The high levels of unemployment in the country have ushered many in the area of business as the economic conditions of continue to deteriorate [4]. Expand. SMEs are found in all sectors of the economy and represent a wide variety of information and communication technology (ICT) use, formality and firm sizes. Therefore, this study sought to evaluate the factors affecting the performance of SMEs in the Jua Kali sector in Nakuru town. Found inside – Page 102factors affecting that development based on levels of perceptions. Thus, this study identified the following overall objectives: • To assess the current status of SME development in the rice sector. • To identify the level of perception ... In a study focusing on the growth challenges and opportunities of SMEs in South Africa’s food processing sector Mather [8] argues that the challenges faced must be viewed from a viewpoint of restructuring South Africa’s agrifood system. Found inside – Page 897SMEs in KZN are classified into sectors (Small Enterprises Development Agency (SEDA), 2018). ... study focused on how SMEs in KZN brand their businesses for survival, while Sitharam (2014) studied the factors affecting SMEs' performance ... However many studies found different results from the current one because motivation of employee is believed to be having a huge impact on profitability of business [36, 37]. All regional blocks, governments, banks and other development partners have to develop all-inclusive programmes and policies to consolidate SMEs if the region is to realise economic growth. Nkua et al. Factors Found inside – Page 216However there are many other factors affecting SMEs that could have been included in the study. Nkua et al. [12] focused on the effect of accessibility to credit on SMEs growth and operations. Nkua et al. The results were in line with some studies that reported that a business that does not advertise may not produce outstanding results [26, 38]. 1.2 Statement of the Problem SMEs are largely viewed as the driving factor of economic development, job However, the findings contradicted Kapteyn and Wah [31] who found distance travelled significant to profitability. The country of Zimbabwe has been hit by massive brain drain as many migrate to other countries for greener pastures. A number of studies have shown that education level contributes positively to profitability of a business [18]. The period has continued to be characterised with firm closures and many people losing jobs through retrenchments (Nyathi et al. The business planning problem (busplanprob) had no significant impact on profitability. The results will assist policymakers, development partners, entrepreneurs and other stakeholders. Economic growth gives rise to both business and household sector demand for services such as utilities, transportation, trade, business and personal services. With two or more businesses there may be synergy in marketing and other aspects of business [30]. One way is to improve or support the SMEs sector that employs a huge population and has potential to employ more. The study identified lack of finance, lack of managerial skills and training as important areas to consider in SMEs operation. Large corporations have marketing departments or personnel to drive sales and interact with the consumer. [17] acknowledged that currently the operation and development of a service that uses wireless and mobile terminals is yet to be accepted by many SMEs in developing countries. The survey generated information about the characteristics and statistics of informal and formal SMEs operations. endstream Number of business entities or units (businessnum) was found statistically significant at 10% level. �S�{T���Mp(��*i^87a�>�F�5u�Gy�����nfh6�
It was found that age and gender were not significant. The SMEs have created about 80% of the continent’s employment, forming a new middle class that fuels demand for more goods and services. /Type /Font Therefore, the aim of the study was to identify the internal and external factors affecting the performance of SMEs in KwaZuluNatal-, and to make recommendations The empirical data consisted of 32 young (8 years or less) and 33 long-lived (20 years or more) growth SMEs. Factors Affecting the Performance of Small and Medium Enterprises in the Jua Kali Sector In Nakuru Town, Kenya . Kazimoto [18] found that SMEs often experience challenges on meeting the standards of their products for the international market and in securing microloans at initial stages of their life. This serves to assist in intervening in SMEs sector on better designs and stimulations of productive business activities and strategies for job creation. In Kenya a study found that a positive relationship existed between profitability and other government requirements in some sectors [25]. Having an account with a formal financial institution makes a firm have access to loans and other financial services. The study conducted a Kendall’s Co-efficient of Concordance to assess the extent various challenges influenced businesses in competitiveness and globalisation. If a company is financially included higher profits are expected. [14] analysed the extent to which the SMEs were affected by competition and globalisation in Ghana. The premises one is operating from give the businesses value and image. Corruption was found not to be significant. The factors mentioned above discourage small and medium business owners from availing adequate finances, thereby hindering business growth. U�������6�}=�3Y�(�.�ɸk�x��.s��I����0V��H��l�B��k��N�_�Ikcj����$�k�q���W�IZÕ��������� `X�4��O�T*��\Gz���x�a���aJH�:ї�N��rey7S\��������nr�/:���C�>u
