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Journal ArticleDOI

Constraints And Contingencies Of The Small Business: A Comparative Perspective

TL;DR: In this paper, the authors identify the issues of constraints and challenges of the small business from a comparative perspective and provide a varying degree of supports for two illustrative hypotheses concerning issues, constraints and contingencies of small businesses in these two countries.
Abstract: Small businesses relative to the medium and large businesses tend to demonstrate culture (country) specific business practices. However, in spite of the recognized diversity of business practices, strong homogeneous tendencies and norms have been developing specially among the small businesses that operate in the global market place. These tendencies and norms offer unique opportunity for a comparative perspective. This paper is an attempt in this regard toward identifying the issues of constraints and challenges of the small business from a comparative perspective. A part of multi-country study, authors collected data in 2006 from 133 small businesses of India, and 112 small enterprises in Bangladesh. The findings provide a varying degree of supports for two illustrative hypotheses concerning issues, constraints and contingencies of small businesses in these two countries. The authors believe that the paper is likely to enhance empirical understanding of the small business from a comparative perspective.

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Citations
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01 Jan 2015
TL;DR: In this paper, Preye Elizabeth Buowari, MS, Walden University, 2012 PGD, Herriot-Watt University, 2010 B.TECH, Rivers State University of Science & Tech, Nigeria, 1991 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden university November 2015
Abstract: Factors Required for Small Business Sustainability in Nigeria by Preye Elizabeth Buowari MS, Walden University, 2012 PGD, Herriot-Watt University, 2010 B.TECH, Rivers State University of Science & Tech, Nigeria, 1991 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University November 2015

21 citations

Journal Article
TL;DR: In this article, the main factors constraining the growth of SMEs at the Glenview Furniture Complex are limited access to finance, limited access of infrastructure, competition, limited availability of markets, HIV/AIDS and lack of access to appropriate technology.
Abstract: Small and Medium Enterprises (SMEs) are regarded as the seedbed of entrepreneurship development. The government and other support institutions are making efforts to support the growth of the sector. Despite all these efforts and initiatives, there has been an insignificant corresponding growth of SMEs in terms of size. This study adopted both qualitative and quantitative approaches. The research used random sampling focusing on owner/managers. Primary data was collected using questionnaires. The Statistical Package for Social Scientists (SPSS) was used to analyse the data. The results show that the main factors constraining the growth of SMEs at Glenview Furniture Complex are limited access to finance, limited access to infrastructure, competition, limited access to markets, HIV/AIDS and lack of access to appropriate technology. It was also found that SMEs at GFC grow through joint ventures, product differentiation, focus strategy and low cost strategy. The study recommended that SMEs at GFC should pull their resources together in acquiring raw materials as a group and selling their products through cooperative shops in town where they can display their products.

15 citations

Journal ArticleDOI
TL;DR: In this paper, the state of the SME sector in India, Ethics and CSR practices in MSMEs, and identify the knowledge gaps in the field of CSR and ethics in SMEs in India.
Abstract: The extant literature on CSR and ethics suggests that there is a need for a greater understanding about SMEs. The role of SMEs in the economic growth and development of emerging countries like India is significant. Given the geographical diversity of India and its high reliance on agriculture, MSMEs (medium, small and micro enterprises) are the lifeline of economic development and growth in future. However, the current state of knowledge and practice in the field of CSR and ethics in SMEs in the Indian context is limited. This paper attempts to outline the state of the SME sector in India, Ethics and CSR practices in MSMEs, and identify the knowledge gaps in the field of CSR and ethics in SMEs in India.Â

13 citations

Journal ArticleDOI
TL;DR: In this paper, the authors present the methodological process applied in arriving at the result of the impact of economic liberalisation on the access to finance by SMEs and how the policy has contributed to the survival or otherwise of manufacturing SMEs following the implementation in 1992.
Abstract: The paper presents the methodological process applied in arriving at the result of the impact of economic liberalisation on the access to finance by SMEs and how the policy has contributed to the survival or otherwise of manufacturing SMEs following the implementation in 1992. The policy was envisaged to encourage the inflow of investible funds into Nigeria for greater SMEs access to funds by the governments’ deregulation of interest rates, exchange rates and the licensing of new banks to stimulate competition for the supply of investible funds. The extent to which the policy has achieved its objectives still remains a puzzle. However, the application of return on investment (ROI) model on SMEs transaction records reveals that financial market liberalisation partly contributed to the failures of most manufacturing SMEs in Nigeria contrary to the policy objective of improved SMEs opportunities and access to finance. Instead of the competitive free-market rates to attract funds for investment, it became an obstacle that partly hindered the survival of manufacturing SMEs. The result of the study is further strengthened by the outcome of the global financial crisis and the call for regulation of the financial markets.

