The estimates of long run are reported in Table 3. The results reveal that GDP growth is positively associated with SME’s output and FDI while GE and CMR show indirect link with the GDP growth. We have found no evidence of long run relation between inflation and investment with GDP growth. The long run estimates confirm a positive and significant effect of output of SME sector on growth of GDP in the long time period. The positive link of SMEs to GDP is attributed to a number of conventional justifications as the economic fundamentals of various economies vary with the contribution of SMEs. Therefore, SMEs sector play its significant part to determine the growth of the GDP. Starting with the SMEs contribution in employment, it is the positive association between SMEs output and GDP is in line with the findings Oyeniran et al. (2015) and Bello et al. (2018). However; in developing economies such as Pakistan, the contribution of SMEs have not recognized its potential level. Turning to the other explanatory variables, the link between government expenditures and GDP growth has been questioned for decades and yet the association of these two has not clearly specified yet (Hasnul, 2015) in our model, we have found a negative and significant impact of government expenditures. This could be due to the fact that most part of the government expenditures in Pakistan is grabbed by the non-developed segment and a very little value amount is ascended for development expenditures, therefore, the aggregated impact of the government expenditures is found to be negative in the model. These results are in line with the findings of Alshahrani and Alsadiq (2014) and Butkiewicz and Yanikkaya (2011). Negative relation between interest rate and GDP growth supports Keynesian view, which shows that higher interest rate discourages investments that further decline economic growth (Ali, Saifullah, & Kari, 2015; Gul, Mughal, & Rahim, 2012).
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This paper studied the role of inter-organizational collaborations as facilitators of knowledge flows and innovation. The most important finding for managers is that Greek SMEs do not transform technological knowledge from their collaborations into exploratory or exploitative products. From the qualitative results, it is evident that Greek SMEs do not exchange sensitive technological knowledge with partners and they spend their effort to exchange trivial technological knowledge. The quantitative results indicate that the exchange of such trivial technological knowledge is detrimental to the innovation output as it wastes time and managerial resources. In other words, Greek SMEs have not developed a true open innovation capability when it comes to the exchange and development of technological knowledge, so they rely on the traditional closed model of innovation and their R&D departments. SMEs may be hesitant to apply the open innovation model because it can lead to many conflicts over IP, conflicts of monetization, direction of innovation and also revenue share unless iron clad agreements are in place. Risk sharing could also become contentious. So this study indicates that Greek SMEs do not see an open innovation policy for technological knowledge as an opportunity to improve on the low productivity of innovation in times of economic crisis, as indicated by Beneki, Giannias and Moustakas (2012).
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Small and medium scale enterprises (SMEs) play an important role in the Malaysian industrial development. SMEs comprise of more than 90 per cent of the total manufacturing establishments, contributing about 40 per cent of the total employments and 30 per cent of the total fixed assets in this sector. However, SMEs’ value added is very much lower than that of the large scale. A low productivity of physical inputs or factors efficiency may be attributed to low level of value added. In general the benefit gained from technological advancement and human resource development varies for different size and types of industry. Consequently, this leads to productivity differences of their physical inputs and quality of inputs. This paper aims to address this issue using data from the Manufacturing Industries Survey conducted by the Department of Statistics of Malaysia. The analysis will look at the source of output growth in different types of SMEs sub-industries.
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Uzbekistan is a progressively growing developing economy in Central Asia with the highest level of economic diversification and largest share of SME’s in country’s total output. Being the backbone of private sector, SMEs play central role in employment, value creation and income generation. Since two decades, the government has focused on SME comprehensive support schemes, which embraces SME support tools ranging from creation of business plan and registration of entity to privileged bank lending and investment and trade. Nowadays SMEs represent corporate relations in national business environment and is accepted as an etalon means for rural development through entrepreneurial activity. Some sectors related to the SME support policy offer tailored services for SMEs, e.g. preferred bank loans, trade finance tools, one-stop shop in firm registration, simplified and soft tax regimes. In this paper, effectiveness of Uzbekistan’s SME lending system is investigated with wider coverage of impact channels, which directly influence on their growth.
he significance of the Small and Medium Enterprises (SMEs) in the economic growth of many countries cannot be overemphasized. There is consensus of opinion that though the sector consists of individually small businesses, their total contributions to industrial development and national output is very significant (Roslida, 2011; Ogunsiji & Ladanu, 2010, Surienty, Hong, & Hung, 2010; Hong & Hung, 2010; OECD, 2004; NIPC, 2004). Researchers also support that SMEs help in the achievement of improvement in rural infrastructure, improved living standard of the rural dwellers, creation of employment and utilization of indigenous technology, production of intermediate technology and increase in revenue base of individuals and governments (Wahab and Ijaya, 2006; Odubanjo, 2000; Nnanna, 2001, Onwumere, 2000).
