Factors Affecting the Performance & Business Success of Small & Medium Enterprises in Sudan (Case Study: Omdurman) (Published)
Small and Medium Enterprises (SMEs) have an important role to play in the development of the country. This study attempts to identify the antecedents of business success in Omdurman- Sudan, with particular reference to small businesses. . In Sudan, the growth of SMEs is significantly low. The study examined eight factors that influence the SMEs business success. . Eight hypotheses were developed to find out factors that are affecting Business Success of SMEs in Sudan. SMEs characteristic, External Environment (competition), Customer and Markets, the way of doing business & cooperation, Resources and Finance have significant positive effect on the Business Success of SMEs in Omdurman-Sudan. The regression analysis result shown that the above factors are the most significant factors affecting business success of SMEs in Sudan
Keywords: Business Success, External Environment, SMEs, Sudan
Analytical Review of Small and Medium Scale Enterprises in Nigeria (Published)
The primary purpose of business is the supply of goods and services to satisfy the societal needs. Wherever people live in conurbations, there is always the need for goods and services. These goods and services are supplied by institutions such as the family, the voluntary organization, the business firms, local, state and federal government. Also, the importance of credit facilities from both the bank and non-bank financial institutions cannot be overemphasized in enhancing the development of SMEs in the country. However, only the effect of initial capital (CAP) and non bank credit facilities (NBK) is significant and responsive towards the enhancement of performance of SMEs while credit facilities from banks are insignificant with respect to SMEs development. Lastly it concluded that government agencies such as the National Directorate of Employment should intensify efforts geared towards training programmes for SMEs.
Keywords: Enterprise, Entrepreneurship, Environment, Growth, SMEs
A Descriptive Analysis of the Influence of Entrepreneurial Orientation Dimensions On the Performance of SMEs in Kenya (Published)
Small and medium-sized enterprises (SMEs) play an important role in the world economy. They contribute substantially to income output and employment. Indeed, they dominate the world business. In spite of this, studies have failed to identify and assess the corporate entrepreneurship dimensions that lead to good performance, especially in Kenya. As such, based on a study of SMEs in Kenya, this paper examines the relationships that obtain between Entrepreneurial Orientation (EO) and firm performance among SMEs. Specifically, the study sought to find out the effect of entrepreneurial innovativeness, risk-taking and proactiveness on firm performance. The study was guided by the resource based view (RBV), contingency theory, theories of entrepreneurship and the marketing theory. It adopted explanatory research design using a census sample with the target population being all the top 536 medium sized firms between 2006 and 2013. Data was collected using a questionnaire and analyzed using descriptive statistics, Pearson’s bivariate correlation, multiple regression and moderated regression analysis. Results revealed that entrepreneurial innovativeness, risk taking and proactiveness have a direct positive relationship with performance of SMEs. From the findings, the study recommended the need to intensify initiatives that encourage a better understanding of EO dimensions in boosting firms’ competitive positions and superior performance; firms should be more entrepreneurial in order to attain superior performance and survive the intensively competitive market environment. They should continuously innovate, especially through new product development, being first to enter the market with new products and in the use of creative new solutions that lead them to be recognized by competitors as leaders in innovation. SME owners/managers also need to enhance their risk-taking behaviour by encouraging staff to take risks with new ideas, make effective changes to their products and be willing to accept at least moderate levels of risk, engage in risky investments and have the courage to seize new opportunities, even if this may involve great financial risks
Keywords: Entrepreneurial Orientation Dimensions, Influence, Kenya, Performance, SMEs
Effect of Knowledge Management on Firm Competitiveness: Testing the Mediating Role of Innovation in the Small and Medium Enterprises in Kenya (Published)
Knowledge and innovativeness are have been recognized as the main sources of competitive advantages in the economy. Small and medium-sized firms need to increase attention on knowledge management and innovativeness so as to be competitive. The study examined knowledge management, innovativeness and firm competitiveness. The study is conducted on the results based on 252 small and medium manufacturing enterprise managers in Nairobi, Kenya. The data obtained from the questionnaires were analyzed using the SPSS statistical packaged software. The study results showed that knowledge management processes influence innovativeness positively, innovativeness enhances firm competitiveness while innovativeness is a mediator between knowledge management and firm competitiveness. The study demonstrated that knowledge management and innovation should be integrated to enhance firm competitiveness. The viewpoint proposed is that knowledge management is an important element for small and medium enterprises in today’s dynamic and competitive environment.
