted with caution. SMEs perform solely through the skills, experience, and knowledge of their employees. This distinction occurs when the knowledge and information that employees gain are focused directly on the employee’s initiative, decision-making and critical thinking skills. Investment in human capital should be done carefully based on the limited resources of SMEs. Theoretical contribution/Originality: Most research has shown the link between human capital and firm performance. However, the degree to which investment in human capital contributes to the type of performance is yet to be explored based on qualitative data especially regarding SMEs in South Australia. Practitioner/policy implication: The sustainable development goal (SDG) entails a steady improvement in people’s well-being in a good environment. Thus, decisions about investment in human capital and the use of temporary workers should be taken jointly by personnel managers, in accordance with the size of the firm. If this holistic view is ignored, a full understanding of the impact of human capital on the firm’s performance will be obscured. On the other hand, a common feature that large and small firms share is an incompatibility between human capital and temporary employment. Research limitation/implications: The main limitation of this study was the sample of the study that comprised solely of South Australia SMEs. Thus, this study outcome may not be generalisable to the whole Australia as a country. Further investigation across different states would expand knowledge of the complicated patterns of HC. Keywords: Human capital, SME, Productivity, Profitability, South Australia JEL Classification: M12
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Pinkovetskaia, Iuliia, and Olga Kiseleva. "INVESTMENTS IN MEDIUM, SMALL AND MICRO ENTERPRISES IN RUSSIAN REGIONS." CBU International Conference Proceedings 6 (September 25, 2018): 381–86. http://dx.doi.org/10.12955/cbup.v6.1186.
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The paper aim is an assessment of the investments into the fixed capital of small and medium enterprises (SMEs) and the influence on them by factors such as size categories and territorial placement. The object of the study is the consideration of all (SMEs) that are located in each of the regions of Russia. The used data is from the official statistical observation of investment data of all Russian SMEs for 2015 in 82 regions. The comparative analysis of investments in the fixed capital of SMEs is based on relative indicators: investments which are calculated per one enterprise and per employee. Modeling was based on the functions of a normal distribution. We defined the values investments in SMEs which located in all Russian regions and related to three size categories and six types of activity; revealed regularities of distribution of investments calculated per enterprise and per worker; identified the regions with low investments in SMEs. New knowledge of the investment in the fixed capital in the Russian SMEs was achieved. The results of the study, namely new knowledge and tools for assessing production activities of small and medium enterprises in the regions, are of scientific and practical importance. The methodical approach can be used in the future studies and in the education potential entrepreneurs and students. The research results can be used by government and regional authorities to monitor the efficiency of investment in fixed assets, as well as the implementation of a Federal strategy for SMEs development for the period up to 2030.
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KHOUJA, Imen, Sina BELKHIRIA, and Ons TLILI. "Capital Structure Impact On The Human Capital Investment: Eastern European Countries Case." Archives of Business Research 9, no. 8 (September 5, 2021): 235–52. http://dx.doi.org/10.14738/abr.98.10753.
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Among growth factors of a company, its human capital, because of its hardly imitable trait. However, investing in human capital is intangible and risky, which makes its funding arduous. This article considered the impact of the company’s capital structure on the human capital investment decision through training using probit regressions. Among a sample of SMEs from 24 Eastern European countries, the results confirmed that bank loans foster trainings. However, an increase in self-financing slows down such investments.
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Pinkovetskaia, Iuliia, and Vladislava Slepova. "Estimation of Fixed Capital Investment in SMEs: the Existing Differentiation in the Russian Federation." Business Systems Research Journal 9, no. 1 (March 1, 2018): 65–78. http://dx.doi.org/10.2478/bsrj-2018-0006.
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Abstract Background: One of the goals of Russia economy is to increase SMEs specific weight in GDP per 100% by 2030. Objectives: The purpose of this work is the assessment of the investments into fixed capital of SMEs and influence of factors such as size categories, types of economic activity and territorial placement, needed for the fulfillment of this goal. Methods/Approach: The comparative analysis of SMEs investments is based on relative indicators, which are calculated per enterprise and per worker. The research was conducted with the usage of the official statistical information obtained in the course of total observation of activity of the enterprises in 2015. Modelling of empirical data was based on functions of normal distribution. Results: We defined the values investments in SMEs which are located in 82 regions and related to three categories and six types of activity. We revealed regularities of distribution of investments calculated per enterprise and per worker, and identified the regions with the lowest investments in SMEs. Conclusions: New knowledge of the investment in the fixed capital in the Russian SMEs was achieved. Proposed information and tools are applicable for justification of the investments needed for the SMEs development. The methodical approach can be used in the future studies, as well in entrepreneurship and public management education.
