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Article
Publication date: 21 November 2016

Cristian Gherhes, Nick Williams, Tim Vorley and Ana Cristina Vasconcelos

Micro-businesses account for a large majority of small and medium enterprises (SMEs). However, they remain comparatively under-researched. The purpose of this paper is to take…

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Abstract

Purpose

Micro-businesses account for a large majority of small and medium enterprises (SMEs). However, they remain comparatively under-researched. The purpose of this paper is to take stock of the extant literature on growth challenges and to distinguish growth constraints facing micro-businesses as a specific subset of SMEs from those facing larger SMEs.

Design/methodology/approach

The study consists of a systematic review of 59 peer-reviewed articles on SME growth.

Findings

Micro-businesses distinguish themselves from larger SMEs by being owner-manager entrepreneur (OME) centric and are constrained by a tendency to be growth-averse, underdeveloped capabilities in key business areas, underdeveloped OME capabilities, and often inadequate business support provision.

Research limitations/implications

The use of keywords, search strings, and specific databases may have limited the number of papers identified as relevant by the review. However, the findings are valuable for understanding micro-businesses as a subset of SMEs, providing directions for future research and generating implications for policy to support the scaling up of micro-businesses.

Originality/value

The review provides a renewed foundation for academic analysis of micro-business growth, highlighting how micro-businesses are distinct from larger SMEs. At present, no literature review on this topic has previously been published and the study develops a number of theoretical and policy implications.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 17 August 2015

Robert N. Lussier and Matthew C. Sonfield

The purpose of this paper is to compare “micro” enterprise (0-9 employees) to “small” enterprise (10-49 employees) family businesses with regard to 12 important managerial…

14550

Abstract

Purpose

The purpose of this paper is to compare “micro” enterprise (0-9 employees) to “small” enterprise (10-49 employees) family businesses with regard to 12 important managerial characteristics in eight countries: Argentina, Croatia, Egypt, France, Kosovo, Kuwait, Serbia, and the USA (n=601).

Design/methodology/approach

The research methodology was survey research. To statistical test 12 hypotheses, MANCOVA was run to compare differences between micro and small family business, while controlling for years in business.

Findings

Six significant differences were: “small” firms are more likely to employ non-family member managers, are more likely to engage in the formulation of succession plans, are more likely to utilize outside advisory services, make greater use of sophisticated financial management methods, and have a more formal management style than “micro” firms; but the influence of the founder is greater in “micro” firms.

Practical implications

For practitioners and consultants the findings of this study should enable family business owner/managers, and their advisors, to better understand the possible impacts of moving from a “micro” level to a “small” size level, and thus lead to more effective family business management.

Originality/value

This research fills a gap in the literature, as there has been minimal prior research with the specific focus of comparing “micro” vs “small.” Thus, it develops a foundation for further study in this area.

Details

Journal of Small Business and Enterprise Development, vol. 22 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 12 May 2023

Stine Alm Hersleth, Antje Gonera and Elin Kubberød

Previous research studying larger market-driving businesses argues that successful entrepreneurs intuitively show market-driving capabilities. Even though market-driving is…

Abstract

Purpose

Previous research studying larger market-driving businesses argues that successful entrepreneurs intuitively show market-driving capabilities. Even though market-driving is acknowledged as entrepreneurial action and practice, this phenomenon has rarely been studied from a micro-business perspective. Representing more than 40% of all food businesses in Norway, micro-businesses contribute significantly to both value creation and variety in the marketplace, and this study addresses the existing research gap by examining market-driving practices in food micro-businesses in a competitive Norwegian grocery market.

Design/methodology/approach

The study employs a multiple-case-study approach with four pioneering food micro-businesses within the Norwegian local food sector. Data collected during in-depth interviews with the individual founder-managers provide insight into understanding market-driving practices through the lens of entrepreneurial orientation.

Findings

The findings suggest that food micro-businesses are disrupting the grocery market through their pioneering practices. A three-pillared framework for market-driving practices in food micro-businesses was developed: (1) taking the risk and following their passion, (2) innovativeness led by a passionate personal value proposition, and (3) proactively and perseveringly building a new category.

Originality/value

The study offers a novel attempt to explore and conceptualize market-driving practices in a micro-business context. The findings present a new framework for market-driving contextualized in the local food sector, representing an under-investigated area in micro-business and enterprise development.

Details

Journal of Small Business and Enterprise Development, vol. 30 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 June 2021

Le Quang Hieu, Vu Hong Van and Nguyen Khanh Doanh

This study analyzes the factors that affect the decisions of micro-businesses to switch to enterprises in Thanh Hoa, Vietnam.

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Abstract

Purpose

This study analyzes the factors that affect the decisions of micro-businesses to switch to enterprises in Thanh Hoa, Vietnam.