Keywords: Firm Competitiveness, Innovativeness, Kenya, Knowledge Management, SMEs
Causes of Small Businesses’ Failure: An Exploratory Study within Jeddah’s Governorate in Saudi Arabia (Published)
This study aims to highlight some of the reasons for the failure of small businesses, such as unemployment among Saudi nationals, reliance on expatriate labor, the absence of a regulatory framework, and difficulties in the funding of some financial institutions. Thus, the objectives of the study are: to highlight the important role that small businesses represent in the Saudi economy, to find appropriate solutions for the failure of small business, to create a framework to support the small business, and find financing mechanisms for small business. To achieve the overall objective of the study, a field study was conducted with owners of small businesses within Jeddah’s governorate in the Kingdom of Saudi Arabia. A purpose-designed questionnaire was prepared and sent to participating businessmen. The data gathered from those questionnaires was compiled and statistically analyzed using IBM SPSS Statistics® software package. After pilot testing, a questionnaire was sent to 130 businessmen with 100 completed questionnaires returned (approximately 77%). Data was analyzed by the researcher using frequencies, percentages and Chi- square calculations. The results of the study indicated that poor management, a lack of bank loans and workers training were the most important reasons for failure. The study contains five sections, section I: Introduction to the study and previous studies. Section II: The importance of small projects and the most important contemporary problems and challenges. Section III: Analysis of results of the study. Section V: Conclusions and recommendations. In light of the results of this study, the researcher provided recommendations in order to highlight the factors that lead to, either the failure or success of small businesses.
Keywords: Failure Causes, Financing, Jeddah, SMEs, small businesses
Causes of Small Businesses’ Failure: An Exploratory Study within Jeddah’s Governorate in Saudi Arabia (Published)
This study aims to highlight some of the reasons for the failure of small businesses, such as unemployment among Saudi nationals, reliance on expatriate labor, the absence of a regulatory framework, and difficulties in the funding of some financial institutions. Thus, the objectives of the study are: to highlight the important role that small businesses represent in the Saudi economy, to find appropriate solutions for the failure of small business, to create a framework to support the small business, and find financing mechanisms for small business. To achieve the overall objective of the study, a field study was conducted with owners of small businesses within Jeddah’s governorate in the Kingdom of Saudi Arabia. A purpose-designed questionnaire was prepared and sent to participating businessmen. The data gathered from those questionnaires was compiled and statistically analyzed using IBM SPSS Statistics® software package. After pilot testing, a questionnaire was sent to 130 businessmen with 100 completed questionnaires returned (approximately 77%). Data was analyzed by the researcher using frequencies, percentages and Chi- square calculations. The results of the study indicated that poor management, a lack of bank loans and workers training were the most important reasons for failure. The study contains five sections, section I: Introduction to the study and previous studies. Section II: The importance of small projects and the most important contemporary problems and challenges. Section III: Analysis of results of the study. Section V: Conclusions and recommendations. In light of the results of this study, the researcher provided recommendations in order to highlight the factors that lead to, either the failure or success of small businesses.
Keywords: Failure Causes, Financing, Jeddah, SMEs, small businesses
Evolution and Growth of Pakistani-Owned Smes in the Area of Bedfordshire London (Published)
This paper was aimed to investigate those factors which had played an important role in strategic evolution and growth of Pakistani-owned SMEs in the area of Bedfordshire London. The objective was to discover some facts and figures about business experiences of these firms and make the finding a source of learning and development for other similar enterprises in the UK. The target population (sampling frame) was comprised over 42 firms qualifying criterion of SMEs. While applying purposive (judgement) sampling approach, a representative sample of 7 firms (out of 42 firms) with 18 respondents performing at managerial level was selected to conduct in-depth interviews. A case-based empirical investigation conducted around selected group of companies revealed that a number of factors including families and friends, qualification and experience, well thought-out business decisions, clarity of goals and objectives and dual socialization of entrepreneurs while living and working in Pakistan and the UK had played an important role in strategic evolution and growth of these companies. Analysis of the data confirms the vital importance of these factors in laying a sound foundation of these businesses to evolve and flourish in the UK’s highly competitive business environment. The findings of the study are expected to provide some practical lessons to newly built Pakistani-owned enterprises in the UK in developing and strengthening their businesses to survive, grow and succeed in the market.
