Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

A Survival Challenges of Small and Medium Enterprises in Turbulent Markets: Literature Review

Rikinorhakis Ridzwan, Mohamad Hanif Baharudin, Mohammad Ikram Ramzi, Nur Hazeleen Mat Rusok, Siti Aswani Mohd Ghazali

http://dx.doi.org/10.6007/IJARBSS/v14-i3/21020

Open access

Small and Medium Enterprises (SMEs) play a pivotal role in driving economic growth, employment generation, and innovation worldwide. However, SMEs often face significant survival challenges stemming from financial constraints, market competition, operational inefficiencies, and regulatory burdens. This literature review synthesizes existing research on survival challenges and strategies for SMEs, drawing insights from academic journals, reports, and real-world case studies. The review examines financial management techniques, marketing strategies, operational optimization methods, and compliance strategies employed by SMEs to overcome survival challenges. Therefore, implications of the findings for policymakers, practitioners, and SME owners are discussed, highlighting the need for supportive regulatory frameworks, access to financial resources, capacity-building initiatives, and customized solutions tailored to the unique needs of SMEs.

Abimbola, T. (2001). Branding as a competitive strategy for demand management in SMEs. Journal of research in marketing and entrepreneurship, 3(2), 97-106.
Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of innovation and entrepreneurship, 10(1), 1-22.
Adan, M., & Hussain, S. I. (2021). The relationship between economic growth, small and medium enterprises and the number of employees in Malaysia using vine copula approach. Sains Malaysiana, 50(8), 2455-2468.
Ahmad, N. N. (2016). Cash management practices in micro and small businesses in Malaysia. Journal of Education and Social Sciences, 4(1), 331-335.
Annosi, M. C., Capo, F., Appio, F. P., & Bedetti, I. (2023). Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs. Technological forecasting and social change, 197, 1-23.
Athia, I., Sudarmiatin, S., & Hermawan, A. (2023). Management of cashflow practices in micro enterprises: Perspectives from women-owned SMEs. International Journal Of Humanities Education and Social Sciences (IJHESS), 2(6), 2056 - 2069.
Baby, B., Prasanth, N., & Jebadurai, D. S. (2018). Implementation of lean principles to improve the operations of a sales warehouse in the manufacturing industry. Industrial Engineering, 9(1), 46-54.
Bai, M., & Harith, S. (2023). Measuring SMEs Risk–Evidence from Malaysia. SN Business & Economics, 3(7), 1-26.
Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & finance, 30(11), 2931-2943.
Biggeri, M., Borsacchi, L., Braito, L., & Ferrannini, A. (2023). Measuring the compliance of management system in manufacturing SMEs: An integrated model. Journal of Cleaner Production, 382, 1-14.
Blundel, R., Monaghan, A., & Thomas, C. (2013). SMEs and environmental responsibility: a policy perspective. Business Ethics: A European Review, 22(3), 246-262.
Brooks, N., & Simkin, L. (2011). Measuring marketing effectiveness: An agenda for SMEs. The Marketing Review, 11(1), 3-24.
Bunea, A., & Chrisp, J. (2023). Reconciling participatory and evidence-based policymaking in the EU Better Regulation policy: mission (im) possible? Journal of European Integration, 45(5), 729-750.
CFI Team. (2015). Small and medium-sized enterprises (SMEs). CFI Education Inc. Retrieved 04 March 2024 from
https://corporatefinanceinstitute.com/resources/accounting/small-and-medium-sized-enterprises-smes/
Christine. (2020). What are the 3 definitions of SMEs in Malaysia? WeCorporate. Retrieved 04 March 2024 from https://wecorporate.com.my/blog/3-definitions-of-smes-in-malaysia/
Christofi, M., Nunes, M., Chao Peng, G., & Lin, A. (2013). Towards ERP success in SMEs through business process review prior to implementation. Journal of Systems and Information Technology, 15(4), 304-323.
Clarke, A. H., & Freytag, P. V. (2023). Implementation of new segments in small-and medium-sized enterprises (SMEs). Journal of Business & Industrial Marketing, 38(4), 930-942.
Cressy, R. (2006). Debt finance and credit constraints on SMEs. In The life cycle of entrepreneurial ventures (pp. 187-225). Springer.
De la Torre, A., Pería, M. S. M., & Schmukler, S. L. (2010). Bank involvement with SMEs: Beyond relationship lending. Journal of Banking & finance, 34(9), 2280-2293.
DiBella, J., Forrest, N., Burch, S., Rao?Williams, J., Ninomiya, S. M., Hermelingmeier, V., & Chisholm, K. (2023). Exploring the potential of SMEs to build individual, organizational, and community resilience through sustainability?oriented business practices. Business Strategy and the Environment, 32(1), 721-735.
