Current Issue : October-December Volume : 2024 Issue Number : 4 Articles : 5 Articles
This comprehensive research endeavor undertakes an exhaustive examination of the far-reaching influence exerted by small businesses on the intricate fabric of the U.S. economy. Employing a meticulously crafted methodology that combines random interviews with a diverse array of small and medium enterprises across the United States and an extensive review of secondary sources, this study endeavors to unravel the multifaceted effects and ramifications of small businesses. From serving as engines of job creation and catalysts for local economic development to driving industrial expansion and fostering innovation, the pivotal role played by small businesses in shaping the economic landscape of the nation becomes increasingly apparent. Furthermore, this research undertakes a critical analysis of the myriad challenges and negative externalities that often beset small businesses, offering incisive insights and strategic recommendations aimed at mitigating these obstacles and fortifying resilience. The robust findings derived from this study not only underscore the indispensable contributions of small businesses to the vitality and dynamism of the U.S. economy but also serve as a clarion call for policymakers, stakeholders, and entrepreneurs alike to redouble efforts in fostering an environment conducive to the sustained growth and prosperity of small businesses. By equipping stakeholders with actionable insights and tailored solutions, this research seeks to empower small businesses to navigate the complexities of the U.S. business landscape and thrive amidst evolving economic paradigms....
Small and medium enterprises (SMEs) stand out as vital catalysts for economic growth globally, spearheading job creation, social progress, and innovation. Ninety-five percent (95%) of the job’s providers are in Africa (World Trade Organisation, 2022). However, SMEs frequently encounter significant obstacles, foremost among them being limited access to finance, particularly pronounced in the aftermath of financial crises. Traditional banking institutions, constrained by regulatory shifts, have curtailed lending to SMEs, ushering in the rise of Financial Technology (Fintech) firms offering innovative financing solutions. Fintech platforms, leveraging state-of-the-art technology and diverse business models, present SMEs with alternative avenues for financing, including debt and equity financing. This disruption in the financial landscape holds promise for SMEs, offering them an escape from reliance on conventional banking channels and access to the capital essential for growth and expansion. SMEs can contribute significantly toward attainment of several Sustainable Development Goals (SDGs) such as employment generation, income disparity reduction, and poverty alleviation, among others (OECD, 2017). Beyond stifling traditional financing avenues, the post-crisis era has witnessed the emergence of new financing alternatives. These non-bank financing options have empowered SMEs by offering fresh avenues for funding. While Fintech companies are experiencing a surge in developed nations, many developing countries still lag. Despite the manifold benefits Fintech financing offers to SMEs, certain countries are disregarding them and delaying their adoption....
Given the phenomenon of “financing is difficult and expensive” for MSEs, this paper empirically investigated the influencing mechanism of the credit demand side characteristics on the financing constraints of MSEs based on the information conveyance perspective. The conclusions show that MSEs in China are severely suffering from financing constraints and 57.17% and 50.00% of MSEs with credit demand have not applied for loans from formal and informal financing channels, respectively. In terms of enterprise characteristics, MSEs have low asset size, short establishment history, weak profitability, and lack of tools such as fixed assets, complete financial management system, professional technicians, and private brands to convey risk information to financing institutions, which are key factors resulting in their financing constraints. In terms of owner characteristics, young owners lack financing experience and convey higher risk information to financing institutions; therefore, owners’ age negatively influences the financing constraints of MSEs. These findings suggest that banks can use big data credit technology as a tool to obtain risk information about MSEs, and the government should implement diversified interventions to improve the information environment in financial markets. These findings provide empirical evidence for banks and governments to address the financing constraints of MSEs....
This paper aims to investigate government policy intervention for mitigating the impacts of COVID-19 on small and medium enterprises (SMEs). This paper has utilized a methodology comprising of bibliometrics, network, and content analyses on 831 documents extracted from the Scopus database to explore the extant literature on this domain. A systematic literature review has also been performed to propose the government policy intervention during the crisis framework. The analysis and review discerned that government policy interventions yielding the greatest success display a pronounced industry focus, regardless of a country’s economic context. Notably efficacious interventions encompass government support for market access and promotion, regulatory flexibility, wage subsidies, supply chain bolstering, sustainable long-term support, training and development, digitization aid, and industryspecific access to credit and capital. Collaborative efforts between governments and financial institutions also proved instrumental in expediting SME recovery. Furthermore, initiatives like knowledge-sharing, capacity-building, digitalization of SMEs, and crisis management training played pivotal roles in ensuring SME survival during the COVID-19 pandemic. This paper has also provided guidelines for future research direction....
This study investigates how venture capital funding impacts SME performance in Lusaka, Zambia. SMEs are crucial for Zambia’s economic growth, but face challenges accessing financing, especially in their early stages. Venture capital offers potential solutions by providing capital and expertise for SMEs to thrive. However, there’s a gap in understanding how exactly venture capital influences SME growth and performance, and the contextual factors at play. The research, based on the economic theory of the entrepreneur, used a mixed study design and achieved a 100% response rate from 102 SME owners/ managers through questionnaires. Analysis reveals a positive correlation between venture capital funding and SME performance, along with the importance of financial management skills. Challenges include limited access to venture capital, awareness issues, and regulatory hurdles. Recommendations include developing growth-centric business plans and enhancing awareness of venture capital benefits for SMEs....
Loading....