Keywords: Dual socialization, EMBs, Education, Experience, Pakistan, SMEs, UK
Implications of Small and Medium Enterprises on South East Development in Nigeria (Published)
There has been a growing concern on the relationship between the output of small and medium enterprises and Igbo development in Nigeria, despite the fact that the South East government had embarked on several policies aimed at improving the growth of Nigerian economy through the contribution of small and medium enterprises output. The aim of this study is to empirically examine the relationship between small and medium enterprises output and Igbo development in South Eastern part of Nigeria. Empirical evidence from the developed and developing economies has shown that small and medium enterprises have the capacity to influence the entire socio economic development in Igbo land if it is well managed. Quantitative research design and multiple regressions were used to carry out this study. The results of the study indicates that small and medium enterprises contribute significantly to the development of Igbo land based on the magnitude and the level of significance of the coefficient and p-value. And there is significant and positive relationship between Igbo development and small and medium enterprises output. The implication of this findings is that if small and medium enterprises does not increase the size of their employment generation in Igbo land, the development of Igbo’s through small and medium enterprises will not contribute meaningfully to the growth of Nigerian economy. It is the recommendation of this study that the operators of small and medium enterprises in South East (Igbo Land) Nigeria should make maintain their level of social corporate responsibility. That there is also need to strengthen policies that will enhance rapid growth and development in Igbo land through small and medium enterprises in Nigeria
Keywords: Igbo Development, Output, SMEs, South-East, economic growth
EXAMINING THE ROLE OF EXTERNAL BUSINESS FACTORS IN INTERNATIONALIZATION OF MANUFACTURING SMES – CASE OF CROATIA (Published)
Internationalization represents an expansion of economic activity beyond the boundaries of domicile economy and includes export and import activities. Because it allows lowering costs by accessing a new suppliers or increase revenues by accessing new markets, it represents an opportunity for gaining competitive advantage for small and medium enterprises on both domestic and foreign markets. This paper empirically analysis effects of external business factors: location, availability of financing, competition and cooperation, on internationalization of SMEs in case of both export and import activities. Results from this research should help governments in determining key areas and measures for successful internationalization of manufacturing SMEs.
Keywords: Croatia, External Business Factors, Internationalization, SMEs, Strategy
GREEN PROCUREMENT STRATEGIES AS DETERMINANTS OF FINANCIAL PERFORMANCE: EVIDENCE FROM SMALL AND MEDIUM ENTERPRISES IN UASIN-GISHU COUNTY, KENYA (Published)
Owing to strong influence on economic and social issues, environmental impact attributed by SMEs activities is significant, not only for their magnitude but also in diversity. However SMEs are often unaware of their environmental impact and lack the resources to implement environmental initiatives and since their environmental footprints are small and localized they easily go unnoticed. Nevertheless the cumulative environmental impacts of countless SMEs constitute major environmental challenges to both regulators and stakeholders. Environmental issues is now considered strategic and there has been debate all over the world concerning environmental issues (Green procurement).Many SMEs are reluctant to adopt green procurement strategies until they find financial benefit for themselves. Thus the general objective of the study was to determine if green procurement strategies had an effect on SMEs financial performance. The specific objectives were to determine the extent to which recycling of waste, use of non pollutants, waste management and use of energy saving products determined SMEs financial performance in Eldoret town, Kenya. The study area was Eldoret town, Kenya and the research design adopted was explanatory research design (bivariate analysis) because it compares two variables, the dependent variable being financial performance and independent variable is green procurement strategy. The research used stratified and simple random sampling and Hotels, restaurants, bars and supermarkets were the study units. There are more than 8175 SMEs in Eldoret town and the researcher used stratified sampling and targeted 80 respondents in supermarkets and 197 respondents in hotels/restaurant/bars. Data collection instruments used was five point likert scale questionnaire and structured interview. Data analysis used was descriptive statistics, explanatory factor analysis, Pearson Moment correlation and regression model analysis. Data was presented using tables, figures and in prose form. The study showed that there is a relationship between green procurement strategies adopted by SMEs on their financial performance and it found that most SME’s in Eldoret have an understanding of what green products are, recycling of wastes, what pollution is and what needs to be done to curb pollution and lastly about waste management and the need to use energy saving products to reduce on the cost of energy. From multiple regression tests the study findings; r=0.509 and r2=0.740, which shows that 74% of the growth of financial performance can be explained by the adoption of green procurement. The findings show that the null hypotheses were rejected in each hypothesis and thus there was a relationship. The study recommends that an awareness programme should be organized in schools, offices, through multimedia houses to educate the masses on the need to recycle waste and thus save on their costs and as a way to generate income. The study further recommends that SMEs require greater access to financial services and investment capital. The study will be useful to various stakeholders such as the government, policy makers and purchasing managers who will benefit on knowing that green procurement strategy is an important aspect in any organizations and it can impact environmental and financial performance of SMEs as well as all organizations.
Keywords: Energy saving products, Financial Performance, Non-Pollutants, Recycling of Waste, SMEs, Waste Management