Contemporary Microenterprise: Concepts and Cases

Citation

Öksüzoğlu Güven, G. (2012), "Contemporary Microenterprise: Concepts and Cases", International Journal of Entrepreneurial Behavior & Research, Vol. 18 No. 5, pp. 624-627. https://doi.org/10.1108/ijebr.2012.18.5.624.1

The aim of this book is to provide a critical understanding on the challenges and opportunities confronting microenterprises and to serve as a framework for future microenterprise research due to diverse aspects of microenterprise discussions provided. Its foreword was written by Prof. Leo‐Paul Dana. This is an excellent reference book to understand the importance of microenterprises within the economy. With its high‐quality contributions, the book provide discussions on various topics under relevant sections, namely; entrepreneurial dimensions of microenterprises; emerging microenterprise dynamics; finance and the microenterprise; managing the microenterprise; microenterprise growth and expansion; microenterprise and its impact on society and microenterprise development and sustainability with an international lens. Each section provides at least one exemplar of microenterprise discussion in a particular country, which proves to be an excellent addition to the theoretical discussions provided. Furthermore, since this book assumes its audience to be both from academia (academics and students) and practice (business‐people, governmental, non‐governmental organisations, policy makers, international organisations, consultants) it has a quite diverse content and easy‐to‐read language throughout that would engage all types of readers.

Besides introduction and conclusion sections, the book is structured into seven main sections where each of them consists of three relevant chapters, covering 305 pages excluding the index section. Each chapter is followed by helpful notes and references. The book's current online price from the publisher Edward Elgar is £71.96 and it is available in both hardback and e‐book formats.

J. Mark Munoz in Chapter 1 (pp. 1‐8) provides an initial from broad to specific analysis on microenterprises and their importance, following a highlight of the importance and contribution of this book. Munoz also provides an overview of the sections and chapter contents.

The first three chapters on “Entrepreneurial dimensions of microenterprises” explore entrepreneurial practice in different contexts making an excellent and interesting start. Chapter 2 by Michael Troilo (pp. 9‐19) presents a cross‐national comparison of start‐up microenterprises by looking into two cases; the first case examines a US entrepreneur who operates in Vietnam and the second case looks into a Vietnamese entrepreneur who operates in the USA. It includes direct quotes from these two entrepreneurs and provides reflective conclusions and viable strategies. In a useful Chapter 3 (pp. 20‐31), Michelle Ingram Spain explores microentrepreneurs’ tensions of being an entrepreneur and a manager. The author starts by providing a definition of and a theoretical discussion on microenterprises; following with a discussion on four short cases about companies that the author worked with as a primary consultant. This chapter also provides two assessments for entrepreneurs; self‐interview questions and SWOC analysis, which can be very useful for microenterprise owners to better understand themselves as entrepreneurs and their company (see box 1.1). Chapter 4 (pp. 32‐48) by Mai Thi Thanh Thai and Ho Thuy Ngoc discusses the findings of a quantitative study conducted in Vietnam as a transitional economy, examining its microenterprises. It highlights useful information on Vietnam's transition from a socialist economic system to its current socialist‐oriented market economy.

The second part highlights relevant contributions on “Emerging microenterprise dynamics”. Chapter 5 (pp. 49‐60) by Scott A. Hipsher starts with an informative theoretical view on entrepreneurial motivators in microenterprises which is followed by an overview of contemporary thoughts on entrepreneurship and microentrepreneurs. Hipsher concludes with the analysis of eight microentrepreneurs’ case study examples that belong to South East Asian countries (one Cambodia, five Thailand, and two Vietnam) and the discussion of microenterprises and microentrepreneurs’ characteristics within that region. In Chapter 6 (pp. 61‐73) Ian Fillis takes a very interesting look at arts and crafts microenterprises in domestic and international markets, focusing on UK and Republic of Ireland businesses. The author discusses the marketing‐entrepreneurship interface, the role of creativity and the impact of aesthetics before providing a typology of the crafts microenterprise (Table 6.1) based on 30 in‐depth interviews conducted with microentrepreneurs. Chapter 7 (pp. 74‐86) by Sacha Rawlence explores the microenterprises in rural, Southwest China focusing on tourist guest houses which are operated by farming families. Rawlence's research is based on 13 semi‐structured interviews and the author's discussion of the findings provides an understanding of how these family microenterprises operate and the challenges they face reflecting on the transaction costs theory and institutional theory‐related literature.

Chapters 8‐10 are presented under section “Finance and the microenterprise”. Fred O. Newa explores microfinance and capacity building on the growth of micro and small enterprises (MSEs) in sub‐Saharan Africa; focusing on a leading microfinance institution, known as Faulu Kenya in Chapter 8 (pp. 87‐101). Chapter 9 (pp. 102‐15) by Michael J. Pisani provides an interesting read on tienditas, Latin American “little stores” based on evidence from 850 in‐home stores. The author highlights the available funding sources for business start up, explores the role of microcredit in the operations of tienditas and confirms compatibility of microcredit and microentrepreneurship. Chapter 10 by Gwendolyn Tedeschi examines the potential impact of credit on microenterprises through the examination of panel data from a microfinance institution in Peru. The author suggests positive impact of credit on small business owners.