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HMDN, Somathilake, and Pathirawasam C. "The Effect of Financial Management Practices on Performance of SMEs in Sri Lanka." International Journal of Scientific Research and Management 8, no. 05 (May 21, 2020): 1789–803. http://dx.doi.org/10.18535/ijsrm/v8i05.em05.
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Small and Medium Enterprises (SMEs) play an important role in every developing country contributing to the growth of the economy in many ways. The aim of this study is to identify the effect of financial management practices on performance of SMEs in Sri Lanka: Special Reference to North Central Province (NCP). Working capital management practices, Investment appraisal practices, Capital structure management practices, financial reporting & analysis practices and Accounting information system practices were identified as independent variables and Performance of SMEs was identified as the dependent variable of this study. All SMEs (nearly 2000 SMEs) operating in NCP during the year 2019 was identified as the population of this study. Out of that, 322 SMEs were selected as the sample based on disproportionate stratified random sampling method and final sample was 245 manufacturing, service and trade SMEs operating in NCP. Data was collected through a structured questionnaire distributed among SMEs functioning in NCP. Descriptive statistics and inferential statistics like Pearson correlation analysis and multiple regression analysis were used to analyze data using the SPSS package. Results of the study revealed that there is a positive effect of financial management practices on performance of SMEs. Among financial management practices, working capital management practices and capital structure management practices have a significant positive effect on SMEs performance.
Keywords: Capital structure, Financial Management, Performance, Small and Medium Enterprises, Sri Lanka, Working capital.
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Mbhele, Patmond. "The study of venture capital finance and investment behaviour in small and medium-sized enterprises." South African Journal of Economic and Management Sciences 15, no. 1 (March 16, 2012): 94–111. http://dx.doi.org/10.4102/sajems.v15i1.168.
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Small and medium-sized enterprises (SMEs) are often credited with innovative entrepreneurial practices and conceiving new market opportunities. Government has reinforced these positive economic externalities through policy programmes and designated support structures. Venture capital organisations often galvanise innovative knowledge by entrenching and sustaining nascent businesses through value-creating funding behaviours. In this way, the venture capital industry financially supports entrepreneurial activity for economic growth and governs and nurtures the growth of the SMEs. These show that the venture capital industry embraces value-creating opportunities on the basis of rational partnerships with enterprises that have limited track records and less formal control mechanisms. The tentative factor analysis findings suggest an integrated framework for the venture capital industry from the significant intercorrelations among the variables. The most important focus of this article, however, is its attempt to examine the behavioural traits of SMEs and venture capitalists regarding systematic finance and investment for inclusivity and due diligence.
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Afrifa, Godfred Adjapong. "Working Capital Management Practices and Profitability of AIM Listed SMEs." Journal of Enterprising Culture 23, no. 01 (March 2015): 1–23. http://dx.doi.org/10.1142/s0218495815500016.
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This paper reports the results of an investigation of the effect of Working Capital Management (WCM) practices on profitability of Small and Medium Enterprises (SMEs) listed on the Alternative Investment Market (AIM), from the perspective of financial directors. Specifically, I look at their WCM target level practices, WCM alteration frequency and WCM strategy practices. The analyses are based on questionnaire distributed to 248 AIM listed SMEs. The paper employs OLS regression on responses from 72 managers of AIM listed SMEs. The results show that the WCM practices of AIM listed SMEs managers have an effect on profitability. However, the results show that given the limited resources of SMEs, the main focus of managers should be on the setting of specific target level for WCM so as to increase profitability.
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Afrifa, Godfred Adjapong, and Kesseven Padachi. "Working capital level influence on SME profitability." Journal of Small Business and Enterprise Development 23, no. 1 (February 15, 2016): 44–63. http://dx.doi.org/10.1108/jsbed-01-2014-0014.
