In this study, we introduce a unique longitudinal dataset from the Italian Ministry of Economy and Finance Annual Survey (IMEFAS) to assess how micro and small enterprises (MSEs) partake in the ...global economy by tapping into global value chains (GVCs). The results of the empirical analysis show that the great majority of micro and small enterprises are unable to establish direct links with GVCs. However, two sub-categories of subcontractors and branded producers were able to accomplish upgrading and partake in GVCs after the 2008 economic crisis. For both groups of firms, strategies implemented in domestic value chains contributed to their future participation in GVCs. By identifying small firms’ value chain decisions associated with their ability to access GVCs directly, this study sheds light on the microfoundations of GVCs. It paves the way for the future intersection of small business economics and GVCs, two areas of research that have seldom talked to each other.
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NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
This research constructs a credit default estimation model for micro and small enterprises (MSEs) under the condition of changing information asymmetry. The model is established through the ...refinement, ion and portrayal of the core elements contained in the default trigger mechanism; this mechanism is based on the cash flow, the default boundary and the distribution of actual cash flow in the framework of the incomplete information model. By relaxing the assumption that the bank can fully observe the customer's initial information, this work constructs a theoretical model with practical application value that can effectively describe the default risk of MSEs. Numerical simulation shows that the model can accurately estimate the default probability of MSEs by quantitatively modelling the mechanism of default risk management and control which is applicable to the risk characteristics of MSEs. The model is also suitable for the continuous dynamic estimation and forecast of individual customer credit application and post‐lending risk.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
This paper examines Sustainable-Oriented Innovation (SOI) practices among micro and small firms operating in the tourism and hospitality sectors. In this paper, we argue that firm owners are driven ...by different forms of lifestyle motivations when conducting their business, with innovative practices reflecting and underlying factors of sustainable development. A qualitative method based on semi-structured interviews was undertaken with 25 owners/managers of firms recognised as being leading actors in sustainability innovation. Findings indicate that the owner/manager's values had a direct impact on the way the business was structured and managed as well as on SOI practices implementation. Indeed, entrepreneurs who embrace social responsibility and environmental sustainability as lifestyle motivation in their day-to-day business practices and stakeholder relationship proved to be more committed to SOI. The study has theoretical and practical implications in terms of potential to increase understanding of alternative business models and develop the theory further in this domain.
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BFBNIB, NUK, PILJ, SAZU, UL, UM, UPUK
Innovation as a response strategy to a crisis needs further understanding for small enterprises. This exploratory research investigates if, why, and with whom entrepreneurs in micro and small ...enterprises engage in innovation activities during the atypical context of the COVID-19 crisis in the tourism sector. The multiple case study with three German entrepreneurs in the tour operator market shows that micro and small enterprises despite their size hold the capacity to initiate and manage several innovation projects of different types and in different stages of the innovation value chain simultaneously during a crisis. To do so, the entrepreneurs preferably engage participants with strong social ties, independent from a place. The perceived benefits are both related to the innovation output (e.g. generate income), and the innovation activities (e.g. increased motivation of staff, increased trust of customers during the crisis). Further research is encouraged on the long-term effects of innovations resulting from a crisis.
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NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
Microfinance is used to enhance micro and small enterprise start-up and growth in developing countries. Although there is some discussion of how microfinance institutional activities lead to their ...own sustainability in the extant literature, the same cannot be said of the ways in which microfinance institutions shape the sustainability agendas of micro and small enterprises (MSEs). In this paper, we conceptualise and explain the way that joint liability lending in microfinance shapes the sustainability of micro and small enterprises owned by borrowers. Using sustainable leadership as a theoretical foundation, we conceptualise the strategic, operational, and community-level leadership functions associated with joint liability and construct a framework. Based on the conceptual framework, we also develop propositions and explain them using an illustrative case study. Our conceptual work reveals that leadership tasks at strategic, operational, and community levels influence MSEs’ sustainability. Our conceptual framework, propositions, and illustrative case evidence contribute to theory and practice by highlighting that joint liability mechanisms are a possible pathway for MFIs to facilitate sustainable initiatives in micro and small enterprises.
