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1 – 10 of over 13000
Article
Publication date: 1 June 2015

Torben Eli Bager, Kent Wickstrøm Jensen, Pia Schou Nielsen and Tue Avbæk Larsen

Entrepreneurial learning through formal growth-oriented training programs for SME managers promises to enhance the growth competences and growth intentions of the enrolled…

1347

Abstract

Purpose

Entrepreneurial learning through formal growth-oriented training programs for SME managers promises to enhance the growth competences and growth intentions of the enrolled managers. The impact of such programs, however, depends on who enrolls since initial competence and growth-intention levels vary significantly. Potential participants may suffer from limited ability to transform new knowledge into practice, absence of growth intention and too high or too low a prior competence level to be able to benefit substantially. Selection and self-selection processes therefore have a bearing on the extent to which such programs result in additionality, i.e. improved growth performance compared to non-intervention. The paper aims to discuss these issues.

Design/methodology/approach

Selection and self-selection processes are explored through a study of a large-scale training program for growth-oriented managers of small Danish firms. This program has, from 2012 to 2015, trained about 700 SME managers. Data are currently available for 366 of these participants. This evidence is compared with survey results from a randomly selected control group of 292 growth-oriented SME managers in the same firm-size group. The data were analyzed through descriptive statistics and logistic regression analysis.

Findings

A number of selection and self-selection biases were identified in the analysis. While some of the identified biases did not seem to conflict with the ambitions of this growth program, others potentially have consequences for the additionality of the program.

Originality/value

The paper is the first systematic study of the importance of who enrolls in training programs for SME managers.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 21 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 27 March 2020

Leyla A. Gamidullaeva, Sergey M. Vasin and Nicholas Wise

A neo-institutional methodology defines the entrepreneurial environment for SMEs as a multidimensional set of interacting formal/informal institutions influencing regional…

1051

Abstract

Purpose

A neo-institutional methodology defines the entrepreneurial environment for SMEs as a multidimensional set of interacting formal/informal institutions influencing regional economic growth. Acknowledging the multidimensional nature of SME growth, this study tests an approach to measure SME institutional environment quality through the identification of regional-level determinants.

Design/methodology/approach

The method used in this paper is based on Bruns et al.’s (2017) model and is tested on 81 Russian Federation regions. The approach seeks to determine variation in entrepreneurial ecosystems based on quality and estimated marginal effects of difference across geographical regions.

Findings

The most severe obstacle to SME development in Russia is its shadow economy and corruption. Access to finance, high transportation fees, and instability in the political and economic field ranks second and third, respectively. Results suggest governments should eliminate main obstacles at country-level, which hampers the SME sector's development. While this is noted for this case looking at Russia, this is a common argument found in SME research.

Practical implications

Findings from this study are useful in managerial practice, aimed at increasing innovative development and increasing the competitiveness of Russian SMEs. A neo-institutional approach is one of the theoretical strands with the emphasis on enhanced understanding of organizational behavior and social capital, including cultural norms and beliefs.

Originality/value

Utilizing an extended empirical approach to assess the institutional environment for SMEs addresses a research gap – offering novel insight on SME growth useful for policy makers. The results can inform managerial practices to increase SME contribution to economic growth.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 31 March 2020

Calvin W.H. Cheong, Miin Huui Lee and Marc Arul Weissmann

This study investigates the effects of credit access and tax structures on the performance of Manufacturing SMEs in Malaysia.

1636

Abstract

Purpose

This study investigates the effects of credit access and tax structures on the performance of Manufacturing SMEs in Malaysia.

Design/methodology/approach

This study uses the dynamic panel system generalized method of moments, controlling for firm-specific as well as macroeconomic effects

Findings

The paper finds that (1) debt funding is not conducive to SME performance; (2) access to non-bank credit sources and tax incentives support SME performance by lowering opportunity costs of riskier projects; (3) existing tax structures in Malaysia inhibit SME growth and encourage manipulation of accounts; and (4) investors in Malaysia prefer SMEs that are more conservative in their accounting and taxation practices.

Research limitations/implications

Access to Malaysian SME data is restricted. Although robust methods are used, there is a chance that different conclusions may arise with a much larger sample.

Practical implications

The findings provide clear direction in the discussion and enactment of new policies that support SME growth especially in support of non-bank credit sources instead of revising tax policies. The paper also contributes by providing guidance to future SME studies that are inhibited by limited access to data.

Originality/value

SME-related studies on credit access and tax structures have often relied on traditional metrics (e.g. total amount of bank loans; tax expenses) to measure its impact on entrepreneurial/SME performance. Although relevant to the past, financial policies have evolved to embrace Industrial Revolution 4.0. This paper is a shift from the traditional by investigating the impact of new and innovative sources of funding such as incubators and crowdfunding. Also, since one cannot exist without the other, examining the joint impact of credit access and tax structures provides a more holistic view on policy-making, something prior studies have not addressed.