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Purpose – The purpose of this paper is to report the results of an investigation of the relationship between working capital level, measured by the cash conversion cycle (CCC) and profitability of small and medium enterprises (SMEs). Design/methodology/approach – The paper employs panel data regression analysis on a sample of 160 Alternative Investment Market (AIM)-listed SMEs for the period from 2005 to 2010. Findings – The empirical results show that there is a concave relationship between working capital level and firm profitability and that there is an optimal working capital level at which firms’ profitability is maximised. Furthermore, an examination as to whether or not deviations from the optimal working capital level reduce firm profitability indicate that deviations above or below the optimum decrease profitability. Research limitations/implications – The sample is limited to AIM-listed SMEs, and therefore the findings cannot be generalised to all firms. Practical implications – Overall, the evidence suggests that firms should strive and attain the optimal working capital level in order to maximise their profitability. Originality/value – The results are of importance to both SMEs and policy makers providing insight into the nature of CCC and its relationship to SMEs profitability.
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Musah, Alhassan, Erasmus Dodzi Gakpetor, and Portia Pomaa. "Financial Management Practices, Firm Growth and Profitability of Small and Medium Scale Enterprises (SMEs)." Information Management and Business Review 10, no. 3 (October 13, 2018): 25–37. http://dx.doi.org/10.22610/imbr.v10i3.2461.
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The study examined financial management practices using four components: working capital management practices, capital structure management, accounting information and financial reporting practice, and the use of capital budgeting techniques and fixed assets management. Performance of SMEs was examined from the context of profitability measured by Return on Assets and of growth. The study sampled 100 SMEs from Accra with data collected through the administration of a questionnaire. Data were analysed using descriptive statistics and Pearson correlation analysis. The results of the descriptive statistics revealed that working capital management practices had the highest mean score, followed by accounting information and financial reporting practices, capital structure management and finally, the use of capital budgeting techniques and fixed assets management, in that order. The Pearson correlation analysis showed a positive association between the four components of financial management practices and between SMEs profitability and growth. The results emphasize the need for SMEs to improve on their financial management practice to improve the profitability and growth of these firms. It is recommended that the use of capital budgeting techniques be improved, as this area of financial management, even though it impacts positively on the performance of SMEs had the least score. Most importantly, the managers of SMEs should use discounted cash flow techniques to evaluate investment and projects before committing the resources of the company. SMEs are encouraged to adopt IFRS for SMEs to enhance their financial reporting practices. This will also improve their decision making and access to capital which will allow these SMEs to expand.
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Yang, Yi, and Yilin Zhao. "Modified PROMETHEEII for venture capital investment selection decision-making towards SMEs." Journal of Interdisciplinary Mathematics 21, no. 4 (March 28, 2018): 1017–29. http://dx.doi.org/10.1080/09720502.2018.1456824.
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Rubelj, Ante. "CAPITAL BUDGETING AND MANAGEMENT OF INVESTMENT PROCESSES." Tourism and hospitality management 12, no. 1 (May 2006): 137–48. http://dx.doi.org/10.20867/thm.12.1.12.
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The goal of our paper is to show how a firm should set its capital budget. Here we discuss how this is done in practice. We give particular attention to how capital budgeting is organized and to the administrative problems that inevitably crop up.
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Royal, Carol, and Loretta O'Donnell. "Emerging human capital analytics for investment processes." Journal of Intellectual Capital 9, no. 3 (July 25, 2008): 367–79. http://dx.doi.org/10.1108/14691930810891983.
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., Masripah, Meizaroh ., Alvita Yuniar, and Pramuditya Ardhana. "Rising Star Exchange: An Alternative Capital Market for SME in Indonesia." JAAF (Journal of Applied Accounting and Finance) 5, no. 1 (March 31, 2021): 36. http://dx.doi.org/10.33021/jaaf.v5i1.1328.
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<p>The purpose of this paper is to formulate an ideal stock exchange to help Small-Medium Entity (SMEs) in getting the capital they need. SMEs face some difficulties to grow its business. Access to the capital market is one of their main obstacles. This research uses a descriptive approach. This research discusses the problem by using literature study and secondary data as a source of information which is then analysed to be interpreted. This paper analyses both equity crowdfunding and Indonesian Stock Exchange Acceleration Board as the currently available equity market for SMEs. The key takeaways from both capital markets then being used to develop a new capital market called Rising Star Exchange (RiSE). The results of this paper implicate that by having this stock exchange, SMEs will have better access to funding while the investors also get the level of protection they need. The paper contributes to the social, economic and business sciences. The results of this paper could be used by the government to formulate a regulatory environment which could support the growth of SMEs, by the SMEs to find another alternative source of fund, and by the investors to allocate their fund in SMEs investment.</p><p> </p>
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Asad Ullah, Muhammad Khushnood, and Hafizullah. "Working Capital and Fixed Investment Effect on Sales Growth in SAARC Countries’ SMEs." Global Social Sciences Review IV, no. I (March 30, 2019): 129–36. http://dx.doi.org/10.31703/gssr.2019(iv-i).17.
