INTRODUCTION 1.1 Introduction Small and medium-sized enterprises (SMEs) have been identified as one of the growth engines for various countries in the world, since SMEs make up over 90 percent of all enterprises. For instance, United States, 99.7 per cent (Heneman, Tansky, & Camp, 2000), China, 99 per cent (Cunningham & Rowley, 2008), Europe, 99 per cent (Andreas Rauch & Frese, 2000), Holland, 95 per cent, Philippines, 95 per cent and Taiwan, 96.5 per cent (C. Y.-Y. Lin, 1998) as well as Malaysia, 99.2 per cent (Man & Wafa, 2007; National SME Development Council (NSDC), 2009; Saleh & Ndubisi, 2006). The figures above show that countries all over the world recognized SMEs as a key business sector. Besides, Asia-Pacific Economic Cooperation (APEC) (2002) pointed out that SMEs are deemed as a supporter to larger enterprises as well as an important foundation in expanding business activities and sustaining economic growth. SMEs even provide more jobs than large companies (APEC, 2002; Department of Statistics Malaysia (DOSM), 2007; NSDC, 2009). In sum, SMEs play a vital role and contribute to the economy and are likely to be increasingly important as the economy becomes more global. In Malaysia, SMEs are considered as the backbone of industrial development (NSDC, 2009) and give meaningful contributions to the national economy. Hashim (2010) stated that SMEs play a significant role in generating more employment, economic outputs, income generation, export capabilities, training, encouraging competition, innovation and promoting entrepreneurship and supporting the large-scale industries (LSIs) as well. Moreover, Jaswant Singh, Malaysian Industrial Development Authority director in Australia (MIDA Australia), informed that the grow... ... middle of paper ... ...t improve efficiency and effectiveness (J. Barney, 1991; Wernerfelt, 1984). However, in examining other variables, researchers found a significant relationship between HRM practices (Jimenez-Jimenez & Sanz-Valle, 2008; Nasution, Mavondo, Matanda, & Ndubisi, 2010) and EO (Nasution et al., 2010) towards organizational innovation. Other studies also found that there is an inconclusive result on the relationship between organizational innovation and organizational performance (Rosenbusch, Brinckmann, & Bausch, 2010). These findings propose that potential researchers could study the mediating effect of organizational innovation on the relationship between HRM practices, EO and organizational performance. It is also suggesting that, there also have a moderator effect (managerial ties) on the relationship between organizational innovation and organizational performance.
Germany has the largest economy in Europe and the fifth largest in the world. Germany is known for its high quality machinery, vehicles, chemicals and household equipment that form the bulk of its exports. Its vast manufacturing industry has thrived as a result of the existence of a large pool of highly skilled labor force. The country boasts of the world’s most advanced networks in energy, roads, aviation, telecommunications, rail and roads. The German economy is dominated by small and medium-sized enterprises that provide employment to 70 percent of the country’s labor force. While SMEs in the rest of the world are too small to enjoy the economies of scale or even access the international market, Germa...
0 Ming-Yih Yeh, 2000, Enhanceing SMEs' Competitive Advantages: Using A Complete Set of Industrial Improvement Policies, Department of Business Administration At National Taiwan University of Science and Technology http://www.sbaer.uca.edu/Research.
Internationalization significantly represents value creation and growth for firms of all shapes and sizes (Root, 1994). This is mainly because it creates new opportunities for the majority of firms. Internationalization is a very broad term; however, it can be defined as “Expanding a firm’s business from its original location to one or more additional foreign markets to enter” according to Barringer and Greening (1998). Recently, internationalization has increasingly become a crucial issue even for small and medium enterprises (SMEs) due to the international growth (Hollensen et al., 2014). The internationalization of SMEs has increasingly been facilitated by the reduction in trade barriers, transport costs as well
In Malaysia, business sizes can be divided into two big groups, which are small medium enterprises (SME) and large companies. There are various definitions of SME that are widely used in Malaysia. Although different organisations have different ways of defining SME, most of them usually include annual income generated, number of full-time employees and/ or total fund available. A widely used definition of SME is by the Small and Medium Industries Development Corpo...