Driver, C., & Muñoz-Bugarin, J. (2019). Financial constraints on investment: Effects of firm size and the financial crisis. Research in International Business and Finance, 47, 441-457.
Ekwueme, W., & Nwosu, F. (2020). Microfinancing Alternatives for Small and Medium Sized Enterprises. Journal of Functional Education, 3(6), 107-127.
European Commission. (2021). SME definition. European Union. Retrieved 04 March 2024 from https://single-market-economy.ec.europa.eu/smes/sme-definition_en
Falahat, M., Ramayah, T., Soto-Acosta, P., & Lee, Y.-Y. (2020). SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance. Technological forecasting and social change, 152, 1-17.
Gerald, E., Obianuju, A., & Chukwunonso, N. (2020). Strategic agility and performance of small and medium enterprises in the phase of Covid-19 pandemic. International Journal of Financial, Accounting, and Management, 2(1), 41-50.
Gherghina, ?. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1), 347.
Hasanat, M. W., Hoque, A., Shikha, F. A., Anwar, M., Hamid, A. B. A., & Tat, H. H. (2020). The impact of coronavirus (COVID-19) on e-business in Malaysia. Asian journal of multidisciplinary studies, 3(1), 85-90.
Islam, A., & Wahab, S. A. (2021). The intervention of strategic innovation practices in between regulations and sustainable business growth: a holistic perspective for Malaysian SMEs. World Journal of Entrepreneurship, Management and Sustainable Development, 17(3), 396-421.
Jiang, J. (2022). Technology-Enabled Co-Regulation For Blockchain Implementation. University of Pittsburgh Law Review, 83(4), 1-64.
Kersten, R., Harms, J., Liket, K., & Maas, K. (2017). Small firms, large impact? A systematic review of the SME finance literature. World development, 97, 330-348.
Khalique, M., Isa, A. H. B. M., Nassir Shaari, J. A., & Ageel, A. (2011). Challenges faced by the small and medium enterprises (SMEs) in Malaysia: An intellectual capital perspective. International Journal of current research, 3(6), 398-401.
Liberto, D. (2023). Small and midsize enterprise (SME) defined: Types around the world. Investopedia. Retrieved 04 March 2024 from https://www.investopedia.com/terms/s/smallandmidsizeenterprises.asp
Linnenluecke, M. K., Griffiths, A., & Winn, M. I. (2013). Firm and industry adaptation to climate change: a review of climate adaptation studies in the business and management field. Wiley Interdisciplinary Reviews: Climate Change, 4(5), 397-416.
Lou, Z., Xie, Q., Shen, J. H., & Lee, C.-C. (2024). Does supply chain finance (SCF) alleviate funding constraints of SMEs? Evidence from China. Research in International Business and Finance, 67, 1-29.
Lynch-Wood, G., & Williamson, D. (2014). Civil regulation, the environment and the compliance orientations of SMEs. Journal of Business Ethics, 125, 467-480.
Mensah, H. K., Azinga, S. A., & Sodji, J. A. M. (2015). Challenges faced by small and medium-size enterprises in accessing credit facilities from financial institutions: An empirical assessment incorporating the perceptions of both borrowers and financiers. International journal of Economics, Commerce and management, 3(11), 250-271.
Meuleman, M., & De Maeseneire, W. (2012). Do R&D subsidies affect SMEs’ access to external financing? Research policy, 41(3), 580-591.
Motta, V. (2020). Lack of access to external finance and SME labor productivity: does project quality matter? Small Business Economics, 54(1), 119-134.
Musa, H., & Chinniah, M. (2016). Malaysian SMEs development: future and challenges on going green. Procedia-Social and Behavioral Sciences, 224, 254-262.
Naradda Gamage, S. K., Ekanayake, E., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. (2020). A review of global challenges and survival strategies of small and medium enterprises (SMEs). Economies, 8(4), 1-24.
Nguyen, H. T., Nguyen, H. M., Troege, M., & Nguyen, A. T. (2021). Debt aversion, education, and credit self-rationing in SMEs. Small Business Economics, 57(3), 1125-1143.
Nicolas, T. (2022). Short-term financial constraints and SMEs’ investment decision: evidence from the working capital channel. Small Business Economics, 58(4), 1885-1914.
O’Dwyer, M., & Gilmore, A. (2019). Competitor orientation in successful SMEs: An exploration of the impact on innovation. Journal of Strategic Marketing, 27(1), 21-37.
Odebunmi, O. (2022). The biggest challenges SMEs face and how to overcome them. Portcities. Retrieved 04 March 2024 from https://portcities.net/blog/erp-and-odoo-insights-2/the-biggest-challenges-smes-face-and-how-to-overcome-them-51
OECDiLibrary. (2022). Financing SMEs and Entrepreneurs 2022: An OECD Scoreboard (OECD, Ed.). OECD Publishing. https://www.oecd-ilibrary.org/sites/3bc2915c-en/index.html?itemId=%2Fcontent%2Fcomponent%2F3bc2915c-en
Omar, A. R. C., Ishak, S., & Jusoh, M. A. (2020). The impact of Covid-19 Movement Control Order on SMEs’ businesses and survival strategies. Geografia-Malaysian Journal of Society and Space, 16(2), 90-103.
Porath, U. (2023). Advancing managerial evolution and resource management in contemporary business landscapes. Modern Economy, 14(10), 1404-1420.
Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International journal of production economics, 147, 340-350.
Ragazou, K., Passas, I., Garefalakis, A., & Dimou, I. (2022). Investigating the research trends on strategic ambidexterity, agility, and open innovation in SMEs: Perceptions from bibliometric analysis. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 1-17.
Relin Consultants. (2023). Get to know about SME company in Malaysia. Relin Consultants. Retrieved 04 March 2024 from https://relinconsultants.com/sme-company-in-malaysia/
Ridzwan, R., Muhammad, N. M. N., & Rahman, A. (2017). Issues and challenges among young entrepreneurs in Malaysia. IOSR Journal of Business and Management, 19(03), 80-84.
Risdwiyanto, A., Sulaeman, M. M., & Rachman, A. (2023). Sustainable Digital Marketing Strategy for Long-Term Growth of MSMEs. Journal of Contemporary Administration and Management (ADMAN), 1(3), 180-186.
Sana, A. K., Poddar, S., & Paul, B. (2020). Contribution of small and medium enterprises (SMES) towards Malaysian economic growth: an empirical study. International Journal on Recent Trends in Business and Tourism (IJRTBT), 4(2), 18-27.
Segarra, A., & Teruel, M. (2009). Small firms, growth and financial constraints. Retrieved from Universitat de Barcelona website: http://www. pcb. ub. es/xreap/aplicacio/fitxers/XREAP2009-11-revised. pdf.
Sipa, M., Gorze?-Mitka, I., & Skibi?ski, A. (2015). Determinants of competitiveness of small enterprises: Polish perspective. Procedia Economics and Finance, 27, 445-453.
SME Malaysia. (2024). New SME definition. SME Malaysia. Retrieved 04 March 2024 from https://smemalaysia.org/sme-definition/
Stancu, A., Filip, A., Ro?ca, M. I., Ioni??, D., C?plescu, R., Cânda, A., & Ro?ca, L. D. (2020). Value creation attributes—Clustering strategic options for Romanian SMEs. Sustainability, 12(17), 1-19.
Steinerowska-Streb, I., Glod, G., & Steiner, A. (2022). What do we know about small and medium enterprises’ survival in a post-global economic crisis context? Local Economy, 37(4), 259-278.
Tahir, H. M., Razak, N. A., & Rentah, F. (2018). The contributions of small and medium enterprises (SME’s) On Malaysian economic growth: A sectoral analysis. Proceedings of the 7th International Conference on Kansei Engineering and Emotion Research 2018: KEER 2018, 19-22 March 2018, Kuching, Sarawak, Malaysia,
Taylor, C., Pollard, S., Rocks, S., & Angus, A. (2012). Selecting policy instruments for better environmental regulation: a critique and future research agenda. Environmental policy and governance, 22(4), 268-292.
Thaker, M. T., Asmy, M., & Mohamed, M. O. (2013). The challenges of micro enterprises in Malaysia and the prospect for integrated cash waqf micro enterprise investment (ICWME-I) model. 2nd International Conference on Islamic Economics and Economies of the OIC Countries,
The World Bank. (2016). “Small is the new big” – Malaysian SMEs help energize, drive economy. The World Bank Group. Retrieved 04 March 2024 from https://www.worldbank.org/en/news/feature/2016/07/05/small-is-the-new-big---malaysian-smes-help-energize-drive-economy
Tortorella, G. L., Giglio, R., & Van Dun, D. H. (2019). Industry 4.0 adoption as a moderator of the impact of lean production practices on operational performance improvement. International journal of operations & production management, 39(6/7/8), 860-886.
Venkatraman, S., & Fahd, K. (2016). Challenges and success factors of ERP systems in Australian SMEs. Systems, 4(2), 1-18.
Wehinger, G. (2014). SMEs and the credit crunch: Current financing difficulties, policy measures and a review of literature. OECD Journal: Financial market trends, 2013(2), 115-148.
Wikipedia. (2024). Small and medium-sized enterprises. Wikipedia. Retrieved 04 March 2024 from https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises

(Ridzwan et al., 2024)
Ridzwan, R., Baharudin, M. H., Ramzi, M. I., Rusok, N. H. M., & Ghazali, S. A. M. (2024). A Survival Challenges of Small and Medium Enterprises in Turbulent Markets: Literature Review. International Journal of Academic Research in Business and Social Sciences, 14(3), 918–933.