Small and medium enterprises (SMEs), the bedrock and engine of Bangladesh’s economic growth, did well throughout 2015. Realizing its potential, both the government and the Bangladesh Bank are putting significant emphasis on SMEs by providing various stimulation initiatives. Put together, all the banks and NBFIs disbursed a total of Taka 1.16 trillion in 2015, exceeding the target set by the Bangladesh Bank by 10.79% and thus served60 SME sectors in such industries as light engineering, handicraft, flower and fish processing, handloom, rice mills, jamdani, Rajshahi silk, khadi, biogas and compost fertilizer, among others (annual report, 2016). It is obvious that SME sector will grow further in near future but this growth will sustain if some recommendation fulfilled. Some of the basis recommendation are given below, which will help to flourish SME in Bangladesh along with the E- Commerce sector.
1.3.3. Survey Instrument: The survey instrument (questionnaire) was administered among the respondents in the different organizations of Bangladesh. A 31-item questionnaire was designed by the researchers to gather primary data. The respondents were asked to rank each item on a 5-point Likert scale (5=strongly agree----, 1=strongly disagree) to identify key factors responsible for women entrepreneurship development in SME. In this study, “Factor Analysis” (Principal Component Varimax Rotated Factor Analysis Method) was used to reveal the major dimensions of women entrepreneurship development.
development, employment generation and poverty alleviation for any least developed country like Bangladesh. SMEs located at different clusters of Bangladesh are contributing in generating employment and income for the workers and producing import substitute product simultaneously. Realizing the full potential of SME cluster development in Bangladesh, it is important for all stakeholders to sit together and find out a concrete solution for the identified challenges of SME clusters. Recommended action plan could be catalyst to enhance productivity, increase efficiency, quality, acceptability, market linkage of SME products of Bangladesh. The action plan is designed with Short term (up to 3 year), Mid-term (3-5 years) and Long term (5 and more) recommendations for fostering cluster development of SME in Bangladesh with a vision of employment generation and poverty alleviation.
Hamill and Gregory (1997) report on “ results of a large-scale survey which examined Internet marketing applications in the inter-nationalisation of UK SMEs. Although there are some examples of innovative practice, few UK SMEs are utilising the full potential of the World Wide Web (WWW) in international marketing. In this respect, practice in the UK lags several years behind that in the US. Given that the Internet will have a revolutionary impact on the conduct of international trade, a major education and training initiative is required to improve knowledge and understanding in this area and to encourage more effective use of the Internet to support SME internationalisation. In the absence of such an initiative, a further decline in the UK's international competitive position can be expected as other nations embrace the global marketing opportunities made possible by the Web .” Clearly since Hamill and Gregory reported on these findings in 1997 the internet and the growth of social media has transformed the internationalisation strategies and marketing activities of SMEs. They have proven to be tools of empowerment in that they have helped level up the playing field on which SMEs compete with larger businesses. Facebook is a prime example of the disruptive technological change and transformations that have occurred through use of social media. Many SMEs use Facebook and Ainin, Parveen, Moghavvemi, Jaafar and Shuib (2015, p. 570) report that their “ - - - study revealed that Facebook usage has a strong positive impact on financial performance of SMEs; similarly it was also found that Facebook usage positively impacts the non-financial performance of SMEs in terms of cost reduction on marketing and customer service, improved customer relations and improved information accessibility. Additionally, factors such as compatibility, cost effectiveness and interactivity was identified as factors that influence Facebook usage among SMEs.”
There are also specific transaction- and asset-based lending techniques that can be useful for catering to smaller and informationally more opaque companies. Leasing can be a prominent instrument for SME financing, especially for Africa. First, collateral requirements have been well documented as one of the main impediments that prevent African SMEs from accessing traditional forms of financing needed to acquire machinery and equipment. Leasing is asset-backed and its applications are often assessed based on the project’s capacity to service lease payments. Accordingly, businesses and entrepreneurs that are denied traditional banking and commercial credit due to their lack of credit history and inability to provide sufficient guarantees can find a new financing alternative in the leasing market. This can also bring more businesses into the formal sector. Second, unlike bank credit, leasing directly provides the asset instead of financial resources needed to acquire it, which reduces the possibility to divert funds from their intended purposes. Leasing contracts involve less paperwork and more relaxed credit requirements as well, which leads to shorter waiting periods than for bank loans.
