Socioeconomic determinants of micro and small enterprise growth in North Wollo and Waghimira Zone selected towns

Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic orientation and economic sustainability under unpredictable circumstances. This study collected quantitative data from a total of 284 halal small and medium enterprises (SMEs) from Indonesia through structured interviews. Data were analysed using partial least squares structural equation modelling (PLS-SEM). Moreover, this study adopted artificial neural network (ANN) analysis for a model-free estimation using non-linear, multilayer, and parallel regression. The results revealed statistically significant and positive effect of strategic orientation on economic sustainability. Additionally, this study found that competitive advantage expanded the effect of strategic orientation on economic sustainability. Findings of ANN analysis confirm high prediction accuracy of the model. Findings of the sensitivity analysis highlighted the importance of innovation, network and technological orientation, and the positive effect of competitive advantage on halal SMEs economic sustainability. In order to achieve long-term economic sustainability, halal SMEs should therefore focus on innovation capacity, vertical and horizontal networking and adoption of the latest technologies. The uniqueness of this study focused on the strategic orientation and value of competitive advantage of halal SMEs towards economic sustainability. Additionally, this study was the first to develop hybrid SEM–neural network analysis to apply sensitivity analysis for the evaluation of the contribution of each exogenous predictor towards the endogenous construct.

Section: Discussionmentioning

confidence: 99%

Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis

Yang¹,

Jaafar

Mamun

et al. 2022

“…But, they concluded that marital status has an insignificant relationship with economic achievement for women. Kassa (2021) conducted a cross-sectional study to investigate the socio-economic determinant factors that affect the growth of micro and small enterprises (MSEs) in Ethiopia's North Wollo and Waghimira Zone. The finding of the study revealed that the age of the owner, access to finance, family business background and interest rate most likely affect the growth of the enterprises with a statistically significant level.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Socio-economic factors affecting women’s entrepreneurial performance in MSEs in Bahir Dar City, Ethiopia

Ayinaddis

2023

Women’s entrepreneurship is the pillar of economic expansion in many developing countries and is increasingly recognized as an essential driver of economic growth, productivity, innovation, employment, and economic dynamism. This study aimed to investigate the socio-economic factors that affect women’s entrepreneurial performance in MSEs in Bahir Dar City, Ethiopia. This study employed explanatory and descriptive survey designs using a quantitative research approach. The data were gathered from a survey of 348 registered women-owned MSEs. Statistical models, including factor analysis, correlation, and regression analysis, were used to look for patterns and relationships between variables apart from other descriptive statistics. Based on the statistical analysis, the variables social, economic, and legal and administrative factors have a positive relationship with women’s entrepreneurial performance in MSEs. On the other hand, demographic factors are found to be insignificant variables in predicting women’s entrepreneurial performance in MSEs. Therefore, the research recommends improvements in social and economic development to facilitate the successful performance of women entrepreneurs in MSEs in Bahir Dar city, Ethiopia.

“…Eshetu and Zeleke (2008) find out that adequacy of finance, level of education, level of managerial skills, level of technical skills, and ability to convert part of their profit to investment are factors affecting the survival of MSE. Alene (2020), Meressa (2020), Mamo (2022) and Kassa (2021) added that access to business training, tax, land ownership, age of the owner, access to finance, family business background, and interest rate most likely affect the growth of the enterprises affect the growth of the enterprises.…”

Section: Empirical Studiesmentioning

confidence: 99%

The role of market linkage in growth of micro and small scale enterprises: the case of Ambo town, Ethiopia

Gudeta

Tulu

2022

The research aims to investigate the roles of market linkage for the growth of MSE in Ambo town. The data were collected through questionnaires and interviews. A stratified sampling technique is used to select among the seven business sectors. Data were analyzed using descriptive and inferential statistics. The study elicited five major factors that affects the growth of MSE which include financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The findings from correlation and regression further indicate that there exists a positive and significant relationship between MSEs growth and, financial capacity, government support, entrepreneurial competency, marketing information, and types of business sectors. The concerned bodies should facilitate market linkage enhancement between MSE and the market. MSEs on their part are expected to improve financial capacity and competence. Furthermore, adequate market information has to be collected continuously to improve the linkage. By and general, growth of MSE is attributed to internal as well as external market linkage factors. In addition entrepreneurial competency of the person leading the enterprises is vital in creating good market linkage which in turn brings MSE growth.