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Article
Publication date: 10 January 2020

Eunice Cristyl del Pilar, Irish Alegado and Miriam Fabroa Bongo

The premature closure of microbusinesses has become a prevalent issue that demands to be seriously addressed due to the major economic contribution it provides particularly to…

Abstract

Purpose

The premature closure of microbusinesses has become a prevalent issue that demands to be seriously addressed due to the major economic contribution it provides particularly to developing countries. The purpose of this paper is to establish and further analyze a set of critical failure factors (CFFs) that aid in the systematic decision-making and strategic management of stakeholders.

Design/methodology/approach

A comprehensive literature review is conducted to gather CFFs and an interpretative structural modeling with Matriced’ Impacts Croise’s Multiplication Appliquée a UN Classement (ISM-MICMAC) analysis is applied to investigate the structural relationships among CFFs by extracting its inherent characteristics according to its driving power and dependence power. In order to illustrate the methodology, a case study is conducted in Cebu, the Philippines.

Findings

It is interesting to note that inadequate government programs information is deemed the most crucial for stakeholders to tackle as its impact on the premature closure of microbusinesses is highly significant. Drawing from this key result, directions for potential strategies for getting evidence-based research into policy and practice in the micro-business sector in the Philippines, and other developing countries, are provided.

Originality/value

Lastly, the contribution of this work is two-fold and is aimed at policymakers and managers. For one, this study is the first to establish a set of CFFs specifically aimed at the level of microbusinesses, a seriously under-researched business sector, which can aid and influence domestic policymakers. For another, a framework that will facilitate business managers in carrying out organization’s strategy development process have been provided.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 22 October 2020

Colleen E. Mills and Faith Jeremiah

This study presents an original empirically based conceptual framework representing mobile microbusiness founders' experiences when converting to a franchise business model that…

Abstract

Purpose

This study presents an original empirically based conceptual framework representing mobile microbusiness founders' experiences when converting to a franchise business model that links individual-level variables to a sociomaterial process.

Design/methodology/approach

An exploratory interpretive research design produced this framework using data from the enterprise development narratives of mobile franchisors who had recently converted their mobile microbusinesses to a franchise business model.

Findings

The emergent framework proposes that franchisor’s conversion experience involves substantial identity work prompted by an identity dilemma originating in a conflict between role expectations and franchising operational demands. This dilemma materializes during franchise document creation and requires some degree of “identity undoing” to ensure business continuity. By acting as boundary-objects-in-use in the conversion process, the franchise documents provide a sociomaterial foundation for the business transition and the development of a viable franchisor identity.

Research limitations/implications

There is scant literature addressing the startup experiences of mobile microbusiness franchisors. The study was therefore exploratory, producing a substantive conceptual framework that will require further confirmatory studies.

Practical implications

By proposing that conversion to a franchise business model is experienced as an identity transformation coupled to a sociomaterial process centred on system documentation, this original empirically based conceptual framework not only addresses a gap in the individual-level literature on franchise development but also provides a framework to direct new research and discussions between intending franchisors and their professional advisors about person–enterprise fit.

Originality/value

The conceptual framework is the first to address franchisors' experience of transitioning any type of microbusiness to a franchise business model.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 21 April 2022

Ahmad Arslan, Samppa Kamara, Nadia Zahoor, Pushpa Rani and Zaheer Khan

This paper explores the survival strategies and coping mechanisms of ethnic minority entrepreneurs operating in the hospitality sector in northern Finland during the ongoing…

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Abstract

Purpose

This paper explores the survival strategies and coping mechanisms of ethnic minority entrepreneurs operating in the hospitality sector in northern Finland during the ongoing COVID-19 pandemic.

Design/methodology/approach

The paper utilizes qualitative research approach based on six exploratory case studies. The in-depth interviews in two phases were conducted with owners/mangers of ethnic minority entrepreneurial restaurants.