Details

International Journal of Managerial Finance, vol. 16 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 14 December 2023

Juan Martin Ireta-Sanchez

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…

Abstract

Purpose

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Design/methodology/approach

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

Findings

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

Research limitations/implications

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

Practical implications

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Social implications

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Originality/value

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

Article
Publication date: 3 August 2015

Tove Brink and Svend Ole Madsen

The purpose of this paper is to reveal how managers of small- and medium-sized enterprises (SMEs) can utilise their participation in research-based training to enable innovation…

1007

Abstract

Purpose

The purpose of this paper is to reveal how managers of small- and medium-sized enterprises (SMEs) can utilise their participation in research-based training to enable innovation and growth.

Design/methodology/approach

Action research and action learning from a longitudinal study of ten SME managers in the wind turbine industry are applied to reveal SME managers’ learning and the impact of the application of learning in the wind turbine industry.

Findings

The findings of this study show that SME managers employ a practice-shaped, holistic, cross-disciplinary approach to learning. This learning approach is supported by theory dissemination and collaboration on perceived business challenges. Open-mindedness to new learning by SME managers and to cross-disciplinary collaboration with SME managers by university facilitators/researchers is required.

Research limitations/implications

The research is conducted within the wind turbine industry, in which intense demands for innovation are pursued. The findings require verification in other industry contexts.

Practical implications

This research contributes strategies for SME managers to utilise research-based training and for universities regarding how to work with SME training. In addition, public bodies can enhance their understanding of SMEs for innovation and growth. The learning approach that is suitable for specialisation in larger organisations is not suitable in the SME context.

Social implications

SME learning is enhanced by a social approach to integrating essential large-scale industry players and other SME managers to create extended action and value from learning.

Originality/value

The findings reveal the need for extended theory development for and a markedly different approach to SME training from that used for training managers in larger companies. This topic has received only limited attention in previous research.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 21 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 November 2006

Colin Gray

The purpose of this article is to explore SME capacity to absorb and manage knowledge as a prior condition to the successful adoption of innovations and entrepreneurial growth.

12384

Abstract

Purpose

The purpose of this article is to explore SME capacity to absorb and manage knowledge as a prior condition to the successful adoption of innovations and entrepreneurial growth.

Design/methodology/approach

Drawing on the findings from more than 1,500 SME owners across regular quarterly SERTeam surveys and from other large scale studies, this article examines the effects of experiential and formal knowledge on the development of SME absorptive capacity.

Findings

There were significant age, educational and size effects that influence SME acquisition and assimilation of knowledge. Primarily, it is the small firms of 15+ employees that have the capacity to absorb and use new knowledge – especially those with higher educational levels and clear growth objectives. These firms are not startups but they do tend to be younger firms with younger founders.

Practical implications

Given the main policy aim is the development of clusters and of knowledge‐based firms, policy makers should focus on SMEs recently started by graduates or people with technical qualifications; educators need to develop technology and innovation management programmes for these firms.

Originality/value

This article makes an important contribution to the identification of priorities for public SME development support and areas where business schools and enterprise trainers could maximise their economic and developmental impact.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 12 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Content available
Article
Publication date: 1 March 2015

Natalya Totskaya

Prior studies argue that social capital is vital for firm growth. Adding to this line of research, this paper provides more evidence regarding the contribution of bonding and…

1937

Abstract

Prior studies argue that social capital is vital for firm growth. Adding to this line of research, this paper provides more evidence regarding the contribution of bonding and bridging social ties to various aspects of small-l and medium-sized enterprise (SME) development. Building on the original data from Russia, this paper investigates the effects of firm-internal and firm-external relational ties on SME performance and geographic expansion. The findings indicate that horizontal bridging ties facilitate specific strategies of SME growth. Thus, this paper supports prior research conducted in the Asian context, and allows for extending the outcomes of bonding and bridging social capital into broader institutional settings. In addition, this study raises the question of relationship between the composition of social capital and distinct organizational characteristics of SMEs. Finally, the paper discusses the implications for future research, and outlines some practical recommendations for SMEs operating in emerging markets.

Details

New England Journal of Entrepreneurship, vol. 18 no. 2
Type: Research Article
ISSN: 2574-8904

Keywords

Article
Publication date: 8 February 2022

Avinash Ghalke, Satish Kumar and S.V.D. Nageswara Rao

Timely access to reasonably priced financing is critical to promote and sustain small and medium sized businesses (SMEs). This study aims to examine the role of the newly…

Abstract

Purpose

Timely access to reasonably priced financing is critical to promote and sustain small and medium sized businesses (SMEs). This study aims to examine the role of the newly constituted SME exchanges in funding the growth of Indian SME firms. The impact of obtaining public equity capital on the firm’s growth prospects, capital structure and credit profile is the focus of this paper. In addition, this study compares the cost and speed of raising capital on specialised SME exchanges to the main board.