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The study investigates the impact of various financing sources of working capital and fixed investment on sales growth. Population of the study comprises South Asian Association for Regional Cooperation (SAARC) countries’ small and medium sized enterprises (SMEs). Data of 6777 SMEs is retrieved from World Bank’s website. Multiple regression model is used to achieve the study objectives. Results signify a positive link between bank financing use for working capital and sales growth while the negative link between friends and family finance and sales growth is observed. Similarly all formal sources of finance used for fixed investment have positive link with sales growth. Finally, it is found that the government interventions and policy makers can alleviate access to formal sources of finance for boosting sales growth.
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Adhikari, Naba Raj. "Capital Budgeting Technique Used in Nepalese Manufacturing Small and Medium Sized Enterprises." Nepalese Journal of Management Research 2, no. 1 (September 9, 2022): 7–11. http://dx.doi.org/10.3126/njmgtres.v2i1.48258.
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This paper examines the extent of usage of capital budgeting techniques in small and medium sized enterprises (SMEs) and factors influencing on the choice of capital budgeting techniques adopted by SMEs. A self-administered structured questionnaire survey was conducted with 48 small and medium sized manufacturing enterprises operated in Banke district and information has been gathered through questionnaires and personal interviews. The respondents were chief financial officer and concerned authorities of the firm responsible for long term investment decision. Results of the study reveal that payback period is the dominant capital budgeting technique used in SMEs. The results found that net present value was also the most prevalent capital budgeting method. Net present value as the capital budgeting technique is higher in SMEs who operate in the industry for more than 10 years. Easy to explain to top management, obsolescence due to technological developments and simplicity leading to less time and cost involved revealed the main reasons for using the payback period method. Some of the firms are using discounted cash flow methods of capital budgeting and preferring net present value over internal rate of return.
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Park, Kyung Jin, and Youngtae Yoo. "Improvement Of Competitiveness In Small And Medium-Sized Enterprises." Journal of Applied Business Research (JABR) 33, no. 1 (December 28, 2016): 173–94. http://dx.doi.org/10.19030/jabr.v33i1.9888.
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While SMEs (small and medium-sized enterprises) contribute much to the economy, their competitiveness compared to that of large enterprises is negligible. Periodic evaluation of the overall competitiveness of SMEs is important to determine the reasons behind their relatively low growth rate. In order to maximize the effects of support for SMEs through government policies, determining the best means of providing support and enhancing competitiveness is necessary. Government funds or other sources of support for SMEs must be supplied according to the circumstances surrounding each enterprise. For instance, if the government invests in tangible assets, SMEs must be the target, because their size guarantees that despite their lower flexibility, competitiveness will improve. If investment is made in research and development, the firm’s long-term capacity for growth must be evaluated rather than its profitability, since there is an immediate increase in costs. There are differences in the effects of investment on flexibility, immaterial capital, and the ability to compete according to the size of the firm and the number of years it has been in business; these factors must be taken into account. Also, in allocating supporting funds to SMEs, the sites at which the funds are to be used must be examined. Active use of funds in areas where SMEs cannot invest in themselves is encouraged, rather than investment in general.
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Melnyk, Maryana, and Iryna Leshchukh. "Sectoral and spatial features of investment processes in a region." Regional Economy, no. 4(94) (2019): 120–26. http://dx.doi.org/10.36818/1562-0905-2019-4-11.
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Investment is an important indicator of the economic development of a region. The article examines sectoral and spatial features of investment processes in a region (on the example of Zaporizhzhya region). In particular, capital investment of enterprises in Zaporizhzhya region are analyzed by types of assets, sources of financing and types of economic activity, while development (use) of capital investment – by types of industrial activity. The paper establishes that: 1) own funds of enterprises were the main source of capital investment in Zaporizhzhya region during the period under review; 2) the highest share of capital investment in the region is financed by industrial enterprises; 3) the share of investment in professional, scientific and technical activities is reduced. The active development of the region’s industrial infrastructure is becoming a challenge for its environment today. Nevertheless, capital investment for environmental protection were found to have decreased in 2017 compared to 2016. Therefore, the strategic objective of the region today is to make effective use of its existing investment potential, in particular to improve the environment. The main factors influencing the investment processes in Zaporizhzhya region were identified: a) positive factors, in particular: availability of natural resources and own energy resources; higher level of profitability of enterprises in the region than the average in Ukraine; ongoing processes of deregulation, decentralization, reform of the territorial organization of power in Ukraine; b) factors of a negative nature, in particular: territorial (spatial) imbalance of business development and institutional infrastructure of business support; small capital investment for environmental protection; aggravation of the military conflict in Eastern Ukraine, etc.
