EMPOWERING SMALL AND MEDIUM ENTERPRISES (SMES) IN EGYPTIAN MEDICAL SUPPLIES ‘SECTOR FOR NATIONAL DEVELOPMENT’
Table of Contents
1. Introduction 3
1.1. Study Importance and Scope 4
1.2. Problem Statement and its Elements 5
1.3. Hypothesis 5
1.4. Limitations and Recommendations 5
2. Literature Review 6
2.1. Entrepreneur and Entrepreneurship 6
2.1.1. The Importance and Role of Entrepreneur and Entrepreneurship 6
2.1.2. Entrepreneurs’ Characteristics 6
2.2. Leadership 7
The consumption culture spread all over the world, and the level of consumers’ expectations have been raised. The higher consumers’ expectations can only be met by offering them something new and better than the current products, this process is known as innovation. Innovation is guided by a person who come with new ideas or products and regarded as an entrepreneur. Entrepreneurial research has both academic and practical significance Cheng, Tian, and Lu (2009); it is process that calls for further and continuing research studies (Okhomina, 2010). Investigators in entrepreneurship are interested in the relationship between human capital and success. Various research has shown that, starting in the mid-1990s, a larger number of medium and small enterprises (SMEs) have gained international presence through the internationalization process (Oviatt & McDougall, 1997). Knight and Cavusgil (2004), feature overall development of international business action due to the increase in forward-looking technologies and improved global infrastructure, enterprises are booming and their international presence is growing.. Rialp, Rialp, and Knight (2005), revised a wide range of academic literature in the field of entrepreneurship (38 empiric and academic research studies) between 1993 and 2003. At present, the challenge is different for executives or leaders. They want to meet customer requirements by effectively organizing scare resources like people and capital. This means that leaders of small and medium-sized enterprises should express their intentions to all employees and other parties involved in the organization.
Although a few investigations are conducted by business visionaries and their mentalities (Nummela, Saarenketo, and Puumalainen, 2004), There is a lack of examination of the management of small and medium-sized enterprises in the medical instrument industry. Aspelund, Madsen, and Moen (2007), in their appraisal of the field, highlight the absence of rational depictions and the need for more hypothesis driven exploration. There is, obviously, much likeness in the authoritative work all things considered (Mintzberg, 1975). However, it appears that the supervisor of the internal organization has a dominantly strong innovative attitude (Tanev, 2012). Generally, the management literature portrays that a perfect vision and noble leadership are major variables required for success of the organization. A major inspiration for this research on the topic under discussion is transformational leadership theory. Leaders implementing transformational management style fulfill their followers’ requirement for progress and development and considered role models for them. Smith, Montagno, and Kuzmenko (2004), describes transformational leadership as a leadership style that encourages employees and followers to uphold and trail a common goal, empowering them to accomplish the business objectives through following vision, and gives them necessary means for developing their personal potential.
Entrepreneurship research has both academic and practical relevance; it is a process that calls for further and ongoing research studies (Okhomina, 2010). Entrepreneurship scholars have an interest in the relationship between human capital and performance (Unger, Rauch, Frese, & Rosenbusch, 2011). In Egypt, about 2.5 million small and medium-sized businesses account for 75 percent of the overall population working and 99 percent of non-agricultural private sector establishments. Despite their value, they also face a variety of obstacles, in particular access to finance, which is a common problem in developed countries (OxfordBusinessGroup, 2020). The health sector in Egypt is broad relative to its peers in the Middle East. Egypt provides a wide range of opportunities, as the Egyptian government is keen to develop the healthcare sector, especially with regard to medical devices. The Egyptian healthcare system is currently facing difficulties in addressing the country’s epidemic of COVID-19. As a result, the Government of Egypt has approved an increase in the health care spending for the fiscal year 2020-2021. The demand for expanded care and prescription equipment was a big problem during the pandemic. Egypt’s medical device industry is the second largest market in the Middle East region. Sales of medical devices totaled USD 20 million in 2018 (InternationalTradeOrganization, 2013). As Egypt produces very little medical equipment, the vast majority of supplies are imported. It seems that small businesses play a major role in almost all economies, whether in developed or developing countries including Egypt. Therefore, the purpose of this study is to investigate the impact of entrepreneurs’ characteristics and leadership on small business success at Medical Instruments Supplies Organizations in Egypt.
1.1. Study Importance and Scope
This study presents the necessary components of entrepreneurship and entrepreneurs definitions at an organizational level. The results of the research may be of interest to academic studies related to entrepreneurship. A better understanding of the impact of the characteristics of entrepreneurs and effective leadership on the success of small businesses draws conclusions that can be beneficial not only to small businesses in the field of medical supplies, but also to other organizations and industries. At the same time, it will be beneficial for entrepreneurs (owners and managers) and policy makers to develop their businesses and ultimately improve their success.
1.2. Problem Statement and its Elements
There is difference between entrepreneurs’ characteristics of owners and managers working in the instruments medical supplies filed. This motivates to investigate the impact of entrepreneurs’ characteristics and leadership on small business success at Medical Instruments Supplies Organizations in Egypt.
H01: The entrepreneurs’ characteristics do not have an impact on small business success at Medical Instruments Supplies Organizations in Egypt.
H02: The leadership does not have an impact on small business success at Medical Instruments Supplies Organizations in Egypt.
1.4. Limitations and Recommendations
The study is limited to the small businesses at Medical Supplies field in Egypt and it includes specific entrepreneurs’ characteristics. This is cross sectional study; the longitudinal studies help researchers to understand more the connections of the relationship described in the research. In the light of the study limits the researcher hope to follow the recommendations below:
• Perform additional research to cover smaller and large companies. In comparison, further testing could suggest a cross-sectional community of participants from a wide range of industries.
