Microenterprise performance and microenterprise zones (MEZOs) in China

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this exploratory study is to examine whether performance of microenterprises located in a microenterprise zone (MEZO) in China is positively related to key management practices, entrepreneurial orientation, marketing capability, and technology capability. The paper aims to introduce the concept of MEZOs as a supplemental tool for governments to strengthen microenterprise activity. Design/methodology/approach -A total of 150 randomly selected microenterprises located in a MEZO in Changchun, an industrial city in Northeast China, completed a survey consisting of a three-part measure of microenterprise performance developed by Zinger et al. and entrepreneurial orientation. Factor analysis was performed on 11 management issues and correlation analysis was performed.Findings -The study found that key management practices, marketing capability, and technology capability of microenterprises in MEZOs do have a positive impact on performance sales, net profit, and growth.Research limitations/implications -The study's results are limited by a sample in one city in one province of China collected in one month. The data are cross-sectional rather than longitudinal. Sample bias may exist. Practical implications -This study is valuable to government officials, policy makers, non-government organizations and consulting firms as they examine new measures to unleash the economic power of microenterprises. Social implications -MEZOs need to be explored as one solution to aide microenterprise development to improve the poverty level, create jobs, and stimulate economic activity. Originality/value -To the authors' knowledge, this is the first exploratory study of the performance of microenterprises located in a MEZO in China. Through research, the factors that contribute to microenterprise performance and success can be better understood and the impact that the MEZO model has on microenterprises can be better delineated.

Barriers in Financing Microenterprises From the Perspective of Czech and Slovak Microentrepreneurs

“…Savings and Credit Cooperatives are other important institutions that supply a wide range of financial products including credits, insurance, leasing and money transfers (Brown et al, 2011). By creating microenterprise zones, governments can provide supports, subsidies, incentives and privileges for microenterprises to enhance microenterprise innovation, to create new products, reduce unemployment and improve technology competencies (Welsh, Munoz, Deng, & Raven, 2013).…”

Entrepreneurial orientation, intermediation services, microfinance, and microenterprises

“…Scholars in strategic management included entrepreneurial orientation as a significant dimension of strategic orientation (Li, ; Liu & Fu, ; Panda, ). Welsh, Munoz, Deng, and Raven () noticed that the entrepreneurship orientation of Chinese microenterprises is positively related to enterprise performance (managerial issues, profit, growth, cash flow, and sales). Microentrepreneurship and microenterprise development are very much closely linked.…”

“…Lisboa et al () studied the causal mechanism of entrepreneurial orientation on firm performance where they deconstructed entrepreneurial orientation into innovativeness, proactiveness, and risk‐taking dimensions. Welsh et al () have undertaken innovativeness, proactiveness, and risk taking as the dimensions of entrepreneurial orientation in their study on Chinese microenterprises.…”

Microenterprises and Significant Risk Factors in Loan Process

“…The management of the microenterprise is a key contributor to business success (Munoz et al, 2015). Key management practices, marketing capability, and technology capability of microenterprises have a positive impact on performance sales, net profit, and growth (Welsh et al, 2013;Mostenska et al, 2015). Berrone et al (2014) find that human capital (proxied by educational level and degree of dedication), innovation, and intensity of use of own capital are important determinants of the microenterprise's performance.…”