Search results
1 – 10 of over 1000Dianne H.B. Welsh, J. Mark Munoz, Shengliang Deng and Peter V. Raven
The purpose of this exploratory study is to examine whether performance of microenterprises located in a microenterprise zone (MEZO) in China is positively related to key…
Abstract
Purpose
The purpose of this exploratory study is to examine whether performance of microenterprises located in a microenterprise zone (MEZO) in China is positively related to key management practices, entrepreneurial orientation, marketing capability, and technology capability. The paper aims to introduce the concept of MEZOs as a supplemental tool for governments to strengthen microenterprise activity.
Design/methodology/approach
A total of 150 randomly selected microenterprises located in a MEZO in Changchun, an industrial city in Northeast China, completed a survey consisting of a three‐part measure of microenterprise performance developed by Zinger et al. and entrepreneurial orientation. Factor analysis was performed on 11 management issues and correlation analysis was performed.
Findings
The study found that key management practices, marketing capability, and technology capability of microenterprises in MEZOs do have a positive impact on performance sales, net profit, and growth.
Research limitations/implications
The study's results are limited by a sample in one city in one province of China collected in one month. The data are cross‐sectional rather than longitudinal. Sample bias may exist.
Practical implications
This study is valuable to government officials, policy makers, non‐government organizations and consulting firms as they examine new measures to unleash the economic power of microenterprises.
Social implications
MEZOs need to be explored as one solution to aide microenterprise development to improve the poverty level, create jobs, and stimulate economic activity.
Originality/value
To the authors' knowledge, this is the first exploratory study of the performance of microenterprises located in a MEZO in China. Through research, the factors that contribute to microenterprise performance and success can be better understood and the impact that the MEZO model has on microenterprises can be better delineated.
Details
Keywords
Zahid Iqbal and Zia-ur-Rehman Rao
To enhance the loan repayment performance of microfinance institutions (MFIs) in Pakistan, this study aims to analyze the direct impact of social capital and loan credit terms on…
Abstract
Purpose
To enhance the loan repayment performance of microfinance institutions (MFIs) in Pakistan, this study aims to analyze the direct impact of social capital and loan credit terms on loan repayment performance and microenterprises’ business performance while considering the mediating role of microenterprises’ business performance on the relationship between social capital, loan credit terms and loan repayment performance.
Design/methodology/approach
The analysis was conducted based on the data gathered via a questionnaire distributed to 316 microenterprises owners. The respondents were selected using the stratified sampling technique by dividing the target population into three influential groups of manufacturing, trading and services microenterprises. The reliability and validity of the constructs were established using (1) factor loading, (2) Cronbach’s alpha, (3) composite reliability, (4) average variance extracted, (5) the variance inflation factor, (6) the Fornell–Larcker criterion and (7) the heterotrait–monotrait ratio. The structural equation modeling technique was then applied, and the hypotheses were tested based on the structure model generated through bootstrapping by using partial least squares structural equation modeling.
Findings
The results confirm the direct impact of social capital and loan credit terms on microenterprises’ business performance and loan repayment performance. It also supports the mediating role of microenterprises’ business performance toward the relationship between social capital, loan credit terms and loan repayment performance while considering the direct impact of microenterprises’ business performance on loan repayment performance.
Originality/value
To date, the direct impact of social capital and loan credit terms on microenterprises’ business performance and loan repayment performance has been hardly investigated in the context of Pakistan. This study also examines the mediating role of microenterprises’ business performance toward social capital, loan credit terms and loan repayment performance. The findings will enable both MFIs and microenterprises to improve their business performance and loan repayment performance through enhanced social ties and the development of more flexible credit products that protect the borrowers’ interests and the interest of lenders.
