Determinants of small, medium and micro enterprises’ performance: a structured literature review.

Abstract

The purpose of this paper was to identify and compare the determinants of Small Medium and Micro Enterprises (SMME) performance in developed, developing and transitional countries. The aims of the study were to determine what the success or hampering factors of SMMEs are, whether developed, developing and transitional countries’ SMMEs experience similar success or hampering factors, and if previous studies’ findings can be generalised. A structured literature review was carried out on literature that was published on determinants of performance of SMMEs in the period January 2006 to April 2020. The review revealed that the studies on SMMEs’ determinants are not yet exhausted. Although many of the determinants are common in most countries and studies, there are also vast differences and the determinants cannot be generalised. Developed, developing, and transitional countries’ studies on determinants of SMMEs’ performance can also not be compared due to concepts and measurements that are differently defined in the studies. Although literature can be used to reveal certain common determinants of SMME performance, further surveys are needed to determine the unique factors for different countries, regions and sectors. Studies cannot be generalised for the decision-making of firms or for policies focused on enhancing innovation system (IS) performance and ultimately economic growth. This study fills the gap of a lack of a comprehensive summary of literature on determinants of SMMEs’ performance as well as a comparison between developed, developing, and transitional countries.