Design/methodology/approach

In order to explain the behavior of micro-businesses in switching to enterprises, the authors designed a questionnaire and collected survey data from 404 micro-businesses. The generalized structural equation modeling was applied to analyze the structured model with the dichotomous dependent variable.

Findings

First, the behavior of micro-businesses to switch was indirectly affected by needs and directly affected by attitudes, perceived behavioral control, subjective norm and institutional quality. Second, the subjective norms exerted the most influence on the behavior of the micro-businesses in switching. This finding implies that (1) the behavior of the micro-businesses depended on the assessments, perceptions and views of their friends, relatives and colleagues, and (2) the behavior to switch stems mainly from the desire to improve the businesses' position in society. Finally, both formal and informal institutions play an essential role in the behavior of the micro-businesses to switch to enterprises.

Originality/value

There have been no previous studies that have applied structured models to test the behavior of micro-businesses to switch to enterprises. Furthermore, previous studies had mainly addressed the psychological factors or needs of micro-businesses. In this study, apart from the above factors, the authors discuss the impact of institutions on the behavior of micro-businesses to switch.

Details

Asia-Pacific Journal of Business Administration, vol. 13 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 22 February 2011

R. Helen Samujh

The purpose of this paper is to establish the role of microbusinesses in providing a sustainable business and community environment, and to share the perceptions of microbusiness

4379

Abstract

Purpose

The purpose of this paper is to establish the role of microbusinesses in providing a sustainable business and community environment, and to share the perceptions of microbusiness operators about the support they need to survive and be successful.

Design/methodology/approach

An examination of literature regarding survival and available support for small businesses is followed by results from a New Zealand‐based empirical study of microbusiness operators.

Findings

Microbusinesses are the dominant form of business organisation and have an important role in maintaining a stable and sustainable global environment. Although such businesses owners tend not to have a formal education in business or engage with external support agencies, they need support from community‐based networks. These networks could reduce the sense of isolation, whilst at the same time providing an opportunity for sharing experiences, in particular about problems encountered.

Research limitations/implications

Implications for other jurisdictions may be limited as microbusiness operators in New Zealand are relatively highly educated and the sample numbers are small (19 in‐depth interviews and 91 questionnaire respondents).

Practical implications

There is a need for psychological support for microbusiness operators. Actions taken to increase their probability of survival and success are likely to enhance their interest in other aspects of the environment.

Originality/value

This paper helps to fill a gap in the small business literature on the behaviour and perceptions of microbusiness operators. The paper presents original research on the psychological aspects that impinge on the business activities through surveys of microbusiness operators.

Details

Corporate Governance: The international journal of business in society, vol. 11 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 16 September 2020

Ajogwu Akoh

The purpose of this study is to uncover ways to enhance the growth of micro tailoring businesses by assessing the socio-economic and socio-cultural environments at the bottom of…

Abstract

Purpose

The purpose of this study is to uncover ways to enhance the growth of micro tailoring businesses by assessing the socio-economic and socio-cultural environments at the bottom of the pyramid (BOP).

Design/methodology/approach

The study used a qualitative research design involving a multiple case study with data from semi-structured interview and non-participant observation.

Findings

The study reveals how micro tailoring businesses modify tailoring practices to cope with the religious practice of seclusion and use entrepreneurial actions to deal with unstable electricity, inadequate finance and conditions of extreme poverty that limit the growth of micro tailoring businesses at the BOP.

Research limitations/implications

The qualitative nature of this study with a focus on micro tailoring businesses in BOP context could limit the generalization of findings. However, replication of the study can be done in other contexts to validate the findings.

Practical implications

The study shows the need for entrepreneurial leadership which continually modifies tailoring practices in ways that sustain tailoring businesses and circumvent the possibility of failure in adverse socio-economic and socio-cultural conditions.

Originality/value

This study is the first to unravel the experiences of micro tailoring businesses at the BOP. Past studies have assessed barriers to the growth of small and medium scale enterprises in general, but this study uncovers the distinct aspects of tailoring business in a largely under-researched context.

Details

Society and Business Review, vol. 15 no. 4
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 1 October 2005

David Devins, Jeff Gold, Steve Johnson and Rick Holden

This article proposes the development of a conceptual model to help understand the nature of management learning in the micro business context and to inform research and policy…

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Abstract

Purpose

This article proposes the development of a conceptual model to help understand the nature of management learning in the micro business context and to inform research and policy discourse.

Design/methodology/approach

The model is developed on the basis of a literature search and review of academic and grey literature.

Findings

The model highlights the unique nature of the micro business learning environment. Meeting the diverse interests of micro business managers is a major challenge for agencies seeking to promote and deliver management and leadership skills. An intervention approach founded upon the relationship between the micro business manager and the intervention agency is crucial to the successful design and delivery of relevant services.

Research limitations/implications

The research identified a lack of literature associated with learning in the micro business context. The model should therefore be considered as partial, to be tested in practice and subject to revision as new understanding unfolds.