Details
Keywords
A microenterprise is modeled on Islamic epistemological premises to bring out its extensively applied perspectives using community‐based participatory instruments of Islamic law…
Abstract
A microenterprise is modeled on Islamic epistemological premises to bring out its extensively applied perspectives using community‐based participatory instruments of Islamic law (Shari’ah). The case study is for Bangladesh, but the model developed has universal implications. Various organizational features of such a microenterprise model with a strong human resource development focus at the grass roots are explained in detail, keeping in view the process‐based systems perspectives in the knowledge‐induced learning process that is embedded in the model of the Islamic microenterprise.
Details
Keywords
Masudul Alam Choudhury and Sofyan S. Harahap
The purpose of this paper is to address the following question: how do we derive a systemic understanding of community, business and microenterprise linkages in the light of the…
Abstract
Purpose
The purpose of this paper is to address the following question: how do we derive a systemic understanding of community, business and microenterprise linkages in the light of the cardinal episteme of Islamic belief, Tawhid?
Design/methodology/approach
The worldview of unity of the divine laws termed in the Qur'an as Tawhid (oneness of God or equivalently oneness of the divine laws and also unity of knowledge) is explained in the form of a general socioeconomic paradigm. This worldview is then used to address the complementary relationships between microenterprises and their embedded social environment comprising community and business.
Findings
The participatory development interrelationships explained by means of circular causation between the variables representing community, business and microenterprise comprise a specific example of application of the Islamic episteme of unity of knowledge to entities that exist in embedded learning systems. Such learning systems are governed by the episteme of unity of knowledge as explicated by the Qur'an and the Sunnah (Prophetic guidance). These together form the foundation of every Islamic methodological inquiry and application. Examples of microenterprises are Pasar Pagi (morning markets) and Pasar Malam (night markets) in Indonesia. Other comparative examples are given.
Originality/value
This paper shows how participatory development and sustainability‐by learning paradigms arise uniquely from the epistemic foundations of unity of knowledge (Tawhid). The productive transformation of microenterprise groupings through their complementary relationships with community and business is shown to invoke the Tawhidi epistemic worldview. The result of such complementary social embedding is expected to result in enhanced organization and productivity of microenterprises. The paper offers policy prescriptions for such participatory development change.
Details
Keywords
Donald Flywell Malanga and Memory John Banda
This study aims to assess the impact of mobile phones on the livelihoods of women microenterprises in two selected districts of Malawi.
Abstract
Purpose
This study aims to assess the impact of mobile phones on the livelihoods of women microenterprises in two selected districts of Malawi.
Design/methodology/approach
This study adopted an interpretive qualitative approach. The authors conducted six focus group discussions with 33 women microenterprise owners in two selected districts of Malawi. This study was guided by the sustainable livelihood approach as an analytical framework.
Findings
The findings confirmed that to some extent use of mobile phones by women microenterprises helped them realise their livelihood outcomes. These included improved access to information, improved communication, improved marketing, reduced transport costs and improved efficiency and productivity. However, optimum benefits were highly curtailed by a number of factors such as poor information and communication technologies (ICT) infrastructure, security issues, high cost of talk time and data bundle, lack of ICT literacy, low education and sociocultural factors.
Originality/value
The findings provide evidence on the role of mobile phone technology play in promoting the value for women participating in business activities in disadvantaged communities. Policymakers and other stakeholders can use the findings as a basis for prioritising the improvement of mobile technology infrastructure in rural communities tailor-made to women microenterprises.
Details
Keywords
Jorge Armando López-Lemus, María Teresa De la Garza Carranza, Quetzalli Atlatenco Ibarra and José Guadalupe López-Lemus
The objective of this research is to know the degree of influence that strategic planning (SP) exerts on the tangible and intangible results of business microenterprises in the…
Abstract
Purpose
The objective of this research is to know the degree of influence that strategic planning (SP) exerts on the tangible and intangible results of business microenterprises in the state of Guanajuato, Mexico.