Findings

The findings reveal that all studied case firms undertook quick adjustments in response to the COVID-19 pandemic. For example, staff working hours were reduced through mutual consultation, and readjustments to the supply chain were made so that critical ingredients remain available despite the forced lockdown and supply chain bottlenecks. However, the readjustment of the supply chain was not visible in all case firms. Some of the owner-managers who were interviewed decided to keep doing business with the ethnic minority suppliers, despite some transportation problems due to lockdowns, especially in the early phases of COVID-19. Findings also suggest that the support grants announced by the state appeared not to be particularly useful for these restaurants due to restrictive eligibility criteria that many microbusinesses potentially fail to meet. Finally, the sample microbusinesses (restaurants) entrepreneurs recognize the importance of home delivery for their business survival, although they were critical of online food delivery service providers (apps) due to their high charges. Some of the case restaurants gave customers incentives for directly ordering from them, as an alternative strategy.

Originality/value

This paper is one of the first studies to specifically highlight the peculiarities of ethnic minority entrepreneurship and survival dynamics in northern Finland, where running the restaurant operations, including ensuring the supply chain management, is more complex than in the case of ethnic minority restaurants in more well-connected European countries and cities with an established history of immigrant businesses. This study is also novel in terms of specifying the strategies adopted by ethnic minority businesses in adjusting to the disruptions caused by the COVID-19 pandemic and surviving through it. At the same time, it has shown limitations and some problems associated with accessing state support announced for the hospitality industry in response to COVID-19. Finally, it offers a new angle by explicitly highlighting the power dynamics between restaurants and food ordering platforms (apps) and the potential alternatives in this specific context.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 9
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 28 March 2023

Alemayehu Elda Ergo, Deirdre O’Connor and Tekle Leza Mega

Microbusinesses are better able to assist many disadvantaged groups in finding employment and breaking the cycle of poverty because they require less initial capital and employ a…

Abstract

Purpose

Microbusinesses are better able to assist many disadvantaged groups in finding employment and breaking the cycle of poverty because they require less initial capital and employ a large number of poor people in developing economies. Women run and own the majority of micro-businesses in urban Ethiopia. This study aims to investigate women’s microbusiness participation decisions and the effect on poverty in the Wolaita zone southern Ethiopia.

Design/methodology/approach

A cross-sectional study was carried out using a mixed-methods research approach. A total of 384 women who owned micro-businesses were chosen using a systematic random sampling technique, while 36 women were purposefully chosen for qualitative data analysis. Data were gathered through survey questionnaires, in-depth interviews and focus group discussions. The collected data were analyzed by using a propensity score matching technique as well as contextual analysis.

Findings

The study discovered that women’s participation in registered micro-businesses had a higher and more beneficial impact on their food, non-food and overall consumer spending than women’s participation in unregistered microbusinesses, which helped to reduce poverty. Besides, overall women’s participation in micro-business increased their decision-making power and enabled them to provide resources for their families food and non-food consumption, with registered micro-business participants reaping the greatest benefits.

Originality/value

This research focused on the effects of women’s micro-entrepreneurship on poverty in low-income communities. Rather than providing food, clothing and/or other aid to women in disadvantaged communities, the authors asserted that assisting women and their micro-businesses allows them to be self-sufficient in terms of food and clothing as a long-term solution to poverty reduction. As a result, policymakers can use our findings to gain a better understanding of how women’s micro-entrepreneurship affects poverty reduction, allowing them to develop more effective anti-poverty initiatives. This study’s findings are novel and add to the body of knowledge in Ethiopia and the sub-Saharan African region.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 15 May 2023

Naimatullah Shah, Mitho Khan Bhatti, Sadia Anwar and Bahadur Ali Soomro

This paper aims to explore the intention to adopt Islamic finance (ItIF) through the mediation of attitudes towards Islamic finance among microbusiness owners of Pakistan.

Abstract

Purpose

This paper aims to explore the intention to adopt Islamic finance (ItIF) through the mediation of attitudes towards Islamic finance among microbusiness owners of Pakistan.

Design/methodology/approach

The study is co-relational and based on cross-sectional data. The authors gathered the data from microbusiness owners through a survey questionnaire. The authors used 236 valid cases to assume the outcomes.

Findings

The results through structural equation modeling reveal a significant positive effect of the perception of Shariah compliance (PoSC), knowledge of the Islamic financial system (KoIF), religious preferences (RP) and loyalty on ItIF. Furthermore, attitude towards Islamic finance (AtIF) is a potent factor in developing the relationship between PoSC, KoIF, RP, loyalty and ItIF.

