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on Small Business Management |
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Issue of 2025–05–26
fourteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Robert, Marc |
| Abstract: | This review examines the pivotal role of entrepreneurship in fostering innovation within manufacturing industries. This article synthesises theoretical, empirical, and policy-oriented insights. I explore how entrepreneurial activities, whether through independent start-ups, SMEs, or intrapreneurship within established firms, act as critical catalysts for technological upgrading in manufacturing sectors. The analysis integrates innovation theory, the knowledge spillover perspective, and entrepreneurial ecosystem frameworks, while also emphasising the embedding of entrepreneurship within institutional contexts. Our findings reveal that the effectiveness of entrepreneurial-led manufacturing innovation is highly contingent on factors such as ecosystem health, networks, policy design, and cultural milieu. The review identifies key debates regarding the quality versus quantity of entrepreneurship, the optimal role of the state in ecosystem development, and contextual nuances influencing entrepreneurial outcomes. Emerging research frontiers including digital manufacturing entrepreneurship, comparative ecosystem studies, and multi-level dynamic analyses are proposed as promising avenues for future inquiry. In conclusion, the article asserts that entrepreneurship remains a linchpin of manufacturing innovation, but realising its full potential requires a nuanced orchestration of formal institutions, social capital, firm-level capabilities, and policy interventions aligned with sustainable development goals. |
| Keywords: | Manufacturing innovation; Entrepreneurship; Entrepreneurial ecosystems; Sustainable entrepreneurship; Industry 4.0. |
| JEL: | L6 M2 M21 |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124608 |
| By: | Florian Léon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | In Africa, small and medium-sized enterprises (SMEs) face a chronic financing gap that hinders their growth and the continent's economic development. Development Finance Institutions (DFIs) are often seen as a solution to bridge this gap, particularly through indirect support to local banks. However, an in-depth analysis of their impact reveals mixed results. While targeted beneficiaries benefit from these programs, it is at the expense of other borrowers. There is a need to rethink the support for these DFI-intermediated financing schemes aimed at supporting the SME sector. |
| Keywords: | DFI, Development Finance Institutions, Africa, Small and medium-sized enterprises SMEs |
| Date: | 2025–04–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05026886 |
| By: | Muthitacharoen , Athiphat (Chulalongkorn University); Paweenawat, Archawa (Puey Ungphakorn Institute for Economic Research, Bank of Thailand); Samphantharak , Krislert (School of Global Policy and Strategy, University of California San Diego) |
| Abstract: | This paper investigates the unintended consequences of size-dependent regulations in small and medium-sized enterprise (SME) promotion policies. We use data from all registered Thai firms to analyze the effects of introducing a revenue cap in the SME tax incentive program qualification. Our study shows a marked bunching of firms just below the cap, illustrating tax salience. We provide evidence suggesting that the bunching is due to real operation responses. A differencein-differences analysis indicates that eligible firms just under the threshold exhibit a significant decline in revenue growth compared to those just above it. This adverse effect is more pronounced among firms with lower pre-policy profitability. We also document substantial negative effects on investment and profitability but find no significant impact on firm survival— challenging the assertion that government support enhances SME survival. Our findings also indicate a marked reduction in the presence of large firms, suggesting broader implications on firm size distribution in the economy. We highlight the double-edged nature of size-based SME policies: while intended to help smaller businesses, the measures may inadvertently suppress growth for firms near the threshold and potentially create resource misallocation. This study underscores the need for a careful policy design that supports SMEs without impeding their potential for growth. |
| Keywords: | size-dependent policy; SMEs; bunching; tax incentives; corporate tax |
| JEL: | G30 H20 K30 L20 L50 |
| Date: | 2025–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0778 |
| By: | Tiriongo, Samuel; Njino, Roselyne; Mulindi, Hillary |
| Abstract: | Micro, Small and Medium-sized Enterprises (MSMEs) are crucial drivers of economic growth. In Kenya, MSMEs represent about 98 percent of all businesses and contribute over 30 percent to the GDP. Despite their essential role in the economy, these enterprises face substantial challenges in accessing bank finance, thereby hindering their growth and development. On this account, this study uses Kenya Bankers Association (KBA) Inuka Impact survey 2024 data with the propensity score matching and difference in difference analysis to examine the impact of banking sector's intervention program on MSMEs ability to access bank credit. The results shows that size and turnover are critical determinants of MSMEs access to finance, and while the interventions by the Inuka program have yielded some positive results, these efforts need to be extended beyond capacity building and training to achieve a stronger and more sustainable impact. Therefore, policies aimed at supporting MSMEs in Kenya should tailored to the distinct stages of MSMEs development, ensuring that interventions are diversified and comprehensive to drive meaningful outcomes in the economy. |
