Revista de Economía y Negocios

This study aims to examine and analyze: whether the business strategy is directly influenced by management ability, entrepreneurship orientation, both directly and indirectly, through businness strategy as mediation. Theoretically, the results of this research is expected to be complete the repertoire of knowledge in strategic management field, especially micro and small entrepreneurship, so it can be useful for academics, practitioners and government.The population in this study is businesman. Respondents used as sample are 74 people seaweed entrepreneurs at micro and small scalemethod is census and an analytical method used in hypothesis testing is Path Analysis. The results of this study indicate that: (1) management capability indirectly affects on businessstrategy, (2) entrepreneurship orientation directly influences business strategy. (3) entrepreneurship orientation indirectly affect on business performance business through business strategy.

This paper reviews a model of bubbles under the assumption of heterogeneous rational traders. In the presence of dispersion of opinions, or sequential awareness, financial bubbles are justified by the interactions between rational arbitrageurs and behavioural traders. Timing is a very important component in the trader's strategy. This model is then extended to explain both bubbles and overshooting crash.

This study examines the effect of selection process on employee productivity in private and public sectors. Selection process is the criterion or explanatory variable whereas employee productivity is the antecedence or predictor variable. The study employed the survey design and questionnaire was used for data collection. Content validity and face validity were conducted to validate the instrument. A test-re-test reliability method was applied to ascertain reliability of the instrument and result showed an acceptable reliability coefficient. Data was generated from 216 respondents randomly drawn from a private and public organization in Makurdi, Benue State. Data were presented using tables, frequencies and percentages while the research hypotheses were tested using independent t-test analytical tool, aided by Statistical Package for Social Sciences (SPSS). The findings of the study revealed that, there is a significant difference between the selection process employed by the private and public sector organizations and the productivity they achieved by employing such selection process. It was also revealed that the factors influencing selection process in private and public sector organizations are similar. The study therefore recommends that, for both the private and public sector organizations to have healthy and suitable employees capable of achieving high productivity, they should devise a formal and logical selection process and consistently adhere to it without deviations. Also, they should always consider factors such as educational qualification, experience, location, etc., with no iota of bias, discrimination or favouritism during their selection process.

The present research named “Financial inclusion and financial performance of microfinance institutions in Rwanda: Case of CLECAM EJOHEZA KAMONYI (2011-2014)”, had the main objective of evaluating the implementation of financial inclusion in microfinance institutions in Rwanda. The study used the techniques of questionnaire addressed to a sample of 162 calculated from a total population 11.121 CLECAM EJOHEZA KAMONYI members in collection of primary data and the technique of documentation for secondary data. During the treatment and analysis of data, the frequency calculation and tabulation, the IMF Factsheet and multiple regressions have been used. The major findings show that 70.4% of all respondents have been pushed by quick service and appropriate products to join LECAM EJOHEZA KAMONYI. 18.1% of all respondents choose this institution because it operates near for them while 11.5% of respondents said that they choose this institution for other reasons. 63.6% of all respondents said that the product and services respond to their needs on the level of excellent, 36.4% of all respondent are satisfied by the products and services on a very good the level. CLECAM EJOHEZA KAMONYI performs financially. In 2014, the portfolio at risk was 2.2%, the Operating Self-Sufficiency arrived at 143%, the portfolio yield was 25.6% while Operating expense ratio was 17%. The evolution of deposit depends on the number of members of CLECAM EJOHEZAKAMONYI, but the number of branches does not affect the deposits. The Operating expense depends on the number of branches but not on the number of members. The evolution of members has effect on evolution of share capital but the number of branches does not affect the evolution of paid up share capital. The deposits are correlated positively to net income at 92.6%.

