Factors Affecting Business Continuity In The Smes Sector

2016

The essence of entrepreneurship spanning many decades, from, broadly put, seen as any attempt to create something new to current times including concepts of economic value creation and uncertainties. The urgency of small businesses contributing to the creation of this value is visible to the country due to unemployment stagnating at 25.5% and the 2008 financial crisis not a so distant memory. Entrepreneurship breeds innovation which can be turned into an economic value. Small businesses are a breeding place for innovation. Entrepreneurship Orientation (EO), a concept in entrepreneurship literature highlights the innovativeness, pro-activeness and risk taking businesses can be positively on business performance. However, with the high mortalities of small business at stages of business inception, a need has been created in relooking at what the factors impacting business are critical for to improve on SMEs life expectancy. By inferring age of the business as a measure of business performance, a quantitative cross sectional study was conducted on 62 owners of small businesses with age of 10 years and beyond to investigate what the owners perceived as factors critical for SME survival. Through the ranking of the factors deemed to impact on SME performance, an understanding of what factors were deemed critical was found. A focus on managerial skills on managing business resources and value offering moderated by Entrepreneurship Orientation and an enabling business environment were deemed highly critical. The outcome for this research provides a window of knowledge for aspiring and existing business owners on what aspects of business they should be focussing on more to ensure sustainability of the business in South Africa.

Jurnal Aplikasi Manajemen, 2018

Indonesia has the opportunity to become the world's largest producer of fishery products because fisheries contribution from year to year has increased. Opportunities to develop marine products and fisheries in Indonesia have good prospects to encourage the economy. Community, especially SMEs (Small and Medium Enterprises). Gersik Regency is one of the districts in East Java Province with a large number of SMEs processing fishery products. Fish management activities include processing fresh fish, canning, freezing, salting/drying, scanning, smoking, fermentation, reduction, semiprocessing and other processing. But this business activity with all its limitations, including the ability to innovate, weak in capital, technology, and information, management, and marketing, is subsystem and are partially distributed. To optimize the utilization of the potential of marine and fisheries resources and make this sector a prime mover of national economic development in Tuban Regency, efforts are needed to accelerate and breakthrough in the development of marine and fisheries supported by political and economic policies and a conducive social climate. Given that SMEs are a tool of national struggle to grow and develop the economy by involving as many economic actors as possible based on their potential by justice for all stakeholders (Wilantara, 2016). According toAldo inSancoko(2015), business is all activities producing goods and services that aim to make a profit. To make decisions on business Abstract: SME Business Development Strategy: SWOT and EFE-EFI Analysis. The purpose of this research is to determine the profile, condition, and model of Small and Medium Enterprises (SME) business development strategy. The study used 40 respondents selected in a multi stage. Research location in Gresik Regency East Java determined four villages by purposive as the sample unit. Each unit was randomly taken ten perpetrators of SMEs processing marine fish as respondents. Data were analyzed by SWOT and EFE-EFI analysis. The results explained that most SMEs are young and well educated. Most SMEs are not yet legal entities. The level of ability of SMEs in managing the business and the level of achievement of marketing performance is good. The model of SME's business development strategy is SO. Hope that SME's are more optimizing their strengths to take advantage of opportunities that are as optimal as possible.

2020

SMEs accumulatively contribute greatly to the economy and the environment. However, the attention to the sustainability of SMEs is still considerably low. This study starts from the gap in the results of previous studies. This study aims to examine the effects of financial performance on the sustainability of SMEs and the effects of sustainability of SMEs on their financial performance. The study was conducted at SMEs in the Central Java Province. We used two regression models. A total sample of 300 respondents was obtained. The data used in this study are primary data obtained through questionnaires in August 2019. The results of the study prove that there is no significant influence in either of the two directions above. This proves the validity of the supply and demand hypothesis which states that there is no clear link between the level of sustainability with financial performance

Advanced Science Letters, 2017

This study aimed to investigate the characteristics of Managers, Cost Efficiency, Knowledge Creation, Knowledge Transfer and Standardization simultaneously work against the resistance of SME Business. For that examined how much correlation four factors of independent variables on SME Business Resilience. The purpose of this study is to examine the correlations between variables as well as the effectiveness of the characteristic Manager, Cost Efficiency, Knowledge Creation, Knowledge Transfer and Standardization simultaneously work on in practice. Sampling in this study conducted by purposive sampling, respondents were small and medium pengusahsa amounted to 50 people. Respondent is the owner or co-owner of SMEs in the Greater Jakarta neighborhood with the following criteria; doing business that occupied for 5 years or more, led UKMnya at least three years or more and sell products of daily needs of the garment, fast food products, groceries and SME businesses fruits. The study duration is 6 months. The methodology used technique is the use of SPSS and research testing was conducted over 6 months. The conclusion of this study demographically; the majority are SMEs respondents aged 20-45 years, the majority have high school education and equal level. Results from this study is that the characteristics of Managers, Cost Efficiency and Standardization Work positively correlated to the SME Business Resilience, while Knowledge Creation, Knowledge Transfer and simultaneously Labor Standards had no effect on the SME business resilience. Suggestions that the increased training for upgrading SMEs to enhance the competitiveness of SMEs.