| Keywords: | Lending, debt capital, SME financing, SMEs, micro-enterprises, Kenya |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:316412 |
| By: | Würtemberger, Sonja; Rehfeld, Katharina-Maria; Holz, Heiko F. |
| Abstract: | This discussion paper presents the "Diversity Management Radar" (DMR), a novel maturity model developed to assess and guide the implementation of Diversity, Equity, and Inclusion (DEI) in German organizations. While many companies in Germany endorse diversity through initiatives, practical approaches to DEI often lack clarity, particularly among small and medium-sized enterprises (SMEs). Existing international maturity models are rarely tailored to the legal, cultural, and organizational context of German firms. This research project-funded by IU Internationale Hochschule and conducted in collaboration with Charta der Vielfalt e.V.-adopts a mixed-methods approach, combining a review of existing DEI maturity models with 24 expert interviews from executives and HR/Diversity professionals across SMEs, mediumsized firms, and large corporations. The resulting model comprises three DEI maturity levels (Foundation, Management, Excellence), three company sizes, and nine action categories along the employee lifecycle. The DMR provides a practical self-assessment framework, enabling companies to map their current DEI practices, define strategic goals, and prioritize resource allocation. By integrating insights from organizational practice, the model emphasizes realistic development paths over prescriptive checklists. The model is freely accessible and designed to foster evidence-based, resource-sensitive DEI management in the German context. It contributes to both scholarly discussion and practical implementation, supporting organizations in moving from intention to action in their DEI strategies. |
| Keywords: | DEI, Diversity, Equity, Inclusion, Diversity Management, D&I, Reifegradmodell, Personalmanagement |
| JEL: | J7 J8 J62 M51 P46 Z1 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhhr:317788 |
| By: | Adil Boutfssi (Hassan II University - Morocco - University of Hassan II); Tarik Quamar (Hassan II University - University of Hassan II) |
| Abstract: | Moroccan SMEs, which are closely linked to banking institutions to obtain the financing needed for their projects, often find themselves in a situation where these sources of financing are not easily accessible. Indeed, access to credit is often difficult for these categories of companies that are frequently confronted with the phenomenon of total and partial credit rationing. Among the causes of this problem, we can cite the somewhat opaque nature of their information system and their inability to comply with bank financing conditions compared to large companies. This article aims to shed light on the relationship between restrictive bank clauses, including the availability of guarantees, the characteristics of the credit requested and the credit rationing of SMEs in the CASABLANCA-SETTAT region. We conducted a questionnaire survey of 218 SMEs in the same region. Contingency and simple regression tests show that the lack of guarantees is a direct cause of total and partial credit rationing, particularly for small businesses that need significant financing. |
| Abstract: | Les PME marocaines, étroitement liées aux institutions bancaires pour obtenir le financement nécessaire à leurs projets, se trouvent souvent dans une situation où ces sources de financement sont difficilement accessibles. En effet, l'accès au crédit est souvent difficile pour ces catégories d'entreprises qui sont fréquemment confrontées au phénomène de rationnement total et partiel du crédit. Parmi les causes de ce problème, on peut citer le caractère quelque peu opaque de leur système d'information et leur incapacité à se conformer aux conditions de financement bancaire par rapport aux grandes entreprises. Cet article vise à éclairer la relation entre les clauses bancaires restrictives, notamment la disponibilité des garanties, les caractéristiques du crédit demandé et le rationnement du crédit des PME de la région de Casablanca-Settat. Nous avons mené une enquête par questionnaire auprès de 218 PME de la même région. Des tests de contingence et de régression simple montrent que l'absence de garanties est une cause directe de rationnement total et partiel du crédit, en particulier pour les petites entreprises qui ont besoin de financements importants. |
| Keywords: | Moroccan SMEs Information asymmetry Credit rationing Bank financing Bank restrictive clauses Guarantee, Moroccan SMEs, Information asymmetry, Credit rationing, Bank financing, Bank restrictive clauses, Guarantee |
| Date: | 2024–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05040737 |
| By: | Salma Zouaoui; Ioana Filipas; Punita Raj; François Marmier; Bertrand Rose |