12 citations


Cites background from "Constraints And Contingencies Of Th..."

  • ...SMEs especially those in the manufacturing sector are regarded as the engine of economic growth in all economies of the world due to their undisputed contributions towards sustainable economic development through job creation and poverty alleviation (Udechukwu, 2003; Amin and Banerjee, 2007)....

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Journal Article
TL;DR: In this article, the authors present a study that shows that the most used tools are not necessarily the most appropriate, in terms of customers, in order to promote sustainable development of business, small and medium enterprises must learn to choose appropriate ways of marketing communication, ensuring strengthen relationships with customers and gain competitive advantage.
Abstract: Taking into account that sustainable development of organization’s business depends largely on the quality of the relationships it builds on long-term and marketing communication plays a key role in this process, the purpose of this article is to give a perception of SMEs customers regarding their way to communicate. The results of the research conducted for this purpose may be considered by consultants and decision makers in small and medium enterprises to set up communication programs likely to produce favorable results in the light of sustainable development. Considered to have an important role in generating a prosperous economy, SMEs should be encouraged in the process of increasing competitiveness in a sustainable manner, including by providing leverage to enable them to make better use specific tools of marketing communication. The study shows that the most used tools are not necessarily the most appropriate, in terms of customers. Therefore, in order to promote sustainable development of business, small and medium enterprises must learn to choose the most appropriate ways of marketing communication, ensuring strengthen relationships with customers and gain competitive advantage.

11 citations


Cites background from "Constraints And Contingencies Of Th..."

  • ...Small and medium enterprises play a major role in both the development and developed world, being regarded as the engine of economic growth globally (Amin and Banerjee, 2007)....

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References
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Journal ArticleDOI
TL;DR: In this article, the authors investigate the effect of financial, legal, and corruption problems on firms' growth rates and find that it is consistently the smallest firms that are most constrained.
Abstract: Using a unique firm-level survey database covering 54 countries, we investigate the effect of financial, legal, and corruption problems on firms' growth rates. Whether these factors constrain growth depends on firm size. It is consistently the smallest firms that are most constrained. Financial and institutional development weakens the constraining effects of financial, legal, and corruption obstacles and it is again the small firms that benefit the most. There is only a weak relation between firms' perception of the quality of the courts in their country and firm growth. We also provide evidence that the corruption of bank officials constrains firm growth.

2,030 citations

Journal ArticleDOI
TL;DR: In this article, a mail survey was sent to a sample of female entrepreneurs to assess motives, obstacles, goals and aspirations, needs, and business identity, and follow-up, indepth interviews were conducted with entrepreneurs, selecting equally from modestgrowth and high-growth ventures.
Abstract: In recent years the number of women-owned firms with employees has expanded at three times the rate of all employer firms. Yet women remain underrepresented in their proportion of high-growth firms. A number of plausible explanations exist. To develop richer insights, a two-stage research project was undertaken. A mail survey was sent to a sample of female entrepreneurs to assess motives, obstacles, goals and aspirations, needs, and business identity. Based on the survey results, follow-up, indepth interviews were conducted with entrepreneurs, selecting equally from modestgrowth and high-growth ventures. In terms of quantitative findings, growth orientation was associated with whether a woman was “pushed” or “pulled” into entrepreneurship, was motivated by wealth or achievement factors, had a strong women’s identity in the venture, had equity partners, and believed women faced unique selling obstacles. The qualitative research made clear that modest- and highgrowth entrepreneurs differ in how they view themselves, their families, their ventures, and the larger environment. The results of both stages suggest that growth is a deliberate choice and that women have a clear sense of the costs and benefits of growth and make careful trade-off decisions.

551 citations

Journal ArticleDOI
TL;DR: In this article, the exclusive focus on large firms in the field of business ethics is challenged, and links are made between the idiosyncrasies of small firms and potential ethical issues.
Abstract: In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future.

