This paper analyzes the effect of family employment on performance in micro and small enterprises (MSEs) by combining two research perspectives that, until now, have been conducted separately: the ...family embeddedness perspective of entrepreneurship (Aldrich and Cliff, 2003) and the socioemotional wealth (SEW) approach to family business (Gomez-Mejia et al 2007). Our integrated perspective allows us to highlight how the nature of the employment relationships in MSEs enhances the benefits derived from the socioemotional endowment associated with family labor, and reduces the opportunity costs of employing relatives. Moreover, we assert that this relationship is moderated by specific family characteristics that determine the firm's ability to preserve the SEW, while at the same time pursuing financial goals. Our results provide partial support to the enhancing role of family labour on MSEs performance: employing family members increases sales but decreases profitability as measured by ROA. This effect also results in improved performance for women-led firms and for firms that have received family funding, but impairs MSEs performance when the business is the main source of the owner's household income. PUBLICATION ABSTRACT
Currently, the digital economy has a huge impact on the development of the economy and the financial system in various countries of the world. Covid-19 has affected lives, businesses, economies, and ...the world at large. The virus has had a profound impact on business operations in many areas around the globe and more so if we look closely into what is happening now in Baku, Azerbaijan. This essay focuses on how Covid-19 may affect Baku’s digital transformation and resilience of small and medium enterprises. The first section deals with the introduction of technology in Azerbaijan and its current status, while the second part provides an analysis of how Covid-19 is affecting them. Lastly, the third section deals with future implications of these developments. The relevance of the chosen topic is expressed in the fact that the modernization of the domestic economy of states today is impossible without effective management of the development of the digital economy, which has a significant impact on the development of the financial system and business structures. The experience of foreign countries shows that the digitalization process , understood as the introduction of information and telecommunication technologies into economic processes, is objectively necessary and is accompanied by progressive changes in various areas of economic and social life. Due to the increase in the level of digitalization , the efficiency of the functioning of the business sector and individual sectors of the economy, as well as the financial system as a whole, increases. Among the tasks that modern commercial organizations face is to increase the efficiency of work and the level of competitiveness in a constantly changing market environment. It is possible to increase the efficiency of commercial activities by optimizing business processes, introducing modern equipment, using automation tools, and training personnel in new techniques and technologies for performing work. The article examined the impact of the pandemic on the digital transformation of small and medium-sized enterprises in Azerbaijan, as well as assessed the use of digital technologies in small and medium-sized businesses and their effectiveness during the pandemic. As a result of the study, it was revealed that the pandemic had a significant impact on the acceleration of digital transformation in most countries of the world, including the economy of Azerbaijan. The aim of the research work is to study the impact of the pandemic on the digital transformation and sustainability of small and medium-sized enterprises using the example of Azerbaijan.
The article is devoted to the problem of forming a digital accounting environment of small enterprises. The purpose of the article is to establish the impact of digitalization as a global vector of ...accounting development on the work of small enterprises. Digitization play the main role in the development and long-term survival of small enterprises. It allows them to process and structure data quickly, make business information personalized. Digitalization has changed both accounting technology and the components of its method. The 2019–2023 coronavirus pandemic and the war in Ukraine only accelerated the transition of accounting to a digital format that allowed working remote. The analysis of scientific works shows that the following are the components of digitalization of accounting: use of specialized software, in particular, cloud technologies; electronic document flow in XBRL format; application of artificial intelligence, analytical platforms, in particular, BigData, blockchain for modelling, analysis and control of activities; electronic payment systems, electronic trading platforms, electronic platforms for business, etc. The main problems of digitalization of small enterprises are the cost of software and computer equipment, the qualification of accounting specialists, ensuring the security of data in digital format. There are a number of obstacles to the introduction of electronic document management in the XBRL format. Differences in national accounting practices do not allow for comparability of documents. The distant prospects of obtaining benefits from the XBRL format reduce the motivation for its implementation. The translation of the XBRL taxonomy takes a long time. Disclosure of non-financial information causes certain difficulties. According to the results of the study, it was determined that better structuring of accounting information directs small enterprises to realize their own potential due to the disclosure of available resources, their structure, as well as the expansion of opportunities for their full, rational and effective use to achieve the set goals.