The study on microfinance impact assessment: linkage of financial inclusion to welfare conditions of the MFI’s clients in Rwanda was conducted with the aim of assessing the impact of microfinance through financial inclusion and welfare conditions of MFI’s clients in Rwanda. The study analyzed the financial indicators that were displayed by factsheet tool and the influence of financial inclusion to the welfare conditions of MFI’s clients by Statistical Package for Social Sciences (SPSS). A questionnaire was addressed to a calculated sample of 164 of clients to respond to the question for primary data and secondary data have been collected as well, to validate the primary data. In the paired analysis, there was a statistically significant increase the type of business from Time 1(M=2.6466, SD=1.58986) to Time 2 (M=4.1429, SD=2.09669), t (132)=‐7.252, p<000. The magnitude of the difference in the means was large (eta squared 0.346). There was a statistically significant increase own assets from Time 1(M=4.6692, SD=2.5841) to Time 2 (M=7.1654, SD=3.3826), t(132)=‐8.219, p<000. The magnitude of the difference in the means was large (eta squared 0.405). According paired t-test, there is significant impact of financial inclusion. This is confirmed by the p-value (p<0.0001) which says that the test is highly significant. Also the profit is positively correlated to both type of saving and type of repayment. An increase the type of saving and type of repayment will also increase the net profit. When the distance is lower, clients are matures enough and improve gender equity, those contribute to increase the net profit to 32.5%, 23.7%, 22.4%, 22.5% and 26.5% unit respectively. It has been confirmed that the financial inclusion influences the positive change of welfare conditions of MFIs clients.

Exchange rate system, although it is an important factor in determining the real value of the currency of a country, economy, inflation, devaluation, interest rates vs. foreign trade, such as the affect in many ways. In the study, competitive devaluations and trade relationship is investigating in Turkey. The relationship between foreign trade and competitive devaluations, cumulative method ARDL approach to study is to investigate where there is a long-term relationship between the variables and factors related to long-term model and error correction is estimated between 1965-2014 periods for TB. The results indicate that positive and significant correlation between TB and RER and also between TB and GDP there is, and significant and negative correlation between TB and P, as well as between TB and G there is. Long-term variable coefficient equals 0.80.

The emergence and convergence of four key technologically enabled phenomena (Internet Collaboration, Big|Fast|Open Data, Additive Manufacturing, and Crypto-currency) prompted the Science and Technology Options Assessment panel of the European Parliament to let a contract to conduct research into the potential of these technologies and to identify any associated policy implications. The research study comprised of four phases: desk research, a workshop, a mini-foresight exercise and interviews with industrialists and academics. The data collected were analysed and a number of positive and negative policy options were identified. The issues that arose in the study are summarised and include: personal data as commodity, disintermediation, education, prosumerism and entrepreneurial innovation, pace of policy development, (and laws and regulations), borderlessness and internationalism, virtualisation of industrial infrastructure and of currency. Given the radical changes that are expected to sweep the EU and global economies in the next few years, we found there was particular interest in developing and deploying new forms of intellectual property management protocols. It was recognised that this short study was only the start of a longer process. Future investigation needs to delve deeper into the technical and social aspects of the relevant technologies and of the capability envelope they occupy, as no one can anticipate the next technology disrupter and where it will act.

GST also known as the Goods and Services Tax is defined as the giant indirect tax structure designed to support and enhance the economic growth of a country. More than 150 countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the same was passed by the Loksabha on 6th May 2015 but is yet to be ratified by the Rajyasabha. However, there is a huge hue and cry against its implementation. It would be interesting to understand why this proposed GST regime may hamper the growth and development of the country.

Accounting is an important component of the management tools system of finance in the economy. Therefore, each enterprise must build its own complete accounting system, including financial accounting and management accounting for accounting to provide full information for the inspection of the manager.

In fact, the Ministry of Finance of Vietnam issued Circular No. 53/2006/TT-BTC dated June 12, 2006, guiding the application of management accounting in enterprises, but the application of management accounting in general and cost management accounting in particular in each business has its own different characteristics to suit the production process and management of the enterprise.

This study explores and assesses the actual use of management accounting of the small and medium enterprises (SMEs) in Thai Nguyen Province, identifying and analyzing the factors affecting the tendency to use management accounting in the SMEs in Thai Nguyen Province to propose the solutions to improve the management accounting role in the SMEs in Thai Nguyen Province.

