Dimensions and Predecessors of Business Performance of Small Business Enterprises (SMEs) (original) (raw)
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Identification of Factors Influencing the Performance of Small and Medium Enterprises (SMEs)
Small and medium enterprises (SMEs) have an important role in economic development in Indonesia. The increasing number of SMEs caused competition becomes increasingly fierce. This made SMEs experiencing more severe challenge to be able to maintain their existence and expand its business. Performance measurement for SMEs is still not well established such as the performance measurement in the big company. This paper aims to propose a conceptual framework for measuring the performance that can be used by SMEs. Several factors are proposed including entrepreneurial aspects, competence of human resource, innovativeness, and sustainability. The method used in this study is quantitative method with conduct a survey in Small and Medium Enterprises (SMEs) in Bandung. The result from this study is a conceptual framework for measuring the performance of SMEs, in which each factor has a significant correlation to the performance measurement of SMEs. This research is expected to contribute as the literature used by academics and SMEs to effectively measure SMEs performance, especially in a competitive environment.
Economy & Business Journal, 2015
The purpose of this study is to identify and prioritize the factors affecting the performance of small and medium enterprises (SMEs). In other words, this study aims to answer the following questions: What are the factors affecting SMEs performance? And how are these factors ranked? Currently, due to the specific characteristic of SMEs in the economic sphere, the development of activities can be aimed at determining strengths and weaknesses, identifying opportunities and challenges, identifying critical and control points, and providing information needed for the analysis. The research method used in this study was applied in terms of target, and a descriptive survey in terms of data collection. The method utilized for data analysis was AHP. Therefore, after studying literature and considering SMEs experts’ viewpoints and by relying on the etiological three-dimensional model, three factors structural, content and environmental were identified as the main factors influencing SMEs per...
Definitining the performance of small and medium enterprises
Network Intelligence Studies, 2018
The position of small and medium businesses in stimulating global economic progress has interested researchers in recent decades. Small and medium businesses account for the transition to a market economy playing an important part in innovation, income generation and dynamism in economy and employment. Depending on the approaches and purposes of the enterprises performance and its indicators have been variously classified. Furthermore, performance measurement systems are important tools as they provide enterprises with the necessary information to design, control and achieve their goals. The objective of this paper is to collect and analyse a set of performance definitions, indicators and measurement systems. The literature review is based on the research gathered from databases such as Emerald Insight, Elsevier and Google Scholar. The research papers cover the years from 1991 to 2018. The findings on the definitions of performance, its indicators and measurement system will be empl...
Defining the performance of small and medium enterprises.pdf
Network Intelligence Studies, 2018
The position of small and medium businesses in stimulating global economic progress has interested researchers in recent decades. Small and medium businesses account for the transition to a market economy playing an important part in innovation, income generation and dynamism in economy and employment. Depending on the approaches and purposes of the enterprises performance and its indicators have been variously classified. Furthermore, performance measurement systems are important tools as they provide enterprises with the necessary information to design, control and achieve their goals. The objective of this paper is to collect and analyse a set of performance definitions, indicators and measurement systems. The literature review is based on the research gathered from databases such as Emerald Insight, Elsevier and Google Scholar. The research papers cover the years from 1991 to 2018. The findings on the definitions of performance, its indicators and measurement system will be employed in the next stages of the research process.
DETERMINANTS OF BUSINESS SUCCESS OF SMALL AND MEDIUM ENTERPRISES
ijbssnet.com
The small and medium enterprises (SMEs) play critical role in the development of the country. The success of SMEs depends on number of factors. This study examines the role of key factors in the success of SMEs in Pakistan. The study also investigates the relationship between SMEs success and its determinants. Target population of the study was SMEs operating in different lines of business from service to manufacturing. Sample size of this study was 520 small and medium lines of businesses. Responses of the subjects were collected through questionnaires. SPSS software is used for analysis. This study concludes that there is a significant relationship between business success and its determinants. The result also shows that financial resources are the most important factor in the success of business perceived by small and medium enterprises. The success of small and medium enterprises can contribute significantly in the development of the country. Keywords: Business success, financial resources, marketing strategy, technological resources.
Small and Medium Sized Enterprises Key Performance Indicators
The important role of SMEs in the economic growth of the developing countries has drawn the attention of politicians but remains largely unexplored. Research has shown that business performance is dictated not only by the outstanding features of size and age, as well as by certain businesses-particular factors such as debt, potential growth prospects, product and operational advancement, and organizational changes. The performance of any entity can be calculated in various ways. Quantifiable metrics are key performance indicators known as KPI which help policymakers assess and evaluate progress towards organizational objectives. KPI varies between industries. Therefore, to assess the company's success it is important to know which and how components of the system contribute to its overall performance from its internal structure.