Practical implications

The study’s findings would be helpful for planners and policymakers in developing policies that favourably enhance the attitudes and intentions among individuals towards Islamic financing. The results would inspire readers to go to Islamic finance and an interest-free financial system enriched with Shariah law or Islamic obligations. The study would provide implications for the financial institutions in Pakistan and the rest of the Muslim world.

Originality/value

The study offers an apparent thoughtfulness of the empirical evidence from microbusiness owners of Pakistan. The study would provide a plausible mediating contribution of AtIF.

Article
Publication date: 20 June 2008

Helen Reijonen

The purpose of this paper is to examine how business owners in microbusinesses perceive success and how that perception may influence the growth of their enterprise.

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Abstract

Purpose

The purpose of this paper is to examine how business owners in microbusinesses perceive success and how that perception may influence the growth of their enterprise.

Design/methodology/approach

The results of three separate studies were analysed. The data were collected with questionnaires and interviews among microbusinesses in the industries of craft and rural tourism in the area of North Karelia, Eastern Finland. Both quantitative and qualitative methods were used in the analysis.

Findings

The paper found that the motives and goals of the small business owners were not oriented towards growth, but to quality of life, job satisfaction and satisfied clientele. Consequently, business success was measured by the respect and satisfaction of the customers, job satisfaction and the quality of product. From an economic perspective, making a reasonable living, not growth, constituted a measure of success.

Research limitations/implications

Generalisation is affected by the fact that the study concerns two individual industries in a small geographical area.

Practical implications

For policy makers, the study offers insight into the factors that affect the behaviour and decision‐making of the microbusiness entrepreneurs and, thus, the performance of their enterprise.

Originality/value

The study contributes to theory development by examining the little studied possible conflicts between financial and personal measures of success.

Details

Management Research News, vol. 31 no. 8
Type: Research Article
ISSN: 0140-9174

Keywords

Article
Publication date: 22 June 2010

Robert Newbery and Gary Bosworth

The purpose of this paper is to challenge calls for a monolithic rural home‐based business (HBB) sector and instead propose meaningful sub‐sectors of HBB that fit within…

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Abstract

Purpose

The purpose of this paper is to challenge calls for a monolithic rural home‐based business (HBB) sector and instead propose meaningful sub‐sectors of HBB that fit within contemporary rural economic development theory. This informs business support and policy objectives.

Design/methodology/approach

Survey analysis of rural microbusinesses in the North East of England compares home‐based and other rural microbusinesses to illustrate their defining characteristics. Case study interviews are then used to test theory development and provide greater understanding about the motivations and aspirations of HBB owners.

Findings

The research demonstrates that the rural HBB sector is not homogenous. For some, the home is the business, for others it is a convenient location and for others it is not the place of work, simply the registered business address. This has significant implications for the needs of each type of business and their prospects for growth.

Research limitations/implications

This paper introduces the concept of sub‐sectors of HBBs but more detailed survey work can establish whether these are fully inclusive. With a changing economic climate, further research might also examine the resilience of these businesses in recession and their ability to react to growth opportunities in a period of upturn.

Originality/value

As an emergent area of study in the fields of small business and rural economy, HBBs are potential vehicles for both social and economic development. With large numbers of HBBs in rural areas, this paper illustrates the need to understand both their potential and their limitations in order to maximise their contribution to vibrant and sustainable rural economy.

Details

Society and Business Review, vol. 5 no. 2
Type: Research Article
ISSN: 1746-5680

Keywords

Case study
Publication date: 12 November 2018

Michael Ozlanski and Emma Marie Fleck

New entrepreneurial businesses are one of the key drivers of innovation and economic development. However, one of their greatest obstacles is accessing capital, especially since…

Abstract

Synopsis

New entrepreneurial businesses are one of the key drivers of innovation and economic development. However, one of their greatest obstacles is accessing capital, especially since they are often initially unprofitable and lack tangible assets in the first few years of operation. Since debt financing from banks can be difficult for them to obtain, their capacity for growth can be limited. This case introduces students to Kabbage, a company that reduced the barriers associated with start-up and microbusiness lending by using a fully automated, data-driven platform. Kabbage made instant decisions on whether these businesses should qualify for a line of credit by reviewing its clients’ electronic data, analyzed quickly and accurately using specific algorithms.

