This study investigates the factors affecting digital adoption by ultra-micro, micro, and small enterprises (UMSEs) based on a survey of 5035 UMSEs in 17 major provinces in Indonesia. We use the ...survey data to construct a digital adoption index to evaluate the variations in digital adoption in the five business processes of e-procurement, POS, e-marketing, e-commerce, and digital payment. This index not only identifies whether a firm has adopted digital technology but also considers the dimensions of use to measure the level of adoption more precisely. Using the primary data, we employ a simple regression model, and the results demonstrate that owner demographic characteristics, firm-specific factors, business environment, connectivity infrastructure quality, and culture are associated with disparities in digital adoption by UMSEs. Our findings also reveal a positive and significant correlation between digital adoption on business performance. Based on a two-stage least squares (2SLS) model, we found strong evidence of the impact of digital adoption on UMSE owners’ level of financial literacy. The latter result suggests that improving digital adoption among UMSEs could enhance their financial literacy. Overall, these findings confirm the vital role of digital transformation for UMSEs to achieve growth and competitiveness in the global market, which requires robust support from policymakers.
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•A survey of 5035 ultra-micro, micro, and small enterprises in 17 major provinces in Indonesia.•A comprehensive index to measure level of digital adoption by ultra-micro, micro, small, and medium-sized enterprises.•Assessing the determinants of digital business adoption by ultra-micro, micro, small, and medium-sized enterprises.•Investigating the impact of digital adoption on business performance and financial literacy.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The study aims to analyze the poverty and micro and small enterprises in 34 provinces in Indonesia, and to analyze the effect of labor and the number of micro and small enterprises on poverty levels ...in Indonesia. The results indicate that Papua Province has the highest poverty rate and the DKI Jakarta Province has the lowest poverty rate. Central Java Province has the largest number of micro-enterprises, and West Papua Province has the lowest number of micro-enterprises. For small enterprises, Central Java Province has the highest number and West Papua Province has the lowest number. Meanwhile, Central Java Province as the largest number of micro-business workers, and West Papua Province has the lowest number workers. For small business workers, Central Java Province has the largest number and West Papua Province has the lowest number. The results of panel data regression show that some variables, such as small-enterprise worker and the number of micro enterprises, have a significantly negative effect on the poverty rate. On the other hand, micro-enterprise worker and the number of small enterprises have a positive and significant effect on poverty rate.
In this study, the influence degree and effect of support on innovation incentives for research and development (R&D) personnel in micro and small enterprises (MSEs) were explored based on the CMES ...data. We found that government support will increase the R&D wage and widen the gap between R&D wage and staff wage, especially for small, non-hightech enterprises with strict financing constraints. Furthermore, taking the wage gap as a mediator, we concluded that support would widen the wage gap and increase management innovation rather than technological innovation in MSEs because the wage premium of R&D personnel is the main driver for the increase of management innovation. The findings of this study provide useful enlightenment for China to implement an innovation-driven strategy and build an innovative country.
This paper identifies the mediating role of innovation and moderating role of size of enterprise on the relationship between entrepreneurial orientation and performance of Micro and Small Enterprises ...(MSEs). For the purpose of this study, the necessary data is collected from 384 MSE's operating in Punjab province, Pakistan. Initially the data are analyzed using SPSS 22 and then, for the development of structure equation modeling, Smart PLS-3 is used. Two aspects of entrepreneurial orientations; namely risk taking and pro-activeness are analyzed and innovation is considered as mediat-ing variable. The major contribution of the study is to identify any moderating effect of size of the enterprise on the relationship between entrepreneurial orientation, innovation and performance of MSEs. These elements basically show the contribution that is made by the innovation and performance of the MSE's. The results reveal that the size of enterprises moderated the relationship between risk taking and performance, pro-activeness and performance as well as innovation and performance.
Technology-oriented micro and small enterprises (TMSEs) play an important role in technology innovation, employment increase, and economic growth. Due to their high risk and resource consuming ...nature, the Chinese government has set up special funding, and encouraged banks to provide credit support for TMSEs. However, traditional enterprises' credit evaluation methods are not suitable for TMSEs due to their characteristics. How to assess the credit risk of TMSEs is a relatively new and challenging topic. This study is to identify novel indicators that can capture the creditrelated characteristics of TMSEs. Specifically, we proposed that innovation capability and business models can be used to identify some special aspects of TMSEs' credit risk. To validate the new indicators, we compared the performance of traditional financial indicators and the new indicators. The results showed that innovation and business model indicators can effectively improve the performance of classifiers in the credit risk assessment of TMSEs.
