STRATEGIES OF SMALL ENTERPRISES DEVELOPMENT IN AFRICAN COUNTRIES

Tatyana Nikolaevna YAKUBOVA

Associate Professor, Department of Management, Faculty of Economics, Peoples’ Friendship University of Russia (RUDN University), 6, Miklukho-Maklaya Street, Moscow, 117198, Russian Federation

yakubova_tn@rudn.university

Boy Moustoifa SAGAFFE

PhD student, Department of Management, Faculty of Economics Peoples’ Friendship University of Russia (RUDN University), 13, Miklukho-Maklaya Street, Moscow, 117198, Russian Federation

Sagaffe15@gmail.com

Abstract

The article describes the basic concepts and classification icons/symbols of small enterprises. Small enterprises are defined by the author as irreplaceable drivers of economic development, which are a source of economic growth and a tool for resources redistribution. This study analyzes the current strategies of small enterprises development in African countries such as Morocco, SAR and Tunisia, which made it possible to formulate conclusions and recommendations.

Keywords: African country, SMEs, entrepreneurship, small enterprises development strategies, competitiveness
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STRATEGIES OF SMALL ENTERPRISES DEVELOPMENT IN AFRICAN COUNTRIES

Yakubova, Tatyana NIKOLAEVNA

Associate Professor, Department of Management, Faculty of Economics, Peoples’ Friendship University of Russia (RUDN University), 6, Miklukho-Maklaya Street, Moscow, 117198, Russian Federation

yakubova_tn@rudn.university

Sagaffe Boy MOUSTOIFA

PhD student, Department of Management, Faculty of Economics, Peoples’ Friendship University of Russia (RUDN University), 13, Miklukho-Maklaya Street, Moscow, 117198, Russian Federation

Sagaffe15@gmail.com

Abstract

The article describes the basic concepts and classification icons/symbols of small enterprises. Small enterprises are defined by the author as irreplaceable drivers of economic development, which are a source of economic growth and a tool for resources redistribution. This study analyzes the current strategies of small enterprises development in African countries such as Morocco, SAR and Tunisia, which made it possible to formulate conclusions and recommendations.

Keywords: African country, SMEs, entrepreneurship, small enterprises development strategies, competitiveness.
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SMEs’ CREDIT DEMAND AND ECONOMIC GROWTH IN INDONESIA

M. Shabri ABD. MAJID

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

mshabri@unsyiah.ac.id

HAMDANI

Financial Consultant for the SMEs and Bank’s Partner, Aceh Province, Indonesia, Graduate Student in Economics, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

hamdani.aceh@gmail.com

Muhammad NASIR

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

nasirmsi@yahoo.com

FAISAL

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

faisal_nurmala@yahoo.com

Abstract

This study aims at empirically exploring the short- and long-run relationships between economic growth, non-performing loans, interest rates and the credit demand by the small and medium enterprises (SMEs) in Aceh province, Indonesia. The quarterly data for the period 1995 to 2015 were analyzed by the cointegration and vector error correction model (VECM). The study documented that there was a cointegration among the economic growth, non-performing loans, interest rates and the credit demand, implying the existence of long-run equilibrium among the variables. In addition, in short-run, the study found a unidirectional causality from economic growth to credit demand, a bidirectional causality between interest rates and credit demand, while no causality existed between non-performance loan and credit demand by the SMEs in Aceh, Indonesia. Thus, to enhance the SMEs, the government should focus on promoting the economic growth by managing the stability of interest rates in the province.

Keywords: Credit demand, Economic growth, Non-performing loan, SMEs.

JEL classification: C22, E59, O49, H81
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