Good corporate governance is now considered a basic condition to accept and register an organization in most of the Stock Exchange Markets all over the world. The audit committee plays a major role in corporate governance regarding the organization’s direction, control, and accountability; part of which is the organization’s internal control which is used to provide reasonable assurance about the integrity of management and reliability of the financial reporting. This paper focuses on the audit committee’s powers and functions. The importance of the audit committee’s oversight and monitoring responsibilities to the organizations’ board of directors, shareholders, and other stakeholders, as well as to governing and regulating bodies, have been increasing, especially after the corporate collapse and the passage of the U.S. Sarbanes-Oxley Act of 2002. Consequently, most publicly held companies all over the world have been asked to establish and maintain audit committees. These companies and other types of organizations do establish and maintain audit committees to oversee and monitor their overall financial performance, including overseeing the preparation of the financial statements and other financial reports, as well as monitoring the external and internal auditors’ performance. The relationship between the audit committee and both external and internal auditors is important for all parties to fulfill their job commitments. An organization’s board of directors relies on the audit committee’s reports about matters related to managing, directing and controlling the organization. The audit committee acts as a link, and facilitates the communications, between the board of directors and both internal and external auditors.

This paper examines the contributions of Micro, Small and Medium Enterprises (MSMEs) in rural areas of Nigeria as crucial drivers of economic growth. Micro, Small and Medium Enterprises are crucial to the development of a country’s economy, especially countries in emerging economies like China, Brazil, Thailand, India, Nigeria, South Africa, Indonesia etc. Micro, Small and Medium Enterprises is sine qua non to national development, poverty eradication and employment generation. This article is a research into the concept of Micro, Small and Medium Enterprises in rural areas given the wide spread misconception that rural areas in Africa are synonymous with agricultural food and animal production which is far from reality. The study collected data from a sample of Micro, Small and Medium Enterprises in the tie and dye industry in the rural communities of Ogun State, Nigeria to determine the relationship between MSMEs and Nigeria’s economic growth. This paper deals with the following four issues: firstly, it sets out the reasons why promoting MSMEs in rural areas are vital strategies to promote the economic growth of Nigeria; secondly it examines the policies by the Federal Government of Nigeria to create enabling environment for micro enterprises in rural areas to thrive; thirdly, this article explores the successes and challenges of Micro, Small and Medium Enterprises in rural communities of Ogun State. Fourthly, this article deals with the global implications of Micro, Small and Medium Enterprises in the rural areas of Nigeria.

Despite the availability of skilled and high professionals' workers, there has been misallocation of human capital and there is a little benefiting from it is contribution to economic transformation. In this paper I attempt to investigate the reasons behind human capital misallocation and how lean productivity shapes today's Sudanese productive sectors. A theoretical analysis is considered to quantify the correlation relationships between human capital and economic transformation. Data from 2008-2014 labor force survey and National Statistics bureau survey are considered. Based on econometric time series data estimations over 2000-2014, we find evidence that human capital in Sudan is associated with lower productivity per worker and thereby lower economic growth. Results further show that labor market is characterized by a majority of workers are involved in unproductive and unpaid activities. In order for economic transformation be achieved, the Sudanese authorities must enhancing the collaboration between productive sectors and educational institutions.

Financial intermediaries at the center of the financial system perform the function of reallocating the surplus resources of household units to other economic units with funding needs. Savers wants to lend on short term and borrowers want to borrow on long term. Financial intermediaries have emerged from the traditional banking to more sophisticated intermediaries such as investment banks, pension funds, venture capital funds, mutual funds and hedge funds due the market imperfection and information asymmetry. This paper discusses the emerging role of financial intermediaries in the financial market in Ghana.

Analysis and assessment of motivation factors of small scale entrepreneurial firms is very important in the context of developing countries where unemployment is at high level. A case study is conducted in the case of fish hook producing small scale clustered firms in West Bengal, India. In this context, a comparative analysis is made of the ranking of various items of motivation as perceived by the respondents in the cluster, reliability of various items of motivation is judged by using Cronbach’s Alpha test and an index of motivation is developed on the basis of principal component technique to find the level of association between motivation index and firm performance level. The results reveal reasonable degree of reliability among motivation items, indicate moderate degree of association between motivation index and per-capita firm profitability. Govt. should take certain steps for promoting motivation and attractiveness of entrepreneurial work among young generation.

This paper shortly reviews the theories about innovation and evaluates the ingredients and perspectives of development of innovation policy in Kazakhstan. In the period of implementation of new economic reforms, Kazakhstan focused on extraction and export of natural resources. During realization of state programs, many innovation projects fail. Therefore, paper aims to investigate the main barriers and perspectives by providing policy recommendations for Government of Kazakhstan. In the period of further privatization of state organizations in Kazakhstan and globalization trends, the paper demonstrate a strong necessity for changes in present innovation programs. Understanding that a market capacity for innovation in Kazakhstan is limited, the paper aims to focus on ideas of export-oriented innovations.

