PurposeThe paper aims to identify perceived critical managerial factors (PCMFs) affecting the performance of SMEs, show the direction and extent of relationship between PCMFs and firm characteristics, and forward some research and policy implications.Design/methodology/approachThe paper uses a survey questionnaire to collect data on SMEs' perceptions of the degree of impact of selected managerial issues on their performance. The data were factor analyzed (principal component analysis), purified (Varimax rotation) and validated for reliability (Cronbach's α values) to identify the PCMFs. Both descriptive and inferential statistics were used to present and analyze the data.FindingsThe paper identifies and ranks four PCMFs affecting the performance of SMEs in a developing African economy. Important relationships are found between PCMFs and firm characteristics, and among the PCMFs themselves. The paper forwards some research and policy implications.Research limitations/implicationsThe paper shows the need to replicate the study in other places to see whether the findings remain consistent. Although based on a mixed sample and limited to examination of perceptions rather than actual problems, the findings are highly relevant in designing business support initiatives and training programmes for SMEs.Practical implicationsFuture research should develop a framework for conceptualizing and operationalizing the managerial construct in the context of SMEs. Small business support providers, policy makers and practitioners should identify, prioritize and customize the most influential managerial problems in designing entrepreneurial training and assistance programmes.Originality/valueResearch in the study of PCMFs in SMEs in developing African economies is scarce and lacking. The findings in this paper serve as an addition to the existing limited research output in the area. Moreover, the study adopted a systematic approach to identify, factor analyze, test and validate the measurement instrument for the managerial construct.
Total quality management (TQM) research has concentrated on large firms. Little has been done on the TQM practices of small-and medium-sized enterprises (SMEs), particularly in developing countries. This paper investigates the relationship between TQM, planning behavior and firm size by reviewing existing literature and collecting primary data from 54 SMEs in the Republic of Botswana. The findings indicated that the majority of SMEs understand the importance of both TQM and planning activities for their survival and growth. However, their approach to both is unsystematic, non-formal and short-term oriented. Both firm size and planning behavior are found to have statistically significant relationships with TQM practices. As firm size increases from small to medium, and as SMEs move from operational to strategic planning, they attach greater degree of importance to TQM practices. However, the planning behavior of SMEs is more strongly related to TQM practices than firm size. Suggests the promotion of business planning as a prerequisite to the adoption of formalized TQM practices. Some implications for SMEs are also forwarded.
Examines the relationship between TQM perceptions, planning behavior, and firm size in SMEs in Ethiopia. Primary data were collected from 57 SMEs through a questionnaire. However, as the study is a preliminary investigation, uses only simple descriptive statistics to analyse the sample data. The results are not significantly different from those of previous studies in SMEs. TQM perceptions vary with firm size and planning behavior. The findings also indicated that excessive emphasis on short-term profitability, lack of resources, business planning and vision, and misperception of TQM practices are among the main obstacles to the adoption of a formal TQM program. Suggests some lessons and implications for future research.
Although the discovery of diamond has propelled Botswana from one of the poorest countries in 1966 to its current economic status as a middle-income country, the country still faces the problems of economic diversification, employment creation, income generation and distribution and poverty alleviation. Governmental and non-Governmental organizations have put many efforts on the development of small and medium Enterprises (SMEs) to diversify the economy away from mining, to create jobs, generate income and alleviate poverty. However, the pace of development of SMEs, after 30 years, is very slow. The small business failure rate is currently estimated to be over 80%. There is a general consensus among policy makers, politicians and researchers in Botswana that this trend should not be allowed to continue indefinitely. The purpose of this paper is to investigate the Perceived Critical Success/Failure factors (PCSFs) affecting the development of SMEs by collecting primary data from 203 SMEs in 3 cities in the republic of Botswana through a questionnaire. Both descriptive and inferential statistics were employed to present the empirical data. The findings showed that ten PCSFs (human resources development; organizational development, managerial background; managerial leadership and competitive strategy) affect the performance of SMEs. The PCSFs are strongly related among themselves, indicating the need for a holistic and systematic approach in addressing them. Important relationships were also found between the PCSFs and firm-specific demographic variables such as ownership status, experience and operation period. Recommendations and implications for the policy and research are also forwarded.
PurposeThis paper aims to examine perceived critical success factors (CSFs) affecting the performance of small to medium‐sized enterprises (SMEs) and their relationship with firm characteristics. The paper also seeks to investigate the interdependence relationship among the perceived CSFs themselves using correlation coefficients.Design/methodology/approachThis paper is part of a wider study that was designed to investigate the perceived critical success/failure factors (PCSFs) affecting the development of SMEs. The study is based on a review of the literature, which provided a theoretical understanding of both CSFs and firm characteristics. This theoretical linkage was then tested using primary data that were collected through a two‐page questionnaire survey of 203 SMEs randomly selected from three cities in the Republic of Botswana. Principal component analysis (PCA) with Varimax rotation was used to reduce the data. Analysis of variance (ANOVA) was conducted to test the relationship between firm characteristics and perceived impacts of selected CSFs, and correlations were used to assess the relationships between the CSFs.FindingsThe study identifies ten sets of perceived CSFs affecting the performance of SMEs; statistically significant relationships between the perceived impact of selected CSFs and firm‐specific variables, indicating that the perceived impact of CSFs vary from firm to firm depending on their size, age, industry, and management profile; and statistically significant relationships among the selected CSFs themselves.Research limitations/implicationsThe study relies exclusively on a questionnaire as the data collection instrument, and many respondents were unwilling to participate in the survey. Therefore, it took the authors eight months to collect 203 questionnaires. This forced the authors to make some important changes from the original research proposal.Practical implicationsSME managers and advisors should not deal with CSFs individually, but should adopt an integrated and innovative approach to deal with them collectively. This approach should consider SMEs' uniqueness, given that these CSFs are perceived differently depending on firm characteristics. The paper forwards some research and policy implications for designing SME support and promotional interventions.Originality/valueThe paper uses well‐established and researched CSFs in the SME literature. To this end, the paper's originality and value lie in the investigation of these factors in Botswana. However, the findings are applicable to most SMEs, since they continue to suffer from the same problems worldwide.
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