Effect of Internal and External Challenges on Micro and Small Enterprises’ Prospect (original) (raw)

Theory of SMEs financial risk prevention and control

With the rapid development of market-oriented economy, the SMEs face more and more fierce market competition. Financial risk exists everywhere which can't be avoid and has a certain influence on their production and management. The SMEs need to make a full understanding of the characteristics, the present situation and the causes of financial risk in order to survive in the market competition and put forward effective prevention and control measures, and thus lower the possibility of occurrence of risks to ensure their development. This article analyzes the importance and characteristics of enterprises at first, and then studies the present finance of our county enterprises and the causes of these risks, and finally discusses the prevention and control measures of enterprises financial risk.

Financial Problems of Small and Medium Enterprises (SMEs) and Solution Suggestions

Turkish Journal of Management and Economics, 2021

KOBİ'ler ülke ekonomilerinin %60-95 oranlarında değişen temel dinamikleridir. Elde ettikleri ekonomik değer, gerçekleştirdikleri istihdam, sahip oldukları ekonomik esneklik, ürettikleri mal ve hizmet çeşitliliği gibi nedenlerden dolayı ülkelerin en önemli ekonomik güçlerinden birisi hatta en önemlisidir. KOBİ'lerin büyük ölçekli işletmelere göre bazı üstünlükleri yani avantajları bulunmaktadır. Bunun yanı sıra büyük ölçekli işletmelere göre bazı dezavantajlara da sahiptirler. Bu çalışmada KOBİ'lerin kuruluş ve faaliyet süreçlerinde karşılaştıkları temel sorunların ortaya konmasını ve bu sorunlara çözüm önerileri getirilmesini amaçlamaktadır. Bu kapsamda akademik yazında daha önce yapılan çalışmalar incelenmiştir. İlgili çalışmaların bulguları ve sonuçları değerlendirilerek çalışma içerisinde analiz edilmiştir. KOBİ'lerin üretim, pazarlama, rekabet, ar-ge, teknolojik yapı, planlama, karar alma, denetim, organizasyon, yönetim, finans, insan kaynakları, bürokrasi, mevzuat, vd. sorunları incelenmiştir. Çalışma neticesinde KOBİ'lerin en önemli sorununun finansal sorunlar olduğu anlaşılmıştır. Finansal sorunların diğer sorunları doğrudan etkilediği görülmüştür. Ayrıca uzman personel ve yönetici istihdamının düşük seviyede olması durumunun da diğer sorunları doğrudan etkilediği sonucuna ulaşılmıştır.

Why the Quality of Financial is Important for SME

Academy of Entrepreneurship Journal, 2021

SMEs is increasing in number and developing, it should make SME practitioners aware that the competition of SMEs is getting tougher and financial reports are needed. But at this time, there are still many SMEs who are not concerned with financial statements. This study aims to determine: the influence of educational background, the business scale, and the business age, accounting socialization and information technology to the quality of SME financial statements. The object of this study is the quality of SME financial statement. The location of this study is ten locations that are registered at Senen district, Central Jakarta. The type of this research is quantitative. The subject of this research is 93 SME owners who are registered at Senen District. The technique of collecting data using questionnaires. Data analysis technique used is multiple linear regressions. The result of this study indicates that there is no significant influence on the educational background, the business scale and the business age to the quality of the SME financial statement. There is a significant influence on the accounting socialization and the information technology to the quality of SME financial statement. The results of this study will be of interest to SMEs, Public, Local Government, and Academics.

An assessment of financial management practices of small businesses: case study of Sokoru District

2014

Small firms have been identified as an important contributor to the economy. In Ethiopian economy, this sector contributes to the national objective of creating employment opportunities, generating income, and providing a source of livelihood for low income households. However, the small firms have not been able to contribute considerably as needed to the economic development mainly because of inadequate financial management practices. Given that, the issues of financial management are one of the key aspects of the well being and survival of a business. The study aims to explore the financial management practices of small business enterprises in Sokoru District to those variables namely, working capital management, financing, investment, financial reporting, financial planning, analysis, and control, and accounting information systems. For the purpose of this study the sample of 70 small firms were taken from the total population of 115. To achieve the stated objectives of the study...

Perceptions of small and Medium Enterprises Operators

This is a joint research between Indonesian Insurance Institute (AAMAI) and Gunadarma University (UG) and it is fully funded by the Indonesian Insurance Institute. Micro, Small and Medium Enterprises (SMEs) plays a very important roles in Indonesian economic system. The role is evident from the number of business units and labor absorption and SMEs contribution to Gross Domestic Product (GDP). Aim of this research is to find out the perception of micro, small medium enterprises (SMEs) owners regarding micro insurance needs. Subject of this research is the owners or businessmen who are categorized into this category of SMEs in Bantul regency. The research objective is to probe perceptions about insurance needs, which can unravel information for the development of insurance, the perpetrators of SMEs, insurance companies and local governments in determining policies that can support and create productivity and product marketing of SMEs. The knowledge of insurance in the community varies quite widely, but is generally poor. Many people we interviewed had heard of insurance but the majority of them could not explain how it works. From the level of insured program show that 15

Relationship between Financial Risk Management and the Performance of Small and Micro Enterprises in Moiben Constituency