•This paper analyzes the causal impact of blackouts on the performance of micro and small enterprises in developing economies.•Estimates the cost of blackouts in Indonesia.•Finds that blackouts ...negatively affect average labor productivity.•Shows that installing a captive generator is a common strategy for mitigating the impact of blackouts.•Provides evidence to assist developing countries in prioritizing electricity reliability.
The reliability of electricity supply is one of the most pressing challenges faced by many micro and small enterprises (MSEs) in developing countries. MSEs play a pivotal role in generating employment in these countries, yet the productivity of MSEs is relatively low. Little is known about how blackouts affect performance of MSEs. This paper is the first study to estimate the impact of such power blackouts on productivity of manufacturing MSEs and to discuss the role of the government in addressing the problem.
We employed a pseudo-panel dataset covering six firm cohorts within 21 regions the Indonesian national electricity company operates in from 2010 to 2015. Our identification strategy firstly involved examining blackouts determinants and then using these determinants as instruments in an instrumental variable (IV) dynamic panel fixed effects estimation while controlling for factors that potentially affected productivity and correlated with blackouts.
We found that electricity blackouts reduced average labor productivity and the resultant losses amounted to approximately IDR 71.5 billion (USD 4.91 million) per year in Indonesia. Therefore, it is crucial to improve electricity supply reliability in developing countries. We found that introducing a captive generator as a way to cope with power outages is positively associated with productivity, and that MSEs that have captive generators benefit when the power supply is poor. Our findings will assist policy makers to prioritize addressing power blackouts relative to other constraints MSEs face.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
As tourist arrivals to Bali have increased steadily over the past 40 years, the crowds from Kuta and Seminyak have started to shift towards the now booming area of Canggu. Rapid developments present ...the community with the challenge of preservation vs. economic growth that will impact the destination’s future. The objective of this study is to assess, analyze and evaluate the present and future situation of the Canggu area in order to give advice on the match between the area's supply and demand. The study provides Micro and Small Enterprises (MSEs) with recommendations on effective interventions in order to strengthen their strategic position to achieve the destination’s preferable future. This study used four different research methods: desk research, participant observations, surveys with tourists, and semi-structured interviews with enterprises. Results show that the most impactful difference between MSEs lies in the level of strategy refinement, which suggests that creating a circular model between MSEs could strengthen the area of Canggu.
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IZUM, KILJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK
Purpose: The purpose of this study was to examine micro and small scale enterprises' growth determinants operating in Benishangul-Gumuz Regional State of Ethiopia as emerging region. ...Design/methodology/approach: The study adopted an explanatory research design with arrangement of primary data collection via a cross-sectional survey questionnaire followed by mixed research approach. The sample of this study was 220 enterprises determined by Yamane's formula and selected using proportional stratified random sampling technique. Findings: The result of regression analysis revealed that initial investment, access to land, access to finance, location, sectoral engagement, market linkage, and business experience are significant in explaining growth in one hand. On the other side, however, gender, education, ownership, formal recording, and financial management practice are found to be insignificant variables in determining enterprises' growth. Research limitations/implications: More evidence is needed on micro and small scale enterprises' growth determinants before any generalization of the results can be made. In addition, the empirical tests were conducted only on 220 entrepreneurs since 2018. Therefore, the results of the study cannot be assumed to extend beyond this group of entrepreneurs to different study periods. Practical implications: The study might help the entrepreneurs in addressing the factors affecting growth to take actions toward developing their performance and in turn contribute to employment, export participation, poverty alleviation, and women empowerment. Originality/value: This paper adds to the literature on the determinants of microand small-scale enterprises' growth. In particular, it tests the impact of initial investment, access to land, access to finance, location, sectoral engagement, market linkage, business experience, education, ownership structure, and financial management practice on growth of enterprises.
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CEKLJ, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
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.
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