Design/methodology/approach
The methodological design was quantitative, explanatory, observational and cross-sectional, where a sample of 407 young leaders of microenterprises from the state of Guanajuato, Mexico, was obtained. To evaluate hypotheses, a structural equation model (SEM) was developed. Regarding the goodness and adjustment indices of the SEM, they were absolutely acceptable.
Findings
The results obtained through Pearson’s correlation show that there is a positive and significant relationship between SP and the tangible and intangible results of microenterprises. In addition, through the results obtained with the SEM model, it is statistically demonstrated that SP positively and significantly influences the tangible and intangible results of microenterprises in the state of Guanajuato, Mexico.
Research limitations/implications
In this research, only SP was valued as a variable that intervenes in the process of achieving tangible and intangible results to achieve the business objectives of entrepreneurial microenterprises in the state of Guanajuato. It is essential to point out that other variables that intervene in the process must be considered to generate tangible and intangible results. It is recommended to carry out further research under these variables to identify strategies for improving entrepreneurial microenterprises for their growth, sustainability and rapid positioning in a highly competitive market.
Practical implications
SP represents one of the tools to achieve the success of microenterprises through tangible and intangible results. However, microenterprises show a need to involve the use and application of SP to define clear indicators that contribute to obtaining satisfactory tangible and intangible results.
Originality/value
The findings are relevant and of great value, because there is currently not enough research that focuses on the variables analyzed, in this sense, SP and the tangible and intangible results of young entrepreneurial leaders of microenterprises in the Mexican context. The limitations of this study lie in the low participation and interest of young microenterprise entrepreneurs in the state of Guanajuato, Mexico.
Propósito
El objetivo de esta investigación es conocer el grado de influencia que ejerce la planificación estratégica sobre los resultados tangibles e intangibles de las microempresas empresariales en el estado de Guanajuato, México.
Diseño y Metodología
El diseño metodológico fue cuantitativo, explicativo, observacional y transversal, donde se obtuvo una muestra de 407 jóvenes líderes de microempresas del estado de Guanajuato, México. Para evaluar hipótesis, se desarrolló un modelo de ecuación estructural (SEM). En cuanto a los índices de bondad y ajuste del SEM resultaron absolutamente aceptables.
Resultados
Los resultados obtenidos mediante la correlación de Pearson muestran que existe una relación positiva y significativa entre la planificación estratégica y los resultados tangibles e intangibles de las microempresas. Además, a través de los resultados obtenidos a través del modelo SEM, se demuestra estadísticamente que la planificación estratégica influye positiva y significativamente en los resultados tangibles e intangibles de las microempresas del estado. de Guanajuato, México.
Implicaciones Prácticas
La planeación estratégica representa una de las herramientas para lograr el éxito de las microempresas a través de los resultados tangibles e intangibles. Sin embargo, las microempresas muestran necesidad en el involucramiento del uso y aplicación de la planeación estratégica para la definición de indicadores claros que contribuyan a obtener resultados tangibles e intangibles satisfactorios. En base a lo anterior, resulta ser motivante para los académicos, empresarios y legisladores para motivar el uso de la planificación estratégica en las microempresas debido a las bondades que atrae en garantizar el éxito de la microempresa como lo ha sugerido el Instituto del fracaso, así como también el Desarrollo de la Competitividad Empresarial. Asimismo, la planeación estratégica identifica y analiza los factores relevantes que pueden servir como apoyo a las microempresas así como a los diferentes modelos de emprendimiento que se desarrollan a través de la literatura, ofreciendo una alternativa en el enfoque de su estudio, mismos que se van ajustando a las nuevas tendencias que van surgiendo desde ámbitos nacionales como internacionales, y en particular, en el estado de Guanajuato (México) que representa uno de los estados importantes debido a su actividad económica en los sectores de agroindustria, manufactura (especialmente automotriz) y de servicios del país.
