IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i6p1557-d213914.html

Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

Author

Listed:
  • Ardjouman Diabate

    (School of Management, Shanghai University, Shanghai 200444, China)

  • Brou Mathias Allate

    (School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China)

  • Dongping Wei

    (Math and Physics Department, Shenzhen Polytechnic, Shenzhen 518055, China)

  • Liying Yu

    (School of Management, Shanghai University, Shanghai 200444, China)

Abstract

Globally, small- and medium-sized enterprises (SMEs) play a key role in driving sustainable economic growth in both developed and developing countries. The main objective of this study was to investigate the firm and entrepreneur characteristics influencing the growth of SMEs in Côte d’Ivoire, with special insight into why this country has been a middle-income economy for decades despite its numerous economicpotentialities. Through IBM SPSS version 22.0, 19 hypotheses were tested using data from 160 SMEs operating in Côte d’Ivoire. The results from chi-square tests revealed an association between each of the ‘firm and entrepreneur characteristics’ and at least one of the three growth measurements. However, it was found thatkey factors such as ‘entrepreneur’s ‘age’, ‘work experience’ and ‘level of education’ do not play a role in SMEs’ sustainable growth in Côte d’Ivoire. Results from the binomial logistic regression confirmed that ‘ability to avoid reporting loss’ can be predicted based on ‘entrepreneur’s work experience’, ‘business sector’ and ‘source of funding’. Although this study has practical significance in the business sphere, its results may be of particular help to governments and policymakers in middle-income economies like Côte d’Ivoire for policy formulation and development of frameworks to enhance SMEs’ sustainable growth.