cent), although informally, stakeholders acknowledge that overall SME loan default figures in the banking sector of Bangladesh are between five and six per cent. The findings of this research indicate that general strikes and blockades, sales on credit, high competition, lack of business capital, slow seasonal sales, issues such as fund diversion and willful default were cited as major factors in the high rate of SME loan default. Providing bank officials high credit disbursement targets, especially in rural areas, also contributed to default, as higher loan sanctions than small entrepreneurs could subsequently handle often resulted in misuse and/or diversion of funds and ultimately in loan default. Lack of awareness regarding various fees and charges for loan processing purposes deducted at the outset was also found to be a problem: this made it more difficult for SMEs with monthly repayment schemes to meet payments beginning in the first month after the loan was sanctioned during a period of frequent political shut-downs. A lack of awareness regarding the high levels of interest charged was also observed. SMEs simultaneously taking out high-interest NGO loans while also being an SME loan recipient also contributed to the high incidence of loan default.
Integration of IT innovation into business processes of SMEs is a major component of transformational strategy for advanced economies providing competitive advantage over developing countries like Nigeria. It is important to note that there abound evidences of high indices of overall growth for countries where SMEs adopt or display pragmatic attitudes towards IT innovations. The global ICT ranking of Nigeria in global competitiveness continues to decline, underscoring the magnitude of task in achieving vision 2020. The 2013 World Economic Forum (WEF) report on global information technology shows that Nigeria ranks 113 out of 144 countries surveyed for the Networked Readiness Index (Ajanaku, 2013). This alarming report exposes our technological unpreparedness, economic vulnerability, policy loopholes and slow integration of IT necessary to launch Nigeria into sustainable economic prosperity. The SME dispositions are perceived as largely responsible for our low ranking IT global competitiveness. The 2012 Enterprise Baseline Survey shows that SMEs account for half of the Nigeria’s gross domestic product (Elebeke, 2012). In view of the forgoing; does a correlation exist between SME attitude towards IT innovation and viability of the sub-sector? In other words, are there any significant improvements in SMEs that display pragmatic attitude towards IT innovation via integration? What are the factors, if any, affecting the slow integration of IT innovations within the SMEs? These are the concerns this work seeks to address.
Broadly, independence is looked upon unfavourably by SMEs, though this could be due in part to uncertainty surrounding potential changes. Many businesses are still in need of further information about the impact independence would have before they make a decision. Of the SME decision makers and owners who voiced concerns about independence, its potential effects on
There are several grounds for favouring simplicity and consistency in SME policy delivery. The first is that SMEs are of a simple organisational form, at least in comparison with larger enterprises. Hence SME policy instruments should not be complex if they are to be understood and implemented by smaller firms. The second is that SME owners, since they have a business to run, regard themselves as having little time with which to engage with government. They do not have the resources, unlike many large enterprises, to employ specialist individuals for this purpose, so policies that are subject to frequent change are likely to be ignored by SME owners. A third reason is that, in general, the owner of an SME considers him or herself to be of a practical disposition focussed upon customers rather than governments. For all these reasons it might be expected that SME policy would be simple, easily understandable and cost effectively delivered.
Rand. J. and Tarp. F. (2007). “Characteristics of the Vietnamese Business Environment: Evidence from a SME Survey in 2005”. CIEM publication. Ha Noi. Available at http://www.ciem.org.vn/home/en/upload/info/attach/1184569268315_Characteristics_of_the_Vi etnamese_Business_Environment._Evidence_from_SME_survey_in_2005_BSPS.06.02.pdf. See also the 2002 data and survey documented at http://www.econ.ku.dk/rand/images/VNDodumentation02.pdf
Few countries report no specific interest in SME statistics. User interest and needs are quite diverse and NSOs have adopted different response strategies. Australia has conducted a household- based survey to gather demographic and structural data on areas such as home-based businesses. Austria, the Slovak Republic, Sweden, Switzerland, Turkey and the US compile specific products on demand. Canada and New Zealand have a specific programme for gathering data on SME financial aspects. In France the statistical department in charge of dissemination is integrated in the Ministry that conducts SME policies. Portugal also considers the Structural Business Survey results as key vehicle for a comprehensive dissemination of SME data. Switzerland intends to improve structural business statistics to more fully capture breakdowns by size-classes. The UK has launched the Urban Renewal Programme to meet demand on SME statistics.