Financial literacy provides knowledge and understanding of financial concepts and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial context and to improve the financial well of SMEs. Research shows that 65.1% of the SMEs in Kenya fail within their first year of operation. This study determined the relationship between financial risk management and the performance of micro and small enterprises in Moiben constituency, Uasin Gishu County, Kenya. The study adopted a cross-sectional survey research design. A total of 1923 registered micro and small enterprises in Moiben Constituency comprised the study population. A sample of 331 micro and small enterprises was involved in the study. Two stage sampling technique; purposive sampling and simple random sampling was used to select micro and small enterprises to be used in the study. A pilot study was conducted so as to test the validity and reliability of the research questionnaire. Validity of the research instrument was achieved by using of content validity test while reliability was tested using Cronbach’s alpha coefficient. Self-administered questionnaires and a secondary data sheet were used to collect data. Data was analyzed using descriptive and inferential statistics and presented by use of tables, charts and graphs. The result of the study indicates that financial risk management affects the firm’s performance of micro and small enterprises in Moiben Constituency. Performance of small and micro enterprises was found to be significantly affected by financial risk management (t = 8.327; p = 0.041). The study therefore recommends that stakeholders involved should therefore focus on developing programs to educate SMEs on how to assess, monitor and reduce risk of a given business portfolio. The study findings informs all the stakeholders in charge of the SMEs sector as it proves that financial literacy affects the financial performance of the micro and small enterprises

Assess the Financial Challenges that Confront Small and Medium Entities Located in Rural Areas such as the East Mamprusi Municipal Assembly of Ghana

AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL, 2020

The research sought to evaluate the difficulties which Small businesses as well as and Medium Enterprises in the East Mamprusi Municipality face which limit them from growing and flourishing so as to lend a support to the progression needs of Ghana. The research made use of a structured questionnaire to obtain data from owners of small and medium entrepreneurs on the issues outlined above. This information was processed and examined to draw conclusions and suggest solutions to the difficulties. It was realized that for SMEs to thrive, they have to rely on loans and other facilities from credit institutions and individuals. Those that did not have the opportunity of obtaining these facilities have to always rely on their personal small resources. This is a cause for them to be studied in details. It was further discovered that some SMEs are able to access credit to enable them start up, though the challenge of access to credit still persists for most of them. Many of those engaged in this sector fall within the active labor force of 15-64 years. The major challenges the research discovered is that SMEs in the Municipality have a massive potential to reduce unemployment but have not been expanded to cover many more businesses. Moreover, SMEs face challenges like high demand of collateral, little training given to business owners on how to manage their businesses and limited access to credit.

Characteristics and Problematics of SMEs in Ponorogo

Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 2020

Small and Medium Sized Enterprises (SMEs) currently have good developments, especially in the food and beverage sector. Even though the area of business is small, it does not need to be underestimated that this business also needs funds/finance. Financial management and reporting for small and medium sized enterprises are often considered difficult. On the other hand, the Institute of Indonesia Chartered Accountants has applied Accounting Standards which are easier to implement in small business actors, namely the Financial Accounting Standards for Small and Medium Sized Enterprises (FAS-SMEs), effective in 2018. This research aims to explore further information about the existence and evaluation of financial management by SMEs. This study also aims to develop a design (model) of financial management procedures that are easily implemented by SMEs and is in accordance with FAS-SMEs. This research is qualitative research with an in-depth interview method. The informants chosen were food and beverage SMEs in Ponorogo Regency. Based on data obtained from 5 informants, then an analysis is carried out with rational interpretation. This study also obtained information from the Ponorogo Perdagkum related to how the role of the government plays in the management of SMEs. Food and beverage business people choose this business field because it is considered to have great potential for profit because food and beverages are their basic needs. Financial management at food and beverage SMEs is still very simple, in the form of simple records, not yet differentiating personal assets from the business, so that it is difficult to determine profits. This has the effect of not being able to compile the financial statements of food and beverage SMEs in the Ponorogo Regency according to FAS SMEs. This is an open access article under the CC-BY-SA license.

Factors Influencing the Financial Situation and Management of Small and Medium Enterprises

Journal of Risk and Financial Management

The ambition of this study was to identify the factors that influence the financial situations of small and medium enterprises (SMEs) in Somalia. The research objectives of this study were to determine how capital building affected the financial situations of SMEs in Somalia, how human resource capacity affected the financial situations of SMEs, and what the impact of access to financing was according to the business conditions of SMEs. This study uses both descriptive and quantitative research approaches. The study’s main demographics consisted of 90 SMEs in Somalia; the shortage of female personnel may also be a disadvantage, considering that most paying customers were female. The study’s first research question was to investigate whether the use of committees improves the quality and efficiency of the board’s tasks and mandates. The study’s second research question was to determine the impact of human resources. The study’s findings about market adoption of technological trends a...

About Financial Assurance of Small and Medium Enterprises

Proceedings of the 24th International Academic Conference, Barcelona, 2016

Actuality. In Georgia small enterprises are developing relatively quickly in some sectors, large capital is accumulated in this field and less support is needed from government. Relatively small enterprises of industrial sectors of economic sectors still require special state innovative support to increase profit and cost-effectiveness. Therefore, the industrial sectors of the economy mostly needs financial assistance from the state. We talk not about the financial support of all kind of small business, but about the small industrial enterprises who are creators of material wealth. Also, it should be taken in consideration priority and actuality of small enterprises development as for country's economy as well as for society. Whereas, formation of middle class depends on small business development and by the size of middle class is determined how open is the national economy in conditions of globalization. The aim of the research. The aim of the research is to learn deficiencies associated with development of small and medium enterprises, particularly related to financial provision and ways of improvement. Research Methods. During the research, due to practical importance and complexity of the problem, it has been used systemic, historical and logical generalization methods. Also it has been used scientific abstraction, analysis and synthesis methods. Conclusion. The findings and results from the survey will contribute to the development of industrial small enterprises and will raise work efficiency in Georgia, which will be not only the economic consequences for the country's economy, but will solve social problems, particularly, will contribute to middle class formation.