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Article
Publication date: 9 April 2024

Aaron van Klyton, Mary-Paz Arrieta-Paredes, Vedaste Byombi Kamasa and Said Rutabayiro-Ngoga

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The…

Abstract

Purpose

The study explores how the intention to export affects financing and non-financing variables for small and medium-sized enterprises (SMEs) in a low-income country (LIC). The objectives of this study are (1) to discern between regional and global exporting and (2) to evaluate its policymaking implications.

Design/methodology/approach

Primary survey data were collected from 330 Rwandan SMEs and were analysed using ordered logistic models as an application of the expectation-maximisation iterating algorithm, which was tested for robustness using a sampling model variation.

Findings

The results show that alternative sources of finance are the predominant choice to finance the intention to export within and outside Africa. As the scope of export intentions broadened from regional to global, there was a shift in preferences from less formal to more formal lending technologies, moving from methods like factoring to lines of credit. Moreover, reliance on bank officers became more significant, with increasing marginal effects. Finally, the study determined that government financing schemes were not relevant for SMEs pursuing either regional or global exporting.

Practical implications

Whilst alternative sources of finance predominate the export intentions of Rwandan SMEs, establishing a robust banking relationship becomes crucial for global exporting. Despite this implication, the intention to export should prompt more transparent communication regarding government financial support programmes. There is an opportunity for increased usage of relationship lending to customise support for SMEs involved in exporting, benefiting both the private and public sectors.

Originality/value

This study accentuates how export distance alters SME financing priorities. The results also contribute to understanding how the value of relationship lending changes when less familiar markets (i.e. global exporting) are the objective. Moreover, the study offers a new perspective on how institutional voids affect entrepreneurial financing decisions in LICs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 31 August 2017

Aaron van Klyton and Said Rutabayiro-Ngoga

The purpose of this paper is to explore how entrepreneurs, banks, the government, and alternative lending respond to finance gaps for small and medium enterprises (SMEs). This…

1363

Abstract

Purpose

The purpose of this paper is to explore how entrepreneurs, banks, the government, and alternative lending respond to finance gaps for small and medium enterprises (SMEs). This paper considers valuation as a sociological construct where actors use different calculative devices, forming an assemblage that partly positions valuation of entrepreneurial finance as a contested and socially constructed process.

Design/methodology/approach

Drawing on the concept of “calculative devices”, the study articulates discursive institutional practices embedded within SME lending. This case study draws on analyses of 30 semi-structured interviews and archival data, government reports, and newspaper articles.

Findings

The study identified three triggers in Rwanda that were rooted in the informal and unincorporated nature of the SME governance structure, the lack of capacity for SME owners to manage their own projects, and normalising language around collateral requirements that marginalised the realities of SMEs, contributing to stagnation for SME finance.

Practical implications

The research provides direction for understanding how calculative devices create new forms of valuation of entrepreneurship in developing countries, particularly when human and non-human actors come together in an assemblage. The study calls for further research to demonstrate the embedded power of valuation practices and the performance of value in entrepreneurial finance.

Originality/value

The study brings new findings to the market creation literature by extending the notion of distributive calculative agency to SME finance. The study mobilises theory to interpret how discursive institutional practices are embedded within a country’s finance infrastructure, yielding unintended consequences for SME growth.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 15 June 2018

Amélie Wuillaume, Amélie Jacquemin and Frank Janssen

The purpose of this paper is to propose a better understanding of how entrepreneurial narrative influences resource acquisition in the fundraising context.

Abstract

Purpose

The purpose of this paper is to propose a better understanding of how entrepreneurial narrative influences resource acquisition in the fundraising context.

Design/methodology/approach

The paper combines the literature on emotion as information theory from psychology with behavioral finance findings to develop a conceptual framework with research proposals highlighting the use of narratives in the crowdfunding process.

Findings

The proposition of the paper advocates that entrepreneurial narrative may influence crowdfunders’ attitude and decision to fund a project. It theorizes how emotions in narratives shape the funders’ attitude toward a project and, in turn, their decision to support it. This potential influence is qualified by taking into account the funders’ primary motivations. These motivations affect the degree to which funders rely on affect or cognition to form their attitude and to which they are influenced by more emotional or cognitive narratives.

Originality/value

This framework is the result of an effort to achieve the recognition of emotions in entrepreneurial funding. The paper creates a bridge between the narrative emotional content and the often neglected emotional arousal of funders (considered as traditional investors) to provide a framework for explaining crowdfunders’ decision making. The paper also offers nuances by taking into account the different audiences’ motivations to fund a project.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 25 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 4 March 2021

Gbemi Oladipo Olaore, Bimbo Onaolapo Adejare and Ekpenyong Ekpenyong Udofia

The purpose of this study is to assess the role of small and medium-scale enterprises (SMEs) as a catalyst to all things good in great economies; however, sadly, Nigeria has been…

5095

Abstract

Purpose

The purpose of this study is to assess the role of small and medium-scale enterprises (SMEs) as a catalyst to all things good in great economies; however, sadly, Nigeria has been unable to unlock SME development and the many benefits. The paper’s examination revolves around SMEs and entrepreneurial development, employment generation, government policies and financial aid and its availability. With the intention of establishing the relevance of government role in creating vibrant economies via thriving SMEs and its ripple effect on employment generation.

Design/methodology/approach

The study adopts a survey design, using a questionnaire for data gathering and percentile, confirmatory factor analysis (CFA) and structural equation modelling (SEM) for data analysis.

Findings

The study established a significant direct relationship between entrepreneurship development and infrastructure development and employment generation. Also, there was a significant direct relationship between government policies and infrastructure development. However, surprisingly, there was an insignificant relationship between government policy and financial aid and accessibility.

Practical implications

The government’s role in SMEs’ survival and entrepreneurship development is invaluable. The government must live up to their bidding and create an enabling environment to promote SME and entrepreneurship growth. Only this will transform the economy and minimize unemployment to its barest minimum.

Originality/value

The study’s research model is an interesting contribution to the body of work in SME and entrepreneurship development. The study is also an original attempt at having a good representation of the South-Western part of Nigeria, as research in high impact journals is usually domiciled in one state.

Details

Rajagiri Management Journal, vol. 15 no. 1
Type: Research Article
ISSN: 0972-9968

Keywords

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