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Dudareva, A. B., A. A. Polyakova, and A. A. Sidorin. "PROBLEMS OF FINANCING INVESTMENT PROCESSES USING FOREIGN CAPITAL." Russian Journal of Agricultural and Socio-Economic Sciences 63, no. 3 (March 25, 2017): 45–52. http://dx.doi.org/10.18551/rjoas.2017-03.07.
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Okah-Efogo, Françoise, and Gaëlle Tatiana Timba. "Female entrepreneurship and growth in Cameroon." African Journal of Economic and Management Studies 6, no. 1 (March 9, 2015): 107–19. http://dx.doi.org/10.1108/ajems-10-2012-0067.
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Purpose – The purpose of this paper is to supplement the literature on the effect of female entrepreneurship on economic growth by bringing new evidence for the case of SMEs owned by women in Cameroon. Design/methodology/approach – Effects of female entrepreneurship on Cameroonian economic growth are analyzed through a simple statistical analysis. Findings – Our results reveal that there is a growing female entrepreneurship in Cameroon, localized in many different sectors of activity. Moreover, these SMEs are opportunity entrepreneurship which contributes to economic growth by considerably reducing unemployment particularly for women, generating revenues for government and enhancing human capital skills. Research limitations/implications – The study suggests an investment in SMEs owned by women and an investment in education and skills of those women in order to positively affect economic growth. Originality/value – Many studies have focussed their attention on the relationship between SMEs and economic growth, but few attempted to evaluate the theoretical assumptions in case studies and in a gender perspective.
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Mugisha, Henry, Job Omagwa, and James Kilika. "Capital structure, market conditions and financial performance of small and medium enterprises in Buganda Region, Uganda." International Journal of Research in Business and Social Science (2147- 4478) 10, no. 3 (May 1, 2021): 276–88. http://dx.doi.org/10.20525/ijrbs.v10i3.1153.
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Small and Medium Scale Enterprises (SMEs) continue to be major players in the economic growth of Uganda as well as many of the emerging economies. The Uganda Investment Authority had projected 5.5% economic growth by 2030 in anticipation of stable market conditions necessary for the sustained financial performance of SMEs. However, the business failure rate of SMEs in Uganda had persistently revolved around 70% in 2018 from 50% in 2004. This problem had been linked to the turbulent market conditions characterized by intensive competition as well as volatile consumption behavior of the customers. Empirical literature indicates that competitive intensity, as well as volatile customer demand, presents a negative impact on financial performance. Hence, the study sought to determine the moderating effect of market conditions on the capital structure-financial performance relationship of SMEs in Uganda. From a population of 218,561 SMEs, a sample of 453 respondents was selected out of which, 423 responded to the questionnaire. Primary data were analyzed using descriptive statistics and multiple regression techniques. The hypothesis was tested at a 0.05 level of significance. Findings indicated that Market conditions had a positive and significant moderating effect on the capital structure-financial performance relationship (?= 0.175 and p = -0.027). We conclude that market conditions can strengthen/ weaken the effect of capital structure on the financial performance of SMEs. We recommend that SMEs should evaluate the market conditions during the process of deciding the financing mix for their operations to optimize the impact of capital structure on financial performance
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Austin, Sarah. "BARRIERS TO INVESTMENT: THE APPRAISAL AND FINANCING OF NEW MANUFACTURING TECHNOLOGIES IN SMEs." Journal of Small Business and Enterprise Development 1, no. 1 (January 1, 1994): 38–46. http://dx.doi.org/10.1108/eb020931.