| Abstract: | This study investigates the barriers to Digital Transformation (DT) in French service SMEs. As literature on DT of service SMEs is scarce, this study uses a combination of a literature review analysis of barriers to DT in SMEs and a thematic analysis of the challenges to DT encountered by 26 service SMEs. The research identifies six main categories of barriers: technological barriers, business and strategic barriers, process and operational barriers, organizational barriers, human and talent barriers and security and compliance barriers. This paper highlights that service SMEs highly underestimate the barriers related to human and talent barriers and slightly underestimate organizational barriers while overestimating business and strategic barriers. This paper emphasizes the inadequacy of existing DT strategies designed for larger corporations and raises the need for research in the DT of service sector and particularly of service SMEs. The study also discusses the potential biases inherent in the data collection from reports intended for tax administration and the limitations of the sample size. |
| Keywords: | barrier, challenge, digital transformation, qualitative analysis, Small and Medium-sized Enterprises, thematic analysis. |
| JEL: | L8 L80 O3 O30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-49 |
| By: | Okeke, Clement Ejiofor |
| Abstract: | Studies on corporate attributes and the financial performance of firms are increasingly gaining momentum. However, most of the past studies in this area have concentrated on sectors such as banking, agriculture, oil and gas, and consumer goods with limited reviews on the relationship between corporate attributes and financial performance of the industrial goods sector. This study examined the effect of Corporate Attributes on Financial Performance of Listed Industrial Goods Firms in Nigeria. The study used an ex post facto research approach and secondary data were retrieved from the annual financial reports of selected industrial goods firms in Nigeria for eleven years from 2013-2023. E-views version 12 was used to carry out the regression analysis of the direct effect of relevant variables. The study found that corporate attributes do not have a significant effect on the financial performance of listed industrial goods firms in Nigeria.. The study recommends that managers and board members in the industrial goods sectors in Nigeria should consider moderating/reducing their size to control the negative effect such action holds for their financial performance. The study also recommended that the management of industrial goods firms in Nigeria should invest more in activities and programs that promote their management efficiency. |
| Keywords: | Corporate Attributes, Earning Per Share, Financial Performance, Firm Size, Industrial Goods Firms |
| JEL: | F0 F60 L0 M0 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123031 |
| By: | Andrea Borsato; Patrick Llerena |
| Abstract: | Contributing to the fast-growing Economics of Artificial Intelligence (AI), this paper examines the close relationship between university and industry for what concerns to the research and development of AI technologies in the USA. Recalling the history of the university-industry relationships in the several phases of the US national system of innovation (NSI), we argue that current collaborations resemble in some respects what happened during the prewar NSI. Yet, the AI R&D presents some peculiarities. Universities are changing their positioning in the innovation process and turning to a research-based training model in the domains concerned by AI. This could potentially change the trajectory of university-industry links, since it is very much in line with the typical Humboldtian perspective that was at work in some European institutes in XVIII century up to US early XX century. At the same time, if the way in which the production of knowledge and the training of the workforce envisages a return to the origins, differences arise in the definition of the main goals, e.g., Sustainable Development Goals, and in the role of stakeholders. The overall discussion also bears some implications for the link between division of knowledge and division of labour. |
| Keywords: | Artificial Intelligence, AI research, University-industry relationship, US national innovation system. |
| JEL: | I2 L2 O31 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-46 |
| By: | Okeke, Clement Ejiofor |
| Abstract: | The moderating effect of dividend policy on the relationship between corporate social responsibility (CSR) and the financial performance of firms is gradually gaining attention in the literature. However, most of the past works of literature in this area have concentrated on investigating the direct relationship between CSR and dividends or CSR and firm performance. This paper examined the relationship between Corporate Social Responsibility and the Financial Performance of Listed Consumer Goods Firms in Nigeria. and how dividend policy moderates these relationships. The study used an ex post facto research approach and secondary data were retrieved from the annual financial reports of selected consumer goods firms in Nigeria for eleven years from 2013-2022. E-views version 12 was used to carry out correlation and regression analysis of the direct and moderating effects of relevant variables. The study found that dividend payment has a weakening but insignificant moderating effect on the relationship between Community Corporate Social Responsibility (C-CSR) and Return on Capital Employed (ROCE) of listed consumer goods firms in Nigeria. The study also found that dividend payment has a reversing but insignificant moderating effect on the relationship between Employee Relations Corporate Social Responsibility (ER-CSR) and Return on Capital Employed of listed consumer goods firms in Nigeria. The study recommends that managers and board members in the consumer goods industries in Nigeria should seek investments and policies that would create a balance in the social behavior components and dividend policies of the firms since the interests of the shareholders, communities, and employees are key in maintaining impressive financial performance. |
