Regional Financial Development and Micro and Small Enterprises in Peru

This study aims to examine the impacts of ownership and innovation on the sustainable development of micro and small enterprises (MSEs). Using the dataset from the 2015 China Micro and Small Enterprise Survey, this study divides the ownership of MSEs into state ownership, collective ownership, private ownership, and foreign ownership. In this study, the sustainable development of MSEs is measured by four sets of variables, sustainable operation, sustainable profitability from operations, sustainable profit input, and sustainable production or operation input. The Result suggests negative associations between the ownership of state-owned enterprises as well as collective-owned enterprises and MSEs’ sustainable development. Furthermore, public ownership also negatively contributes to MSEs’ sustainable development. Concerning the ownership of non-public-owned enterprises, while private ownership enables MSEs to develop sustainably, foreign ownership is not conducive to MSEs’ sustainable development. Besides, the result also indicates that innovation positively contributes to the sustainable development of MSEs. Moreover, this study offers implications for policymakers to take measures in promoting reform of mixed ownership as well as innovation to enhance MSEs’ sustainable development.

Adoption of technology can enhance the development of micro and small enterprises (MSEs). But in Ethiopia, there is a very low adoption of broadband connections, mobile phones, computers, printers, scanners, copiers, and other technologies by MSEs. The main objective of this study was to identify the determinants of technology adoption by MSEs in Northwest Ethiopia. Cross-sectional data were collected from 327 MSEs selected using the stratified random sampling method and analyzed using the Heckman two-stage model. The first stage probit model estimation results showed that sex, educational level, source of start-up capital, size of the enterprise, and whether the owner of the enterprise has had technology related trainings were significant factors determining technology adoption decisions of MSEs. The second stage estimation results showed that sex, education level, experience, age, family size of the owner, and access to credit significantly influence the degree of technology adoption. The findings indicate that MSEs need more education (information) on technology, greater access to credit, and incentives provided by the government of Ethiopia and other agencies in order to increase their adoption of technology.

This study investigated the influence of microfinance institutions (MFIs) on the development of micro and small enterprises (MSEs) in Kebridehar City Administration. The objective was to assess the role of MFIs in the growth of MSEs, specifically focusing on aspects such as loan provision, financial skills training, role modelling and savings mobilisation. The researchers collected data from 170 MSEs that utilised the services of MFIs, using both secondary and primary sources. Descriptive and inferential statistics were employed to analyse the data, revealing that loans, financial skills training, savings mobilisation and role modelling all had a significant impact on the growth of MSEs in the city. This study enhances our understanding of how these factors contribute to the development of MSEs.

The research aims to assess the human resource development of Micro and Small Enterprises (MSEs) in the wetland area of Siak Regency.The study uses a qualitative method with 50 samples spread across four subdistricts. The results reveal a relatively good level of education, but many MSE workers lack work experience. There are weaknesses in product development, innovation, market understanding, and information technology use. The lack of optimal training and monitoring of HR development complicates the situation. MSEs consider financing crucial for business development but face obstacles in access and high interest rates. There is a lack of special financial products for HR development and minimal role of financial institutions in providing information and consultation.To address these issues, eight HR development strategies are proposed, including partnerships with educational institutions, regional governments, and Village-Owned Enterprises (BUMDes), special financing programs, regional superior local products, diversification, product innovation, and CSR partnerships.

This chapter aims to examine the development of women entrepreneurs in Indonesia with the focus on their personal motivations or initial reasons to own businesses and their main constraints in doing business. The chapter is based on literature review, secondary data analysis from Indonesian National Statistics Agency (BPS) and some international/regional organizations, and a small field survey of women owning micro and small enterprises (MSEs) in the Greater Jakarta area. It reveals from the secondary data analysis that despite the growing number of women-led businesses, the gender gap in entrepreneurship in Indonesia still persists. Findings from the field survey show that many of the respondents run their own businesses as a means to survive, and limited access to finance is the most serious constraint faced by the respondents, caused by their lack of valuable assets as collateral. The results may potentially have profound impact on women entrepreneurship policy and equality policy.