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The exploitation of new manufacturing technologies by large organisations is placing increasing pressures on the ability of SMEs to compete, since they enable large firms to compete through advantages traditionally associated with SMEs (e.g. flexibility, small production runs and specialised products). If SMEs are to maintain and improve their competitive position, a more proactive stance is required in relation to new technology investment. The identification and removal of barriers to adoption could greatly aid small firm investment in new technology. The internal investment appraisal process has been identified as one of the major barriers to the adoption of new manufacturing technologies in large firms (Price et al., 1990; Finnie, 1988). Little, however, is known about how SMEs conduct investment appraisals. Further, where SMEs seek external funds, they face additional appraisal by the funding institution. Research (Joyce et a/., 1990; Watkins and Morton, 1992) has indicated that SMEs view financing difficulties as a major barrier to investment. Given the nature of new manufacturing technologies, it is anticipated that such investments may create specific financing problems, particularly in relation to the appraisal by the financial institution. The focus of this paper, therefore, is on these two potential barriers to investment. Firstly, the paper investigates the extent to which the appraisal problems faced by large organisations are common to SMEs and establishes the extent to which the appraisal methods advocated in the literature are relevant to SMEs. Secondly, it examines external constraints on the financing of new technology investments from the firm perspective. In examining these barriers, the paper identifies the characteristics of the investment and financing decision‐making processes in SMEs. The main findings of the research project, involving case studies of 15 SMEs in the South East, are that SMEs do face problems in appraising and justifying new technology investments. However, these difficulties appear to cause fewer problems for SMEs in terms of the outcomes of the appraisal process than might be expected. Surprisingly, the financing of new technologies was not found to constitute a significant barrier to investment and few of the firms had experienced any real difficulties in raising finance for this purpose. The reasons for these apparent conditions are explored in depth and factors affecting the results are identified.
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Xu, Li’ang. "The Impact of Multi-Level Capital Markets on The Business Transformation of Small and Medium-Sized Investment Banks Under the Beijing Stock Exchange Policy." Frontiers in Business, Economics and Management 4, no. 3 (August 8, 2022): 52–58. http://dx.doi.org/10.54097/fbem.v4i3.1134.
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The Beijing Stock Exchange (BSE) was incorporated on 3 September 2021 as the first corporate stock exchange in China, approved by the State Council and supervised by the China Securities Regulatory Commission. The BSE is designed to serve innovative small and medium-sized enterprises (SMEs), especially the "specialized and new" small giants, and to develop and interconnect with the Shanghai and Shenzhen Stock Exchanges and regional equity markets to form an institutional arrangement that suits the characteristics of SMEs and to explore the path of financial inclusion through capital market support for technological innovation of SMEs. Building a multi-level capital market so as to better serve the real economy is an important goal in the construction of China's capital market, and the establishment of the BSE is an important milestone. In the future, how small and medium-sized brokerage firms will make use of the policy opening brought by the BSE to strengthen the expansion of the corresponding business segments has become a key research direction. This paper will focus on the construction of China's multi-level capital market, compare it with the establishment of the US capital market, study the development path of China's capital market, and thus analyse the transformation path of Chinese small and medium-sized brokerage firms to seize the opportunities of the times.
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Colacelli, Mariana, and Gee Hee Hong. "Productivity Drag from Small and Medium-Sized Enterprises in Japan." IMF Working Papers 19, no. 137 (July 1, 2019): 1. http://dx.doi.org/10.5089/9781498317474.001.
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Productivity growth in Japan, as in most advanced economies, has moderated. This paper finds supportive evidence for the important role of small and medium-sized enterprises (SMEs) in explaining Japan’s modest productivity growth. Results show a substantial dispersion in firm-level productivity growth across sectors and even across firms within the same sector. SMEs, on average, exhibit lower productivity growth than non-SMEs in Japan, with smaller and older SMEs showing particularly low productivity growth. Estimates suggest that boosting productivity growth in all of the worst-performing SMEs could improve overall productivity growth by up to 1.8 percentage points. The SME credit guarantee system, SME financing constraints, demographic factors, and lack of intangible capital investment are discussed as contributors to the slow productivity growth of Japan’s small and old SMEs.
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Cohen, Sandra, Vassilios-Christos Naoum, and Orestes Vlismas. "Intellectual capital, strategy and financial crisis from a SMEs perspective." Journal of Intellectual Capital 15, no. 2 (April 8, 2014): 294–315. http://dx.doi.org/10.1108/jic-11-2013-0110.