The study used data collected through questionnaires. The government of Zimbabwe has to take an aggressive approach to drive an inclusive and balanced growth through the SMEs because of the huge potential for industrialisation if entrepreneurial mode is fostered. Today’s consumer has become more inclined to online searching, internet sales and purchasing of goods and services. Their vision, expertise, philosophy and other resources influence greatly the success of the venture. Factors Affecting the Successful Growth and Survival of Small and Micro Enterprises (SMEs) in Zimmerman Ward, Nairobi County - Kenya . Age was found not to be significant. SME sector and the different challenges faced by SMEs and their owners need to be considered in the design of the taxation rules as governments endeavor to promote the creation, innovation and growth of SMEs. Financial institutions play a pivotal role in the resource allocation process and entrepreneurs need finance to grow their businesses. Y = β. The research reveals that there are a number of significant factors affecting Kosovar SMEs growth. Using a sample of 30 companies Mather [8] found that procurement practices are the most significant obstacles to the operations of these small firms. On the African continent activity is dispersed across the large number of more or less formal SMEs. 816 0 obj The chapter contains the statement of the problem specific objectives, questions and the scope of the study. Growth and Development of SMEs in Huruma, followed by Education and training, then Physical Infrastructure, Innovativeness while peer influence has negative weak correlation with the growth and development of SMEs in Huruma. stream
Conceptual Framework of Factors Affecting SME Development: . There is need for policy makers and other social partners to design and implement strategies that enhance employment opportunities in their countries. This has motivated this study to investigate the determinants of SMEs growth in Africa with a special focus on Zimbabwe. There are higher chances for one to become better of (a billionaire) with multiple streams of income. Studies have shown that SMEs start to play a crucial role at an early growth stage. endobj Business regulation problems (busregprob) was found not significant implying that the challenges encountered due to some regulations in place had no effect on the profitability of SMEs in Zimbabwe. In such cases operations, professionalism or reliability and profit levels are affected by these factors. endstream In Ghana lack of adequate access to credit is a major limitation of small businesses growth. The majority of the economically active citizens have survived through operation of small businesses (Nyathi et al. Moreover, SMEs are effective tools for poverty alleviation. << << The adequate access to financing is, therefore, vital for the sustainable economic development of the nation like Bangladesh. Licensee IntechOpen. Referring to management skills as an affecting factor of growth orientation was only done by Morrison et al. This study attempted to identify factors that are affecting business success of small and medium enterprises (SMEs) in Thailand. Access to working premise, access to credit and access to infrastructure are found significant in determining the probability of MSEs growth from external factors [10] , financial access, market access and social network influence the growth of dairy SMEs in Gatundu South. The informal sector in African economies is still great, comprised of the majority of SMEs. The owner may not be having the zeal for entrepreneurship and it may be difficult for such a business to grow or report outstanding profits. Professor, Dept. Access to finance is important for the growth of SMEs. Focusing on the issues of enterprise development and the regional dimensions of small-firm growth, this book explores the literature of this area. It is necessary for authorities at local, national and regional levels to embark on evidence-based analysis feeding the social dialogue and policy making processes for building a knowledge base for employment creation in SMEs. performance of women led SMEs with existing literature still painting a grim picture of the state of the SMEs in Kenya. This paper investigates the economic rationale for intervention in support of small and medium scale enterprises, on both theoretical and empirical grounds. Oyelana and Smith argue that these concerns must be addressed properly if the SMEs sector is to succeed in South Africa. development of SMEs has been creating a driving force for economic growth and has become an important strategic direction in the country's socio-economic development strategy. Age of Productivity offers a look at how the low productivity in Latin America and the Caribbean is preventing the region from catching up with the developed world. Found inside – Page 94Three stages of growth (Steinmetz, 1969) of the entrepreneur in many cases can be a contributing factor to the high failure rate of SMEs. One factor affecting growth could be put down to entrepreneurial attitude in not wanting to grow ... The study also focused on intellectual capital and argued that it has become a lubricant of modern organisations in becoming competitive in knowledge-based economies. 