Trading is a temporal (i.e. time-based) historical living system with a number of functions, like: Initial Public Offerings (IPO), Seasoned Equity Offerings (SEO), stock (instrument) price action Gaps, Breakouts, etc. In this domain, a number of warning dynamics timing functionalities is available, like: On Open Gup-Ups (ooGUp), On Open Gup-Downs (ooGDn), Morning Breakouts (mB), etc. All these time-based functionalities are regarded as 2nd level functions (i.e. functions of functions; because of the timing involved) with great trading opportunities, and they are defined–for the first time in the corporate finance literature- by this paper as Temporal (timing) Trading Functionalities (TTF). In particular, the IPOs with the embedded TTF functionalities are great trading opportunities for the institutions, the individual (noncommercial) market investors, the swing traders, and the speculators. Data analysis shows that during the seasoned equity offerings time, shareowners significantly increase their share share-holding, including offerings that would be classified as overpriced at that time; hence, the involved trading volatility is increased resulting in great trading and profit opportunities. This paper contributes to corporate finance literature by examining the IPOs functions and define and document their inherit TTF functionalities. For this purpose, four categories of shareholders are regarded: The longterm institution and non-commercial traders (investors), the swing momentary institution traders (institutions), the shortterm non-commercial traders (speculators) and the intraday non-commercial traders (speculators). Paper concludes that, in IPO/TTF trading, the swing traders(institutions), incorporating in their trading strategies the short-term TTF functionalities, are benefit at the expense of momentary and intraday speculators, while the long-term investors are not affected by the IPO offerings.

This paper empirically studies the relationship between entrepreneurship intellectual capital and the enterprise performance in China through questionnaire survey. This result shows that entrepreneurship intellectual capital has significant impact on enterprise performance. However, different dimension of entrepreneurship intellectual capital makes different driving effect. Entrepreneurship innovation capital, entrepreneurship human capital and entrepreneurship social capital have positive effects on competitive and potential performance, while entrepreneurship structural capital has significant positive effect on competitive performance but no significant impact on potential performance. The value of entrepreneurship intellectual capital is partly explained, and some suggestions of the accumulation of entrepreneurship intellectual capital are given.

The Corporate social responsibility (CSR) refers to business practices by corporations and institutions such as banks, insurance companies etc. involving initiatives that benefit society. This research aims to look at the CSR of the Islamic financial institutions and to what extent they achieve maqasid al-Shariah through this concept. It is found that several Islamic financial institutions are involved in activities that promote corporate social responsibility, such as payment of Zakat to the needy, charity takaful product, donations, program funding and institutions of social services, training students, and protecting the environment which is in line with maqasid al-Shariah. It is recommended that the Islamic financial institutions should engage in more activities that will bring more benefits to the society to ensure that they are not left behind in serving the community - which is the main purpose of the Shariah- when compared to its conventional counterpart.

The kenaf plant is eco-friendly, renewable, low in cost and not meant to be a food source, owing to its potential commercial value in Malaysia, the government has allocated millions of ringgit for research to develop a viable kenafbased industry. This study is an attempt to assess the financial and technical performance of kenaf cultivation to produce fiber usage in automotive components. The financial data were collected through interviews with kenaf growers and from group discussions as well as production data collected from CMPC (Kenaf Processing and Marketing Centre) Bachok-Kelantan. The financial data were analyzed using Microsoft Excel software while Eview8 was used to analyze the production data. Three scenarios of kenaf production per hectare were assumed which were 15, 12 and 10 ton. According to the data analysis; the results revealed when kenaf production was 15 ton/ha, the farmer made a maximum profit of 37% from the subsidy provided by the Lembaga Kenaf Dan Tembakau Negara (LKTN) or National Kenaf and Tobacco Board, which was more than double the profit margin without subsidy. The financial analysis illustrated that all the three scenarios were viable when using the Benefit Cost Ratio (BCR) as an indicator. However, the production of 15 ton per hectare was the best of the three scenarios due to the five-year payback period, which was equal to half the period run on the model of the financial analysis. Additionally, the analysis of the production input (labor and chemicals) showed a significant effect on kenaf production as indicated in the analysis of Ordinary Least Square (OLS).