Developing Small and Medium-Sized Enterprises (SMEs) Taxonomy in Malaysia

<p class="AbstractText">Micro, small and medium-sized enterprises (SMEs) are considered to be the engine of the European economy. In EU SMEs make up more than 99% of all companies and provide around 75 million jobs. They are a key source of job creation and stimulation of entrepreneurial spirit and innovation and are therefore essential for fostering competitiveness and maintaining employment in the EU. Yet SMEs often have problems in raising funds to finance fixed investments and inventory and working capital. SMEs mostly use internal sources while the most important external sources of SMEs are bank loans, which are not easily accessible. Hence, one of the priorities of the European Commission is stimulating SMEs through EU funds and programs in order to enable SMEs development and finally to contribute to economic growth. SMEs sector also dominates the economic structure of Croatian economy and they have similar financing problems. However, Croatia in period 2014 – 2020 have at disposal a total amount of 10.676 billion of euros from European structural and investment funds, of which 8.397 billion are aimed for cohesion policy objectives and 470 million euros are aimed for the development and competitiveness of SMEs. Besides, EU programs COSME and HORIZON 2020 are intended to provide direct support to SMEs and to create a favorable environment for their development. However, even though the number of successful project applications for small and medium-sized enterprises in the total share of Croatian project applications is relatively high, fund absorption has not reached satisfactory levels. Using the sample of Split-Dalmatia County’s SMEs, this study finds out reasons for low absorption capacity from SMEs point of view: SMEs are interested in funds from European Union, but are not sufficiently familiar with their availability i.e. funds at their disposal, especially programs COSME and HORIZON 2020; SMEs state that they know how to apply for EU funds but considered the procedure as complicated and demanding regarding documentation, and that the needed knowledge and know-how for proposal is beyond their scope; SMEs are not satisfied with the cooperation with state institutions, especially Ministry of Regional Development and EU funds and Croatian Chamber of Economy. We point out four main conclusions: (1) SMEs are not enough aware of EU financing possibilities; (2) additional promotion of EU programs directly to SMEs is required; (3) additional education of SMEs regarding project proposal and documentation is needed and (4) more proactive policy of state institutions and cooperation with local authorities is expected. Finally, greater awareness and professional help might be a key in strengthening the SMEs, whose entrepreneurial spirit and innovation process is a prerequisite for economic growth and development.</p>

With the improvement of the level of market economy and the improvement of the state's attention to small and medium-sized enterprises (SME), the number of small and medium-sized enterprises in China is gradually increasing, and the market competition is also becoming increasingly fierce. Under the background of big data, the competition faced by small and medium-sized enterprises is more severe. Strengthening the management of financial internal control can ensure that enterprises can successfully complete their development goals and improve their market competitiveness, so as to realize the healthy development of small and medium-sized enterprises. Combined with the significance of financial internal control of small and medium-sized enterprises under the background of big data, this paper emphatically analyzes the problems existing in financial internal control of small and medium-sized enterprises under the background of big data. According to the analysis results, this paper puts forward the strategies of financial internal control of small and medium-sized enterprises under the background of big data, for reference.

The article highlights current issues regarding the potential of small and medium-sized enterprises (SMEs), which is an important factor in the economic development of any country. The innovative potential of the enterprise is the ability of the organization to generate new ideas and implement them in its activities. This is a complex indicator that includes various aspects that affect a company's ability to be innovative. The study provides key aspects that determine the innovative potential of SMEs, namely: economic growth - SMEs contribute to the creation of new jobs and ensure the flexibility of the economy, as they quickly respond to market changes; innovation – small and medium-sized enterprises are often the source of new ideas and technologies, as they have lower bureaucratic barriers and more flexible structures; competition - SMEs contribute to increasing the level of competition in the market, which stimulates large companies to increase efficiency and improve the quality of products and services; social aspect – small and medium-sized enterprises are often the basis for the development of local communities, providing jobs and supporting the local economy; globalization – SMEs can successfully enter international markets, contributing to the country's export potential. Key challenges for SMEs include access to finance, regulatory barriers, shortages of skilled workers and the need to adapt to technological change. Support from the state, business incubators and other organizations can significantly improve the conditions for the development of small and medium-sized enterprises. An up-to-date analysis of small and medium-sized enterprises was carried out and the corresponding steps for creating an effective innovation potential of small and medium-sized enterprises were provided. The key elements of innovation potential are presented, namely: resource base, organizational structure and culture, research and development (R&D), information support, patent and licensing activities, innovation marketing, innovation management. Innovative potential is a key factor for ensuring long-term competitiveness and success of the enterprise on the market. It allows the company not only to respond to changes in the external environment, but also to actively form new market opportunities.

