Dominant factors of SMEs failure: Multigroup confirmatory factor analysis

Milošević, Isidora; Mihajlović, Ivan; Stojanović, Anđelka

doi:10.5937/sjm14-23536

Cited by 10 publications

(14 citation statements)

References 24 publications

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“…These include fierce competition (0.847), high rent charges (0.733), multiple and high taxes (0.720), high interest rate (0.444) and lack of financing for growth (0.428). The Cronbach's alpha for this component was 0.83 greater Milosevic et al, 2019;Abubakar and Junaidu (2019).…”

Section: Principal Component Analysismentioning

confidence: 92%

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Kasema

2021

XJM

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Purpose This study aims to develop and test a framework for studying the failure of new women entrepreneurs in the small- and medium-sized enterprises (SMEs) sector. Design/methodology/approach Using a sample of 114 unsuccessful entrepreneurs in Kigali, Rwanda, this study aimed to identify key failure factors of women-owned SMEs. This study used mixed methods where quantitative data were analysed using the principal component approach with Varimax rotation to reduce the variables to only three clusters. Findings The study findings revealed that the failure of women-owned SMEs results from the entrepreneur’s inability followed by the enterprise incompetence, which are both internally controllable factors and the inauspicious business environment. These findings contribute to the validity of the dynamic capability theory by explaining how well internal and external factors must stay glued together to avoid failure among women-owned SMEs, something that was not yet previously well documented so far. Originality/value New SMEs are considered a noteworthy constituent of Rwandan development. Unfortunately, most new SMEs, in general, do not grow; their failure rate is high (70%), which raised many worries for both researchers and policymakers as to why this occurs at this stage of business growth. Therefore, to the best of the authors’ knowledge this paper is the first to analyse the reasons for the failure of Rwandan women-owned SMEs in the service sector. These findings are important because they suggest that policies designed to reduce the incidence of SMEs’ failure should take account of the two main factors influencing failure among women entrepreneurs.

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Section: Principal Component Analysismentioning

confidence: 92%

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Kasema

2021

XJM

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“…Usaha kecil dan menengah (UKM) didefinisikan sebagai perusahaan independen yang mempekerjakan sejumlah tertentu karyawan. UKM memainkan peran utama dalam ekonomi pertumbuhan di daerah, menyediakan sebagian besar pekerjaan baru (Vijaya et al, 2015;Gakure et al, 2013), merupakan segmen terbesar dalam ekonomi nasional dengan persentase jumlah total perusahaan yang besar, terutama dalam mempekerjakan banyak orang dan memberikan kontribusi signifikan terhadap Produk Domestik Bruto (Milošević et al, 2019;Tambunan, 2011). UKM sangat penting dalam pembangunan ekonomi dan social sebagian besar negara karena perannya dalam penciptaan lapangan kerja rendahinvestasi, pengembangan kewirausahaan, pengembangan regional, dan sebagai pemasok bagi perusahaan besar (Sanda et al, 2011;Donkor, Donkor, Kankam-Kwarteng, et al, 2018;Kozubíková et al, 2017;Tresna, 2017).…”

Section: Pendahulanunclassified

Perencanaan Strategi Usaha Kecil Menengah Keripik Singkong Dengan Matrix Strategic Position and Action Evaluation

Bismala

2022

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Permasalahan yang dihadapi oleh ukm keripik singkong yang menjadi obyek penelitian di antaranya adalah tidak banyak melakukan inovasi, tidak ada manajemen keuangan, tingkat turn over yang cukup tinggi, ukm terdampak ketika terjadi peningkatan harga bahan baku, wilayah pemasaran yang terbatas, belum ada sertifikasi halal. Adapun pertanyaan penelitian adalah (1) factor-faktor internal dan eksternal apa sajakah yang menjadi kekuatan, kelemahan, peluang dan ancaman untuk ukm keripik singkong, (2) bagaimana strategi yang dirumuskan berdasarkan pada matriks SPACE, dan (3) bagaimanakah rekomendasi efektif yang dapat dijalankan oleh ukm keripik singkong. Penelitian ini menggunakan pendekatan deskriptif kuantitatif dan kualitatif secara bersamaan, di mana dilakukan pemberian bobot dan rating untuk setiap instrument. Bobot masing-masing faktor tersebut mulai dari 0,0 (tidak penting) hingga 1,0 (sangat penting), yang menggambarkan signifikansi relative dari kekuatan, kelemahan bagi ukm. Skor diberikan dengan nilai antara 1 hingga 4 pada setiap faktor di mana hal ini menunjukkan bahwa faktor itu sangat lemah (peringkat = 1), lemah (peringkat = 2), kuat (peringkat = 3) atau sangat kuat (peringkat = 4). Hasil analisis kekuatan, kelemahan, peluang dan ancaman yang dilakukan menunjukkan bahwa strategi yang sesuai adalah aggressive, di mana ukm dapat menggunakan kekuatan finansial dan industry.

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“…Moreover, SMEs in developing countries face significant barriers to finance. The major weakness of SMEs is a lack of capital, which then constrains development and even dayto-day operational management (Milosevic et al, 2019). The World Bank Enterprise Survey showed that in low-income countries, approximately 40% of SME entities (20-99 employees) claim that access and cost of finance imposes a major limitation on ongoing operations (Report on Support to SMEs, 2011).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Financial situation and challenges for management of SME hospitals: Evidence from Poland

Szewieczek¹

2021

Serb J Management

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The hospital represents a specific organisation, operating in a turbulent environment and financed to a large extent by public funds. The health sector is exposed to constant political and social pressure. This causes significant problems with maintaining its financial stability, which particularly affects hospitals in the SME sector. The aim of this paper is to examine the relationship between selected financial indicators and some environmental phenomena that affect the financial situation and future financial stability of a selected group of hospitals from the SME group. The results will also be compared to the situation of other SME entities. The research is based on descriptive analysis, descriptive statistics, and correlation analysis of selected data. The results indicate that the financial situation of hospitals belonging to the SME group differs significantly from the overall SME sector, and does not bode positively for their future development. The current financial situation presents particular challenges for managers in balancing financial streams and ensuring economic sustainability. At the same time, this situation should encourage decision-makers to ensure an adequate level of revenues for these public service providers, as well as face other challenges related to operational management.

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Dominant factors of SMEs failure: Multigroup confirmatory factor analysis

Cited by 10 publications

References 24 publications

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Perencanaan Strategi Usaha Kecil Menengah Keripik Singkong Dengan Matrix Strategic Position and Action Evaluation

Financial situation and challenges for management of SME hospitals: Evidence from Poland

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