SMEs is abbreviation of the small and medium enterprises meanwhile the collectively called of small enterprises and mediums enterprises, it occupies a number of more than 95 percent of enterprises in the whole word. In Singapore, the percent of SMEs is reach up to 99 percent of the companies, it represent and epitome most of the companies in Singapore. The definition of SMEs in Singapore in term of their numbers of employees and annual sales turnovers, business turnover are not more than $1oo million or the number of employees is less than 200. They hire the seven out of ten employees in labor and also make contribution in the nearly a half of Singapore GDP.
The small and medium enterprises (SMEs) are expected to play a significant role in the growth story of the country's pharma sector as they contribute 35–40 per cent to the industry in terms of production with a turnover of about Rs.35,000 crore (US$ 5.70 billion).
Small, medium enterprises (SMEs) are largest types business in the world, making up an estimated 99.7% of business. According to the Federation of Small Businesses (FSB) there are nearly five million existing businesses in the UK as of 2013. SMEs are a key contributor towards economic growth in terms of creating more employment, stimulating innovation and promoting social unity. SMEs are responsible for 47% of private sector employment, yet despite such global present there is still no agreed definition of a SME (Storey 1994). Bolton (1971) attempted to define them through a statistical and economic analysis. Classifications which are based on criteria, such as number of employees or annual turnover, however, do not remain consistent across borders. Given their size, smaller companies tend to be more intent on survival rather than expansion and profit maximisation. Smaller sized firms have always felt that the current reporting framework for IFRS is tailored more for the needs of larger companies and that the heavy cost burden it imposes upon them may not be entirely justified. In response to these concerns, the IASB subsequently issued the IFRS for Small and Medium-sized Entities (IFRS for SMEs) in July 2009. This standard offers an alternative framework which can be adopted by entities in place of the already extant full set of IFRSs or local national requirement standards.(Holt 2010) This essay will critically evaluate the impact of the IFRS for SME’s and whether or not it stands as the most suitable framework available for SMEs to use.
Small and medium enterprise (SME’s) have very important role in the economy. Their contribution in increase in production, employment, number, and exports over a period of time is tremendous. The role of SME sector in the overall nation building is well recognized across the globe.
Operating on the international scale is the dream of every business enterprise. With the rapidity with which globalisation is taking over the product and service industries, coupled with the installed and efficient communication systems; conducting business on the international fronts has increasingly grown simple and manageable (Weiss, 2008). This dream is not only manageable by major companies, but also by the existing Small and Medium Enterprises (SMEs) have come out to shine and even outcompete the too big to fail giants in the markets (Hundeker 2010). Australia has had to harbor a prestigious history line when it comes to leveraging SMEs to becoming world leaders in various production lines. With this in mind, every firm that seeks to establish its prominence on the international stage enjoys a good will created by the country. It is in lieu of this reality that a privately- owned SME Popina Pty Ltd; which specialises in the production of Muesli cereals and snack bars seeks to expand its market in the Indian market (Shaffer, 2011). The Indian market has in the recent decades attracted the attention and interest of the global business community due to its favorable foreign investment policy.
Those SMEs which have more capable workers are likely to be more efficient (Hewitt and Wield, 1992; Lucas, 1993). Several studies recognized low human resource capabilities as major constraint in SMEs development in developing countries (Batra and Tan, 2003; Lee 2001; McElwee and Warren, 2000). Human resources in SME generally are weak in terms of their knowledge and skills of market analysis, marketing and product innovation as well as business planning and financial management. Therefore, the need is to develop capacity building programs to improve the entrepreneurial and business management skills of human resources in SMEs and enhance the effectiveness of SMEs. Entrepreneurial competencies may, therefore, be developed by training and education (Gibb, 1986; Romjin, 1989). Firms with a literate and well-educated workforce are thus likely to be more efficient because of their greater capability to absorb and effectively utilize new technology (Hewitt and Wield 1992; Lucas 1993). The creation and development of SMEs in Bujumbura, Burundi, will be affected with personal within
Shaw, E. (1997), “The real networks of small firms”, in Deakins, D., Jennings, P. and Mason, C, (Eds), Small Firms: Entrepreneurship in the Nineties, Paul Chapman Publishing, London.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Small businesses have a clear relationship with the economy in general, and if we take an example like the U.S. where over 86% of businesses ...
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.
Malaysian SMEs have been given great attention and commitment by the government since the 1970s with the introduction of the New Economy Policy in 1971. Various efforts made by the government on the development of SMEs which are the Industrial Master Plan (IMP2), and followed by the Third Industrial Master Plan (IMP3), from 2006 to 2020 which is coinciding to vision of the country in 2020.