Abstract Small and medium-size enterprises (SMEs) are the engine of economic deve- lopment, but market imperfections such as those caused by underdeveloped fi- nancial and legal systems impede their growth. Although SMEs form a large part of private sector in many countries, they face larger growth constraints and are less likely to have access to formal sources of external finance than large firms. SMEs have the characteristics of informational opacity, weak finance, imperfect management and small size. These characteristics bring about moral hazard and adverse election, implying high credit risk of SMEs. Lending technologies can help facilitate SMEs¡¦ access to finance. The credit supplementation institutions have significant effects on SMEs credit availa- bility, so it becomes an important issue to policy makers around the globe setting up relevant legal systems and supporting financial assistance to SMEs. Since The New Basel Capital Accord had released the criteria and credit risk models of regulatory capital requirements for banks to follow, how to choose an appropriate model to measure the credit risk of SMEs and reasonably price the loan assets on a risk-return basis have become a common task of banks and the credit supplementation institutions. This paper uses the model developed by Kuo (2003) - ¡§How to Gauge the Default Probability: An Empirical Investigation of the Market-Based Approach to Bank¡¦s Loan Asset ¡¨ to gauge the probability of default to bank¡¦s loan asset for SMEs which guaranteed by Taiwan SMEG. Using market-based risk neutral approach, the probability of default for each SMEs¡¦ loan will be endogenously determined. This paper also uses the actuarial valuation principles to simulate the reasonable guarantee fee which should be received by SMEG through the breakeven analysis. The empirical results show that: 1.The tradeoff between recovery rate and the probability of default has joint effects. The probability of default increases rapidly while the recovery rate is over 70% and decreases smoothly while the recovery rate is below 60%. 2.The guaranteed loans over 70% coverage under the Authorized Approach have higher probability of default, as banks usually depend on the credit supp- lementation institutions for the larger portion of subrogation payment. 3.The guaranteed loans below 60% coverage under the Normal Approach have lower probability of default, as banks won¡¦t endure high probability of default and will turn to be conservative while lending to SMEs. Banks must also forward the relevant documents to the Taiwan SMEG for scrutiny and consideration, and it has reduced the default risk. 4.The guaranteed loans of 100% coverage under the Package Credit Guarantee have the highest probability of default if banks fully depend on the whole guaranteed coverage. However the bank loans lose given default will rely on bank¡¦s lending strategy, as the subrogation rate is set to be fixed on a maximum limit of guaranteed loans. 5.Using the actuarial valuation principles, with the estimations of pro- bability of default the reasonable rate of guarantee fee can be simulated through the breakeven analysis. The contribution of this paper is to submit the practical value for bank¡¦s loan pricing strategy, lending policy decision and credit risk management, also submit a subsidiary referential implication for SMEG to set the rate of guarantee fee, using the reduced form model to estimate default probability of bank¡¦s loan assets for SMEs which guaranteed by Taiwan SMEG, and using the actuarial va- luation principles to simulate the guarantee fee through the breakeven analysis.

This paper provides a credit risk quantification system for banks to estaminate the credit risk of loans to small and mediume nterprises(SMEs). As we know, the most difficult thing for banks to handle SME loans is whose financial reporting lacks transparency and no valuable reference. We use non-financial variables and employ the logisitic regression to develop the credit risk predict model. We concludet: first, when construct a SMEs credit rating system, non-financial factors should be seriously considered and adopted. Second, because of positioned different stage of firm life cycle, the credit rating model should be set up differently by different stage of firm. Third, SME loans should to make much of establishing ¡§relationship-based¡¨ in order to meet the various demands of risk management.

<p>Innovation is, in most cases, a necessity for firms in today’s changingmarket place. It has the potential to offer firms numerous advantages,including increased profit and growth. However, innovationis no easy process and there are many barriers and impedimentsto innovation that needs to be overcome in order to efficiently innovate.A study conducted by Vinnova (2007) showed that 18% ofSMEs consider a shortage of qualified personnel as a high barrier toinnovation.</p><p>How are competence barriers to innovation experienced by smallenterprises in the selected sample? Do competence barriers to innovationvary depending on different firm characteristics and in thatcase how? Which consequences do small enterprises encounter as aresult of facing competence barriers to innovation? Are small enterprisesthat face high competence barriers to innovation more likelyto encounter consequences?</p><p>The purpose of this research report is to investigate competencebarriers to innovation within small enterprises and the consequencesthese barriers might result in.</p><p>Competence barriers to innovation are considered moderate in thissample. The highest barrier was shortage of qualified personnel necessaryfor innovation. In general, small enterprises that experienceda higher level of competition also faced higher competence barriersto innovation. The most frequently reported consequences fromfacing competence barriers to innovation were; inability to acceptcertain jobs or contracts, decreased profitability and difficulty in expandingthe business. Small enterprises which face higher competencebarriers to innovation are more likely to encounter consequences.</p>