Journal of Applied Sciences Research
Contribution Small medium enterprises in Indonesia GDP about 60% (CNN Indonesia, 2016). As one of the existing business units, MSMES should follow these developments immediately in order to compete even worldwide. MSMES is a vital sector in the growth and economic development both in developed and developing countries because of its role in providing jobs. MSMES have the ability to absorb labors and have a large number of total business units in Indonesia (Detik finance, 2016). Hill [10] stated that MSMES plays an important role in economic development in Indonesia. Research on operational performance of SMES conducted by Nehemiah [46] shows the supply chain management practices have a positive effect on SMES operating performance across the sectors of trade and information technology. Some studies that specifically discuss the operational performance of SMES conducted by Njenga (2015) found that innovation was widely practiced in SMES. Some factors such as employee training programs, competitive pressures and market segments served were identified to have a large influence on adoption of innovation. The study also established that innovation discovered while improving operational performance in the practicing firms. While Hsueh and Tu stated that the innovation resulted in a positive relationship with operational performance of new enterprises. A study by Moorthy et al., [45] shows that there is a positive and significant relationship between the use of marketing information and information technology applications to SMES performance. On the contrary, ineffective entrepreneurship and inappropriate human resource management (HRM) have a negative and significant influence on performance MSMES. Meanwhile Ashrafi and Murtaza stated that the use of information communication technology can improve the performance of SMES. Other ascendants affecting the performance of SMES are firm size. In previous studies Jung [26] has shown that firm size influences firm entrepreneurship and SMES longevity performance, but for firm entrepreneurship and SMES variable contribution or profitability performance have no effect against the size of the company in SMES. Other research Raziq [48] claimed that there was a positive relationship between company size and application of high performance management practices in Pakistani SMES. Another aspect that supports SMES performance is business strategy. Basically, strategy has a positive relationship with business unit performance, however Gibcus and Kemp [21] claimed that strategy does not influence performance. On the other hand, a study by Leitner and Guldenberg [28] at MSMES in Austria stated that there is a difference performance when distinct strategies were applied. MSMES that follow a combination strategy outperform a company without generic strategy in terms of profitability and growth achieve a higher profit rate than companies that follow a differentiation strategy. Based on the background research on the performance of SMES above, it is very relevant in Indonesia, with many obstacles in developing its performance world bank and Hayashi, whereas the contribution of SMES in various sectors of the economy is quite high. The difference of this study with the previous one is by adding independent variables and changing the sample research[20-40].
Assessment of Factors Affecting Performance of Micro and Small Scale Enterprises
2019
This study was conducted with the objective of assessing factors affecting performance of micro and small enterprises in Assosa town. The study identified that the external and internal factors affected performance of MSEs and their existence could improve the normal operation of micro and small enterprises performance. Correlation coefficients revealed a significant positive relationship between performances of MSEs. Variables such as political, legal, financial, marketing, working premises, infrastructural, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, goal setting, risk taking, information seeking, and self-confidence positively influence performance of MSEs (profit) and significantly affect performance of MSEs. Similarly, for capital, variables such as political, legal, financial, marketing, working premises, technological, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, risk taking, information seeking, and self-confidence positively influence performance of MSEs (capital) and significantly affect performance of MSEs. In addition, for number of employees; variables such as political, financial, marketing, working premises, opportunity seeking, persistence, commitment to the work, demand for efficiency and quality, information seeking, and goal setting positively influence performance of MSEs and significantly affect performance of MSEs in terms of number of employees. Improving those variables increase performance of MSEs (profit, capital and number of employees). The study recommended that MSEs office could be transparent at the time of allocating the working place to the MSEs, better to design close supervisor of MSEs and linking the MSEs with other private contractors working around Assosa town, support the establishment and strength of business development services. Similarly, the MSEs office could increase the capacity and skill of the operators through continuous trainings, and create linkage with entrepreneurship development center to fill entrepreneurial skill gaps of MSEs of owners/ mangers. Moreover, in order to reduce the influence of external and internal factors on performance of MSEs, policy makers and the service provider institutions need to consider and revise the extent, intensity, and quality of support and their linkages.
DETERMINANTS OF BUSINESS PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES A STUDY ON MARUTHAMUNAI AREA 1
Jouranl, 2020
Small and Medium Enterprises are the real backbone of all economies and a key source of economic growth, innovation, employment generation and poverty reduction. The main aim of this study is to investigate the factors that affecting on business performance of SMEs in Maruthamunai area, Sri Lanka. In this study business performance of SMEs was used as the dependent variable and factors influencing on business performance of SMEs were used as independent variables. The target population was 469 SMEs who were registered in Kalmunai Municipal Council in Ampara district, Sri Lanka and sample selection was based on judgmental sampling method. Out of the total population 469 there was 80 sample were selected based on researcher’s knowledge. Data was gathered using structured questionnaires. Data was analysed by using IBM SPSS. This study used correlation and multiple regression model to analyse the collected data. There were five independent variables statistically significant with business performance. Namely; needs for achievement, entrepreneurial competences, regulatory environment, technology, and information and two variables were insignificant with business performance. Namely; risk taking propensity and managerial competences. Keywords: Business performance, External factors, Internal factors, Small and Medium Enterprises (SMEs)