Design/methodology/approach

To examine the impact of raising public equity capital, this study uses a difference-in-difference (DID) regression analysis. SMEs that raised financing on the SME exchange between 2013 and 2018 make up the treatment sample. This study uses a propensity score matching technique to find the control group from a sample of unlisted enterprises to reduce the likelihood of selection bias.

Findings

This study finds that SME profitability drops after an initial public offering (IPO), which is consistent with previous research. This study also discovered that after a company is listed, its total debt falls. This study also shows that after the IPO, there is no change in the borrowing costs of SME enterprises. Finally, this study finds an evidence of a decline in sales growth following the IPO, implying that the firms use the IPO money to rebalance their accounts after a period of heavy investment rather than for growth finance.

Originality/value

A thriving and efficient equity financing market for SMEs has the potential to establish itself as a viable alternative to the existing dominant bank financing option. To the best of the authors’ knowledge, this research is the first to examine the role of SME exchanges in the funding of Indian SME firms.

Details

Indian Growth and Development Review, vol. 15 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 18 October 2023

Zhenkuo Ding, Meijuan Li, Xiaoying Yang and Wanjun Xiao

The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and…

Abstract

Purpose

The purpose of this paper is to investigate how absorptive capacity mediates the relationship between ambidextrous organizational learning and performance among small and medium-sized enterprises (SMEs).

Design/methodology/approach

Based on the resource-based view (RBV) and the dynamic capability approach, this paper uses the resource-capability-performance framework to construct the theoretical model of this study and tests the theoretical model with the questionnaire survey data of 189 SMEs in mainland China.

Findings

Ambidextrous organizational learning has different effects on SMEs' performance in terms of survival performance and growth performance. Both exploitative learning and exploratory learning have positive effects on absorptive capacity, and absorptive capacity has positive influences on both the survival performance and growth performance of SMEs. Absorptive capacity plays different mediating roles in the relationships between ambidextrous organizational learning and SMEs' performance: absorptive capacity plays a partial mediating role in the relationship between exploratory learning and SME growth performance, while absorptive capacity plays complete mediating roles in other relationships.

Practical implications

Managers must stress the use of exploratory learning in order to promote SMEs' growth performance. However, to foster both absorptive capacity and SME performance in terms of survival and growth, managers must pay more attention to take advantage of ambidextrous organizational learning. Government as policymakers should create a favorable environment that enable SMEs to benefit much more from the deployment of ambidextrous organizational learning and absorptive capacity.

Originality/value

To the best of authors’ knowledge, this study is the first to theorize and test the mediating role of absorptive capacity in the linkage between ambidextrous organizational learning and SME performance in terms of survival and growth. Additionally, this study also is the first to provide empirical support for the impact of ambidextrous organizational learning on absorptive capacity among SMEs.

Details

Management Decision, vol. 61 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 15 August 2016

Steven Tam and David E Gray

– The purpose of this paper is to explore how employees in small and medium-sized enterprises (SMEs) practise and view workplace learning at three different life-cycle stages.

2051

Abstract

Purpose

The purpose of this paper is to explore how employees in small and medium-sized enterprises (SMEs) practise and view workplace learning at three different life-cycle stages.

Design/methodology/approach

It is a qualitative study using a sample of 30 Hong Kong SMEs classified into inception, high-growth or maturity stage, from which firms in each stage were randomly selected and interviewed until data saturation was reached. Snowball sampling was adopted during interviews and data were examined through thematic analysis.

Findings

Consistent themes (patterns) from 134 semi-structured interviews are identified, addressing both similarities and differences in the nature of the practice of workplace learning in SMEs between life-cycle stages.

Research limitations/implications

More similar comparative studies in other parts of the world, including quantitative surveys on larger samples, with either SMEs or multinational corporations, are encouraged to enrich the current findings.

Practical implications

If organisational growth is a priority, SME owner/managers should support employees’ work and learning in a timely fashion. As the study finds, individual learning and inter-organisational learning are considered “a must to have” for employees, regardless of which stage the firm is at. When an SME enters high-growth, however, more opportunities for group learning are particularly beneficial. For mature SMEs, it is essential for learning to move towards systemisation and include a professional development component to meet employees’ career expectations, not just their work demands.

Originality/value

The results advance the body of knowledge in SME learning from the life-cycle perspective. As one of the first studies in bridging these areas, it brings new implications to academic researchers and SME practitioners.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

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