Practical implications

The conceptual model suggests that the foundation of successful intervention should be the interests of the managers themselves. Closer relationships between a flexible supply‐side and the micro business manager provide the foundation to improve the relevance of these interventions in the micro business context and to encourage access to learning opportunities amongst the employed workforce.

Originality/value

The research subject and the development of a unique conceptual model may be of use to researchers, practitioners, and policy makers.

Details

Education + Training, vol. 47 no. 8/9
Type: Research Article
ISSN: 0040-0912

Keywords

Article
Publication date: 9 January 2019

Heather Knewtson and Howard Qi

The purpose of this paper is to provide an insurance framework to address the challenge of managing default risk for lenders providing credit to small and micro businesses.

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Abstract

Purpose

The purpose of this paper is to provide an insurance framework to address the challenge of managing default risk for lenders providing credit to small and micro businesses.

Design/methodology/approach

A theoretical model is developed showing how mircrofinance lenders can better manage the default risks of small and micro businesses, which assists lenders in sustainably providing affordable microfinance.

Findings

The model explains how to determine the feasible range of insurance premiums to advise lenders on the appropriate price for microinsurance protecting against small and micro business default. This will enable microfinance institutions to better manage default risk, and thereby provide sustainable and accessible microfinance assistance to small and micro businesses.

Social implications

The need for microfinance is essential to support small and micro businesses. The insurance framework assists financial institutions in managing default risk of small and micro businesses, enhancing sustainability of these critical financing channels, and supporting the economic development of society in both the developed and developing worlds. The insurance framework proposed will help both policymakers and financial institutions to make better economic decisions, thereby serving small and micro businesses.

Originality/value

This is the first study in the area of microfinance to propose a way to solve the challenge of providing sustainable mircrofinance services and mitigating small and micro businesses’ difficulty in receiving the financial help they need.

Details

The Journal of Risk Finance, vol. 20 no. 1
Type: Research Article
ISSN: 1526-5943

Keywords

Book part
Publication date: 4 August 2014

Barry Quinn, Adele Dunn, Rodney McAdam, Lynsey McKitterick and David Patterson

This study explores policy and practice in relation to a peripheral rural region food support programme for small (micro) food enterprises and the impact on business development…

Abstract

Purpose

This study explores policy and practice in relation to a peripheral rural region food support programme for small (micro) food enterprises and the impact on business development and innovation.

Methodology/approach

An exploratory case study methodology is employed focusing on the effectiveness of a local support programme for micro business development in the food sector, in a European Union peripheral, rural location.

Findings

The effective integration of policy and practice in the design and implementation of a public/private partnership programme can enable micro businesses to benefit from Government aid in a collective manner that would not have been possible in a Government–micro enterprise dyadic relationship.

Research limitations/implications

The study focuses on one region and on one particular support programme. However, the research highlights the potential benefits that can accrue to micro food producers, and micro companies more generally from participation in such a programme, and identifies the types of support that are particularly effective for these types of organisations. The research identifies the possibilities and challenges of applying the South Eastern Economic Development type programme to other regions.

Practical implications

The success of such support programmes depends on identifying the needs of the participants at an early stage in the programme and in tailoring training and support accordingly. There are benefits from local government working closely with private consultants as brokers for micro enterprise business development and innovation.

Social implications

Micro enterprises play key economic, social and cultural roles within their local rural community. Collectively they offer opportunities for rural employment and tourism development.

Originality/value

The chapter addresses a major gap in knowledge around the role of policies and supports in assisting business development and innovation in relation to micro size enterprises, and more specifically food micro enterprises based in peripheral, rural regions.

Details

Exploring Rural Enterprise: New Perspectives On Research, Policy & Practice
Type: Book
ISBN: 978-1-78441-109-1

Keywords

Article
Publication date: 13 June 2023

Srinivasa A. Rao, Waheed Kareem Abdul, Raavee Kadam and Abhilasha Singh

The study investigates the impact of various factors that affect the business performance of micro-level women entrepreneurs in the UAE and India.

Abstract

Purpose

The study investigates the impact of various factors that affect the business performance of micro-level women entrepreneurs in the UAE and India.

Design/methodology/approach

A conceptual model including the factors that impact the performance of micro-level women entrepreneurs is proposed. The proposed model was validated with data collected through a structured questionnaire based on a cross-sectional survey conducted in the UAE and India. The collected data was analyzed using the structural equations modeling approach.

Findings

Findings revealed that factors such as competitive aggressiveness, incubation, innovativeness, market orientation and risk-taking propensity have a positive impact on business performance and growth in both countries. Factors like training, learning and finance orientation did not affect business performance.

Originality/value

Gender plays an essential and influential role in developing countries with regard to entrepreneurship. This research attempts to uncover the often-neglected area of women entrepreneurship.

Details

Measuring Business Excellence, vol. 27 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

1 – 10 of over 48000