Micro‐businesses need support: survival precedes sustainability

Abstract

Purpose -The purpose of this paper is to establish the role of micro-businesses in providing a sustainable business and community environment, and to share the perceptions of micro-business operators about the support they need to survive and be successful.Design/methodology/approach -An examination of literature regarding survival and available support for small businesses is followed by results from a New Zealand-based empirical study of micro-business operators.Findings -Micro-businesses are the dominant form of business organisation and have an important role in maintaining a stable and sustainable global environment. Although such businesses owners tend not to have a formal education in business or engage with external support agencies, they need support from community-based networks. These networks could reduce the sense of isolation, whilst at the same time providing an opportunity for sharing experiences, in particular about problems encountered.Research limitations/implications -Implications for other jurisdictions may be limited as micro-business operators in New Zealand are relatively highly educated and the sample numbers are small (19 in-depth interviews and 91 questionnaire respondents).Practical implications -There is a need for psychological support for micro-business operators. Actions taken to increase their probability of survival and success are likely to enhance their interest in other aspects of the environment.Originality/value -This paper helps to fill a gap in the small business literature on the behaviour and perceptions of micro-business operators. The paper presents original research on the psychological aspects that impinge on the business activities through surveys of micro-business operators.

Exploring Micro Enterprises’ Business Performance Through Entrepreneurial Orientation, Knowledge Sharing and Innovation

“…It is therefore important that micro enterprises have access to knowledge sharing and innovation as entrepreneurial orientation alone would not help these businesses to perform. It is important for business owners to get support from community-based networks (Samujh, 2011) as these networks can be the basis for knowledge sharing and innovation. As also suggested by previous findings, knowledge sharing within the company would facilitate a better understanding of business objectives; therefore, tasks could be done better, resulting in better business performance (O'Dell & Hubert,2011;Amir & Parvar, 2014;Wing et al, 2014).…”

“…It is estimated that about 78.7% of business establishments in Malaysia were dominated by MEs (SME Annual Report 2014). Therefore, they play an important role in maintaining a stable and sustainable business environment (Samujh, 2011). A study done by Jamak et al (2011) on micro enterprises revealed that most micro enterprises failed due to lack of motivation, marketing approaches, management and marketing as well as competitive capabilities.…”

Accountants and small businesses: toward a resource-based view

“…advice during mergers and acquisitions and tax-related advice) and nonbusiness advice (e.g. advice on private wealth matters such as the design of a will and other nonfinancial objectives) (Blackburn et al , 2018; Samujh, 2011; Stone, 2015). While some studies argue that accountants are not always included in managerial decision-making (Blackburn et al , 2018), especially when dealing with SME owners with predominantly nonfinancial goals (Stone and Lightbody, 2012), others show an increasing pressure for accountants to advise their SMEs (Ma et al , 2021).…”

SME owners and accountants' perceptions of financial information in small- and medium-sized entities: a Sri Lanka case study

“…A major criticism was the "top down" approach using a framework that is biased towards large and/or listed companies (Devi and Samujh, 2014;Di Pietra et al, 2008;Evans et al, 2005;Perera et al, 2022). Unlike large entities, SMEs are more likely to focus on survival than on growth and profit maximisation (Hasle et al, 2012;Samujh, 2011;Wijekoon et al, 2022). Additionally, the separation of ownership and control is not common in the majority of SMEs (Carsberg et al, 1985;Sassi and Damak-Ayadi, 2022) and most of them are formed and operated as family businesses (Fox et al, 1996;Motwani et al, 2006;Tatoglu et al, 2008;Wijekoon et al, 2022).…”