This study examines the implementation of halal certification for Micro and Small Enterprises based on Article 79 of Government Regulation Number 39 of 2021 on the Administration of Halal Product ...Assurance (PP No. 39/2021). The implementation of this regulation in Labuhan Dalam Subdistrict, Tanjung Senang District, and Bandar Lampung City has not been carried out effectively because there are still Micro and Small Enterprise products that have not been halal certified. The focus of this study is: What is the maslahah review on the implementation of Article 79 of PP No. 39/2021 regarding halal certification for Micro and Small Enterprises in Labuhan Dalam Subdistrict, Tanjung Senang District, Bandar Lampung City? The method used is field research with qualitative descriptive analysis. The primary data sources are interview results and observations with micro and small business actors who are required to have halal certification in Labuhan Dalam Subdistrict, Tanjung Senang District, Bandar Lampung City, and BPJPH employees of the Lampung Provincial Office of the Ministry of Religion in the Halal Task Force. The conclusion of the study is that, from the maslahah perspective, Article 79 of PP No. 39/2021 has not been well implemented in Labuhan Dalam. This is because the government, BPJPH, has not fully carried out its duties to execute its tasks and authorities to provide information, education, and socialization related to the obligation to have halal certification to micro and small business actors, as well as the lack of awareness of micro and small business actors regarding the obligation to have a halal certificate. This naturally brings harm to micro- and small-scale businesses and the community.
•The study found that the loan to sales revenue and employee wages gradually rose to a stable period, and eventually declined.•A new nonparametric density method is proposed to balance economic ...effect and social responsibility: the loan scale and sales volume remain unchanged, increase employee income, and vice versa.
Regarding the financial support provided to micro and small enterprises (MSEs), deciding whether to prioritize economic benefit or social responsibility is a crucial policy choice, especially in developing countries. This paper establishes a new research framework for density of enterprise output value and wages conditional on loans to balance economic benefit (sales revenue) and social responsibility (employee payroll). Using data on 9125 Chinese enterprises from January 2015 to December 2017, this paper shows that loans have a range effect on sales revenue and employee payroll, which ascends gradually to a plateau and eventually descends. Based on this finding, this paper proposes a reallocation scheme. With total loans unchanged, fixed sales revenue can increase employee payroll by 3.8%. Similarly, fixed employee payroll can increase sales revenue by 5.2%. This study not only provides empirical evidence for financially supporting MSEs, but also provides alternative decision support for policy design.
In this study the authors tried to identify mediating role of innovation and moderating role of size of enterprise in the relationship Making a living with lawful earnings is possible by working for ...others, becoming self-employed or employing others. This paper aims at providing insights into the role of structural support and the use of E-learning such as business simulations games in developing entrepreneurial intentions of university students. The underlying theories of experiential learning, constructivist learning theory and bloom’s taxonomy are discussed in relation with the objectives of this study. The response of 252 university students from Malaysia was collected through self-administrative survey using simple random sampling technique. The results of PLS-SEM demonstrate a significant positive impact of E-learning resources and perceived structural support from Government in developing entrepreneurial inclinations of students at Universiti Utara Malaysia (UUM). The present study provides an overview and highlight the role assumed by the institutions of higher education through adoption of E-learning resources in order to nurture entrepreneurship among young generation. Additionally, keeping in view the role of higher education in socio-economic development, recommendations have also been proposed for universities and policy makings institutions to cope with the current challenges of higher education. The findings of this study have important implications of enhancing entrepreneurial capacity in Malaysia.
Management has a large effect on the productivity of medium and large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? ...We develop 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. We show that variation in business practices explains as much of the variation in outcomes—sales, profits, and labor productivity and total factor productivity—in microenterprises as in larger enterprises. Panel data from three countries indicate that better business practices predict higher survival rates and faster sales growth. The association of business practices with firm outcomes is robust to including numerous measures of the owner’s human capital. We find that owners with higher human capital, children of entrepreneurs, and firms with employees employ better business practices.