Purpose – The purpose of this paper is to discuss the value of scenario planning to small and medium size enterprises (SMEs), and further examine the challenges constraining the uptake of scenario planning by SMEs. Design/methodology/approach – A conceptual review of the literature on scenario planning in SMEs intended to unpack and capture the possible underlying reasons accounting for the limited uptake of scenario planning by managers/owners of SMEs has informed the formulation of this paper. Findings – The study uncovered that SMEs’ managerial mental models, SMEs’ managerial time orientation, severe resource constraints, and industry complexity are some of the salient factors inhibiting the use of scenario planning among managers/owners of SMEs. The author develops a framework of propositions that account for the complexity and challenges of scenario planning by SMEs for future empirical examination and validation. Originality/value – The conventional wisdom is that scenario planning is carried out by large and established firms, and that SMEs are unable to adopt and practice the technique. This paper uncovers that SME have substantial needs for scenario planning, but are only able to engage in simple foresight activities such as brainstorming, desk research, networking and expert interviews to monitor their external environment. They are unable to effectively use scenario planning in its purest form as in large firms. By bringing together the reasons accounting for the difficulty of SMEs to practice scenario planning in its purest form as large firms do, the study therefore extends the limited discourse on scenario planning among SMEs. Implications are discussed and areas for future empirical studies provided.

Resource support of innovative small and medium-sized enterprises for space industry development in Russia

Small and medium-sized enterprises (SMEs) can promote the development of the national economy and society. In the market, small and medium-sized enterprises can provide jobs, promote technological development and accelerate economic growth. With the development of big data and management information systems, small and medium-sized enterprises are facing severe tests. Innovation management is an implementable way to meet this test. Innovation management is an all-round innovation from the main technology, system and management idea of an enterprise. It not only integrates the external resources of the enterprise but also improves the vitality of the enterprise itself and the ability to deal with risks. Therefore, this paper analyzes the problems and countermeasures of innovation management in SMEs in China. By using the method of a literature review, this paper expounds the requirements, current situation, and solutions of the innovative management of Chinese small and medium-sized enterprises and finally draws the conclusion that SMEs should innovate organization and ideas, widen financing channels, and enhance the ability of independent innovation.

This case study used a technology readiness level (TRL), market attractiveness level (MAL), and customer readiness level (CRL) to measure the prospect of promising products. The TRL, MAL, and CRL were measured using Delphi methods. A TRL is composed of basic research as well as experimental, prototype, practical, and commercial stages. A market attractiveness level is made up of global market size, global market growth rate, and government policy suitability. A customer readiness level was measured using consumer preference. The promising products were mainly selected as information communication and software related products. Among the technologies and products announced by domestic and foreign organizations, products suitable for research and development tasks of small and medium-sized enterprises were selected. The results of this case study are expected to be committed for the enhancement of the success rate of commercialization for small and medium-sized enterprises by being dedicated to the R&D planning of small and medium-sized enterprises in the ICT (Information and Communication Technology)/SW (Software)) field and proposing a direction to pursue the business. The purpose of this paper is to propose an approach to measure the prospect of promising products by using three levels: TRL, MAL, and CRL, which are measured using Delphi methods. This approach aims to enhance the success rate of commercialization for small and medium-sized enterprises (SMEs).

This research set out to determine how e-commerce affects Malaysian SMEs and what reasons prevent more SMEs from adopting this business model. The conceptual framework and research hypotheses were developed after an extensive literature review. Two hundred and fifty Malaysian SME owners and managers were surveyed using a questionnaire, and the collected data was analyzed using descriptive and inferential statistics. The main results showed that the adoption of e-commerce among Malaysian SMEs is highly influenced by personal, technological, organizational, and environmental variables. Researchers concluded that personal characteristics were the most influential, followed by those related to the workplace and the surrounding environment. Together, these characteristics accounted for 56.5% of the variance in e-commerce adoption among Malaysian SMEs. Important implications for policymakers, researchers, and practitioners in Malaysia who want to encourage e-commerce acceptance and growth among SMEs were drawn from the results, which add to the current literature on e-commerce adoption in SMEs. The report concluded with suggestions for targeted interventions and support programs to increase the competitiveness and growth of small and medium-sized enterprises (SMEs) in Malaysia through e-commerce. The study's findings helped advance Malaysia's economy as a whole and ensure the digital sector continues to thrive.

