Small and medium-sized enterprises (SMEs) as an important part of the na- tional economy, are the main carrier of “public entrepreneurship, innovation” under the new normal of the current economic, and its development and growth is essential . However, the financing difficulties have long restricted the development of SMEs. Because of their own characteristics, SMEs can hardly obtain the funds needed for their own development through traditional financing ways. The rapid development of Internet finance has opened the way for the financing of SMEs. This article discusses the ways of financing under the traditional financing mode and the reasons why it is hard to get fi- nancing. By summarizing the financing channels of SMEs on the Internet platform and analyzing their impact on the financing of SMEs, and then gives some policy recommendations.
Owners/managers 2 characteristics, which include their age, education, professional experience, management skills, etc., have been consistently proposed to influence firms’ access to credit. Concerning educational background, Kasseeah & Thoplan (2012) suggested that the level of education of owner, which is measured by primary, secondary and tertiary education, do contribute positively to the performance of SMEs. SMEs with more highly educated owners seem to perform better even after controlling for age, experience and employment level. Higher education brings business owners to a better position to understand the requirements for operating a business and may help them manage various aspects of the business. Education associated with experience also equips managers to better prepare and present a loan application in the form that a lender wants to see (Coleman, 2004). Empirically, in a study of 4400 small firms, Bates (1990) found that owners with four or five years of college/university could access to bank capital more easily but there was no evidence that high education level improve access to non-bank capital.
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industry effect as a determinant of capital structure (Hall et al., 2000, Johnsen and McMahon, 2005). Abor (2007) finds that SMEs capital structure varies across industries and those industries with high collateral value are often capable of attracting more long-term debt. Much of the attention on growth in the SMEs has focused on capital relating to financing are dominant in the small and young firms (Terpostra et al., 1993). Most of the researchers have found that inadequate financial resources as a primary cause of SME failure (Coleman, 2000). SMEs can be differentiated from larger firms with respect to their capital structure choices and they tend to rely on private equity markets which constraint the form of financing they be able to obtain. It is widely accepted that small firms have different optimal capital structures and are financed by various sources at different stages of their organizational lives (Burger and Udell, 1998). This study attempts to contribute to the existing literature focusing the debate on capital structure and financing behavior of SMEs from a developing country perspective and examines the capital structure and financing patterns 3 that represents by Sri Lankan SMEs based on Pecking Order Theory and Life Cycle Model.
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In the Mudarabah model, the bank acts as robul mall (funds holder) while SMEs owners act as mudarib (agent that manages funds provided by the bank). Under this contract, a bank provides 100 percent of the funds while SMEs provide time and labour. This means that the bank has equity in the firm by providing finance to the entrepreneur. In this case, both parties agree to share the profit, based on the predetermined profit ratio in the early part of the contract. In the case of loss, the bank bears all the financial risk and the entrepreneur’s loss is in time and effort. To lighten the burden of SMEs at the end of contract, the financing repayment can be structured in instalments. Initially, a bank may own 100 percent of the share, but as each instalment is repaid, the SMEs buys back the share. The bank’s share decreases gradually in line with the repayments received, which in turn reduces the nominal profit shared with the bank. Conversely, under the same profit ratio, SMEs obtain more profit gradually as their share in equity increases. Since Islamic banks will fully bear the risk of the fund invested in the mudarabah contract, the Islamic banks will apply this contract with SME owners if they have a close and long relationship with the banks. Based on this relationship, the trust between SME owners and Islamic banks is established and will reduce the risk. Therefore, long- term relationships between banks and firms are beneficial particularly for high risk firms like SMEs (Peltoniemi, 2007).
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The main problem for SMEs is finance because all smaller firms live under tight liquidity constraints (Da Silva et al., 2007). Finance, whether owned or borrowed, is needed to expand in order to maximise profit. When outside funds are necessary, firms prefer debt to equity because of the lower information costs associated with debt issues. For most firms, internal funds are always insufficient to undertake the required level of transactions for profitable projects. The financing deficit should normally be matched dollar-for-dollar by a change in corporate debt, which calls for external finance to fill the finance gap. When the sums borrowed are invested by the firm and the investment has proven a success, additional assets are created, which can again be used as security for further borrowing.
In China, there are many huge corporations that have excellent cash flow and substantial amount of profit. The government could encourage these large corporations to take their corporate social responsibility by establishing some micro- credit companies. Micro-credit companies could specialize in giving loans to SMEs and individuals (Yang, Zhang and Li 2012). For instance, Zhejiang government could encourage regional giants like Wahaha Group to establish their own micro-credit companies in order to satisfy the financing needs of SMEs. As a result, giants like Wahaha can pull up the level of competitiveness of the industry, which could be a triple-win situation for the local government, regional giant, and SMEs. Although micro-credit companies are classified as shadow banks, they are registered companies under the supervision of government. So, the interest rates of those shadow banks could be easier to monitor, and the size of the shadow banking system could be measured more accurately.