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This is the age of information technology where accessing information is the key to success for all businesses. Information is not vital to large enterprises alone. The Small and Medium Industries (SMEs) will also have to be go-getters in accessing information. While accessing information is essential on one side, it is also important to store them and access them whenever required. Understanding this trend, the big and giant web based companies like Google, Amazon, Salesforce.com came with a model named "Cloud Computing” the sharing of web infrastructure to deal with the internet data storage, scalability and computation (Kambi1, 2009). Cloud computing is a very useful tool for SMEs in India which constitute about 50% of the total industries and make a contribution of 70% to the GDP. In India 95% of the industrial units are SMEs which give over 50% of the industrial output (Popli and Rao, 2009). Thus SMEs form the backbone of the Indian economy Before we proceed to identify the opportunity and challenges faced by SMEs let us define and understand the concept of cloud computing. SMEs are said to be the lifeblood of any vibrant economy. They are known to be the silent drivers of a nation's economy. SMEs are leading the way for entering new global markets and for innovations in the emerging economic order. In India 95% of the industrial units are SMEs which give over 50% of the industrial output (Popli and Rao, 2009). Thus SMEs form the backbone of the Indian economy. SMEs of India are one of the most aggressive adopters of ERP Packages. Online services are better suited for small industries whereas large enterprises face more problems in implementation because of their complex functionalities and data security concerns (Dubey and Wagle, 2007).
In the period of 2013 - 2018, the Government has built and completed supporting policies for SMEs development in general and human resource development for SMEs in particular. The SMEs human resource training and development plan is integrated into the five- year, five-year socio-economic development plans of the ministries, branches and localities. Resolution No. 35 / NQ-CP of May 16th, 2016 on supporting business development up to 2020, affirming that enterprises are served as subjects, creating favorable conditions for people and businesses to start businesses, freedom to do business in industries that are not prohibited by law. Strong support and flexible mechanism in building an open, transparent, attractive and favorable investment environment for investment attraction and business development,
systems provide to the SMEs is the abundance of information that is available on the system. This availability of information assists the organisations to improve and retrieve real-time information which leads to taking accurate information at real-time. The financial data processing is increased through the ERP systems. The financial capability and the long and short term goals can be easily implemented through this system. As opined by Galy and Sauceda (2014), tracking and monitoring is an important aspect of strategic planning and organisational growth in the organisation. The ERP systems allow tracking the progress of each activity and function, which helps to understand the pace of the organisations and the steps they need to take to enhance productivity. The investments that are needed to be made related to employees can also be seen through tracking of the activities and progress of the employees. The optimal utilisation of the organisation’s financial strength is ascertained by the different functions of ERP systems. In the words of Lu et al. (2014), the greatest issue that an organisation can face as a result of implementation is the long amount of time that is needed. This is seen to disrupt the organisation’s regular activities. There are several organisations that are not sure of the objectives that they need to achieve in the long term. A change in the long term goals can lead to customisation in the ERP system software. This can lead to incurring high expenditure to the organisation which can disrupt the finance of SMEs as their financial capability is low. Gap in previous literatureThe previous pieces of literature that have been mentioned written have not been able to implicate the ways through which the ERP implementation can be done
Bank credit is considered to be more expensive as compare to other available sources of finance but it generates huge return for SMEs, further SME can perform better at all level under bank credit due to being monitored by and answerable to banks (Keasey and McGuinness, 1990). Since 2008-09 financial crisis, banks have imposed strict conditions on credit lending to SMEs. Another drawback is bank credit sanctioning is time consuming and also costly, in addition strict requirements of collateral. All these and other downsides have urged the researchers, and SME supporting agencies to look for other alternative available financing sources. Bank credit is regularly utilized by small organizations, though traditional bank funding postures difficulties to SMEs, specifically to start-ups, innovative and rapidly growing businesses, with a higher risk-return profile and this may also not be well suited on various life stage of firm’s lifecycle. Besides, banks will regularly require personal guarantee from the proprietor/directors of the SME, which implies the proprietor/directors need to risk his personal wealth with a specific end goal to subsidize the organization.
