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Entrepreneurship is crucial to raising the standard of living and promoting the development of the economy. Small and medium-sized enterprises are recognized as solutions for economic growth, modernization, job creation, and income generation. The focus of this study is on how SMEs can contribute to job creation and economic growth in Somalia.
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... SMEs play a crucial role in poverty reduction, social growth and economic development. By creating successful economic businesses, economic development will be attained and jobs will be produced for the community and society at large (Ahmed B. , 2020). Opportunities for employment would increase people's disposable money, which would in turn lead to demand for economic goods and services and, eventually the purchase of goods on demand. ...
The purpose of this research was focused on the role of financial management in small and medium enterprises in Ibrahim Ma’lin Harun District in Hargeisa, Somaliland. It was determining the role of financial management in small business and medium enterprises, and capital acquisition, and financial management decision, and effect of financial management on profitability. This study adopted a descriptive survey design with a population study of 65 companies out of which a sample size of 49 was chosen. The study used simple random sampling design to choose a sample and questionnaires were distributed to the selected respondents from the companies. The analytical process entailed using the Statistical Package for the Social Sciences (SPSS). The study indicates that financial management strategies are very critical in all business enterprises irrespective of the size and location. Finally, according to the data, the study concluded that financial management increases the overall value of the firms and organization by providing economic stability.
... The policymakers can sustainably facilitate and encourage SMEs' business growth. Maow (2021) noted that entrepreneurship created a significant contribution to increasing welfare and encouraging economic development. However, SMEs in Somalia encountered several business constraints, such as the limited availability of working capital, inadequate business management, and unsupportive government policies. ...
This study attempts to examine the impact of workers and total sales of SMEs on economic growth in Central Java Province throughout 2009:1 – 2020:4. The ARDL Bound Test is employed. The findings reveal that worker and total sales have a positive, significant, and linear impact on economic growth in the short-run. Total sales also have a positive, significant, and linear impact on economic growth in the long-run. Conversely, there is no evidence of workers' impact on economic growth. In addition, workers and total sales have a long-run cointegration on economic growth. Therefore, the local government of Central Java Province should emphasize the contribution of SME workers and total sales to stimulate economic growth in the long-run.
... In the situation where local production is weak, then the power of SMEs represents a key component of local competitiveness, an aspect that also influences the country's economic performance. A number of authors (Maow, 2021) have analyzed how SMEs can contribute to job creation and economic growth. The results of the study demonstrated that the lack of access to financing and a series of government policies represent barriers for the SME sector and therefore ensuring optimal access to financing and the introduction of effective policies for the development of this sector increases the role of SMEs in the economy. ...
In the highly competitive banking sector, providing quality customer service is crucial for retaining customers and maintaining a positive reputation. However, despite the best efforts of banks to deliver flawless service, service failures can occur. Banks employ suitable strategies to recover from service errors and problems, encouraging customers to continue their transactions with the bank and expanding their tolerance zone level. Hence, this study explores the correlation between service recovery strategies (SRS) (compensation (CP), apology (AP), and Empathy (EM)), customer forgiveness (CF), and repurchase intentions (RI) in the banking sector. A quantitative-based administrative questionnaire was used to statistically test the relationships between SRS, CF, and RI. The data was obtained from 190 banking customers in Alicante City, Spain, who had experienced a service failure and responded using a five-point Likert scale. Simple and multiple regression analyses were conducted to analyze the results. The findings indicate that SRS such as AP, CP, and EM positively impact CF and RI. Additionally, a positive relationship was found between CF and RI. Furthermore, the results concluded that CF mediates the relationship between two specific service recovery strategies (CP, AP) and RI.
The findings from the research can aid bank managers in formulating focused recovery strategies and attaining a competitive advantage. This study provides concrete suggestions for banks to manage and operate banking services provided to their customers and effective service recovery strategies that enhance customer forgiveness behavior and repurchase intentions. The study highlights the significance of service recovery strategies in the banking industry and recommends investing in marketing strategies and campaigns to improve consumers' favorable attitudes toward the banks. It also highlights the relevance of customer forgiveness in the service recovery process. Consequently, it emphasizes the importance of addressing this issue in the banking service recovery process, as it enhances customer repurchase intentions.
... When it comes to OECD members, SMEs represent 99% of businesses, employ 70% of the official workforce, and yield around 50% of GDP (the latter being applicable in the case of highincome countries) [10,11]. Second, the economic activities of SMEs are catalysts of economic growth for all countries around the word [12][13][14]. In this context, to secure sustainable economic growth in the long run, national authorities are called to design economic policies that facilitate the access of SMEs to suitable financial sources. ...
Getting access to sufficient funding is the keystone for the development of any business, but especially for small and medium enterprises (SMEs). These economic entities are crucial players in the global economy since they include almost 90% of companies, provide jobs for nearly 50% of the global workforce, and enhance long-term economic growth. In this context, our study explores important sources concerning the financing of small and medium enterprises and their impact on economic growth during the period 2005–2020 with data from SMEs covering the 28 countries belonging to the European Union. The set of predictors included Strength of legal rights index, Days sales outstanding, Bad debt loss, Interest rate, Bank support, Business angels, Private lenders, and Public support. The set of dependent variables included Cost of loans, Equity fund, GDP growth rate, and Value added growth rate. Our methodological approach was complex, it considered a panel data analysis with a first-difference generalized method of moments estimator and a multiplex time series analysis. The novelty of the study resides in combining the two methods in order to investigate significant drivers of economic growth across the EU. Empirical results showed that economic growth was mainly triggered by predictors such as Interest rate, Business angels, Bank support, and Public support. Moreover, the valuable mathematical insights elicited by the multiplex time series analysis suggested that European economies cooperated intensively through SME activities. Based on our empirical results, national and regional authorities should enact adequate policies to support business endeavors of small and medium enterprises.
