What drives the dynamics of employment growth in firms? Evidence from East Africa

Atwine, Blessing; Okumu, Ibrahim Mike; Nnyanzi, John Bosco

doi:10.1186/s13731-023-00295-y

J Innov Entrep

2023

DOI: 10.1186/s13731-023-00295-y

|View full text |Cite

What drives the dynamics of employment growth in firms? Evidence from East Africa

Blessing Atwine

Ibrahim Mike Okumu

John Bosco Nnyanzi

Abstract: This study examines the firm level drivers of employment growth in East Africa in which they are categorized as firm specific, entrepreneur specific and business environment characteristics. Using a cross-sectional World Bank Enterprise survey dataset and pooled Ordinary Least Squares estimation (OLS), the results indicate that; (1) employment growth is significantly associated with firm specific characteristics (employment growth is positively related to firm size and innovation while it is negatively associa… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2023

2024

Publication Types

Select...

Article3

Relationship

Self Cite0

Independent3

Authors

Journals

Cited by 3 publications

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Digital finance and MSME performance in India: evidence from World Bank Enterprise Survey data

Verma,

Das,

Misra

2024

JES

View full text Add to dashboard Cite

PurposeThe impact of digitalisation on smaller firms remains sparsely studied across emerging economies. The paper aims to examine the relationship between digital adoption and multiple performance parameters of micro, small and medium enterprises (MSME) in a prominent emerging economy.Design/methodology/approachThe study employs data from the World Bank Enterprise Survey (WBES) 2022, capturing 9,024 Indian MSME firms spread across the country. Performance indicators are derived from growth in sales, employment and labour productivity (LPROD). Multiple regression estimates are derived that also correct for sample selection bias using Heckman’s two-step process.FindingsDigital proliferation is found to increase as firms mature up in terms of age, size and constitution. A significant difference could also be observed in business performance across digital and non-digital businesses, with sales growth (SG) and productivity higher for digital firms. Digital financial variables are found to have a significant impact on SG but not as much in the case of employment growth and LPROD. The results are robust to correction for sample selection bias in digital adoption using inverse mills ratio (IMR).Practical implicationsThe study highlights digital adoption gaps across various strata of MSMEs, highlighting lower adoption when firms are younger, smaller and lacking formal constitutional setup. Digital variables indicating positive association with SG highlight the need for concerted efforts at the public policy level for building appropriate skills and infrastructure for micro and small enterprises to boost their digital adoption to promote growth.Originality/valueThere is a lack of micro-level empirical evidence measuring the impact of advanced digital technology usage on multiple aspects of enterprise performance amongst micro and small firms. The study deploys unique digital variables including TReDS and use of online credit applications to assess the impact on business performance. The findings provide insights for practice and public policy, besides making the case for a higher focus on launching digital initiatives for smaller enterprises.

show abstract

Digital finance and MSME performance in India: evidence from World Bank Enterprise Survey data

Verma,

Das,

Misra

2024

JES

View full text Add to dashboard Cite

show abstract

Digital and innovative entrepreneurship in the Indian handicraft sector after the COVID-19 pandemic: challenges and opportunities

Yadav,

Tripathi,

Tripathi

et al. 2023

J Innov Entrep

View full text Add to dashboard Cite

This research focuses on the factors that barriers and foster (drivers) digital innovation and entrepreneurship amongst small businesses operating in the Handicraft industry after the economic downturn. From the perspective of new Indian craft entrepreneurs, digital and innovative entrepreneurship is crucial to surviving the crisis. It will eventually encourage the development of the handmade goods market and the artisanal reconfiguration as a business. In this study, the qualitative method was used. For the creation of themes, Inductive content analysis (analytical, inductive technique) was used to interview fifty online handicraft business owners who rely on their craft talents for income. After the pandemic, two types of motivation were generated for handmade entrepreneurs. The first motivation was extrinsic, which conditioned the handicraft market, restricted mobility, and upgraded household status for entrepreneurship. The second was intrinsic motivation among the craft entrepreneurs who generated individual and professional skill growth. These two factors encouraged digital craft innovations and entrepreneurial advancement of transitioning handicraft companies to digital platforms. After the interview, respondents explained several hindrances or restrictions, market interruption, and quality internet. Even after that, it resolved as the effect of the pandemic reduced and digital skill training for innovation and entrepreneurship passion increased for developing a robust programme that supports the handicraft new entrepreneurs after the economic calamities. This finding contributes to the area of investigation and contributes to entrepreneurship literature. This study will open the route for making the policy and development of solid strategic plans for the handicraft sector’s new craft entrepreneurs. With the help of innovative and digital entrepreneurs, small-scale or craft industries will boost the Indian economy and give some of the best suggestions for global economies. For developing economies, this study will also empower entrepreneurs to open new dimensions for marketing, supply chain, and exportation and will finally increase the Globalisation of handmade products.

show abstract

The drivers and barriers influencing the commercialization of innovations at research and innovation institutions in Uganda: a systemic, infrastructural, and financial approach

Jjagwe,

Kirabira,

Mukasa

et al. 2024

J Innov Entrep

View full text Add to dashboard Cite

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

What drives the dynamics of employment growth in firms? Evidence from East Africa

Cited by 3 publications

References 56 publications

Digital finance and MSME performance in India: evidence from World Bank Enterprise Survey data

Digital finance and MSME performance in India: evidence from World Bank Enterprise Survey data

Digital and innovative entrepreneurship in the Indian handicraft sector after the COVID-19 pandemic: challenges and opportunities

The drivers and barriers influencing the commercialization of innovations at research and innovation institutions in Uganda: a systemic, infrastructural, and financial approach

Contact Info

Product

Resources

About