Originalidad/Valor
Los hallazgos son relevantes y de gran valor, pues actualmente no existe suficiente investigación que se enfoque en las variables analizadas, en este sentido, la planificación estratégica y los resultados tangibles e intangibles de jóvenes líderes emprendedores de microempresas en el contexto mexicano. Las limitaciones de este estudio radican en la baja participación e interés de los jóvenes emprendedores de microempresas del estado de Guanajuato. México
Resumo
Objetivo
o objetivo desta pesquisa é conhecer o grau de influência que o planejamento estratégico exerce sobre os resultados tangíveis e intangíveis das microempresas empresariais do estado de Guanajuato, México.
Desenho e Metodologia
O desenho metodológico foi quantitativo, explicativo, observacional e transversal, onde foi obtida uma amostra de 407 jovens líderes de microempresas do estado de Guanajuato, México. Para avaliar as hipóteses, foi desenvolvido um modelo de equações estruturais (SEM). Com relação aos índices de bondade e ajuste do SEM, eles foram absolutamente aceitáveis.
Resultados
Os resultados obtidos por meio da correlação de Pearson mostram que existe uma relação positiva e significativa entre o planejamento estratégico e os resultados tangíveis e intangíveis das microempresas. Além disso, pelos resultados obtidos por meio do modelo SEM, é estatisticamente demonstrado que o planejamento estratégico influencia positiva e significativamente os resultados tangíveis e intangíveis das microempresas no estado. de Guanajuato, México.
Implicações práticas
O planejamento estratégico representa uma das ferramentas para alcançar o sucesso das microempresas por meio de resultados tangíveis e intangíveis. No entanto, as microempresas mostram a necessidade de envolver o uso e a aplicação do planejamento estratégico para definir indicadores claros que contribuam para a obtenção de resultados tangíveis e intangíveis satisfatórios. Com base no exposto, acaba sendo motivador para acadêmicos, empresários e legisladores motivar a utilização do planejamento estratégico nas microempresas pelos benefícios que atrai para garantir o sucesso da microempresa sugeridos pelo Instituto do Fracasso, também bem como o Desenvolvimento da Competitividade Empresarial. Da mesma forma, o planejamento estratégico identifica e analisa os fatores relevantes que podem servir de suporte às microempresas, bem como os diferentes modelos de empreendedorismo que se desenvolvem na literatura, oferecendo uma alternativa no foco de seu estudo, que são ajustando-se às novas tendências que estão surgindo nas esferas nacional e internacional, e em particular, no estado de Guanajuato (México) que representa um dos estados importantes pela sua atividade econômica no agronegócio, manufatura (especialmente automotiva) serviços do país.
Originalidade/Valor
Os achados são relevantes e de grande valor, uma vez que atualmente não há pesquisas suficientes que enfoquem as variáveisanalisadas, neste sentido, o planejamento estratégico e os resultados tangíveis e intangíveis de jovens líderes empreendedores de microempresas no contexto mexicano . As limitações deste estudo residem na baixa participação e interesse dos jovens empreendedores da microempresa no estado de Guanajuato. México
Details
Keywords
Tonatiuh Najera Ruiz and Pablo Collazzo
The purpose of this research is to contribute to knowledge-building on microenterprises in emerging economies, by assessing the determinants that drive their use of accounting…
Abstract
Purpose
The purpose of this research is to contribute to knowledge-building on microenterprises in emerging economies, by assessing the determinants that drive their use of accounting systems.
Design/methodology/approach
A probabilistic model was developed to determine the likelihood that a micro-firm would adopt an accounting registry system as a function of a series of contingencies and personal characteristics of their owners/managers. Data from the Microentrepreneurship Survey (EME), from the National Institute of Statistics of Chile for 2017 was used.
Findings
The findings suggest that access to external funds, the size and the use of technology strongly influence micro-firms' adoption of accounting systems.
Research limitations/implications
Despite the richness and scope of the data, direct measurements of entrepreneurial orientation and environmental uncertainty, both central variables of the contingency theory, were missing. Hence, duly justified proxies were applied. It is also likely that there would be other variables that also influence the probability of using accounting tools.