2020

The study examined the effects of strategic management on small and medium enterprises in Lagos State .With sudden closure of several SMEs between the first to the third stage of their existence, SMEs continuous death has negatively affected the entrepreneurs, growing economy, skyrocketed unemployment rate and dwindled revenue. In other to get this study achieved, a survey research design was employed while 382 SMEs for the study were selected randomly among the 8395 SMEs in Lagos State. A well validated questionnaire was employed for the extraction of information from the respondents. The data were analysed with regression analyses and EViews econometric package. The study found that strategic analysis positively influences SMEs revenue, also strategy formulation positively affects SMEs competitive advantage and that strategy implementation enhances SMEs profitability. The study recommended that SMEs operators and owners should incorporate strategic management practices into their activities so that better revenue can be realised, profitability generated, and competitive advantage sustained for the long term

Jurnal Aplikasi Bisnis dan Manajemen, 2021

The availablity of Information technology in IR 4.0 demands the ability of SMEs to build a culture to foster competitiveness. This study aims to test a model to improve Sustainability Competitive Advantage based on Innovation Culture, Adaptation Capability and IT Adoption. This type of research uses explanatory research, to test the proposed hypothesis. Data was collected from 106 Batik SMEs owner of Central Java and Yogyakarta through a questionnaire and analysis using SmartPLS. The results shows that SMEs need to strive for the development of an Innovation Culture, in the form of creating new product and services and finding new market opportunities for running their business. Innovation Culture is useful for fostering adaptability in the form of creating change, focusing on services, and developing knowledge. The Innovation Culture that has been formed also has an impact on the ability to apply information technology, namely relative advantage, adaptability, and practicality. Adaptation Capability and Technology Information Adoption that has been formed in SMEs, can help to increase Competitive Advantage so that it continues, marked by increased cost reduction, differentiation and quality.

Jurnal Manajemen Industri dan Logistik

The purpose of this research was to get deeper undestanding on management of SMEs to win profitable and sustainable business. The publication of books, journal, and websites were become the main sources of the data that we got electronically. Because of this reason, several literatures related to profitable business strategies have been carefully studied to understand superior and sustainable governance and business strategies. The literature included is the electronic literature such as books and scientific articles. After reviewing and obtaining the valid answers, we discussed them carefully. Finally, we find several business management strategies to increase the profitability and sustainability of SMEs such as strategies to attract customers, continue to use various promotional methods, seek to increase subscriptions, add new items, and increase discounts.

Zenodo (CERN European Organization for Nuclear Research), 2022

The large contribution of MSMEs to the Indonesian economy, it was recorded that in 2019 MSMEs were able to contribute to Indonesia's GDP, which was around 60.3%. However, in reality, MSMEs often experience delays in their development and experience failure. This study aims to determine the effect of the quality of financial statements, business risk, and human resource competence on business sustainability. Researchers conducted a survey on 120 small and medium-sized businesses in West Jakarta as research samples. SEM PLS was used as an analytical tool in this study. The research data used came from questionnaires which were collected using a survey method. The results show that the quality of financial reports has a positive and significant effect on business sustainability, business risk has a negative and significant effect on business sustainability, and human resource competence has no positive and significant effect on business sustainability.

In South Africa, entrepreneurial ventures have a low survival rate as entrepreneurs start businesses but are unable to turn them into sustainable businesses (Foxcroft, Wood, Segal, Herrington and Kew, 2002: 14). note that most new SMEs in South Africa do not move from the first stage (existence) of growth to other stages such as survival, success, take off and resource maturity. As such, it is believed that many of these SMEs do not survive in their first years of operation and thus, do not provide their benefits to society (Persson, 2004). is of the opinion that if business owners and managers are good at managing their businesses, then they will do extremely well in terms of ensuring their continuous survival of their businesses. For SMEs to survive and succeed in their business operations, it is pertinent that its owners or managers possess certain entrepreneurial characteristics (MacGregor and Varzalic, 2005; and carry out specific business practices. For these reasons SMEs deserve much more attention, especially with regard to its business practices, which are often developed as part of the entrepreneur"s personal life strategies. These business practices and personal life strategies are used as a means of earning a living, which in turn is largely influenced by the entrepreneur"s personality characteristics . Hence, an increase in the long-term survival of SME will result in sustainable job creation; poverty eradication and improved standards of living.

Jurnal Dinamika Manajemen, 2018

This article describes the situation and potential of SMEs in East Java Indonesia. Small and medium enterprises are essential to support the economic progress of a country. By using descriptive analysis and multiple regression then generated mapping. Mapping the characteristics and competitiveness of SMEs is done as a basis for gap analysis. If the current condition of Indonesian SMEs is known, benchmarking can be done by comparing ideal conditions or targets to be achieved in the face of global competition. The mapping generated from this research is expected to provide an overall picture of SMEs in disrict of Jember, Bondosowo, Situbondo and Banyuwangi, East Java Province, Indonesia, so that it can assist government and business actors in determining business strategies and policies. This study found the variables that significantly affect the competitive position are innovation ability, quality focus, customer loyalty, response to change, price advantage and marketing power. Whil...