Data, as supplemental material, are available at
http://dx.doi.org/10.1287/mnsc.2016.2492
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This paper was accepted by Toby Stuart, entrepreneurship and innovation
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With the COVID-19 pandemic sweeping the globe, small and medium-sized enterprises’ (SMEs’) survival space has been increasingly constrained, and their financing challenges and costly concerns have ...also become more evident. With the emergence of the supply chain financing model, the problem of difficult financing for SMEs has been effectively alleviated. How to effectively improve the performance of supply chain financing for SMEs is a hot issue of common concern for both business and academic circles. This paper used 90 SMEs involved in supply chain financing business for a case study based on the “Technology–Organization–Environment” (TOE) framework, using fuzzy set qualitative comparative analysis (fsQCA), and explored the linkage effects of technology, organization, and environmental conditions on SMEs’ performance in improving supply chain financing and their path choices. The study found that: (1) individual conditions do not constitute a necessary condition for high/low supply chain financing performance. However, technical level preconditions play a more important role in shaping the high supply chain financing performance of firms. (2) The three preconditions at the technological, organizational, and environmental levels work together to form a diverse set of conditions that drive the high supply chain financing performance of firms. That is, the paths driving the high supply chain financing performance of SMEs are characterized by “different routes to the same destination.” There are three different models: “technology-supply chain capability-driven,” “IT-supply chain capability-driven,” and “IS-supply chain capability-driven.” (3) The degree of application of corporate information technology, information sharing capability, and supply chain capability, and the lack of environmental competitiveness are the reasons for the generation of the low supply chain financing performance of SMEs. The above research findings can provide a direct theoretical basis for enterprise supply chain financing practice and are of great practical significance in guiding Chinese SMEs on how to improve their supply chain financing performance.
On the sample of 84 Serbian companies which operate on Kosovo territory (Serbian enclaves) in post-conflict situation we explored which factors are crucial for their survival and success. Also, we ...want to find out is EU regulatory document for small enterprises helpful for them in this situation. We did not find EU document helpful in this situation. The results have confirmed that the enterprises are aware that expanding the market range is the only real and sustainable method of developing their activities. The key limiting factor in expanding the market range is the unfair competition. Furthermore, we are particularly pleased with the fact that enterprises from the northern part of Kosovo and Metohia are aware of the importance of innovative activities, and they realized that in contemporary business world it is possible to survive and grow in the market only by developing and introducing innovations. There are no universal solutions in a post-conflict situation. Search for ideal solution for developing the entrepreneur activities and it depends on the combination of social/political, institutional, cultural and economic aspects.
Small enterprise default discrimination establishes a risk discriminant model based on financial data, non-financial data, and external macro conditions of small enterprises to obtain their default ...discriminant. This study constructs the final default discriminant model, taking the predicted default probability vectors from the first modelling as independent variables. From the 2e feature combinations composed of e features, it maximises the default discriminant precision of the same training sample. Accordingly, the study inversely infers three optimal feature combinations corresponding to three models, including logistic regression, support vector machine, and linear discriminant analysis, ensuring the discrimination accuracy of the first modelling by the stacking method. Moreover, five features—industry prosperity index, EBITDA margin, current assets turnover ratio, net profit, and per capita disposable income of urban residents—account for 11% of the features in the optimal feature combination, but their importance accounts for 63%; thus, they are critical to the default risk of small enterprises. Further, the macro features significantly influence the default risk of small enterprises. For example, the importance of four macro features—industry prosperity index, consumer price index, per capita disposable income of urban residents, and Engel coefficient—accounts for 26.26% of the features in the optimal feature combination. Notably, the importance of the ‘industry prosperity index’, which is the greatest influencing factor in the feature combination, accounts for 17.63%. Ultimately, the discrimination accuracy of the proposed model is better than that of the seven classical default discriminant models.
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