Practical implications
The study contributes to a better understanding of microenterprises, and the factors that determine the use of accounting systems. The results highlight that public policies aimed at fostering microenterprises should facilitate access to technology and external funds. Consistent with previous studies, the authors’ findings highlight the importance of training owner/managers on issues related to their business.
Originality/value
This paper contributes to theory by arguably being the first study to confirm that contingency theory does explain the adoption of accounting systems in microenterprises in emerging countries.
Details
Keywords
The purpose of this paper is to identify the principal qualities that define a good worker for microenterprises of the trade sector according to the contemporary literature of the…
Abstract
Purpose
The purpose of this paper is to identify the principal qualities that define a good worker for microenterprises of the trade sector according to the contemporary literature of the human capital and associated with the Big Five personality traits. It also determines the effect of those skills over the success of trade microenterprises in the context of a developing country.
Design/methodology/approach
A total of 393 owners/managers of microenterprises located in six trade zones of Lima district in Peru were involved in this study. They were randomly selected and asked to answer a survey of perceptions about the microenterprise’s performance and workers’ behavior.
Findings
The results demonstrate that workers that possess mainly non-cognitive skills would be considered as good workers for trade microenterprises. These skills are associated with four of the Big Five personality traits: extraversion, agreeableness, openness or autonomy and conscientiousness. Also, the results show that punctuality, honesty and assertiveness, associated with the traits such as extraversion, agreeableness and conscientiousness, are the principal non-cognitive skills that impact positively over microenterprises’ success.
Research limitations/implications
The performance of workers is only based on owners/managers’ perceptions.
Practical implications
The owners/managers’ role is important to help workers to develop the necessary skills that can contribute to the microenterprise. In that sense, if the direct contact that exists between them is leveraged, owners/managers could implement strategies such as mentoring to promote the personal and professional growth of their workers.
Originality/value
This study provides useful information about how specific non-cognitive skills of workers can contribute to the success of trade microenterprises in developing countries like Peru.
Details
Keywords
Shamsuddin Ahamad, Hamdan Amerali Al-jaifi and Md Imtiaz Mostafiz
The development of family-based microenterprises has attracted the attention of regulators, microfinance institutions and other stakeholders in either developing or least…
Abstract
Purpose
The development of family-based microenterprises has attracted the attention of regulators, microfinance institutions and other stakeholders in either developing or least developed countries. In the finance literature, several studies have examined the determinants of the family-based microenterprises development; however, there are several venues that need to be examined. The study aims to explain the economic profit of microenterprises from resource-based theory and human capital perspectives.
Design/methodology/approach
Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises.
Findings
After reviewing previous studies and based on the underpinning theoretical framework, the study finds that human capital is one of the variables that has received a little attention and yet to be examined as a moderating role. Based on the human capital theorist, individual's competencies help enterprises to perform better in business, as enterprises that possess competencies and capabilities are more likely to have higher levels of growth and profitability.
Practical implications
This finding provides useful implications for the stakeholders and policymakers and contributes in the future literature.
Originality/value
Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises.
Details
Keywords
Since the 1970s, the funding of microenterprise by the credit non‐government organizations (CNGOs) in developing countries such as Bangladesh has been recognized as a means of…
Abstract
Since the 1970s, the funding of microenterprise by the credit non‐government organizations (CNGOs) in developing countries such as Bangladesh has been recognized as a means of creating job opportunities for the rural poor. Despite injection of substantial amount of microcredit by the CNGOs, a large number of microenterprises do not survive for long and those who survive do not grow beyond the subsistence level. This paper advances the argument that a low survival rate as well as stagnated growth of microenterprises owe to the flawed developmental role of the CNGOs. The author provides evidence from Bangladesh in support of such contention. The paper concludes that unless the CNGOs play flawless development roles, low survival rate and persistent stagnated growth will haunt the microenterprises in developing countries.