2004

In Indonesia, despite the fact that some SMEs have been declining or stagnant, some others have been successful and growing. What factors affect business success among SMEs? The recent study aims to answer this main question. Based on survey to 100 SMEs, the study discloses that marketing, technology and capital access affect the business success in a positive way significantly, while legality does it in a negative direction. Altogether, independent variables explain 38.6% of the total variances. These findings suggest that to be successful SMEs, the owners of the SMEs should pay more attention to improve marketing strategy, to advance technology, and to get capital access. Other interested parties with development of SMEs such as government agencies, universities, and business service development (BDS) should also be prepared for giving assistances in those fields. Why does legality have a negative effect on business success? The speculative explanation may be complicated bureaucracy and legal aspect that takes too many resources of the SMEs to deal with. Simplification of bureaucracy and deregulation of legal aspects are also recommended to foster the development of the SMEs in Indonesian context.

In Indonesia, despite the fact that some SMEs have been declining or stagnant, some others have been successful and growing. What factors affect business success among SMEs? The recent study aims to answer this main question. Based on survey to 100 SMEs, the study discloses that marketing, technology and capital access affect the business success in a positive way significantly, while legality does it in a negative direction. Altogether, independent variables explain 38.6% of the total variances. These findings suggest that to be successful SMEs, the owners of the SMEs should pay more attention to improve marketing strategy, to advance technology, and to get capital access. Other interested parties with development of SMEs such as government agencies, universities, and business service development (BDS) should also be prepared for giving assistances in those fields. Why does legality have a negative effect on business success? The speculative explanation may be complicated bureaucracy and legal aspect that takes too many resources of the SMEs to deal with. Simplification of bureaucracy and deregulation of legal aspects are also recommended to foster the development of the SMEs in Indonesian context.

Information Management and Business Review, 2023

This investigation looked to set up the social and natural factors that impact Sustainable Entrepreneurship in Small and Medium-Sized Enterprises (SMEs). It likewise endeavored to distinguish whether the segment foundation of the business person impacts the Sustainable Entrepreneurship in SMEs of the Malaysian nourishment industry. This paper tries to investigate the writing on long haul and manageable development for SMEs and the upgraded information on this territory will be a direction to the approach producers, supporting offices, consultants, business visionaries and academicians to genuinely build up a widely inclusive model for feasible development of SMEs. This paper proposes an incorporated reasonable development model for SMEs with five components of the Sustainable Entrepreneurship variables that are leadership, network, employee management, customer orientation and marketing strategy. A blended technique approach, utilizing the utilization of surveys and meetings from an example size of around 120 members and 10 proprietor supervisors of SMEs in the nourishment industry, was utilized to gather information. Moreover, out of the five recognized elements, as indicated by the members' recognition, the most significant components towards supportable execution of SMEs in the nourishment industry are social variables, including customer direction. This exploration paper reasons that thinking about the social and natural parts of supportability and utilizing experienced staff would significantly add to the quest for Sustainable Entrepreneurship in SMEs of the nourishment industry.

This study attempted to identify factors that are affecting business success of small and medium enterprises (SMEs) in Thailand. The intention of this study is to provide the understanding on how people should start their business by looking at all the factors affecting business success hence help to reduce the risk of failure and increase chances of success. The study examined eight factors that influence the SMEs business success. These factors are: SMEs characteristic, management and know-how, products and services, Customer and Market, the way of doing business and cooperation, resources and finance, Strategy, and external environment. The theoretical framework has been drawn out and questionnaire was designed based on the factors chosen. Eight hypotheses were developed to find out factors that are affecting Business Success of SMEs in Thailand. The entire hypotheses were successfully tested with SPSS and five hypotheses were accepted. The regression analysis result shown that the most significant factors affecting business success of SMEs in Thailand were SMEs characteristics, customer and market, the way of doing business, resources and finance, and external environment.

Market-Tržište, 2019

Purpose-The aim of this study is to fi nd out and to analyze the capacity for developing small and medium-sized enterprises (SMEs) of batik in Central Java, Indonesia. Batik is a traditional hand-crafted dye-resist textile, rich in intangible cultural values that has been passed down for generations. Batik refers to either a technique of wax-resist dyeing applied to whole cloth or cloth made using this technique originating from Indonesia. Design/Methodology/Approach-The primary data was collected by interview method with one hundred Sažetak Svrha-Cilj je ovog istraživanja otkriti i analizirati kapacitete za razvoj malih i srednjih poduzeća za proizvodnju batika u središnjoj Javi u Indoneziji. Batik je tradicionalna ručno izrađena, obojana i otporna tkanina bogata neopipljivim kulturnim vrijednostima koje se prenose s generacije na generaciju. To je tehnika bojanja tkanine uz primjenu voska. Tkanina izrađena korištenjem ove tehnike potječe iz Indonezije. Metodološki pristup-Primarni podaci prikupljeni su intervjuiranjem stotinu ispitanika, poduzetnika malih