... According to Ali et al. (2013), in Somalia, small businesses fail due to inaccessibility to loan. As stated by Ahmed (2020), inadequate management skills and government policies are main obstructions for small and medium-sized enterprises in Somalia. Similar difficulties are also facing small businesses in Burao city, since the business environment of the country is homogeneous. ...
Small business failure has been a wider problem in Somaliland in general and Burao in particular for years. Therefore, this study was conducted to identify internal and external causes that contribute to small business failure in Burao, Somaliland. This study was survey research in which questionnaires were used to collect data from 200 respondents who were owners of failed small businesses. The data was analyzed using descriptive statistical tools with help of SPSS 21. Moreover, Relative Importance Index (RII) was employed to ascertain the most significant internal and external factors that cause small business failure in Burao, Somaliland. With regard to factors that caused the failure of the small businesses, the study found that the most powerful internal causes were: Lack of consultation with experienced and professional business people; ineffective advertising or promotional strategy; poor business site
location; lack of knowledge of the current business situation, lack of specific target market. Furthermore, the study exposed that the most significant external causes that brought small business failure were: poor economic conditions; high operating expenses like rents and wages, and higher competition.
Keywords: Internal causes, external causes, small business failure.
کسبوکارهای کوچک و متوسط بهمنزله یکی از نیروهای پیشبرنده اقتصاد مدرن، نقش بسزایی در بهبود فرصتهای اشتغال، تشویق افزایش صادرات و تقویت نوآوریهای فناورانه دارند. در سالهای اخیر، اهمیت این بنگاهها به اندازهای افزایشیافته است که از آنها بهعنوان ستون فقرات توسعه صنعتی در کشورهای مختلف نامبرده میشود. این مقاله به بررسی تأثیر استراتژیهای تأمین مالی مناسب و پایدار بر بهبود فضای کسبوکارهای کوچک در ایران میپردازد. این مقاله که بهصورت مروری انجامشده است بامطالعه مشکلات کسبوکارهای کوچک در خصوص تأمین مالی مناسب و پایدار، در خصوص استراتژی قابلاطمینان در حل این مسئله پرداخته است. اگرچه در ادبیات تحقیق بر نقش وجوه اداره شده، کمکهای دولتی و ضمانتهای صندوقهای تضمینی در تأمین مالی بنگاهها تأکید شده است ولی نویسندگان پیشنهاد میکنند با توجه به فرهنگ و تاریخچه تأمین مالی در ایران، از استراتژیهای پایدار تأمین مالی مانند تأمین مالی جمعی، وامهای خانوادگی و بدون بهره برای کسبوکارهای کوچک استفاده شود.
This study of the literature looks at the connection between small and medium-sized businesses' (SMEs) business performance and their accounting procedures in the service sector. The study employs a systematic review methodology that includes a thorough screening procedure to find studies that match the inclusion criteria and a thorough search of academic databases using pertinent keywords. The data analysis entails a thematic examination of the chosen studies, with an emphasis on the kinds of accounting procedures that SMEs employ, the performance metrics that are employed to gauge the success of their businesses, and the degree to which accounting procedures and performance are correlated. The practical consequences imply that financial accounting methods can help SMEs in the service sector enhance their business performance. Nonetheless, it's important to give management accounting techniques a thorough evaluation. Investigating the moderating factors—such as the external environment and resource availability—that influence the relationship between accounting methods and business performance is one suggestion for further research.
Pertumbuhan ekonomi adalah faktor penting dalam menentukan kemakmuran suatu negara dan kesejahteraan masyarakatnya. Untuk mencapai pertumbuhan ekonomi yang optimal, Usaha Mikro, Kecil, dan Menengah (UMKM) memainkan peran yang sangat penting dalam menciptakan lapangan kerja, meningkatkan pendapatan masyarakat, dan meningkatkan kontribusi ekonomi nasional. Namun, dalam konteks perdagangan bebas dan globalisasi, impor dan ekspor juga memainkan peran penting dalam pertumbuhan ekonomi suatu negara.Penelitian ini bertujuan untuk menganalisis seberapa besar pengaruh jumlah umkm, impor, dan expor terhadap Pertumbuhan Ekonomi Indonesia. Jenis data yang digunakan dalam penelitian ini adalah data sekunder yang berupa data time series dan diperoleh dari beberapa lembaga pemerintah. Metode estimasi yang digunakan adalah regresi linear berganda periode 1997 – 2019. Dari hasil penelitian menunjukkan bahwa jumlah umkm, impor, dan expor berpengaruh signifikan secara simultan terhadap Pertumbuhan Ekonomi Indonesia
The ambition of this study was to identify the factors that influence the financial situations of small and medium enterprises (SMEs) in Somalia. The research objectives of this study were to determine how capital building affected the financial situations of SMEs in Somalia, how human resource capacity affected the financial situations of SMEs, and what the impact of access to financing was according to the business conditions of SMEs. This study uses both descriptive and quantitative research approaches. The study’s main demographics consisted of 90 SMEs in Somalia; the shortage of female personnel may also be a disadvantage, considering that most paying customers were female. The study’s first research question was to investigate whether the use of committees improves the quality and efficiency of the board’s tasks and mandates. The study’s second research question was to determine the impact of human resources. The study’s findings about market adoption of technological trends also revealed a strong positive relationship between human resource performance and financial performance. The Somali government should implement SME policies based on development and new growth industries, such as migration. Investment and credit firms, such as private sector banks and donor organizations, should lower the requirements for their investments. SME owners and managers should hire educated staff and increase the number of female employees. SME owners and managers should develop training schedules focusing on financial management, innovation, communication, and promotional abilities.