486 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the factors that influence the growth, performance, and development of small and medium-sized enterprises (SMEs) in Nigeria and what implications these factors have for policy.
Abstract: This study investigates the factors that influence the growth, performance, and development of small and medium-sized enterprises (SMEs) in Nigeria and what implications these factors have for policy. The study is justified for a number of reasons. Most importantly, since its independence, the Nigerian government has been spending an immense amount of money obtained from external funding institutions for entrepreneurial and small business development programs, which have generally yielded poor results (Mainbula 1997). Given the large domestic market and plethora of raw materials in Nigeria, there is little progress in terms of manufacturing value-added products, either for import substitution, exports, or employment creation. It therefore becomes pertinent to identify the factors that impede small business development in Nigeria. For this study, 32 small business entrepreneurs were interviewed across the country. In addition, other sources were interviewed to check and confirm the validity of the entrepreneu rs' responses. Research Methodology A mixed-method strategy is one in which more than one method of approach is used in data collection and analysis while conducting research (Romano 1989). This approach is similar to what Mikkelsen (1995) and Denzin (1978) described as triangulation. The multiple-method strategy was adopted for this study to reduce the possibility of personal bias by not depending on only one method of approach or response coming from only one firm or sector. Adopting this method of approach supports the authenticity of the study. Both qualitative and quantitative data were used in a variety of ways, including a detailed overview of survey results in terms of a general profile and a model of Nigerian small firms. Semi-structured interviews based on open-ended, flexible questionnaires and some structured interviews were conducted with several groups of people interested or involved with the small business sector in Nigeria. The idea behind this was to obtain cross-referencing data and some independent confirmation of data, as well as a range of opinions. Input from the following groups were solicited: (1) government officials who formulate and implement policies on SME promotion and industrial development in Nigeria; (2) officials responsible for raw material supply to small companies; (3) managers of other large scale businesses operating in the same sector and economy as the SMEs; (4) representatives of development banks who may be requested to give loans to small-scale businesses; (5) industrial experts and consultants who conduct research and are well-informed about the present state of the industrial sector in Nigeria; and (6) selected customers who buy and distribute products as retailers to the public or to other small businesses or larger firms. The Perceptions of Constraints on Small Business in Nigeria What the 32 small firms studied in Nigeria considered to be the main constraints on their firms' growth and overall performance are presented in Table 1. In addition, some entrepreneurs indicated that government policies and attitudes of public officials adversely affect their businesses, especially the harsh economic policy of the structural adjustment programme (SAP) implemented by the government in 1986. The policy caused the value of the national currency to decline. Most small businesses could not afford to train their workers, and manufacturers found it difficult to obtain foreign exchange to order or purchase machinery and spare parts. There is also the problem of frequent harassment by government officials who extort money from the businesses. Poor infrastructure, including bad roads, inadequate water shortage, erratic electric supply and a poor telecommunications system are additional obstacles. Lack of these facilities cost most firms higher overheads because they have to be responsible for obtaini ng such facilities at their own expense. …

246 citations


"Constraints And Contingencies Of Th..." refers background in this paper

  • ...…al. (2006) highlights the issue of access to debt financing; Tagoe, et al, (2005) examine the challenge of affordable credits to urban SMEs in Ghana; Mambula (2002) examines how the issue of collateral for lending to small business becomes an impediment for the growth of small business in Nigeria....

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  • ...Madill et al. (2006) highlights the issue of access to debt financing; Tagoe, et al, (2005) examine the challenge of affordable credits to urban SMEs in Ghana; Mambula (2002) examines how the issue of collateral for lending to small business becomes an impediment for the growth of small business in Nigeria....

    [...]

Journal ArticleDOI
TL;DR: In this article, a developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time, including the entrepreneur's psychological profile, lifecycle stage of the business, and descriptive characteristics of the venture.
Abstract: The aim of this study is to increase our understanding of the ethical climate of entrepreneurial firms as they grow and develop. A developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time. Factors influencing where firms are within the developmental framework are posited, including the entrepreneur's psychological profile, lifecycle stage of the business, and descriptive characteristics of the venture. It is also proposed that the implementation of ethical structures will impact perceptions of the clarity and adequacy of the ethical standards of the firm and the firm's preparedness to deal with ethical challenges as they arise. Results are reported of a cross-sectional survey of small firms at different stages of development. The findings indicate the existence of four distinct clusters of firms based on their formal and informal ethical structures: Superlatives, Core Proponents, Pain and Gain, and Deficients. Evidence is also provided of statistically significant relationships between the proposed antecedent and outcome variables. Implications are drawn from the results, and priorities are established for future research.

182 citations