5.0.1 Summary of Statistics Figure 1.1 Gender of the owner of the business 46.7 MALE 53.3 FEMALE Source: Research findings. Depending on the business complexity or market dynamics one is not able to handle some pressures with lower levels of education. Trust an expert . examines the critical factors that affect SME's financial stability which in the long run result in the liquidation of SMEs. 0 0 0 0 0 0 0 0 0 0 Kazimoto recommended the need for more information availability to SME owners and the government to avail funds at concessionary rates. In South Africa, the growth of SMEs and prevalence of SMEs is significantly low. Agriculture producers and other raw material providers have to hunt for improved production for increased competitiveness. This makes it imperative to also investigate the influence of mobile phones on SMEs operations and growth. Marital status was not significant. Someone educated is expected to have a better appreciation of business concepts hence better profits. To what extent has marital status influenced success, growth and profitability of business? The services sector is developed in two different ways [2]. The target population under study were the licensed SMEs by Nairobi City Council in 2013. Increasing corporation tax has an effect on business profits as costs are increased. Katima, Suzan Oelofse, Oladele Osibanjo, Ulf Henning Richter and Arsène H. Yonli. Turyahikayo [19] researched on challenges experienced by SMEs in raising funds in Uganda. 13. 2018). It aims to use intellectual property rights (IPRs) as a proxy for innovations. Nyoni and Bonga argue that SMEs have a great potential to play a crucial position in addressing socio economic challenges such as poverty and unemployment in Zimbabwe. Academic Paper from the year 2020 in the subject Business economics - Business Management, Corporate Governance, , language: English, abstract: SMEs are still incertitude in their quest to run their business effectively. This section gives the results of the LPM regression (see Table 2) and discusses the results. &����>�DN%H� &�&���)���:H�;�� O�ܦ��ْ�y ~�(ba �)ń�,'T�i�jӇ��5bx#n�x��
V�����r>�ҫz\��t6ќB#���ـF�M>��;mc��A�F۰G�oph�vg{�]�=����s�y�U�'��@)KK:��M�HA�.z;����d
It’s based on principles of collaboration, unobstructed discovery, and, most importantly, scientific progression. Though many enterprises are started, few have survived and grown phenomenally due to self-employment desire and a myriad of challenges. It is difficult to operate without independent view of others or experts in the business field. Being in a capital city hurts SMEs' growth, but does not affect profitability. T . Available from: Models, Applications, and New Perspectives, Edited by Jose C. Sánchez-García and Brizeida Hernandez-Sanchez, Physical Sciences, Engineering and Technology, Biochemistry, Genetics and Molecular Biology, Pharmacology, Toxicology and Pharmaceutical Science, Bindura University of Science Education, Bindura, Zimbabwe. Small to medium enterprises (SMEs) has been defined as a venture with less than 75 employees. To what extent does advertising influence profitability of SMEs in Zimbabwe? They are also likely to be making more profits with clear records and systems in place. The legal status makes such businesses operate more profitable and sustainable [31, 36]. Many African countries among other developing nations have been affected by this situation leading to many leaving their country of birth in search of greener pastures in neighbouring countries and other countries. stream
Suppliers mistrust and poor infrastructure were also highlighted as hampering SMEs from formalising their business. On the other hand paying tax may have indirect benefits as the money paid to the government is used for public goods. affect the growth of the enterprises. Brief introduction to this section that descibes Open Access especially from an IntechOpen perspective, Want to get in touch? The 25 independent variables are as below. SMEs globally, and in South Africa especially, are still faced with many challenges. Therefore industrial development can be attributed to improved investment, business environment and favourable raw material prices. With a systematic development approach, SMEs play a role in driving the economy from an underdeveloped stage towards high growth and industrialisation. The success may differ from one company to another but vision, professionalism and entrepreneurship skills will separate them. The owner of the business running an enterprise may not have expertise of the business. The SMEs differ from one country to another on the continent in terms of number (World Bank, 2016) and factors affecting growth or operations. A total of 3222 observations were considered in the analysis. Given the importance of SME sector we feel the need to Also, Farah and Nina, (2015) examined factors affecting profitability such as firm size, firm age, growth, lagged profitability, productivity, and industry affiliation of SMEs firm listed in Indonesia Stock Exchange. It was a comprehensive survey focusing on individual entrepreneurs and owners of micro, small and medium enterprises (MSMEs) and their general needs. Ukundais a coastal town in the southern part of Mombasa mainly x�m�AO�0���>���$M���n $$�q�� The reasons behind the start of an enterprise had no effect on the profitability of small businesses in Zimbabwe. For example some gold miners are required to sell minerals through the government agencies and are not allowed to export them on their own. The type of business (bustype) was found significant at 5% level implying that the formal business was more likely to report better profits than an informal enterprise. Many developed countries today are what they are because of investment in research. One of the vital factors that currently impact the progress of SMEs in India are: 1. In some cases corrupt activities in the system may hinder licences, permits to operate or sell in some markets influencing profitability of business. factors affecting profitability such as firm size, firm age, growth, lagged profitability, productivity, and industry affiliation of SMEs firm listed in Indonesia Stock Exchange. Other challenges investigated include inadequate collateral, information opaqueness, low technical skills, poor managerial knowledge, competition, lack of professionalism and unavailability of suitable credit schemes. The reasons for starting a business (motivations) were found not significant. 