Purpose Online social media platforms offer valuable, low-cost marketing tools for acquiring, retaining and growing customers for micro and small enterprises (MSEs). However, MSEs have been slow to adopt social media marketing as part of their traditional marketing strategy. The purpose of this study is (1) to examine the process of social media marketing adoption by MSEs in an emerging market using the Technology-Organization-Environment framework and (2) to investigate the impact of social media marketing adoption on MSEs' marketing outcomes and overall firm performance. Design/methodology/approach Data for the study (n = 1,472) were collected directly from a registered list of MSEs operating in the country. Structural equation modeling was used to test all relationships identified in the conceptual model. Findings Our findings indicate that MSEs' perceptions of technological, organizational and environmental factors positively influence their adoption and use of social media marketing. Moreover, the adoption of social media marketing by MSEs significantly enhances overall firm performance, including total sales volume, profits, market share and return on investment by improving marketing outcomes such as customer service quality, perceived product value, customer retention and the ability to attract new customers. Originality/value This study contributes to the evolving research streams on MSEs' adoption of social media marketing and the role of relationship marketing practices on market and financial performance. By integrating these two research streams, it provides insights into how MSEs can enhance relationship marketing and firm performance by leveraging technological, organizational and micro-environmental (market) factors, consistent with resource-based view theory. Managerial implications and directions for future research are discussed.

As part of the industrial sector, micro and small enterprises (MSEs) are increasingly becoming popular and important in the Ethiopian economy as they would play a decisive role in contributing to employment generation, poverty reduction and the opening of wider distribution of wealth and opportunities. The main objective of the study was to identify factors that influence growth of micro and small enterprise in Ambo, Bako, Gedo and Ginchi towns. These towns were selected from West Shoa Zone towns depending on greatly inhabited enterprises. Thus, a sample of 294 micro and small enterprises was determined and proportionally allocated to each area or town. A systematic sampling technique was used to select a list of micro and small enterprises from each category that formed representative sample. Data were collected using questionnaire then SPSS software employed to analyze. The study employed Chi-square technique to test associations between dependent and explanatory variables. We have implemented logistic regression to evaluating the probability of growth of MSEs. The descriptive analysis revealed from a total of 309 enterprises 105 (34%) were found to be growing while the remaining 204 (66%) did not. Logistic regression model result indicated that among the variables sex, marital status, age, educational attainment of the manager/owner, prior experience of the manager/owner, access to credit and training, major activity (sectors), accesses to market linkage, infrastructures were selected as predictive variables. MSEs whose manager /owner attained high education and training, more experienced prior, those engaged in manufacturing and construction sectors, who had get more accesses to credit, market linkage and adequate infrastructures were performed better growth. Hence, concerned government officials, and other economic development players have to work in hand in the area of training, availability of finance, and formation and business sectors of MSEs in the country.

The aim of this research investigate the role of Micro, Small and Medium Enterprises(MSMEs) which are considered very important because they are able to absorb labor and become apillar of the economy for many people, but MSMEs also cannot be separated from problems thatmust be faced, including: lack of lack of quality human resources. owned, lack of business capitalowned and lack of knowledge of MSME business development. The purpose of this study was toexamine the effect of the quality of human resources, business capital, on the development ofmicro, small and medium enterprises.This research used a qualitative approach with the type of associative research. Data werecollected through a questionnaire method with a Likert scale. The number of samples used in thisstudy were 50 respondents, namely Sasirangan SMEs in Banjarmasin City. The next stage, thequestionnaire data was analyzed by multiple linear regression which had previously met thevalidity test, reliability test, and classical assumption test, then t test and F test analysis.The results showed that: (1) the quality of human resources has a significant positive effect onthe development of micro, small and medium enterprises; (2) Business Capital which has nosignificant effect on the development of micro, small and medium enterprises (3 qualities of humanresources, business capital, together have a significant positive effect on the development of micro,small and medium enterprises.