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The sewing machine industry in Wanping, Hengshan began in the 1970s, continued on till the 1980s, and developed in the 1990s. Since then, SME clusters have been formed, which are marked by a closely coordinated production chain, strong collaboration among the small enterprises involved, strong and independent R&D efforts, and orientation to the domestic and international markets. Today there are over 30 sewing machine manufacturers and 162 related spare parts makers, who rely on a full gamut of production operations. The output of middle standard and thick-material sewing machines in Hengshan accounts for 30 percent of the total national output. At least 4,000 varieties of spare parts are produced in this town. Now the industry in Hengshan has over 170 patents, of which 30 to 40 patents are used every year.
We are of the considered opinion that the building-up of direction and control based upon self-regulation instead of ever more state controls, will contribute added value to Swiss small and medium-sized enterprises and the Swiss econo- my. Self-regulation actually has a different objective: striving for the best possible SME practice instead of mere compliance with statutory minimum requirements. The effort of SMEs to measure themselves against high quality objectives will not only further the Swiss SMEs in international competition but also serve to ensure ongoing employment and social prosperity.
SME Disk does not allow dynamic resizing of LUN. For Release 5.2.1, the maximum supported disk size is one block less than two terabyte (TB). The maximum LBA is 0xFFFFFFFE.From Release 5.2.6, the supported disk size for signature and nonsignature mode clusters is greater than two TB. SME Disk only supports disk block size of 512 bytes.For Release 5.2.1, SME Disk does not support online conversion of existing clear data on the disk to encrypted data.
An important step made in 2002 was the creation of National Fund of Credit Guaranteeing. Twinning with the most important Romanian commercial banks has been consolidated, determining a strongly increase in credit operations and higher potential investment capacities for the SME, facilitating the access to loans when the guarantees offered by SME are insufficient. By the guarantees offered, this Fund has contributed to the maintanance and creation of 35.000 workplaces. The first three positions as far as concerns the fields of activity of the supported SME were commerce, services and constructions.
SMEs are considered high-risk borrowers by lending institutions due to their size, volatility and opacity (Berger & Frame, 2007; Meisenzahl, 2014; Vanacker & Deloof, 2013). SMEs face difficulty in obtaining necessary financing from financial institutions to support their working capital and growth expansion needs. Research has shown that due to the high degree of information asymmetry associated with SMEs, loans given to SMEs are charged a high level of interest and are often guaranteed by the personal assets of the business owner (Apilado & Millington, 1992; Kirschenmann & Norden, 2012). Apilado and Millington (1992) also find banks subject SMEs to high interest rates and restrictive loan covenants based on their size because they do not have a reliable means of estimating the required returns on SMEs’ risk. In their research on minority business owners in the United States of America, Cavalluzzo, Cavalluzzo, and Wolken (2002) find the high rejection rates on loan applications by SME owners discourages some SME owners from even asking banks for a loan. The high risk associated with these SMEs hampers their ability to obtain financing. Financing is important for SMEs to fund their working capital cycle (Ardic et al., 2012; Bates & Robb, 2013). Without the funds to support their funding deficit, SMEs are even more likely to fail, creating a vicious cycle where because SMEs are prone to failure due to lack of funding, funders are discouraged from providing crucial funds to SMEs to support their operations.
The purpose of the Business Angel (BA) element of this study was to explore the opinions and experiences of the Angels operating within the North East region, specifically with regard to their investment motivations, deal flow, criteria, training needs and key challenges. For this part of the study it was important to gather in-depth data from Business Angel investors with various levels of experience as angel investors. In order to gain access to this group, there was a need to first discuss the research with gatekeepers, in an attempt to obtain their support in accessing individual investors and with the study as a whole. Thus initial informal interviews were arranged with the managers of all the Business Angel intermediaries operating in the North East. Through a combination of introduction from intermediaries and researchers‟ searching through their own networks, a total of 36 Business Angels were identified and approached. From these approaches, 12 semi-structured interviews eventually took place with a range of representatives of the main types of angel investor. In order to gain access to SMEs for participation in both a focus group interview and a subsequent survey, a number of SME and entrepreneurship networking groups/intermediaries were contacted. Through various intermediaries, the senior representatives of ten local SMEs were invited to take part in the focus group with eventual attendance by seven. The participants were purposefully selected to deliberately diverge according to a variety of factors, so the focus group would ultimately include a mix of new and established SMEs of differing sizes from a range of industry types and locations. This same group were also asked to pilot the resultant questionnaire.