| Keywords: | Corporate Social Responsibility, Return of Capital Employed, Financial Performance, Dividend. |
| JEL: | A1 L0 M0 O1 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123030 |
| By: | Suren Karapetyan (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Matej Bajgar (CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences; Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | Using a difference-in-differences design and a global database of startups, investors and deals, we study the effect of exits (IPOs and acquisitions) of unicorn companies - privately held startups valued over USD 1 billion - on the subsequent investment activity of their investors. We find that an exit by a unicorn startup increases the number of investments by its investors over the following 3 years by about 7.5% and the value of their investments by about 23%, relative to investors in a matched control group. The effects are driven by IPOs and early investors of the exiting unicorns: a unicorn IPO leads, on average, to 2 additional investments and additional USD 13 million invested by each of the unicorn's early investors. Post-exit investments increase both within and outside of the location and the industry of the exited unicorn, but the growth in investments outside the original geography and industry is more pronounced. The results provide evidence of an important mechanism in which a successful investment exit boosts subsequent venture capital activity, but they also indicate that this activity need not be concentrated in the same locations and industries. |
| Keywords: | Unicorn Exits, IPOs, M&As, Early-stage Investors, Startup Ecosystem |
| JEL: | G24 G32 G34 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_09 |
| By: | Anaïs Garin (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Mathias Béjean (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Yasmine Saleh (frogLab part of Capgemini Invent); Robert Picard (FSN - Filière Santé Numérique, Forum LLSA); Thomas Lihoreau (Université de Franche-Comté, UR LINC 481, Besançon F-25000, Inserm CIC 1431 - Centre d'Investigation Clinique de Besançon - CHRU Besançon - Centre Hospitalier Régional Universitaire de Besançon - INSERM - Institut National de la Santé et de la Recherche Médicale - EFS BFC - Etablissement français du sang [Bourgogne-Franche-Comté] - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE]) |
| Abstract: | Healthcare organizations face numerous clinical, technological, and regulatory challenges to meet the evolving needs of patients. These challenges make the management of innovation projects complex and difficult to grasp for one organisation alone, pushing them to adopt ecosystem strategies. To function, these innovation ecosystems require alignment efforts between heterogeneous actors. While the literature on actor alignment has developed in recent years at the intra-organizational level, little research addresses the concrete realization of this alignment at the inter-organizational level. In this article, we explore the development of such alignment within innovation ecosystems using maturity metrics, such as the Concept Maturity Levels. Our analysis of several use cases in healthcare innovation ecosystems in France reveals that actors use Concept Maturity Levels to map, order, and standardize their activities, skills, and resources, thus enabling their alignment. We contribute to the literature on maturity metrics by suggesting a more extensive and exploratory use of maturity metrics at the inter-organizational level, due to the number and heterogeneity of actors involved. We also contribute to the literature on ecosystems by suggesting concrete practices for aligning actors through the use of maturity metrics. Finally, we present the implications of these findings for the healthcare sector and various opportunities for future research. |
| Abstract: | Les organisations du secteur de la santé font face à de nombreux défis cliniques, technologiques et réglementaires pour répondre aux besoins évolutifs des patients. Ces défis rendent la gestion des projets d'innovation complexe et difficile à appréhender pour une organisation seule, les poussant à adopter des stratégies d'écosystèmes. Pour fonctionner, ces écosystèmes d'innovation requièrent des efforts d'alignement entre des acteurs hétérogènes. Alors que la littérature sur l'alignement des acteurs s'est développée ces dernières années à l'échelle intra-organisationnelle, peu de recherches abordent la réalisation concrète de cet alignement à l'échelle inter-organisationnelle. Dans cet article, nous explorons le développement d'un tel alignement au sein d'écosystèmes d'innovation grâce aux métriques de maturité, telles que les Concept Maturity Levels. Notre analyse de plusieurs cas d'usage dans des écosystèmes d'innovation en santé en France révèle que les acteurs utilisent les Concept Maturity Levels pour cartographier, ordonner et normer leurs activités, compétences et ressources, permettant ainsi à leur alignement. Nous contribuons à la littérature des métriques de maturité en suggérant un usage des métriques de maturité plus extensif et exploratoire à l'échelle inter-organisationnelle, dû au nombre et à l'hétérogénéité d'acteurs impliqués. Nous contribuons également à la littérature sur les écosystèmes en suggérant des pratiques concrètes d'alignement des acteurs par l'usage de métriques de maturité. Enfin, nous présentons l'implication de ces résultats pour le secteur de la santé et les opportunités de recherches futures. |