Regional Context of Small and Medium-Sized Enterprises’ Development: Case Study of Southern Poland

Small and medium-sized enterprises (SME) in the food sector play a pivotal role in contributing to the developing county's economy. In order to improve a small and medium-sized enterprises (SME), one key driver is innovation, and for innovation initiatives to grow and succeed, they depend largely on the leadership and the innovation capabilities of the firm. This chapter will shed more light on the impact of the enhanced innovation process on the performance of small and medium-sized enterprise (SME) bakeries. A qualitative study was conducted on 186 registered bakery owners/managers of bakeries. The results indicated that the relationship between enhanced innovation process and output level in small and medium-sized enterprises (SME) bakeries are significant. It has been revealed that the workforce's professional behaviour, the acquired competency through training, and the rewarding systems moderate the relationship between enhanced innovation process and output level in small and medium-sized enterprise (SME) bakeries.

The agro-processing Micro, Small, and Medium-Sized Enterprises (MSMEs) form an integral part of the manufacturing sector in Uganda. To effectively facilitate product certification among MSMEs, there is a need to fully understand the nature of their operations so that appropriate interventions can be put in place. This study assessed the status quo of operations at selected MSMEs in Uganda. A semi-structured paper-based questionnaire was administered to the owners, managers, or supervisors of the 40 selected agro-processing MSMEs enrolled under the project "Empowerment of the Agro-Processing Industry to meet the Quantity and Quality Standards for the Local and Export Market", a programme enhancing the practical skills of students at Makerere University dubbed the "EAPI Project." The seven-section questionnaire consisted of both quantitative and qualitative questions focusing on (i) product optimization, (ii) raw material verification and storage, (iii) good manufacturing practices, (iv) measuring and testing equipment, (v) product assessment, presentation, and storage, (vi) waste and pest management, and (vii) infrastructure and energy utilization. The results indicate that only 23.7% of agro-processing MSMEs clearly understood the standards. Packaging was the most optimized parameter (74.4%), followed by texture and sensory properties (59% and 51.1%, respectively). About 74% of the agro-processing MSMEs were compliant in declaring the raw materials on the product label. Results indicated that maintenance of valid medical certificates, routine inspection of personnel, and provision of protective gear ranked low, with a score of 1 out of 10. Inadequate documentation was a cross-cutting issue for all operations, yet it was a driver for GMPs. There is a need to strengthen the understanding and practice of Food processing standards from the Uganda National Bureau of Standards (UNBS), in the agro-processing MSMEs through continuous human and institutional-capacity development programs.

PurposeAlthough there has been a surge in the adoption of building information modelling (BIM) in the construction industry, the small and medium-sized enterprises (SMEs) are still struggling and perceive its adoption as risky. The SMEs in developing economies are especially on the disadvantaged side of the digital divide. Extant studies have focused on large firms and there are scanty studies on the influence of the external environments on BIM adoption in SMEs. Thus, this study espouses institutional theory (INT) to examine the influence of coercive, mimetic, and normative pressures on BIM awareness and adoption in SMEs.Design/methodology/approachA quantitative approach was employed, and data were collected from the Nigerian construction SMEs via an empirical questionnaire survey using a sequential stratified and convenient sampling method. Hypothesized relationships between the coercive, mimetic, and normative pressure and BIM in SMEs were empirically tested using the partial least squares structural equation modelling (PLS-SEM) technique and the model was validated with the “PLSpredict” procedure.FindingsThe results revealed that coercive and mimetic pressures significantly influence BIM adoption in SMEs while normative pressures have the strongest influence on BIM in SMEs. Also, BIM awareness is an important predictor of BIM adoption. The findings also shed light on the influence of firmographics on BIM awareness and adoption in Nigerian SMEs.Originality/valueThe study empirically validates the applicability of INT and highlights that BIM adoption is not only influenced by internal responses to the need for efficiency but also by external pressures. It implies a clear need for intentional isomorphic pressures in driving BIM adoption in SMEs. The study employs the INT to explain a phenomenon that has not been theoretically explored in the context of SMEs in developing economies. Lastly, the study provided valuable insights into driving BIM adoption, together with the effective practical implications for implementation and potential research areas for further studies.