Micro and small enterprises (MSEs) have an important role in supporting the national economy. Nevertheless, MSEs still have a major problem in its development, called limited capital. The presence of BPRS which is part of sharia financial institutions is expected to provide financing assistance for MSEs. The financing provided by BPRS is not only given in the form of equity financing but also in the form of debt financing. This study analyzes the effect of debt financing on MSEs development and also the factors influenceing the income and profit of MSEs after getting debt financing. The method used in this research is paired sample t test and Ordinary Least Square (OLS). The result of paired sample t test showed that the variable of earnings and profit of MSEs have significant change after getting financing. Furthermore, the result of analysis with OLS method showed that labor variable, amount of financing, profit rate, gender dummy, and education dummy have a significant effect to earnings and profit of MSEs

In Ethiopia, Micro and small enterprises (MSE) are recognized as important vehicles of economic growth, employment creation, and income generation. As a result, MSE occupy a prominent position in the development agenda of Ethiopia. The main objective of this study is to examine and analysis different major factors that cause for entrepreneur’s dropout from MSE business in Nekemte town. The total population of the study was 3,070 MSEs operating in five sectors (construction, manufacturing, urban agriculture, trade and service) which is used as a stratum. Proportional stratified sampling technique was used for the selection of 172 MSEs from the strata. Only primary data was employed and it was collected by using structured questionnaire from the selected respondents. The study shows that that 58.7% of entrepreneurs face members drop out from their business whereas the remaining of them does not. From the descriptive statistics analysis the study finding show that the most contributing factor for members drop out from the business has three dimensions. First, individual dimensional factor (like lack of need for achievement of the business and risk taking propensity of members, personal background and individual competence are the most in decreasing order). Second, business dimensional factor(the most serious factor that contributes for entrepreneur drop out from MSE business is slow growth of the business followed by supply and demand related factors) and the third external business environmental factors(are lack of work premises followed by access to credit, and tax system, societal attitude towards MSE product/services in decreasing order). The econometric analysis reveals that 10 of the 18 variables used for the binary logistic regression analysis are highly influential over the drop out of entrepreneurs from their business. The 10 significantly contributing factors are at 1 and 5% level of significance are sex of the entrepreneurs; age of the entrepreneurs; educational status; sector of the business; source of finance; form of the business; possessing business plan; existence of sufficient market for the product/services; networking capacity of the entrepreneurs; and corruption from MSE support institutions. The multivariate regression results shows that individual dimensional affects positively the drop out of entrepreneurs from MSE business significantly at one percent level of significance indicating that individual dimensional factors contribute the most to the drop out of entrepreneurs from their business in the study area.

Micro and Small Enterprises (MSE) have become the focus of attention for the economic development, economic growth and job creations in the world. Majority of the firms worldwide are dominated by businesses of micro and small enterprises. In developing countries, the informal sector that mainly establishes MSE remains the major source of employment and income for the urban population. A study was conducted to examine the performance of MSE in three zones of Tigray State, namely, Southern zone, Mekelle zone and Eastern zone. The data was collected using structured questionnaire on 246 MSE business owners. The data are analyzed using multiple linear regressions (dummy), Cross tabulations and chi-square test for test of independence. The result revealed that Gender, initial capital, enterprise and job type are found to be important factors of performance of MSE. There is a gender difference on sector type, education level and work sheds of micro and small enterprises business owner. The result also showed that initial capital has positively affected the performance of business owners and men headed business owners have better performance than female headed business owners.
 Keywords: Micro- and Small Enterprises, Performance, Gender, Tigray, Ethiopia.

This study examines the influence of workplace factors on creativity and innovation in micro and small enterprises (MSEs). The study is based on the componential model of organizational creativity to confirm the determinants of creativity of MSEs in the workplace setting. The study employed a quantitative research approach and a cross-sectional survey design via an adapted questionnaire to gather information from participants. The questionnaire was distributed randomly among 286 respondents from different micro and small enterprises in Woldia city. The results revealed that organizational encouragement, supervisor support, sufficient resources, and absence of organizational impediments are statistically significant and positively related to MSEs’ creativity and innovation; however, challenging work is statistically significant and negatively associated with creativity and innovation. The remaining variables, workgroup support and job autonomy have no statistically significant effect on MSEs’ creativity and innovation. This study is significant in that it enables managers to understand that creativity and innovation success depend on many interrelated variables in the workplace, which must be considered in establishing strategies that encourage and recognize creativity and innovation in micro and small enterprises. This paper contributes to the thin scholarly literature on creativity and innovation in MSEs’ workplace settings by investigating the influence of workplace factors on creativity and innovation.