Types of financing and methods of support for SMEs must accord with their circumstances. For example, if funding is to be used for investment in intangible assets, even if flexibility is lost due to size, it must be provided to SMEs that can improve competitiveness. When providing funding for R&D, due to immediate cost increases, long-term growth must be taken into account rather than profitability. Since the influence of flexibility or investment on intangible assets may vary according to the number of years in operation or firm size, these differences must also be taken into account. For financing of SMEs, the uses of funding must be understood. Instead of being used for general expenses, the results of this study reveal that funding must be used for long-term investment such as R&D. It is also advisable to invest in areas that they may not be able to develop otherwise by themselves. In addition, for SMEs, CEO and management strategy may affect business performance (Choi et al., 2003). Instead of using a narrow performance index to assess the managerial performance of the company, as shown in Lee (2006), multiple performance indices should be utilized and considered in determining financing.
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Vecchio-Sadus and Griffiths  observe how the improvements in workplace safety culture require management commitment and employee involvement. They outline different drivers influencing management commitment and employee involvement such as marketing tools and effective communication strategies. Hale et al.  analyse compare successful and not successful interventions and they conclude that interventions bringing about constructive dialogue between shop-floor and line management, providing motivation to line managers and strengthening the monitoring and learning loops in the safety management system appear more successful. Other distinguishing factor are the amount of energy and creativity injected by top managers and by the coordinator. Walker and Tait  study an approach helping SEs to set up a simple health and safety management system and they identify several drivers of success among which the low-cost approach and collaboration with local authorities, suppliers, commercial training organisations, and internal trainers. Pransky et al.  analyses the role of safety incentive programs on under-reporting and he conclude that the most effective programs are characterised by a clear statement about the goals and methods of the program, by reliance on appropriate, fair and objective measures and by giving the means to achieve reasonable target performance levels. The use of incentive programs. However, poses some challenges; e.g., Gangwar and Goodrum  focus on safety incentive programs in the US construction industry and they discover that the effectiveness of safety incentive programs diminishes with time. Other authors underline how the sharing of knowledge is an important driver for the improvement of OSH, and they suggest the introduction of knowledge networking approaches  or in the transfer of good practices among different enterprises working in the same field . Tait and Walker  analyse OSH award
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Small and medium sized enterprises have very important position in the EU economy, mainly in the area of growth and employment. However, most of SMEs are active only in their home country and only a few of them participate in cross-border activities. Furthermore, their activities in the internal market are limited by great deal of obstacles, mainly in the form of diﬀ erent tax systems which generate excessive compliance costs of taxation and the existence of diﬀ erent SMEs deﬁ nitions for various purposes in Member states. In addition, from the view of the international taxation issues, the most important obstacles can be considered a transfer pricing and cross-border loss compensations. In this area, SMEs are facing speciﬁ c problems and have speciﬁ c needs. The aim of the paper is to analyze and evaluate the speciﬁ c transfer pricing issues of SMEs and propose recommendations for them. EU, small and medium enterprises, compliance costs of taxation, transfer pricing
sized enterprises, the high quality product produced by the small and medium-sized enterprises, the affordable price charged by the small and medium-sized enterprises, and the attractive packaging used by the small and medium-sized enterprises for the product contributed to the higher performance of the small and medium-sized enterprises in terms of profitability and sales volume. This is in line with Gbolagade & Oyewale (2013) who accepted that the company organization's blood is the advertising mix technique. The outcome of the t-test showed that there is a positive relationship between promotion and packaging and quality of SMEs together with the theory that says. This means that an increase in positive promotional and packaging changes will result in a corresponding increase in the performance of SMEs. This is in line with Gbolagade & Oyewale (2013) Chaneta, (2012) which says that packaging can increase sales through such promotional movements as providing more multipacks in smaller or larger sizes, better pictures of the product itself, images of the product in use and more efficient color usage. In addition, Behzad (2014) explains in his research that colors and graphics play a key role in promoting the selling of goods. In addition, promotion is projected to have a substantial impact on the performance of SMEs in line with the analysis by Pembi et al. (2017). Promotion is any initiative an agency has conducted to encourage an improvement in a product or service's sales, use or experiment. Promotions are one of the key strategic mixing tools that nearly all organizations use to have a positive impact on their profitability. This has been shown to have a significant relationship on the quality of SMEs in this research. Despite the overall impact of marketing strategy on the performance of SMEs, however, the test of statistical significance using t-test and standard error showed that the relationship between product and cost and performance of SMEs is negligible. This is because there is no incentive for many Nigerian consumers to buy products at higher prices. The buyer base in the Nigerian market's low price segment is high. Such consumers are searching for goods that deliver value for money in the low-cost segmental ways. The buyer will either look for an alternative or leave the item when the price is higher. This research is not in line with the finding of a significant relationship between price and market quality by Gbolagade & Oyewale (2013). The sales volume will decline when the price is high and the profitability will diminish. A higher or cheaper quality can be used to promote the product as a competitive advantage. Likewise, consumers also buy products, with careful planning, and by comparing price- based brands.