Purpose: This study investigates the role of commercial bank loans on the performance of small and medium-sized enterprises (SMEs) in Morogoro Municipality, Tanzania. It examines how commercial bank loans affect SME financial performance, providing a comprehensive understanding of how financial support from banks influences SME growth and sustainability. Design/Methodology/Approach: The study adopted a quantitative approach. It utilized cross-section data collected from a sample of 92 SMEs in Morogoro municipality. The collected data were descriptively analyzed using SPSS version 25. This analysis aimed to evaluate loan accessibility, determinants of loan choice, and the effect of commercial bank loans on key financial metrics such as profitability, cash flow management, and business growth. Findings: The study reveals that although many SMEs perceive commercial bank loans as easily accessible, others encounter significant barriers, including high interest rates and stringent collateral requirements. The study also reveals that commercial bank loans have mixed effects on SME performance. While they positively impact revenue generation and asset growth, their effects on profitability and business expansion are inconsistent. Originality/Value: This study contributes to the existing literature by providing nuanced insights into the role of commercial bank loans in SME performance within a Tanzanian context. It highlights the challenges SMEs face in accessing financial support and the varying impact of bank loans on their financial outcomes. The study findings are relevant for both policymakers and financial institutions aiming to improve loan accessibility and support SME development. Policy Implications: The study suggests several policy implications, including the need for banks to simplify loan application processes, offer more flexible loan products and address high interest rates that hinder SMEs access to finance. Additionally, it emphasizes the importance of building strong relationships between SMEs and financial institutions and leveraging financial advisory services to enhance loan utilization and overall business performance.

Small and Medium Enterprises (SMEs) are pivotal in propelling the Indonesian economy. The stability and sustainability of economies in different regions have been greatly affected by the worldwide economic issues that have emerged due to the COVID-19 pandemic. One of the identified repercussions can be witnessed in the culinary sector of small and medium-sized enterprises (SMEs) in Langsa City. Thus, this study examines the effect of internal and external factors on the performance of Small and Medium Enterprises (SMEs) operating in the culinary sector within Langsa City. Additionally, this research aims to evaluate and propose strategies for enhancing the performance of SMEs in the culinary industry by employing a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis framework specifically tailored to the context of Langsa City. The present study uses a qualitative research design utilizing a case research approach. Data is gathered by distributing questionnaires, conducting in-depth interviews, and assessing validity through source triangulation. Based on the findings of the study, it was determined that the Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS) about the performance evaluation of Small and Medium Enterprises (SMEs) operating in the culinary sector in Langsa City have not yet reached their maximum potential. This conclusion was drawn through the application of SWOT analysis. This observation may be due to the outcomes of the Cartesian diagram utilized in the SWOT analysis. The chart reveals that quadrant II exhibits the highest cumulative score, suggesting several risks encountered by the business stakeholders. However, the culinary small and medium-sized enterprise (SME) actors have internal strengths. To boost the performance of Small and Medium Enterprises (SMEs) in the culinary sector, it is imperative to employ a Strengths-Threats (S-T) approach that focuses on implementing product diversification techniques.

Purpose Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive in the long term. So, this study aims to present a model for sustainable growth that bridges the gap between desired growth and managerial competencies. By configuring university helix-induced crowdfunding and opportunity recognition competencies with industry helix-driven innovation, the study encourages a quadruple bottom line (QBL) strategy, helping SMEs attain competitiveness for sustainable growth. Design/methodology/approach This pilot study used a sequential mixed methods design and adhered to the pragmatic research paradigm. A survey of 52 SCORE-listed manufacturers yielded quantitative data, complemented by qualitative interviews with 7 SME decision makers. This study used NVivo 10 and SmartPLS 4.0 for the necessary analysis. In addition, an effective triangulation strategy has been implemented to explain causation among selected variables. Findings The findings show that opportunity recognition and crowdfunding are positively associated with SMEs’ ability to grow in a sustainable manner and that exploitative and explorative innovation also mediate those relationships. The qualitative part highlighted key insights for successfully applying this model in Malaysian SMEs. The interview results also suggest that corporate spirituality might help SMEs adopt sustainability-focused practices. Research limitations/implications More research is required regarding both the methods and results of this pilot study. Although conducting a pilot study increases the likelihood of success in the main study, it does not ensure it. Practical implications This study equips Malaysian SMEs with a roadmap for achieving sustainable growth. The obtained findings indicate that Malaysian SMEs that develop strong crowdfunding and opportunity recognition competencies are more likely to achieve innovation-focused long-term survival. In addition, incorporating corporate spirituality can enhance their economic, social and environmental performance. Social implications By supporting more innovation in SMEs, which can improve sustainability-oriented successes and support a healthy economic system, these findings may have a beneficial social change impact. The concept may also act as the foundation for SMEs’ promotion of the SDGs. Originality/value The study uniquely offers a holistic growth model for Malaysian SMEs founded on the helix-QBL understanding that explains a firm’s sustainability-focused competitive advantage.