Research methodology

Given the applied nature of the case, the data were gleaned from a wide range of secondary sources, specifically popular business press which was verified for authenticity.

Relevant courses and levels

This case can be used in a variety of undergraduate courses. Some course examples include small business management, introduction to entrepreneurship or entrepreneurial finance.

Details

The CASE Journal, vol. 14 no. 6
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 18 April 2023

Taleb S.T. Taleb, Norashidah Hashim and Norria Zakaria

This study aims to examine the effect of entrepreneurial resources on micro businesses and the mediating role of innovation capability in this relationship.

Abstract

Purpose

This study aims to examine the effect of entrepreneurial resources on micro businesses and the mediating role of innovation capability in this relationship.

Design/methodology/approach

A structured questionnaire was used to gather data for this quantitative study, which adopted partial least squares structural equation modelling to test the hypotheses on a sample of 455 women entrepreneurs in Malaysia.

Findings

The results reveal that entrepreneurial resources, particularly technical resources, positively and significantly affect innovation capability and enhance business performance. Furthermore, innovation capability mediates the relationship between entrepreneurial resources and microbusiness performance.

Research limitations/implications

This study contributes theoretically by combining six entrepreneurial resources into a single framework in light of the resource-based view and finance-based theory. The results corroborate the effects of entrepreneurial resources on the performance of women’s micro businesses and the mediating role of innovation capability in this relationship. However, the cross-sectional design study limited this study’s ability to engage respondents in a more in-depth analysis of pertinent themes.

Practical implications

This research provides guidance and directions for business managers/owners and decision makers to adopt and improve entrepreneurial resources to achieve superior performance and competitive advantages. It presents evidence of innovation capability’s significant role in converting resources into innovative outcomes and creating value. Additionally, it is useful for policymakers to design development programmes for micro, small and medium enterprises (MSMEs) in emerging markets.

Social implications

This study highlights the value of innovation with a variety of entrepreneurial resources for women business owners that significantly impact Malaysian employment and gross domestic product and may have a positive social impact by enhancing social life in local communities. The nation’s unique context of multiracial and ethnic groups reflects Malaysia’s truly Asian ethnic composition.

Originality/value

This study fills the research gap by offering empirical evidence of the mediating role of innovation capability in the link between entrepreneurial resources and microbusiness performance, thus significantly contributing to emerging markets worldwide, where women-owned micro businesses are increasingly generating value and employment.

Article
Publication date: 2 August 2018

Carla Marques, Carmem Leal, João Ferreira and Vanessa Ratten

The present study aims to identify women microentrepreneurs’ motivations that may influence the legalisation of their businesses and their capacity to reconcile the demands of…

Abstract

Purpose

The present study aims to identify women microentrepreneurs’ motivations that may influence the legalisation of their businesses and their capacity to reconcile the demands of family and work in a developing country (i.e. Brazil).

Design/methodology/approach

Semi-structured interviews were used to gather data on women’s microentrepreneurial initiatives in three northern Brazil cities: Salvador da Bahia (Bahia), Fortaleza (Cear) and Belm (Par). Qualitative content analysis was used to analyse textual data from the 30 interviews. The content was standardised and subsequently analysed using NVivo and IBM’s Many Eyes data visualisation software.

Findings

The results suggest that these women opt for legalised individual entrepreneurship to access the benefits of formalising their businesses and to search for mechanisms that encourage a work–family balance. However, in the more rural city studied, women show greater resistance to, and more distrust of, the benefits of legalising their business, as opposed to women from the two more urban cities.

Practical implications

The results contribute to a better understanding of women’s motivations to legalise their microbusiness. In Brazil, the writing and passing of a law geared towards this type of entrepreneur (e.g. individual microentrepreneurs) has had a quite positive effect on the legalisation of businesses, in particular for women. However, this law has had a more positive effect in urban areas, which suggests that further dissemination is needed of the benefits of formalising microbusinesses in rural areas.

Originality/value

This study contributes to research that seeks to understand better entrepreneurial preferences (i.e. formal vs informal) and the role played by gender and legal, financial and family contexts.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 5
Type: Research Article
ISSN: 1750-6204

Keywords

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