Suggested Citation

  • Ardjouman Diabate & Brou Mathias Allate & Dongping Wei & Liying Yu, 2019. "Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?," Sustainability, MDPI, vol. 11(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1557-:d:213914
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/6/1557/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/6/1557/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muriithi, Beatrice W. & Matz, Julia Anna, 2014. "Smallholder Participation in the Commercialisation of Vegetables: Evidence from Kenyan Panel Data," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-28, May.
    2. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    3. Chang, Yu-Chun, 2012. "Strategy formulation implications from using a sustainable growth model," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 1-3.
    4. Sleuwaegen, Leo & Goedhuys, Micheline, 2002. "Growth of firms in developing countries, evidence from Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 68(1), pages 117-135, June.
    5. Roure, Juan B. & Keeley, Robert H., 1990. "Predictors of success in new technology based ventures," Journal of Business Venturing, Elsevier, vol. 5(4), pages 201-220, July.
    6. Maher Al-Mahrouq, 2010. "Success Factors of Small and Medium Enterprises: The Case of Jordan," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 13(2), pages 89-106, November.
    7. Adriaan Van Stel & David Storey, 2004. "The Link between Firm Births and Job Creation: Is there a Upas Tree Effect?," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 893-909.
    8. Maher Al-Mahrouq, 2010. "SUCCESS FACTORS OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): THE CASE OF JORDAN," Anadolu University Journal of Social Sciences, Anadolu University, vol. 10(1), pages 1-16, January.
    9. Flora Wang, 2016. "What are the biggest obstacles to growth of SMEs in developing countries? - A picture emerging from an enterprise survey," Working Papers IES 2016/09, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2016.
    10. Thorsten Beck & Asli Demirgüç‐Kunt & Vojislav Maksimovic, 2005. "Financial and Legal Constraints to Growth: Does Firm Size Matter?," Journal of Finance, American Finance Association, vol. 60(1), pages 137-177, February.
    11. Yao Wang, 2016. "What are the biggest obstacles to growth of SMEs in developing countries? – An empirical evidence from an enterprise survey," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 16(3), pages 167-176, September.
    12. Tairuddin Yusoff & Sazali A. Wahab & Ahmad S. A. Latiff & Suzana I. W. Osman & Nur F. M. Zawawi & Syed A. Fazal, 2018. "Sustainable Growth in SMEs: A Review from the Malaysian Perspective," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 8(3), pages 1-43, August.
    13. Susan Marlow, 2003. "Formality and Informality in Employment Relations: The Implications for Regulatory Compliance by Smaller Firms," Environment and Planning C, , vol. 21(4), pages 531-547, August.
    14. Binam Ghimire & Rodrigue Abo, 2013. "An Empirical Investigation of Ivorian SMEs Access to Bank Finance: Constraining Factors at Demand-Level," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 2(4), pages 1-3.
    15. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    16. Abimbola Windapo, 2018. "Entrepreneurial Factors Affecting the Sustainable Growth and Success of a South African Construction Company," Sustainability, MDPI, vol. 10(4), pages 1-11, April.
    17. Joshua Abor, 2007. "Industry classification and the capital structure of Ghanaian SMEs," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 24(3), pages 207-219, August.
    18. Graham Hall & Patrick Hutchinson & Nicos Michaelas, 2000. "Industry Effects on the Determinants of Unquoted SMEs' Capital Structure," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(3), pages 297-312.
    19. Paul C. Nutt, 2008. "Investigating the Success of Decision Making Processes," Journal of Management Studies, Wiley Blackwell, vol. 45(2), pages 425-455, March.
    20. Scott Shane & Rakesh Khurana, 2003. "Bringing individuals back in: the effects of career experience on new firm founding," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(3), pages 519-543, June.
    21. Wang-Jin Yoo & Hyun Ho Choo & Sang Jin Lee, 2018. "A Study on the Sustainable Growth of SMEs: The Mediating Role of Organizational Metacognition," Sustainability, MDPI, vol. 10(8), pages 1-17, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Enver H. KRASNIQI & Esat A. DURGUTI & Dea E. KRASNIQI, 2020. "The Innovations and Entrepreneurship – Evidence from Kosovo’s SME Sector," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 22-27.
    2. Olurotimi, Osaretin & Foltz, Jeremy & Traore, Nouhoum, 2025. "FDI in Côte d’Ivoire: Are local firms better off?," Journal of Development Economics, Elsevier, vol. 174(C).
    3. Carmen Elena Anton & Alexandra Zamfirache & Ruxandra-Gabriela Albu & Titus Suciu & Sergiu Mihai Sofian & Oana-Andreea Ghiță-Pîrnuță, 2024. "Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability," Sustainability, MDPI, vol. 16(2), pages 1-29, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ardjouman Diabate & Hagan Sibiri & Linyu Wang & Liying Yu, 2019. "Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire," Sustainability, MDPI, vol. 11(24), pages 1-26, December.
    2. K. Vidyarani & Hrushikesh Mallick, 2025. "Does Credit From Various Sources Improve MSME Performance? An Empirical Analysis for a Large Transitioning Developing Economy of India," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(6), pages 1381-1404, August.
    3. Pierre Claver Bitama & Philippe Lebailly & Patrice Ndimanya & Philippe Burny, 2019. "Global Value Chain Governance and Relation between Local Actors in the Burundian Tea Sector," International Review of Management and Marketing, Econjournals, vol. 9(6), pages 105-111.
    4. Johan Karlsson, 2021. "Firm size and growth barriers: a data-driven approach," Small Business Economics, Springer, vol. 57(3), pages 1319-1338, October.
    5. Allison, Lee & Liu, Yu & Murtinu, Samuele & Wei, Zuobao, 2023. "Gender and firm performance around the world: The roles of finance, technology and labor," Journal of Business Research, Elsevier, vol. 154(C).
    6. Mirgul Nizaeva & Ali Coskun, 2019. "Investigating the Relationship Between Financial Constraint and Growth of SMEs in South Eastern Europe," SAGE Open, , vol. 9(3), pages 21582440198, September.
    7. Andrew E. Hansen‐Addy & Mario Davide Parrilli & Ishmael Tingbani, 2025. "The impact of the regulatory business environment on SMEs' funding choices in developing countries: Evidence from Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 941-960, January.
    8. Madiha Noshad & Mariam Amjad & Muhammad Nouman Shafiq & Seemab Gillani, 2019. "Performance and Obstacles of SMEs: An Empirical Evidence from BRICS Countries," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 113-132, December.
    9. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    10. Isabel M. Correia & Diana S. Fernandes, 2021. "Financial constraint and foreign direct investment of SMEs: evidence from Portugal," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(2), pages 1-19, Abril - J.
    11. Abdu Seid ALI & Ibrahim BUSHERA & Abdurahman Jemal YESUF, 2020. "The potential of Islamic financial institutions in promoting small and medium enterprises (SMEs) in Ethiopia," Journal of Economics and Political Economy, EconSciences Journals, vol. 7(3), pages 188-203, September.
    12. Richard Adu-Gyamfi & John Kuada & Simplice A. Asongu, 2023. "An Integrative Framework for Formal and Informal Entrepreneurship Research in Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 167-187, April.
    13. Adu-Gyamfi, Richard & Kuada, John & Asongu, Simplice, 2018. "An Integrative Framework for Entrepreneurship Research in Africa," MPRA Paper 89133, University Library of Munich, Germany.
    14. Saibal Ghosh, 2022. "Firm Performance and Productivity: Is Labour an Obstacle?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 709-728, September.
    15. Muhammad Arif & Mudassar Hasan & Ahmed Shafique Joyo & Christopher Gan & Sazali Abidin, 2020. "Formal Finance Usage and Innovative SMEs: Evidence from ASEAN Countries," JRFM, MDPI, vol. 13(10), pages 1-19, September.
    16. Dinna Charisma & Bambang Hermanto & Margo Purnomo & Tetty Herawati & Anne Charina, 2025. "Sustainable Business Through Local Strength: A Qualitative Study of Financial, Social, and Cultural Strategies in Bandung’s Culinary Micro-Enterprises," Sustainability, MDPI, vol. 17(11), pages 1-27, May.
    17. Timothy Ayomitunde Aderemi & Adedayo Mathias Opele & Johnson Ifeanyi Okoh & Mamdouh Abdulaziz Saleh Al‐Faryan, 2023. "An econometric analysis of small‐ and medium‐scale enterprises and employment creation in Nigeria," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1624-1633, April.
    18. Jing Gu & Junyao Wang & Yang Yang & Zeshui Xu, 2019. "Credit Line Models for Supply Chain Enterprises with Channel Background and Soft Information," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    19. Yilong An & Yinghua Zhang, 2021. "Crossing the Valley of Death for SMEs: Management Practices From China," SAGE Open, , vol. 11(3), pages 21582440211, September.
    20. Frank Ranganai Matenda & Mabutho Sibanda, 2022. "Determinants of Default Probability for Audited and Unaudited SMEs under Stressed Conditions in Zimbabwe," Economies, MDPI, vol. 10(11), pages 1-28, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1557-:d:213914. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.