The covid-19 pandemic has adversely affected the sustainability of micro and small enterprises (MSEs), with a particularly pronounced impact in Central Java. Entrepreneurs who struggle to adapt to reduced consumer purchasing power and the increasing reliance on digital technology are at heightened risk of business closure. Despite these challenges, inclusivity remains a crucial element for MSEs in fostering local economic development. Accordingly, this study seeks to examine the role of inclusivity in the sustainability of MSEs that are based on digital technology. Data were collected through the use of questionnaires and focus group discussions. Respondents were digital-based MSEs entrepreneurs from five selected regions, with Central Java having the largest number of digital media users. Key informants included experts from Diponegoro University, the International Council of Small Business (ICSB), the Department of Cooperatives and Micro, Small and Medium Enterprises at the provincial and district levels, and non-governmental organizations. The collected data was analyzed using the Rapid Appraisal for Micro and Small Enterprises (Rap-MSE’s) method. To assess the sustainability status, the study utilized several dimensions, including economic, environmental, social, institutional, technological, and inclusivity factors. Both multidimensional and individual analyses indicated that the sustainability status was relatively robust. MSEs that integrated digital technology into their operations were able to withstand the challenges posed by covid-19 and adapt to the new normal. In conclusion, the inclusivity dimension in the adoption of digital technology has gained increased importance in driving local economic development.

Micro and Small enterprises provide an essential role in the Philippine economy by creating more job opportunities that help reduce the country's poverty rate. However, with numerous competitors, MSEs with entrepreneurial distinctiveness only tend to continue their business operations. Thus, this study aimed to assess and understand the entrepreneurial competencies and distinctiveness of DTI-registered MSEs in selected areas in Cavite. This study utilized a descriptive correlation research design. A stratified sampling technique was employed to determine the specific quality of the participants. This study used 385 DTI-registered MSEs as respondents in selected Cavite areas. The study's findings stated that MSEs have enough entrepreneurial competence for the sustainability and continuity of their business operation. This study concluded that MSEs have more significant differences regarding the opportunity, organizing, relationship, and commitment than strategic and conceptual competency between the business profile. Thus, the researchers recommend that MSEs further develop the six dimensions of entrepreneurial competency mentioned in this study by attending training programs and seminars regarding the proper utilization and execution of entrepreneurial competencies that may increase business performance and growth. Moreover, local government agencies responsible for policy-making and related agencies conducting seminars and training programs consider proposing assistance to MSEs related to awareness and understanding of different dimensions of entrepreneurial competencies and proper utilization and generation of competitive advantage recognition of a business owner.
 Keywords: competency approach, entrepreneurial competency, entrepreneurial distinctiveness, micro and small enterprises (MSEs)

Micro and small enterprises (MSEs) are being considered as a vital to transform Ethiopia from dependence on agriculture. Accordingly, a number of MSEs policy documents sand strategies are promulgated and implemented since 2002. Nevertheless, the MSEs in the national development remains far below expectations. This is because the sector is plugged in a number of performance constraints. This study is entitled the Assessment of taxation on performance of micro and small enterprise (MSE) in Nedjo town. The main objective of this study is to assess the taxation on performance of micro and small enterprise in the case of Nedjo town using descriptive research design. The total population of the study is 94 MSE firms running their business in Nedjo town which are considered as the population for data collection. The study used stratified sampling procedures using the five sectors of the MSE firms as a stratum. In order to collect data, most MSE owners working in the position of manager and few MSE firm owner that work in the position accountants were contacted for data collection where MSE firms’ managers were not available at the time of data collection. Structured and standardized questionnaire is adapted from the work of previous researchers and data was analyzed by using statistical package for social science. The finding shows that age of respondents, tax system, tax rate, tax administration, tax level and tax education and training shows statistically significant positive impact on the performance of the MSE firms in correlation analysis. Also, the study found sex of respondents, age of respondents, educational status of respondents, tax system, tax administration, tax level and training shows a significant positive Assessment whereas tax compliance cost shows a significant negative Assessment on the performance of the MSE firms in regression analysis. Finally, the study recommended that tax administrators and tax policy makers are advised to improve existing tax system, tax rate, tax administration system, tax level, tax compliance costs as well as tax education and training so as to increase the performance of the MSE firms in the study area. Keywords : impact, MSE, Nedjo, performance, taxation, DOI: 10.7176/EJBM/12-34-06 Publication date: December 31 st 2020