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Purpose – The purpose of this paper is to investigate the relationship of intellectual capital (IC) with the strategy of small-medium enterprises (SMEs) and their executive decisions regarding the strategy of their IC portfolio during a financial crisis. Design/methodology/approach – The analysis is informed by the responses of 162 Greek SMEs on a structured questionnaire. Greek SMEs constitute an appropriate research setting since they operate within an environment of economic recession, financial turbulence and operational uncertainty. Findings – Initial analysis indicates that SMEs’ strategic position seems to affect the composition of their IC portfolio, especially when a SME is strategically classified as Analytic according to Miles and Snow's (1978) typology. Moreover, Greek SMEs do not seem to follow the suggested by literature executive decisions for the strategic management of their IC portfolio. They apply on their IC components strategies that could be classified as “Act” or “Analyse” under Wissenzbilanz's typology (Bornemann and Alwert, 2007) regardless of the prospects for improvement expected for these IC components. Therefore, while SMEs seem to care about their IC, they do not manage it in a coherent and strategically beneficial way. Research limitations/implications – The study applies a novel methodology. By properly adapting the Wissenzbilanz's typology for IC executive decisions, it provides a research approach for collecting cross sectional firm data for IC executive decisions. A possible limitation but also an area for future research is to examine the implications of the relations between SMEs’ strategy and IC portfolio on SMEs’ financial performance. Practical implications – The practical implications of this study are twofold. First, managers should take into consideration that IC seems to be a strategic enabler even in periods of financial crisis and, thus, decisions regarding IC investments should not be abandoned. Second, SMEs tend to follow different than the recommended by literature executive decisions for the components of their IC portfolio. This might reduce the potential returns on IC investment. Therefore randomly investing in IC will not result in the expected benefits. Originality/value – The contribution of this study is that explores the relations of SMEs’ executive decisions in relation to the strategic management of their IC components as well as the influence that the strategic position of SMEs exerts on the composition of their IC portfolio during a financial crisis.
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Mura, Alessandro, and Laura Mulas. "Do Capital Subsidies to SMEs Trigger Efficient Investment Projects? Some Evidence from Italy." International Review of Business Research Papers 13, no. 1 (March 1, 2017): 31–51. http://dx.doi.org/10.21102/irbrp.2017.03.131.03.
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Nelson, Silvia, Yvonne Brunetto, Rodney Farr‐Wharton, and Sheryl Ramsay. "Organisational effectiveness of Australian fast growing small to medium‐sized enterprises (SMEs)." Management Decision 45, no. 7 (August 7, 2007): 1143–62. http://dx.doi.org/10.1108/00251740710773952.
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PurposeSmall to medium‐sized enterprises (SMEs) continue to make a major contribution to the Australian economy. However, research into organisational processes within SMEs has been limited to date. This study aims to examine the links between communication processes and organisational effectiveness in SMEs.Design/methodology/approachThis quantitative study uses social capital theory as a framework to investigate whether employees' level of satisfaction with organisational communication processes affects organisational outcomes within three high growth manufacturing SMEs in one area of Australia.FindingsResults indicate that organisational communication processes does affect employees' levels of ambiguity regarding customers, job satisfaction and commitment to their firms.Research limitations/implicationsWhile generalisability is limited because of the small number of SMEs participating in the study, the research indicates great potential for developing theoretical and practical insights into Australian SMEs that would assist industry and employees overall.Practical implicationsImplications for the growth strategies of SMEs, particularly in relation to the current skilled labour shortage, are discussed.Originality/valueThe paper contributes much needed theoretical development and research into SMEs.
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Hisrich, Robert D., Saša Petković, Veland Ramadani, and Léo-Paul Dana. "Venture capital funds in transition countries." Journal of Small Business and Enterprise Development 23, no. 2 (May 16, 2016): 296–315. http://dx.doi.org/10.1108/jsbed-06-2015-0078.
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Purpose – The purpose of this paper is to focus on the possibilities and limitations of venture capital formation in Bosnia and Herzegovina and Macedonia where there has been a lack of success and benefits of small- and medium-sized enterprises (SMEs) from this type of financing. Design/methodology/approach – The paper provides a rationale for specific methodological choices and justifies its choice. Both quantitative and qualitative methods were employed. The methods section (research design) explains the entry criteria for the study population, specific imaging techniques and methods of data analysis. Findings – Venture capital invest in companies in the beginning to achieve an above average return on investment. Unfortunately, there are no officially registered venture capital funds in Bosnia and Herzegovina. For the venture capital funds to operate, it is necessary to adopt regulations governing this area, to create a favorable tax system and introduce a cash basis for VAT calculation for SMEs. The majority of respondents in the research believe that in the establishment of venture capital funds would provide one of the greatest supports by the governments of these countries, analyzing the economic situation in these countries, it is apparent that there is an under-developed legal and tax system, which does not support SMEs. In order to attract foreign and domestic investors, and form venture capital funds, it is necessary to create a favorable business environment. Originality/value – The paper contains novel information and insight into VC funds in two transition economies of Bosnia and Herzegovina and Macedonia.