At the time of increasing globalization and homogenization of the global markets, the development of information infrastructure technology and world market becomes accessible not only to large mul- tinational companies but also for small and medium-sized enterprises (SMEs). This has resulted in increasing competition in the domestic market which domestic ﬁ rms have to face. Therefore the pro- cess of internationalization of business is a step that allows businesses performing their activities in the domestic market to enter foreign markets and to exploit the opportunities and potential which these markets oﬀ er. The paper is focused on the dra of the method for quantiﬁ cation of the fac- tors, which determine the success of the SMEs in foreign markets. In the proposed method the mul- tidimensional assessment of indicators of success of SMEs in foreign markets are used, ie. not only the proportion of sales from exports is observed, but also the proﬁ tability of international activities in an absolute and in a relative rate. Other indicators of success are the satisfaction of the company management with international activities and the success of achieving deﬁ ned targets for business activities in foreign markets. Evaluation is made up of both the objective and the subjective indica- tors of success. Among the objective indicators of success is included the intensity of international activities of SMEs, which is detected as the sum of revenues generated from international activities in relation to total sales company, the proﬁ tability of international activities, (ie. whether the foreign ac- tivities are proﬁ table or not), and the relative proﬁ tability of international activities, where it is ascer- tained whether the foreign activities generate higher proﬁ t than the activities at the domestic market. The next subjective indicator of success is the success of objectives - it was found how many objectives related to operations in foreign markets has been achieved. Another indicator is the subjective satis- faction of the company management with existing activities on foreign markets. Overall performance on foreign markets of the company is quantiﬁ ed using an assessment of objective and subjective indi- cators of success. Using the deﬁ ned evaluation it will be possible to determine which of the SMEs are more and which are less successful in foreign markets. Finally, this evaluation will be used for future research aimed at identifying characteristics aﬀ ecting the success of SMEs in the foreign markets. small and medium-sized enterprises, internationalization, indicators of success, evaluating of the suc- cess of the SMEs
Small and medium-sized enterprises (SMEs) play a crucial role in the Egyptian economy, in term of their contribution to the GDP and total employment. Yet, their contribution in capital formation is very limited, mainly because of the finance constraints they face. Consequently, to improve the SMEs access to finance, the creation of a junior exchange is a must. In this context, the Cairo and Alexandria Stock Exchanges (CASE) just launched a new platform; that is Nile Stock Exchange with new listing rules and regulations that focus on a cost- effective regulatory regime adapted to the needs and characteristics of SMEs. This research aims to study the role of the Nile Stock Exchange in the development of Small and medium-sized enterprises in Egypt
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national infrastructure. Their smallness also protects them from legal proceedings (since they have few assets to seize in case of bankruptcy) so they can be more flexible in uncertain business conditions. Africa faces many obstacles including corrupt governance structures, unfavourable macroeconomic environment, debilitating physical infrastructure, and administrative challenges. However, inadequate access to financing continues to be one of the most significant impediments to creation, survival and growth of SMEs in Africa. Further owing to their high risk profile, WMEs in Africa largely remain an unattractive investment for mainstream investors. Of particular concern to investors are the country, currency and credit risks characteristics of many African countries in which SMEs operate (UNEP, 2008).
The objective of this study is to investigate the level of implementation of TQM in north Karnataka SMEs. To that end, a survey questionnaire was developed. A total of twelve constructs were proposed. A 5-point Likert scale was employed with a score of 1= strongly disagree; 2=Disagree; 3= Neutral; 4= Agree; 5= strongly agree, for practice (level of perceived importance to the enterprise) and 1= Not important at all; 2=Not important; 3= Neutral important; 4=Important; 5= very important for importance (level of perceived importance to the enterprise). Having validated the questionnaire through expert validation and pilot testing, a sample of 950 companies of small and medium enterprises in north Karnataka region, were selected from the Directory of the north Karnataka small scale industries association (NKSSI) and the data base of the Karnataka Small and Medium Industry Development Corporation (KSMIDEC). The full survey, through mailed questionnaire and personal visits was carried out. Although the response rate was initially not encouraging, various techniques were used to improve the response rate including providing a stamped self-addressed envelope, and personalization (a hand-written note) on the covering letter in the follow-up stage. Out of 305 responses returned 10 responses were incomplete, resulting in only 295 (48 medium and 247 small) responses were considered for final study, i.e. 31.05% valid response rate which the authors felt to be reasonable for this kind of study. The responses were analyzed using the SPSS Version 11.5 statistical package.