| Keywords: | innovation ecosystem, alignment, maturity, medical technologies, écosystème d'innovation, alignement, maturité, technologies médicales |
| Date: | 2024–12–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05014162 |
| By: | Hiroshi Inokuma (Director, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: hiroshi.inokuma@boj.or.jp)); Mitsuru Katagiri (Associate Professor, Faculty of Business Administration, Hosei University (E-mail: mitsuru.katagiri@hosei.ac.jp)); Nao Sudo (Deputy Director-General, Financial System and Bank Examination Department (E-mail: nao.sudou@boj.or.jp)) |
| Abstract: | This study revisits the old and ongoing challenge of identifying the optimal trend inflation rate, using a novel model that incorporates a firm's innovation choices, product life cycles, and the interplay of the two factors. We construct an endogenous growth model with sticky prices, where firms have two options: to be an innovator or to be a follower. An innovator causes creative destruction, forcing all the incumbents to exit, and becomes a monopolist in its sector. A follower enters an existing sector by offering a product that is slightly different from the incumbent's products, inducing a product life cycle within the sector. Trend inflation impacts the firm's decision regarding which of the two options to choose by changing expected markups and profits. We show that the optimal trend inflation rate could exceed zero as it mitigates potential innovator losses upon the entry of followers, which in turn depresses the incentives for firms to be followers, promoting creative destruction and faster economic growth. |
| Keywords: | Sticky prices, Optimal inflation, Product life cycle, Innovation, Productivity growth, Markups |
| JEL: | E31 O31 O41 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ime:imedps:24-e-17 |
| By: | Youssef Es-Sadat (ENCG - National School of Business and Management, Hassan 1ST University, Laboratory of Research in Finance, Audit and Governance of Organizations (LARFAGO) - National School of Business and Management – ENCG Settat, Hassan The First University, Settat, Morocco.); Mohammed Belbachir ((LARCEPEM) - Laboratoire de Recherche en Compétitivité Economique et Performance Managériale (LARCEPEM)Centre Interdisciplinaire de Recherche en performance et Compétitivité Faculté des Sciences Juridiques Economiques et Sociales – Souissi Université Mohammed V- Rabat. Maroc) |
| Abstract: | This study examines the impact of supply chain resilience on innovative entrepreneurship in Morocco, considering digital transformation and logistics risk management in an increasingly uncertain environment. Using a hypothetico-deductive approach, we conducted a quantitative study on 134 companies in the Tanger-Tetouan region. We employed Structural Equation Modeling (PLS-SEM) using SPSS and SMART PLS software to analyze direct and mediating relationships among four key variables: digital transformation (advanced technologies, process digitization, data management), logistics risk management (identification, assessment, response), supply chain resilience (flexibility, redundancy, recovery speed, sustainability), and innovative entrepreneurship. The findings reveal that logistics risk management plays a crucial mediating role between digital transformation and resilience, emphasizing the importance of strategic adoption of digital technologies and proactive risk management practices to enhance supply chain robustness and competitiveness. Consequently, this contributes to a significant increase in innovative entrepreneurship in Morocco. |
| Abstract: | Cet article explore l'effet de la résilience de la chaîne d'approvisionnement sur l'entrepreneuriat innovant au Maroc, en prenant en compte la transformation numérique et la gestion des risques logistiques dans un contexte d'incertitude croissante. Une méthodologie hypothético-déductive combinée à une analyse quantitative sur un échantillon de 134 entreprises de la zone Tanger-Tétouane a été adoptée. La méthode des équations structurelles (PLS-MES), réalisée à l'aide des logiciels SPSS et SMART PLS, a été utilisée pour analyser les relations directes et médiatrices entre quatre variables principales, à savoir la transformation numérique (technologies avancées, digitalisation des processus, gestion des données), le risque logistique, gestion (identification, évaluation, réponse), résilience de la chaîne d'approvisionnement (flexibilité, redondance, rapidité de reprise, durabilité) et entrepreneuriat innovant. Les résultats confirment que la gestion des risques agit comme un médiateur clé entre la transformation numérique et la résilience, soulignant l'importance de l'adoption stratégique des technologies numériques et des pratiques proactives de gestion des risques pour améliorer la compétitivité et la robustesse des chaînes d'approvisionnement. Cela conduit à une croissance marquée de l'entrepreneuriat innovant au Maroc. |
| Keywords: | Digital transformation, Risk management, Supply chain resilience, Supply chain, Innovative entrepreneurship, Morocco, Transformation numérique, Gestion des risques, Résilience de la supply chain, Entrepreneuriat innovant, Maroc |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05021257 |