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Petrović, Jadranka. "THE ROLE OF PUBLIC DEVELOPMENT BANKS IN THE GROWTH OF SMALL AND MEDIUM ENTERPRISES." ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ 1, no. 13 (May 3, 2017): 17. http://dx.doi.org/10.7251/zrefis1613017p.
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In this study we focus on public development banks in order to see how effective their support has been on the SMEs performance and growth. The Republic of Srpska Investment-Development Bank (in Serbian: Investiciono razvojna banka Republike Srpske – IRBRS), provided the empirical context for our research. We explored the impact of IRBRS loans on selected business performance indicators: sales, profit and capital of SME borrowers. The study was based on the comparison of selected performance indicators during the five-year period before (2003-2007) and the five-year period (2009-2013) after using IRBRS loans. The selected indicators were also compared with those of the control group, non users of IRBRS loans. The results based on the representative sample of SMEs in the Republic of Srpska show a positive impact of IRBRS loans on sales, profitability and capital of SME borrowers, therefore confirming the positive impact of public development banks on the SMEs performance and growth.
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Lisin, V. "Investment Processes in the Russian Economy." Voprosy Ekonomiki, no. 6 (June 20, 2004): 4–27. http://dx.doi.org/10.32609/0042-8736-2004-6-4-27.
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The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.
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Dwyer, Bruce, Keith Duncan, and Colette Southam. "Small-scale private equity: demand versus supply." Accounting Research Journal 33, no. 2 (January 30, 2020): 363–80. http://dx.doi.org/10.1108/arj-05-2019-0096.
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Purpose This paper aims to bridge the gap between theoretical dissertations on the demand and supply for equity by Australian small and medium-sized enterprises (SMEs) and the reality of the capital raising markets. Design/methodology/approach The mixed-methods approach includes questions integrated into a survey of 26,000 SMEs paired with semi-structured interviews with the CEOs or Chairs of the 15 Australian small-scale private equity (SSPE) firms. Findings Contrary to capital structure theory expectations, 46 per cent of Australian SMEs are interested in equity funding, despite a stated ability to acquire additional debt. The authors reveal a mismatch between supply and demand for SSPE with few SMEs able to meet private equity (PE) firms’ stringent investment criteria. Research limitations/implications The population of Australian SSPE firms is small and interviewee responses are qualitative and are not easily replicated. Practical implications To improve SSPE market liquidity, SMEs must overcome severe information asymmetry to demonstrate their quality and reduce the cost of due diligence for PE firms. One relatively easy step is for SMEs to voluntarily adopt auditable financial controls on SMEs similar to publicly traded firms. Originality/value Few studies focus on small firm equity, which is essential to economic growth and innovation. The authors use a large data set of Australian SMEs and unique informationally rich interview data on the population of Australian firms in SSPE, an industry known for its lack of transparency.
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Pacheco, Luís, Carla Lobo, and Isabel Maldonado. "The Presence of Foreign Capital and the Internationalization of Portuguese Industrial SMEs." Journal of Risk and Financial Management 15, no. 2 (February 2, 2022): 68. http://dx.doi.org/10.3390/jrfm15020068.
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The objective of this paper is to empirically examine the relationship between the firms’ ownership and control structure, in particular the presence of foreign capital, and their internationalization levels, measured in terms of intensity and diversification. The international performance of Portuguese SMEs, which is crucial for the domestic economy’s growth, depends on a multitude of factors, with the existence of foreign investment inflows directed to industrial SMEs being a usually forgotten factor. This paper fills that gap using a balanced panel data of 5722 firms for the period from 2010 to 2017, researching if the presence of foreign capital influences the level and scope of internationalization, and controlling the effects of other variables such as profitability, age, size, indebtedness and sector of activity. The origin of foreign capital is also considered, being researched if issues of institutional or development differences exert any influence over firms’ internationalization. The results evidence that the presence of foreign shareholders in SMEs positively influences internationalization and that the distance variable positively correlates with the internationalization measures. Moreover, there seems to exist a non-linear relationship between the development level of the country of origin of the share capital and internationalization, with the results indicating that firms with share capital originating from more advanced countries attain a higher degree of internationalization. As SMEs in Portugal face increasing competition, joining hands with resource-rich investors such as foreign corporations and institutional investors would be a fruitful strategy to enhance the international competitiveness of Portuguese firms.