In regards to the quantitative study, each company received an e-mail with an explanation of the purpose and the importance of the study along with the attached link, which was leading to the questionnaire. The questionnaire distributed to the enterprises’ email was addresses via a link in order to be faster and easier for the participants to answer. Moreover, to address ethical concerns, at the beginning of the quantitati ve study’s survey, participants were informed with an explanatory text about the purpose, the importance, and the instructions how to fill in the survey. Participants were told that the data gathered would only be used for the purposes of this research and that their participation was anonymous. To minimize the risk of non-response, two reminders were sent by e-mail. The first reminder was sent two weeks after the initial invitation and the second four weeks after the initial invitation. To reduce bias due to fatigue, the participants informed that they were allowed to stop the questionnaire and continue at a later moment. The survey was developed using Qualtrics’ survey tool. No rewards were offered to persuade participants to participate. The response period for the survey covered seven consecutive weeks and started on 1 st of March, 2017 and closed on 18 th of April, 2017.
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Tajani: COSME will work like its predecessor, the Competitive and Innovation Framework Programme (CIP). Under the CIP, loan guarantees were used in cases where the entrepreneur or the small enter- prise did not have suﬃcient collateral and the bank did not provide a loan. Ninety percent of the ben- eﬁciaries – including about 200 000 SMEs from across Europe – had 10 or fewer employees. This is precisely the category that has the most diﬃculties getting a loan. But thanks to the CIP, the average guaranteed loan was about €65 000, and by the end of December 2012, the ﬁnancial instruments of the CIP had mobilised almost €13 billion in loans
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Abstract This study aimed at examining the determinants of small and medium-sized enterprises (SMEs) performance in Nigeria. An autoregressive distributed lag approach to cointegration was applied to sample from 1981 to 2010 to achieve the set objective. The results revealed that both in the short-and long-run, interest rate and net export have had a negative impact on SMEs performance. At the same time, other determinants such as government spending, political instability and level of education were found to have insignificant impact during the studied period. Therefore, maintenance of low interest rate will undoubtedly assist to boost the performance of SMEs in Nigeria. As such, monetary authorities need to play a very important role toward achieving the target.
Tucker and Lean (2003) conducted a questionnaire survey to collect data concerning small business awareness and use of informal finance and to identify issues concerning difficulties encountered in gaining access to finance. They found that debt finance gap may exist for a minority of firms, though an equity finance gap may represent a more significant issue for small firms.
Mentioning the so-called Born globals, it should be noted that the literature is inconsistent in the definition of the term. in some literary sources (e.g. Knight and cavusgil 1996 or harveston et al. 2000), there can be found a definition: Bg is a company characterized as a business with the export ratio of more than 25%, which was carried out within 3 years from the date of foundation. however, at present this definition may seem rather very general and vague. if such a small norwegian company exports 30% of its products to Sweden and Denmark (within 3 years from the foundation), it hardly can be called global. it is therefore necessary to clearly define what type of market, to which market and how much output the firm should export so that it could be called the Bg. Today, the majority of SMEs have usually the percentage of exports exceeding 25%. Therefore, elsewhere (e.g. Luostarinen and gabrielson 2004) the Bg firm is defined as a small and medium-sized enterprise, whose export reaches at least 50% within 3 years from the start. Luostarinen and gabrielson also introduce an additional category of business called the True Born global. They name certain SMEs, which have an export higher than 50% within three years at which at the same time export on multiple continents.
The small and medium sized enterprises (SMEs) are categorized into medium, small and micro sizes, based on the number of employees and turnover. A medium SME has less than 250 employees and turnover less than €50 million, a small SME has less than 50 employees and turnover less than €10 million, and a micro SME has less than 10 employees and the turnover is less than €2 million . SMEs contribute significantly towards the economy, especially in job creation and economic growth. According to EuropeanCommission , SMEs contribute 56% of the overall GDP in the EU and employ 67% of the workers in the private sector. Hence, SMEs play a vital role in the economic development of a region. Due to the rivalry competition, constant changes brought by globalization and technology revolution, SMEs are seeking innovative approach in order to grow the business by improving their performances including the application of big data [6, 7].