Investigation into SMEs financing choices often seeks explanation of the issue in term of firm characteristics (firm size, age, asset structure, profitability; to name a few) without considering one important aspects of small business and entrepreneurship which is the role of SME owner (Mac an Bhaird, 2010). Norton (1991) often cited by those researching financing behavior of SMEs (Coleman, 2008; Mac an Bhaird, 2010; Romano et al, 2000; Paul et al, 2007) to include the important of understanding managerial beliefs and its relation to firm’s capital structure. Norton (1991) cited by Mac an Bhaird (2010) stated that ‘In small businesses and entrepreneurial firms, managerial beliefs and desires will play an especially important role in determining capital structure….models must include the role of management preferences, beliefs, and expectations if we are to better understand capital structure policy’.
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The power system architecture of the EA shown in Fig. 1 is modelled in the SimPower™ Simcape™ systems environments to test the performance of the SMES-FCL devices under differ- ent fault scenarios. Based on the control topology, Fault #1 made the SMES-FCL device work in the FCL mode, while Fault #2 made the SMES-FCL device work in the SMES mode. To show different types of DC faults in the DC microgrid of the EA, a pole-to-pole and pole-to-ground faults are applied at the location of Fault #1, while Fault #2 is a pole-to-ground fault . The aircraft grounding method employed in this paper is based on a current return network (CRN) formed by the tradi- tional metallic aircraft structure, with additional cables where required, thus ensuring a low electrical impedance (max. 0.1 to 0.2 ohms) , .
Then, Table 1.1 shows the list of SMEs in Malaysia by state. Selangor is the highest number of SMEs which is 179,271. Then, from WP Kuala Lumpur which is 133,703 and Johor for 98,190 number of SMEs. According to Saleh et al, (2006), the central parts of the coutry are majority from the manufacturing companies in Malaysia. Then, lowest number of SMEs is WP Putrajaya which is only 1,236 of SMEs. As for this research, the researcher has been focused on Melaka SMEs which is the number of SMEs is 31,361 from the 907,065.
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Labour productivity output in civil engineering construction projects is an important aspect of civil engineering profession world-wide over many centuries. The use of civil engineering construction materials plays 60% role, while labour productivity output take 40% of the construction projects execution in construction industry. This account for the reason why multi- national companies spend huge sum of money every year to train and retain labour work force that is being employed for daily execution of activities that are carryout within the organization. Understanding and dealing with the human elements at construction sites is the very essential unit for a better performance and working environment, especially in Nigeria where labour productivity output has less regards. This paper assess labour productivity in civil Engineering construction projects in Nigeria, factors affecting proper labour productivity output, and the way forward.
DOI: 10.4236/ajibm.2018.83042 642 American Journal of Industrial and Business Management ent as a support for development. In this regard, enterprises in the process of shaping mobile Internet marketing personnel can use a combination of person- nel training and the introduction of qualified personnel . On the one hand, for mobile Internet marketers within the enterprise, to strengthen the training of personnel. In the formulation of training content, we must give full considera- tion to the development needs of internal talents, such as deepening their mobile Internet marketing awareness, training them mobile Internet technology. On the other hand, with the actual development of internal enterprises, actively intro- duce mobile Internet marketing personnel. In this regard, companies can em- ploy the relevant professional graduates, such as marketing, e-commerce cate- gory and so on. For SMEs, on the basis of introducing talents, they need to fur- ther train their talents and urge them to translate their theoretical knowledge into realistic marketing capabilities.
With the increasing volume of SMEs in Malaysia, the struggle for market shares between the small firms had been fierce. Considering the local markets saturation, the viable option left for the SMEs are to go global. However, in entering the global market, SMEs should adopt a good marketing strategy to successfully penetrate the global markets as without a good marketing strategy, firms would certainly have a tough time entering the market which may lead to failures. SMEs in Malaysia particularly have many learning opportunities and learning strategy to familiarize themselves with the global market.
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Therefore, in this research, the researcher will explore the innovativeness impact of market orientation of Malaysian manufacturing SMEs towards business performance. Besides that, this study will also identify the relationship between market orientation and business performance. According previous study from Narver & Slater (1990) and Kohli & Jaworski (1993), the market orientation does have positive impact on business performance. Hence, this research will be carry out in Malaysia to examine the innovativeness impact of market orientation of Malaysian manufacturing SMEs on business performance.
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One of the challenges of this study was the language barrier between the respondent and the research instrument, where some ethnic owner/managers had very limited knowledge of the English language, making it difficult for them to respond to questions during the completion of the self-administered questionnaires and the interviews. This language barrier was overcome in many cases by the researcher explaining the questions in more depth on the spot (in plainer English, in different ways or sometimes translating the question). Care was taken not to influence or direct the respondents when filling out the questionnaire in these cases. The researchers were also mindful of the cultural differences among eSMEs as these may also create barriers; for example, a handshake with a prominent Islamic female owner-manager was not acceptable. The results of this study may not be wholly transferrable to the wider ethnic-minority community in Ireland as the small sample is restricted ethnic minority SMEs in the midlands of Ireland (a similar restriction is seen in Hussain and Matlay (2007) and Altinay and Altinay (2008)). Finally, the sampling method had the potential to introduce bias by recruiting respondents from within the same social circle of the respondents. By employing a variety of techniques to develop a population list, the sample was broadened, and this reduced this potential bias.