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BFBNIB, GIS, IJS, KISLJ, NUK, PNG, UL, UM, UPUK
Despite access to financial resources, many micro and small-scale entrepreneurs struggle to grow their businesses due to management inefficiencies. This study analyses a globally recognized ILO ...business training initiative in Indonesia, involving 12 financial service providers in 2018. Using an RCT and panel data from 3,975 clients to study the impacts of the business training we find largely null results across a large range of outcomes. Exploiting variation across financial institutions implementing the program, we show that one financial service provider demonstrated significant improvements in its clients' behaviours. This uneven outcome suggests that the efficacy of large-scale interventions critically depends on the quality of implementation by individual partners. The overarching conclusions advise restraint in broadly expanding these programs, while simultaneously highlighting the crucial role of partner selection in the successful implementation of these initiatives.
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BFBNIB, NUK, PILJ, SAZU, UL, UM, UPUK
•Provide the theoretical analysis of how non-bank fintech affects the effect of targeted monetary policy based on the credit channel theory.•Targeted RRR cuts in China increase the borrowing amounts ...of micro and small enterprises, but do not change their borrowing costs.•Micro and small enterprises in areas with more non-bank fintech increased the effect of targeted RRR cuts on borrowing amounts, but no change in costs.
Since the financial crisis, central banks have implemented unconventional monetary policies, while fintech has developed rapidly and reshaped the credit market. Using firm data from China, this paper empirically tests whether the development of non-bank fintech influences the effect of targeted monetary policy tools. We find that targeted reserve requirement ratio (RRR) cuts in China expand the borrowing amounts of targeted micro and small enterprises (MSEs), but have no effect on their borrowing costs. Moreover, non-bank fintech increases the effect of targeted RRR cuts on MSEs' borrowing amounts, while it does not change the policy effect on borrowing costs.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The development of resilient energy systems is important for sustainable cities and communities. However, in countries with insufficient national energy supply, electricity distributors rarely ...consider remote communities due to their distant settlement, low electricity demand and poor payment capabilities. The United Nations has set a goal to deliver universal energy access by 2030; hence, it has become imperative to deploy clean and affordable off-grid mini-grid solutions to previously abandoned communities. Access to energy in rural communities is expected to result in unlocking their economic potentials. This paper investigates the impact of a solar hybrid mini-grid on the socio-economic growth of local entrepreneurs in Gbamu Gbamu village, Nigeria. A total of 83 micro- and small-enterprises has been surveyed; descriptive statistics, paired-sample
-test, cross-tabulation and χ
test, were used to assess the performance of businesses before and after electrification. The outcomes include the number of business enterprises created, employment statistics, energy expenses and income generated. Regression analysis was conducted on the relationship between the average income generated by businesses and independent socio-economic variables such as gender, marital status, household size, age, education level, years of business establishment, hours of operation, building tenure, capital source, number of employees, generator ownership and the days of operation. This article is part of the theme issue 'Developing resilient energy systems'.
The COVID-19 pandemic has negatively influenced all areas of human life across the world. Economic downturn is evident in almost every country. However, the biggest impact has crisis on micro and ...small enterprises (MaSEs). As the change of regime and rhythm of work is coming, the important task of employees in management is to retain their subordinates in the state of positive setting and motivation. The aim of the research is to define the impact of pandemic COVID-19 on the level of employee motivation in MaSEs operating in Slovak Republic. The development of employee motivation was investigated in three fields, financial, working and relationship one. A total of 848 respondents were asked in 2017 to 2020 by means of stratified selection. There was a significant decrease of preferences of respondents in all investigated motivation factors. Testing confirmed the existence of statistically significant differences during 2020 in comparison with previous years in investigating the following motivation factors: basic salary, job security, good working team, communication at work and superior's approach. The main contribution of the research is the finding that pandemic COVID-19 has the influence except of other impacts also on the area of employee motivation.
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CEKLJ, NUK, ODKLJ, UL, UM, UPUK
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