Demystifying small and medium enterprises’ (SMEs) performance in emerging and developing economies

By Ndeye Djiba Ndiaye, L. A. Razak, R. Nagayev, Adam Ng. Borsa Istanbul Review, 2018

220 citations recorded by the source corpus.

Abstract Applying the General-to-Specific modelling on World Bank Enterprise Survey data for 266 economies, this paper models five performance indicators based on 80 potential factors derived from firm characteristics, finance, informality, infrastructure, innovation, technology, regulation, taxes, trade and workforce concerning small and medium enterprises (SMEs). We find that the factors vary regarding statistical significance and magnitude between small and medium enterprises. For example, the percent of firms using e-mail to interact with clients/suppliers has a positive effect on the annual employment growth of medium enterprises, but not the case of small enterprises. The proportion of investments financed by equity or stock sales has an adverse impact on small enterprises, while there is no such effect on medium enterprises. We find that more drivers explained the annual employment growth and the percent of firms buying fixed assets compared to capacity utilization, annual labor productivity growth, and real annual sales growth.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/51b6a376f38c66889bbf725e5d815924c49442bf

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In Accounting

1. Ș. Gherghina
2. Mihai Alexandru Botezatu
3. Alexandra Hosszu
4. L. Simionescu

In Economics and Econometrics

1. R. Prasanna
2. P. Rajapakshe
3. G. Abeyrathne
4. J. Jayasundara
5. E. Ekanayake
6. Sisira Kumara Naradda Gamage
7. Ș. Gherghina

Citations in the corpus

• Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia (2021, background): “The factors that need to be considered to encourage their improvement are infrastructure, innovation, technology, regulations, taxes, trade, and labor [22,23].”
• A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs) (2020, background): “Thus, soft infrastructure, such as full access to the internet and cheap web hosting services, expands the sales and presentations of small and medium businesses (Ndeye et al. 2018).”
• The Effectiveness of Russian Government Policy to Support SMEs in the COVID-19 Pandemic (2020, unknown): “Destabilization of the development of these business entities will negatively affect the macroeconomic and social indicators of a country’s economy [1,2,6].”
• Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation (2020, methodology): “With the purpose to examine the expressed hypotheses, similar to previous studies [2,32,53], we estimate ordinary least squares (OLS) regressions.”
• Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance (2019, background): “By recognizing the need for this condition for better performance of the SMEs, Malaysia supports SMEs to identify their training needs and help them to conduct identified training programs to upgrade skills of employees, mainly technology‐related skills, in line with operational and busin”