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Craft products are incessantly providing creativity and innovation that are always developing. Small and Medium Enterprises are one of national economic security pillars. In developing countries, Small and Medium Enterprises (SMEs) play an important role to the national economy . The development and fostering of SMEs in developing countries is often part of the government's efforts to address various economic and social problems, namely: reducing unemployment, eradicating poverty, and distributing equitable income. According to , the superiority of SMEs in exports is dominated by hand-made products that rely on hand-made skills. One of Indonesia's flagship products is handmade batik. Batik is inherent with Indonesian nation as a national identity and is recognized as a distinctive clothing from Indonesia. It makes people who passionateto preserve the handmade batik is high so batik can be found, produced and used throughout Indonesia. Information technology is an accelerated media towards modern industry, in line with this, structured and good information technology systems can increase the ability to reach global markets . Batik artwork is an art branch which is rooted for centuries in high-quality Indonesian culture. It is capable to display a unique national identity so that batik works are one of local wisdom values wealth that need to be preserved and known by future generation so it can make Indonesia becoming the host in its own country , . Batik motifs created by batik maker are usually monumental and inspired by nature and environment around them so that the batik motif consists of two parts, namely the main ornament and isen-isen , . Local wisdom as a potential of national culture is the main attraction for batik makers, the extent to which he is able to represent ideological ideas into a work of painting through visual language .
Apart from financial start-up support, various other measures offer financial assistance to SMEs. These are most commonly linked to specific sectors or business activities and therefore are not accessible to all SMEs. Common instruments available to SMEs include: access to risk and venture capital, allowances and grants and loan guarantees.5 As to the latter D enm ark now offers guarantee facilities to development agencies that have equity in excess of 2.7 mill. ECU and which invest in SMEs. Previously this type of facility was restricted to agencies with an equity of at least 6.7 mill. ECU. A sectoral approach is followed by Kera Ltd. in Finland ,7 which has widened the scope of its guarantees towards SMEs in the service sector. In Italy, 8 SMEs facing a large share of short-term debt can convert it to medium-term debt via a new guarantee fund funded by a reserve of 52 mill. ECU. Additionally, loans for investments can be secured via a further fund furnished with 26 mill. ECU. The Italian government has also allotted 182 mill. ECU to banks and financial institutions for them to grant participative loans to SMEs. A guarantee fund geared towards SMEs lacking collateral for loans has been established in Portugal. It aims to secure 25-50% of the loan risk not covered by collateral. In the Netherlands 10 special facilities for innovative SMEs are provided under the existing loan guarantee scheme. Increasing the equity of SMEs with less than 250 employees is also the aim of a new guarantee scheme in Austria, 11 according to which investments of up to 18,500 ECU
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followed these steps but with different approach but the same similarities. The laws require the crowdfunding issuer to disclose relevant information about the company’s activities in addition to the limits of fund that each crowdfunder can invest and the amount which issuer can raised within a period of one year. In addition, the crowdfunding portal required to be registered with the commission. The essence of this regulation is to minimized crowd risks in terms of fraud risk or risk associated to the type of investments especially in equity crowdfunding. In addition, Jegelericiute and Valanciene (2015) stipulated that different countries promote crowdfunding using different approaches and some of these approaches are provision of appropriate legal framework that enhances transparency and legal funding market places, promotion of crowdfunding platforms with strong social media market and good internet usage enabling environment, promoting an appropriate crowdfunding campaign, proper enlightens on workability concept of entrepreneur and working process to potentials investors. Besides, country promote crowdfunding using standard and best practices that fit into circumstances prevailing in respective country. In Nigeria, Securities and Exchange Commission (SEC) had suspended the operation of crowdfunding based on their valid view that Companies and Allied Matters Act (CAMA) 1990 and Investment and Securities Act 2007 did not considered crowdfunding as alternative sources of fund to be used by SMEs. Although SEC has put all necessary machinery in place by looking at various laws and regulations that guide the operation of crowdfundiing in USA, UK, Canada and other developed nations with a view of instituting the enable environment and laws that will guide the operation of this new innovation of financing start-up business.
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