Wednesday, October 24, 2012

Proposed SNA: Small and Medium Businesses in Emerging Economies


Background:

The aim of the proposed study is to generate a rating index for the small and medium enterprises of emerging economies globally. The study will involve generation of a comprehensive network based system of rating individual SMEs from all over the world, along parameters that will be decided using SNA. This will involve creating multiple databases of a diverse range of factors that investors take into account while judging the feasibility of an SME. The growth story has only been focused towards the large players of the developing countries. The project aims to provide the small and medium enterprises   of developing countries access to internationally available capital and subsequently provide the capital of developed countries to the growth potential of the SMEs of developing countries. 


This will broadly involve the following measures:


Measures:

(1)Select the twenty top performing countries from Asia, Africa, North America, South America, Europe and Australia according to their growth rates for the last ten years (i.e. create a ranking of each continent separately).
(2)Select ten countries out of the above which are performing the best in the   SME sector.
(3)Generate an analysis of sector wise concentration of SMEs in each country.
(4)Choose “x” number of top SME performers from each sector from each country.
(5)Select “y” investors from each country.
(6)Create a network (it can be an online network) of the SMEs and the investors identified in the steps (4) and (5).
(7)Do a survey of their judgment criteria which is used to evaluate investment potential in SMEs and ask them to rate the chosen top performers according to these criteria.
(8)Do a survey of chosen top performers of SMEs in each sector from each country to identify the problems and strengths they have.
(9)Use (combine) the data so obtained in order to create an index along which new business ideas can be rated. Generate a set of criteria having the perspectives of both, the entrepreneurs and the investors. The analysis of the data to create the index would be done using Social Network Analysis.

Multiple factors for further refining the process will be used as the research progresses in order to strengthen the international and cross sectoral character of the index. 

Abhishek Kishore 

3 comments:

Christopher Tunnard said...

Two comments. Big piece of work, and where's the network?

Christopher Tunnard said...

I clearly understand the index idea; that's where you're going with this, and I understand, but I'm still not sure what you mean by "create a network" of top SME performers and investors. Networks exist for a reason--there's some link between the nodes that's shared throughout. It seems to me that the network here would be those orgs. that have invested in SMEs already, and looking to see which ones have co-invested in same SME, or other existing or historic funding links. If that's what you mean by "create a network," that's fine. Making a matrix of top performers and investors is not.

Abhishek said...

Prof Tunnard,

Thank you very much for your comments as this kind constructive feedback would help me refine my research.Yes, there will be reasoning behind creating the networks. Historic funding link is one of the most important reasoning, as you have rightly pointed out. Historic links would be the criteria for creating the databases of a factors that investors take into account while judging the feasibility of an SME.