0 0 0 579 544 533 615 488 459 631 The SMEs sector faces a myriad of challenges across the continent and fails to live up to expectations. The findings are in line with other studies [19, 32]. Small Firm Growth comprehensively reviews the empirical literature on small firm growth to highlight and integrate what is known about this phenomenon and take stock of what past experiences of researching this area implies for how the ... �O��p�^Z�,��+�ˢa��v��M���гKhv�nsY>�S��U�P�еy�*�`�b������liZp4wAM]���P������)W]�Q���j A large informal sector in Sub-Saharan Africa results in a big number of SMEs but with low levels of GDP per capita. There is also need for Identification of gaps in research in understanding the area better. They also looked at SMEs accessibility to loans from formal financial institutions and the impact of government policy on their growth and operations. accelerating the growth and improvement of the profitability of Small and Medium Enterprises in Kampala, with reference to selected retail businesses in Rubaga. The study also revealed that there exists a significant negative correlation between employment and GDP contributed by the informal economy and GDP per capita. Whether one is married or not has no significant effect on profitability levels. The governments, international investors and other developmental institutions should be central to the stability of the world’s economy. Factors Affecting the Profitability and Growth of Small & Medium Enterprises (SMEs) in Indonesia. This may be due to less conflicts in running the business as a family. marketing the products, skilled labor, and structure and size of the businesses are the internal factors affecting SMEs' growth. affect agribusiness marketing, training and cultural factors in a likerttype - administered, collated and used for the analyses. In the first stage, the authors applied the deep-interview to the experts to discover the factors in contemporary management based on the In a family business, profits or success may be viewed as dynamic combination of business performance, family business culture and stakeholder personality. This implies that a business operating legally is more likely to report more profits than one operating illegally. This has been necessitated by the . This will take political will and selfless decisions by the countries’ leaders. From a bank's perspective, the financing to SMEs is often regarded to be of higher risk due to the relative Those that operate without records are not able to assess the extent of profits or losses obtained. 813 0 obj Naude [22] also argues that constructive policies work better in the formal economy than the informal. In our study, management skills and technical skills have been identified as personal skills affecting growth orientation of women entrepreneurs. [16] considered the competitiveness of SMEs in a knowledge-based economy and explored the challenges that they face in Malaysia. The study showed that SMEs face challenges such as insufficient use of information technology, limited access to finance, low research and development expenditures, lack of databases, low levels of financial inclusion and undeveloped sales channels. the data while multiple regression analysis was used to economic factors affecting - agribusiness entrepreneurship development. In terms of income two is better as they can provide you with twice the income. �2���Y�n �K������ί���S��Z*��2c�� For the past two decades the Zimbabwe’s economy has struggled to perform in comparison to other economies [3]. Our readership spans scientists, professors, researchers, librarians, and students, as well as business professionals. *Address all correspondence to: kosmasnjanike@gmail.com. study sought to establish the factors affecting the performance of small and micro enterprises (SMEs) traders at Limuru town market in Kiambu County, Kenya. aК o5&����=�Z�P�q���D�r=+�:0N+b̵Q��8�u6 Large enterprises have lower risk of default, clear financial statements. /Length 262 /ToUnicode 2243 0 R Scientific Essay from the year 2017 in the subject Business economics - Operations Research, , language: English, abstract: This paper provides a comprehensive review of factors affecting the growth and development of SMEs in Bhutan. By Kenyatta University Abstract-Small and micro- enterprises play an important role in developing a country even though they are not given adequate attention and have been biased towards larger and listed (2003). factors affecting the growth of smes: a case study of motor vehicle garages in industrial area, nairobi by mathew mwangi gichuke d61/63672/2010 a research proposal submittedto the school of business, university of nairobi in partial fulfillment of the requirements for the award of a degree in masters o f business adminstration october 2013. This study contributes to literature by investigating the determinants of SMEs profitability in Zimbabwe. The study collected primary data using interview guide . Written by two of the leading figures in the field, this book will be essential reading for researchers in IS and SMEs, students on entrepreneurship or IS courses, and others that focus on SMEs. * A unique text relating IS theory to SMEs * ...
factors affecting smes growth 2021