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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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1317

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.

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

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Article
Publication date: 9 October 2020

Cristian Gherhes, Tim Vorley and Chay Brooks

Despite their economic significance, empirical evidence on the growth constraints facing micro-businesses as an important subset of small and medium enterprises remains…

Abstract

Purpose

Despite their economic significance, empirical evidence on the growth constraints facing micro-businesses as an important subset of small and medium enterprises remains scarce. At the same time, little consideration has hitherto been given to the context in which entrepreneurial activity occurs. The purpose of this paper is to develop an empirically informed contextual understanding of micro-business growth, beyond firm-level constraints.

Design/methodology/approach

The paper draws on 50 in-depth interviews with stakeholders and micro-business owner–manager entrepreneurs (OMEs henceforth) in a peripheral post-industrial place (PPIP henceforth).

Findings

The paper shows that, beyond firm-level constraints generated by their OME-centric nature, there are “additional costs” for micro-businesses operating in PPIPs, specifically limited access to higher-skilled labour, a more challenging, “closed” business environment and negative outward perceptions stemming from place stigmatisation. All of these “additional costs” can serve to stymie OMEs' growth ambition.

Research limitations/implications

The paper is based on a limited number of interviews conducted in one region in England. However, the contextualisation of the findings through a focus on PPIPs provides valuable insights and enables analytical generalisation.

Originality/value

The article develops a context-sensitive model of micro-business growth constraints, one that goes beyond the constraints inherent in the nature of micro-businesses and is sensitive to their local (socio-institutional) operating context. The implications serve to advance both how enterprise in the periphery is theorised and how it is addressed by policymakers and business intermediaries to support the growth of micro-businesses.

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Journal of Small Business and Enterprise Development, vol. 28 no. 1
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 22 February 2011

R. Helen Samujh

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

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4026

Abstract

Purpose

The purpose of this paper is to establish the role of micro‐businesses in providing a sustainable business and community environment, and to share the perceptions of micro‐business 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 micro‐business operators.

Findings

Micro‐businesses 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 micro‐business 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 micro‐business 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 micro‐business operators. The paper presents original research on the psychological aspects that impinge on the business activities through surveys of micro‐business operators.

Details

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

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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…

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3717

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

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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…

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2979

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

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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.

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

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Article
Publication date: 3 April 2019

Javier Reynoso and Karla Cabrera

This paper aims to explore and learn about managerial practices of informal services at the base of the pyramid (BoP).

Abstract

Purpose

This paper aims to explore and learn about managerial practices of informal services at the base of the pyramid (BoP).

Design/methodology/approach

The study reports findings of an empirical research conducted in 16 cities in Mexico during a two-year period. Managerial practices in 327 micro-businesses were identified and analyzed after conducting direct observation and personal interviews with owners, employees and customers of these BoP informal service businesses.

Findings

The paper shows that managerial practices of BoP informal service micro-businesses are developed through a dynamic, integrated network of owner, employees and customers who integrate scarce resources building win-win-win relationships to satisfy their basic daily needs.

Practical implications

The creation and management of a BoP informal service business is mainly a matter of satisfying basic needs, aiming to positively transform a community by improving well-being. This paper provides insights to understand those relationships and interactions among the main actors involved, highlighting the need to identify and integrate the BoP service management cycle to better address their needs.

Originality/value

This paper proposes a conceptual service management framework for informal micro-businesses at the BoP integrating the owners, employees and customers’ perspectives. Three corresponding cycles are identified and discussed, which are useful to elicit relevant characteristics of key roles, activities, interactions and relationships taking place in informal services.

Details

Journal of Services Marketing, vol. 33 no. 1
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 June 2001

Paul Greenbank

Contends that micro‐business owner‐managers invariably have objectives, although they do not always make them explicit. These objectives tend to relate to personal rather…

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5586

Abstract

Contends that micro‐business owner‐managers invariably have objectives, although they do not always make them explicit. These objectives tend to relate to personal rather than business criteria. In addition, the vast majority of micro‐business owner‐managers indicate little inclination to maximise profit or pursue growth. The supposed non‐existence and ambiguity of objectives amongst owner‐managers probably arise because they often subconsciously set objectives, rather than make them explicit as part of a written business plan. In practice, micro‐businesses generally pursue a number of economic and non‐economic objectives relating to factors such as income levels, job satisfaction, working hours, control and flexibility. These objectives were derived from the influence of the micro‐business owner‐manager’s individual, social and economic contexts. Moreover, the behaviour of owner‐managers is most appropriately characterised in terms of satisficing behaviour. The impact of this is very important, because it means that there is often no drive to improve the business in terms of growth, sales and profitability. Furthermore, the willingness of owner‐managers to alter their aspiration levels, if objectives were not being easily achieved, often means that they do not initiate changes in the way they run their business when perhaps they should.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 7 no. 3
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 1 October 2000

Paul Greenbank

Despite the importance of micro‐businesses to the UK economy, training has failed to recognise and take into account the way owner‐managers run such firms. These…

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1829

Abstract

Despite the importance of micro‐businesses to the UK economy, training has failed to recognise and take into account the way owner‐managers run such firms. These owner‐managers tend to combine informally absorbed information, heuristics and other short‐cut methods in a more intuitively‐based approach to decision making. Does not, however, advocate that more formalised and comprehensive forms of decision making should be adopted. Instead, suggests that intuitive methods of decision making may be the most appropriate for micro‐business owner‐managers. As such, training should attempt to reduce the types of bias that are inherent in more intuitive approaches to decision making.

Details

Journal of European Industrial Training, vol. 24 no. 7
Type: Research Article
ISSN: 0309-0590

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Article
Publication date: 1 September 2002

Paul Greenbank

Examines the use of micro‐businesses for undergraduate placements on business and management courses. Such businesses are often not considered for placements by HEIs…

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1667

Abstract

Examines the use of micro‐businesses for undergraduate placements on business and management courses. Such businesses are often not considered for placements by HEIs because graduates have tended to obtain employment in larger organisations. However, the graduate labour market is changing and micro‐businesses can be used as a vehicle for linking theory and practice and developing transferable skills. The research involved an in‐depth study of two cases where the author operated as a participant observer. Key factors contributing to the efficacy of the work experience were found to include the preparation of students for their placements; mentoring of both students and placement providers by a suitably qualified academic tutor; and support following the placement to help all the parties involved to reflect and learn from their experience. In particular there is a need for the development of effective learning networks consisting of students, micro‐business owner‐managers and placement tutors.

Details

Education + Training, vol. 44 no. 6
Type: Research Article
ISSN: 0040-0912

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