Fourth section, “Managing the microenterprise”, starts with Chapter 11 (pp. 129‐39) which presents a case study on a large Nigerian telecommunication company Celtel's Rural Acquisition Initiative (RAI) as a new, innovative business model that serves poor consumers, “bottom of the pyramid”, in developing markets through valuing non‐corporate partners, including local community groups, village chiefs and entrepreneurs. The chapter highlights the importance of acknowledging existing challenges, engaging in strategic adaptability and understanding target customers. The authors, Jamie Anderson and Martin Kupp draw their conclusion on Celtel's successful approach on linking with entrepreneurs to co‐develop the best local distribution approach, and how it enabled entrepreneur modification of local marketing activities through its RAI model. Chapter 12 (pp. 140‐54) by J. Mark Munoz and Daewon Choi take a very interesting look at characteristics and environment of microenterprises that managed to open global markets through the use of web. Munoz and Choi suggest promising strategies and a model for understanding microglobal internationalisation. In Chapter 13 (pp. 155‐79), J. Mark Munoz, Ilan Alon and Matthew C. Mitchell provides a thorough review of the existing literature including existing models on microfranchising strategies. Based on their review of the literature, the authors provide a comparative analysis and discussion between franchising and microfranchising, drawing the commonalities between them and concluding the chapter by suggesting a model for successful microfranchise implementation (Figure 13.1).

“Microenterprise growth and expansion” section starts with Chapter 14 by Sow Hop Chan (pp. 180‐92) examining microfinance‐microenterprise relationship through discussing the case of Amanah Ikhtiar Malysia (AIM), which is a non‐governmental microfinance organisation. Chan describes the context of microenterprises in Malysia and AIM and provides an examination of cases in rural Malaysia and discusses the implications. Chapter 15 (pp. 193‐205) by Thelma Rochael and Tales Andreassi focuses on a the Brazilian firm, Dotz Marketing S.A which started as a microenterprise to its loyalty programmes in 2000 and grew into a successful, large firm which was acquired in 2008. Authors provide useful information on Brazilian entrepreneurs and loyalty programmes around the world. However the main contribution of this chapter is its discussion on Dotz's challenges, evolution and expansion strategies which proves an excellent exemplar of a successful growth of a microenterprise into a large organisation. In chapter 12 (pp. 206‐20), Tulus T. H. Tambunan provides a useful review of the existing secondary data and key literature on the free trade era's influence on transforming businesses in many societies. Furthermore, it assess how trade liberalisation and reform impact on microenterprises in Indonesia.

Sixth section consists of interesting discussions on “Microenterprise and its impact on society”. Chapter 17 (pp. 221‐33) by Lin Lerpold and Laurence Romani explores the perceptions of microfinance model success in stakeholder groups in India and South Africa through a socio‐cultural approach. The authors examine how the models are perceived and recontextualised upon cross‐cultural replication. Lerpold and Romani also examine organisational knowledge transfer and social capital in development studies literatures to provide new insights. In chapter 18 (pp. 234‐46), J. Terence Zinger and Norm O’Reilly contribute to the literature on sponsorship practices at a small business level by looking into the use of sponsorship by small businesses as a marketing vehicle and assess the implications of small business and sponsorship dynamics. Besides discussing a concise yet informative literature on philanthropy and sponsorship practices of small businesses, they provide a comparative analysis of cases and survey results of a Canadian study. In Chapter 19 (pp. 247‐59), Aloysius Newenham‐Kahindi discusses an in‐depth case analysis of three transnational corporations (TNCs) (two global banks and a mining company) which were actively engaged in microenterprise initiatives in Tanzanian communities to address a number of social issues where they were operating and explores how and why each TNC engaged in these initiatives. Based on the analysis, the author offers strategies for successful engagement.

Last section, “Microenterprise development and sustainability” starts with Chapter 20 (pp. 260‐75) by Colette Dumas who examines an entrepreneurship training and development programme that aims facilitating economic transition of low‐income women to start their own businesses. Dumas, compares and evaluates programme outcomes with programme goals through the analysis of the findings and discusses implications for future research and practice. Chapter 21 by Laurence Romani and Lin Lerpold (pp. 276‐87) provides an important contribution to help develop our understanding of underlying values and assumptions of discourses praising microfinance. Romani and Lerpold provide a thorough review of the existing literature and cases such as Maasai women living in Tanzania to discuss existing discourses; examine successful microfinance stories through the lens of accessibility, individualism, mastery and entrepreneurship, masculinity‐femininity and modernity. The authors also highlight the importance of assessing the legitimacy and adequacy of the models to microfinance practitioners’ operational environment. The last chapter in this section, Chapter 22 (pp. 288‐99) is by Jeanette Angeline Banzon Madamba who examines sustainability of microenterprises within the context of Philippines by providing current views on sustainability versus self‐sufficiency and business sustainability models. Through the examination of microenterprise growth and development as well as the challenges and opportunities faced by a Filipino microenterprise, the author discusses the importance of linking microenterprises to the broader society and the consideration of market vulnerabilities, ecological policies, technology and industry‐specific issues.

Chapter 23 (pp. 300‐5) by J. Mark Munoz concludes the book by providing an overview of the implications and unique contributions to the knowledge on microenterprises

To conclude the review it is agreeable to state that Contemporary Microenterprise: concepts and cases provide a timely contribution to develop the understanding of microenterprises. The book provides an excellent analysis of the microenterprises both in theory and practice through diverse and useful cases.