<p>QC 20100813</p>

Abstract This research explores the problems of resource allocation during the process of internationalization by small and medium-sized manufacturing firms. The literature largely portrays a positive view of internationalization with respect to increased firm performance or growth. However, particularly for Small and Medium-Sized Enterprises(SMEs), growth through internationalization increases uncertainty and may jeopardize firm performance and even threaten survival of the firm. The literature indicates that some SMEs fail during the process of expanding to foreign markets (Brewer 1981;Ramaswamy 1992; Mudambi and Zahra 2007). Many of these failures are due, in part,to the challenges of allocating limited resources during and after internationalization(Chen and Hsu 2009). Given the challenge of internationalizing, this research examines the influence of resource allocation on firm performance with the aim of providing recommendations on how entrepreneurs can make better resource allocation decisions that in turn may lead to improved performance. To address the problem of allocation of limited resources during and after internationalization, theoretical propositions are developed based on modern portfolio-theory (Markowitz 1952; 1959; 1991) that explains the risk-return tradeoffs with regards to resource allocation to domestic, U.S., and foreign markets and possible effects on firm performance. This research applies a multiple case-study approach based on critical realism, a qualitative philosophical research paradigm. Data collection is through in-depth interviews with executives of twenty-two small- and medium-sized manufacturing firms located in Canada. Within-case and cross-case analyses findings are used to confirm or modify the propositions, resulting in a descriptive model that best explains resource allocation decisions and the effects on performance. The findings indicate that resource allocations to domestic, U.S., and foreign markets have different contributions to overall firm performance. However, the way in which resource allocation trade-offs are decided between these markets is largely dependent on the firms or owners/manager’s disposition to risks and returns. Findings from this research also show that decisions by firm managers to allocate resources to a particular market depend on their assessment or anticipation of risks and the potential mitigation strategies that are required in order to maximize returns. This, consequently, determines the firm’s performance during the process of internationalization. This research contributes to the literature in international entrepreneurship, management of technology, and decision analysis. While there is an extensive body of literature that focuses on the output of internationalization (i.e., where, when, and how firms export their products), few studies have specifically examined the inputs that make this happen (one of these being the allocation of resources). Rugman et al. (2008) examines the resource allocation decision between domestic and foreign markets for Multinational Enterprises (MNEs) and the impact on firm performance. No known study has specifically explored resource allocation decisions between domestic, U.S., and foreign markets for SMEs and the influence on firm performance. This research fills the identified gap by making a significant theoretical contribution to this field by adopting portfolio theory to the challenge of allocating resources between domestic and foreign markets.

Efficient financing for small and medium enterprises (SMEs) is important so that SMEs can grow and be sustainable. This thesis applies a qualitative approach informed by the concept of private sector-led development (PSD) to examine the problems of SME financing in South Africa, and generates useful insight on the complexity of SME finance in a developing country. Results highlight how private SME finance can be an efficient driver of small business development. At the same time, results reveal a need to develop financing for ‘transitional’ SMEs, and to clearly define the role of private and government financiers, to improve the efficiency of the overall sector. The limits of private finance to widely fund all SMEs show a need to be critical and discerning when it comes to the involvement of the private sector to drive development initiatives. This limit, however, is also a core benefit of the private sector. / MA thesis.

Small and medium-sized enterprises (SMEs) in Thailand are very important to economic growth and considerably essential to generate employment as in many other developing countries. SMEs account for 99.5% of the overall enterprises in Thailand while their contribution to the overall employment account for around 76% of all jobs. However, SMEs growth rate is still at a low level. Hence, this is qualitative study of the external and internal factors hampering the growth of SMEs in Thailand. Regarding external factors, there are a number of obstacles constraining their growth such as access to finance, competition, corruption, barriers to trade and macroeconomic factors as amongst some of the most significant issues. In terms of internal factors, there are also important constrains hindering their growth, for instance, poor management competences, lack of skilled labour, deficiencies in marketing strategies, little efforts on R&amp;D, lack of new technology and low awareness concerning CSR are identified as some of the most important obstacles.

Purpose - The purpose of this research is to investigate market entry modes selection of Swedish SMEs concerning their entry in Chinese market. The information we extracted from various Swedish SMEs may to some extent functional to other Swedish SMEs as well while seeking to enter in the foreign market. Design/methodology/approach -The authors employ multiple case studies. The data was collected with telephone interviews with managers and directors. Findings - The study indicates that numerous internal and external factors are driving the SMEs to choose a specific entry mode while internationalizing their business in a foreign market. Research limitations/implications - The study and the findings are based on four cases. Therefore the results can only be considered tentative. Additionally, the retrospective nature of the research design is challenging, as it puts weight on the respondents’ memory and ability to identify change. Practical implications –The information can be utilized for managers in SMEs to understand the factors that influence them while they are choosing an appropriate entry mode. Original/value – In contrast with previous research we focused on how the internal and external factors drive the firms to choose a specific entry mode in a foreign market. This information will may have some functional for other SMEs while entering in foreign markets.

No description available.

It is widely acknowledged that electronic commerce presents a significant opportunity for Small- Medium-sized Enterprises (SMEs) to compete alongside larger enterprises. For SMEs in the developing world in particular, the opportunities afforded by electronic commerce for competing in a global marketplace, are also attractive. However, it has also been observed that electronic commerce poses a considerable challenge for SMEs, particularly with regard to the decisions that must be made about which of the available electronic commerce applications to adopt and to integrate into existing business operations. A number of studies have been conducted to investigate the adoption of electronic commerce by SMEs. These studies have tended to view electronic commerce adoption in terms of a dichotomous outcome: either e-commerce is adopted, or it is not. Such studies give little indication of the diffusion, or extent of usage, of individual e-commerce applications. The aim of this study was to address this gap in existing research by investigating both the level of adoption and extent of usage of e-commerce applications. In so doing, the study draws on research in the area of innovation diffusion theory. The focus of the study is on manufacturing SMES in Malaysia, and considers their use of B2B (Business-to-Business) e-commerce. The specific objectives of the study were to measure and characterise B2B e-commerce adoption and extent of usage among manufacturing SMEs in Malaysia; to identify factors associated with the adoption of B2B e-commerce in Malaysian SMEs; and to determine the impacts of that adoption. (Continues...)