Now Accepting Apple Pay

Apple Pay is the easiest and most secure way to pay on StudyMoose in Safari.

Factors that Determine the Success of Small and Medium Sized Enterprises in Guyana

Introduction

Small and medium – sized enterprises are businesses that have between 5 and 50 employees – in Guyana many businesses fall under this categorization and as a result of the number of these businesses t heir performance ha ve a significant effect on the economic state of the country. This significance comes from the fact that they create employment for most of the labour force. Furthermore, these businesses contribute to the gross domestic product (GDP) o f the country, which implies that they have a significant impact on the economic development of the country (Islam, Keawchana, & Yusuf, 2011) .

Moreover, Rocha (2012) says that when these businesses have a good environment in which to operate, they usually have a high performance, which causes them to uplift the living conditions of people of low income. They achieve this by reducing the unemployment rates in the country, increasing entrepreneurial activity, and therefore, decreasing the poverty levels (Sith aram & Hoque, 2016) . Consequently, this improves the overall economy of the country , and it shows the significance of the performance of these businesses in Guyana.

Get quality help now
WriterBelle
Verified writer

Proficient in: Education

4.7 (657)

“ Really polite, and a great writer! Task done as described and better, responded to all my questions promptly too! ”

+84 relevant experts are online
Hire writer

These businesses form a significant portion of all the GDP, which means that it is essentia l to ensure that these firms have high performance for the country to get economic growth. This shows the importance of finding ways of improving their performance. That is, if these businesses have a high performance, they will, markedly, lead to substant ial growth of the economy of the state.

However, Pasha, Wenner, Boller, and Clarke (2017) state that in Guyana, these businesses usually have a high rate of failure.

Get to Know The Price Estimate For Your Paper
Topic
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Check writers' offers

You won’t be charged yet!

Given their high number, and their significance to the overall performance of the country , their failure could affect the country’s economy. Therefore, there is a need for identifying the factors that lead to their low performance and failure. Finding them will lead to the development of ways of controlling them to enhance revenues . The success of a firm determines how long it will operate . Moorthy et al. (2012) state that when an SME is successful it gets the ability to create employment, generate wealth, and survive competition in the environment in which it operates. Moreover, their success u sually is dependent on both internal and external factors (Sitharam & Hoque, 2016) . The internal factors could be the skills of their owners, their education, their resources, and their access to finances.

Additionally, Mutoko and Kapunda (2017) added tha t expertise, innovativeness, planning skills, and the degree of management of the list of the internal issues that affect their performance are key to SME success. Generally, these internal factors are easily controllable. On the other hand, the external f actors which include the environment in which they operate, the regulations, their clients, interest rates, and the competition from other businesses offering similar products and services. These internal and external factors affect the revenues of SMEs, w hich could lead to their success or loss. In the case of Guyana, it is essential to find the issues that lead to the low performance of the SMEs. The identification of these issues will lead to the development of means of controlling their impact on the bu sinesses.

The Inter country al Labour Organization (2017) states that in Guyana, the performance of these businesses could be improved by the strengthening of governance systems that can nurture their growth. Moreover, The Guyana Chronicles (2018) states tha t most business owners of these SMEs have low education levels. Specifically, most of them only have primary education, while others have a maximum of secondary education. This shows that most of them lack specific technical knowledge of managing businesse s, which could impact on the productivity of their enterprises. Identifying the elements that negatively influence the revenues of the SMEs in Guyana could help in the development of ways of influencing their success.

Therefore, this research would like to find out these factors and identify those that are controllable. For instance, this research will seek to determine if the low education levels of the owners of these businesses could lead to their failure. Moreover, it will attempt to find if the owners that have high education levels have better performance in their businesses compared to their counterparts. Furthermore, the paper will seek to determine the effect of their access or lack of access to credit on the return of businesses. This will lead to the development of ways of ensuring that the enterprises get an improved rate of production.

Statement of the Problem

Many businesses in Guyana can be categorized as being small and medium sized, and most of these businesses have a high rate of fai lure. This failure can be attributed by their lack of access to credit from financial institutions, or the lack of expertise of the owners. There is an inadequacy of research dealing with the factors that leads to the failure of these firms in the country. Therefore, this makes it hard to develop methods of improving their performance, and influencing their success. Since these trades form a larger percentage of the businesses in the country, their failure has a noteworthy negative impact on the economy of the country. Therefore, it is essential to find the challenges that impact either the success or influence the collapse of these SMEs. This will eventually lead to the development of better performing SMEs in the country, leading to improved GDP.

Purpose of the Study

This research proposal proposes a study on the factors that affect the revenues of SMEs in Guyana. It recognizes the significant number of these businesses in the country. since these businesses employ most of the people in the country, this research seeks to find ways of improving their performance. It will, therefore, study the SMEs in the country, to find the challenges that they face in their operations. After identifying these factors, it will seek to determine if they can be contro lled to enhance the productivity of the business enterprises. Given the high number of these SMEs in the country, identifying these factors will lead to the overall improvement of the GDP of the country .

Main Research question

  1. What are the challen ges that influence the productivity of SMEs in Guyana?
  2. Is it possible to control these factors to achieve high performance of the businesses?

Research objectives

This research will have the following objectives:

  • To determine the greatest noteworthy aspects that affect the revenues of the SMEs in Guyana .
  • To find out if there are methods of controlling these issues to achieve a desirable performance of these businesses
  • To assess the impact of the level of education of the owners of these SMES on their overall performance .

References

International Labour Organization. (2017). Enabling environment for sustainable enterprises in Guyana. Geneva: International Labour Organization. Islam, A., Keawchana, T., & Yusuf, H. M. (2011, May).

Factors affe cting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science, 7 (5), 180 -190. doi:10.5539/ass.v7n5p180 Moorthy, K., Tan, A., Choo, C., Wei, C. S., Ping, J. T., & Leong, T. K. (2012, April).

A study on factors affecting the performance of SMEs in Malaysia. International Journal of Academic Research in Business and Social Sciences, 2 (4), 224 -239. Mutoko, W. R., & Kapunda, S. M. (2017). Factors influencing small, medium and micro -sized enterprises’ borrowing from banks: The cas e of the Botwana manufacturing sector.

Acta Commercii, 17 (1), a426. doi:10.4102/ac.v17i1.426 Pasha, S., Wenner, M. D., Boller, E., & Clarke, D. (2017). Small business survival in Guyana: Insights and implications. University of Guyana, Inter -American Devel opment Bank. doi:10.18235/0001108 Rocha, E. A. (2012).

The impact of the business environment on the size of the micro, small and medium entreprise sector: Preliminary findings from a cross -country comparison. Procedia Economics and Finances, 4 , 335 -349. d oi:10.1016/S2212 -5671(12)00348 -6 9 Sitharam, S., & Hoque, M. (2016). Factors affecting the performance of small and medium enterprises in KwaZulu -Natal, South Africa.

Problems and Perspectives in Management, 14 (2), 277 -288. The Guyana Chronicles. (2018, Jul y 24). Small business bureau pushes education, training for clients . Retrieved from Guyana Chronicles: -business -bureau -pushes -education – training -for -clients

Cite this page

Factors that Determine the Success of Small and Medium Sized Enterprises in Guyana. (2019, Nov 27). Retrieved from http://studymoose.com/research-proposal-final-aa-example-essay

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment