The Relationship between Macroeconomics and Small and Medium Enterprises

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: 31 December 2024 | Viewed by 1302

Special Issue Editor

Special Issue Information

Dear Colleagues,

This Special Issue is focused on the importance of understanding the relationship between macroeconomics and SMEs in the context of contemporary economic dynamics. The extraordinary development of the macroeconomic environment caused by the pandemic or current wars led to significant changes in the development of SMEs. Thus, this SI focuses on several important topics to provide insights into sustaianable SME development and unravel the nuances of the macroeconomic–SME relationship through the following methods:

  • Examination of how macroeconomic factors impact the performance, growth, and sustainability of SMEs.
  • Analysis of the reciprocal influence, considering how SME activities contribute to macroeconomic indicators.
  • Exploration of regional and global variations in the relationship between macroeconomics and SMEs.

Dr. Katarina Valaskova
Guest Editor

Manuscript Submission Information

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Keywords

  • macroeconomic variability
  • economic fluctuation
  • bankruptcy prediction
  • earnings management
  • corporate finance
  • digitization
  • COVID-19 pandemic

Published Papers (2 papers)

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Research

18 pages, 1870 KiB  
Article
Modeling of Complex State Financial Support for Small and Medium-Sized Enterprises
by Kristina Alekseyevna Zakharova, Danil Anatolyevich Muravyev and Egine Araratovna Karagulian
Economies 2024, 12(7), 188; https://doi.org/10.3390/economies12070188 - 18 Jul 2024
Viewed by 365
Abstract
This article describes a new approach to determining the optimal amount of state financial support provided to business entities. It is shown that there are three available methods to support economic agents. The most cost-effective option is subsidizing business entities to expand their [...] Read more.
This article describes a new approach to determining the optimal amount of state financial support provided to business entities. It is shown that there are three available methods to support economic agents. The most cost-effective option is subsidizing business entities to expand their current assets. It has been revealed that there are not just optimal amounts of government financial support but also optimal not-to-exceed amounts that make it possible to identify the boundaries of the so-called highly productive state of the economy. In this case, when the economy is highly productive, the prices of goods (services) fall, workers spend their savings, and the volume of production increases. This ultimately leads to an increase in the well-being of the population. The differential equations are the basis for the model, which is similar to the model of a simple two-sector single-product economy. The Monte Carlo method is used to determine the optimal not-to-exceed amount for government financial support. The identification of such intervals allows us to determine the amount of state financial support that will lead to a highly productive state and will not contribute to an unreasonable expansion of the budget expenditure. This study’s results can be utilized by government authorities for the development of a comprehensive system of state financial support for entrepreneurship. Business entities can use the results of this research concerning the calculation of the optimal not-to-exceed amount of financial support. Full article
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17 pages, 1056 KiB  
Article
Institutional Quality and Internationalization: Empirical Evidence from Manufacturing SMEs in Vietnam
by Bao Dinh Ho and Tung Nguyen
Economies 2024, 12(6), 144; https://doi.org/10.3390/economies12060144 - 11 Jun 2024
Viewed by 606
Abstract
This paper assesses how the local institutional environment affects the internationalization of manufacturing small- and medium-sized enterprises (SMEs) in Vietnam, exploiting a multi-dimensional institutional index and large-scale enterprise data. The authors find that the internationalization of manufacturing SMEs was influenced by several institutional [...] Read more.
This paper assesses how the local institutional environment affects the internationalization of manufacturing small- and medium-sized enterprises (SMEs) in Vietnam, exploiting a multi-dimensional institutional index and large-scale enterprise data. The authors find that the internationalization of manufacturing SMEs was influenced by several institutional aspects, such as the transparency of local authorities, access to land, informal charges, and local labor policies. Improvements in these institutional aspects can substantially enhance participation in international trade and its magnitude. This pattern diverges from their large and foreign counterparts, whose trade participation is primarily affected by land access and the transparency of local authorities. Additionally, the authors find heterogeneous effects of the institutional environment on SMEs in different manufacturing industries. Heavy industries rely more on the costs of entry and time costs, while land access is crucial for SMEs in manufacturing industries that require large-sized factories. Our findings suggest that the government should provide a supportive institutional environment to SMEs, which will lead to higher international participation and boost domestic economic growth. Full article
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