• More longitudinal study involving data collection in different countries is required.
• Analyze the characteristics of more entrepreneurs in prospective studies to provide the characteristics, abilities, competencies and characteristics of entrepreneurs of more personal entrepreneurs.
2. Literature Review
2.1. Entrepreneur and Entrepreneurship
It emerges from the literature review that there is no unified concept of an entrepreneur or an entrepreneur. Hisrich and Brush (1985) referred to entrepreneurship as “a process of creating something different with value.” Entrepreneurship is the development and operation of new companies, small businesses and family businesses. Some researchers refer to an entrepreneur with various traits and habits, such as creativity, risk-taking, small business growth and success. Kerr, Kerr, and Xu (2017) defined entrepreneur as the person who creates something new and innovation in existing economy. While (Yoganandan & Vignesh, 2017) described entrepreneur as a person who is a risk-taker and has consistency with his goals and objectives in different situation. Hogarth and Karelaia (2012) related the entrepreneurs with starting own business. Moloi and Nkhahle-Rapita (2014) said entrepreneurs are individuals who accept risks and who are innovative in terms of their business management skills. Kedmenec, Rebernik, and Perić (2015) said that Entrepreneurship was recognised as a leading force in economic growth and development. Summary Entrepreneurs describes individuals who develop, run and lead their own company to success, and who are responsible for their decisions and their outcomes. In addition, the researcher should describe entrepreneurship as a method of developing, setting up, coordinating and handling new projects in a way that leads them to success.
2.1.1. The Importance and Role of Entrepreneur and Entrepreneurship
Karayiannis (2003) noted that since the time of the proto-capitalist regime of ancient Greece, the entrepreneurial position as the leading power in the free market economy has already been recognised. Abd Rani and Hong (2012) said that entrepreneurship is important to the economy as entrepreneurship is the driving force behind global growth and job development. The significance and position of entrepreneurs and entrepreneurship can be summed up as follows: they play an important role in economic growth, are the bedrock of the country’s development, make a significant contribution to job creation and play an important role in the generation of capital.
2.1.2. Entrepreneurs’ Characteristics
Li and Jia (2015) said that entrepreneurship is becoming a common concept at the moment, adding that not all entrepreneurs will succeed in entrepreneurship. They need unique characteristics to allow them to succeed. The features of the entrepreneur have been thoroughly analyzed, with mixed findings on its effect on the results of the small business. Characteristics of the entrepreneur: these are personal characteristics and skills that constitute the expertise of the entrepreneur required to be successful. In this study, the most important entrepreneurs’ characteristics that have been used by many researchers are utilized.
• Need for Achievement
Entrepreneurship is the expression of a high need for achievement. Different studies conducted on entrepreneurs showed the need for achievement has a strong relation with the entrepreneurship. Moreover entrepreneur deals with many characteristics, one of these characteristics need for achievement. Driessen and Zwart (2007) stated entrepreneurs’ characteristics include need for achievement. Need achievement is one of psychological traits of entrepreneurs, and he defined need for achievement as desire to meet an internal standard of accomplishment. Sajilan, Hadi, and Tehseen (2015) define need for achievement as people who want to be high achievers and want to have a strong desire for success. The researcher defines need for achievement as a psychological trait that drives the entrepreneur to achieve high standards that lead him toward success.
Self-confidence is an important entrepreneurial characteristic. (Othman, Ghazali, & Sung, 2006) explained the main psychological characteristics of entrepreneurial personality including mainly self-confidence. (Bondima, Rankhumise, & Grundling, 2013) stated one of the characteristics and demographic factors influencing entrepreneurial inclination is self-confidence. (Al-Damen, 2015) stated entrepreneurship had has been consists of six dimensions one of these dimension is self-confidence. The researcher believe selfconfidence defines as entrepreneur believing about himself, and to which level he believes that he can lead his organization towards success.
• Risk Taking Propensity
Risk propensity is a key entrepreneurial element. (Resurreccion, 2012) explained entrepreneurial competencies consist risk seeking. Risk taking propensity is identified as one of the most important characteristics which refer to entrepreneurial quality.
The leadership style that is been discussed is the transformational leadership style. It is four-dimensioned, idealised or charismatic, custom-tailored, inspiring, and intellectual stimulus. Bass (1999), improves his previous definitions in his later article by clarifying that charisma and inspirational leadership are revealed when the leader predicts a future that he wants to accomplish, articulates things to achieve it, sets high standards and makes example to be trailed, and shows full buoyancy that employees or followers expect with such leadership. There are several definitions of leadership in the literature and discussions are different from each other. Judge and Piccolo (2004), confirm this hypothesis in their study that charismatic leadership and transformational leadership have similar values and share similar traits. Conger and Kanungo (1998), described that there is small variation between these two terms. However, Conger and Kanungo (1998) concluded that most significant dimension is charisma when transformational leadership style is used by the leaders. It can be contended that the concepts of charismatic leadership and transformational leadership overlap.
The full-range theory evaluation is performed systematically with MLQ Van Knip
penberg and Sitkin (2013), which calculate transformational leadership in four dimensions.: (a) inspirational motivation; (b) idealized influence, also known as charisma; (c) individualized consideration; and (d) intellectual stimulation. Transactional leadership has three dimensions: (a) active management-by-exception; (b) contingent reward; and (c) passive management-by-exception. For example, transformative leadership has often been defined as having an impact, encouraging pride and appreciation, transfering inspiration from self-importance to mutual interest, inspiring and pushing success beyond expectations(Bass, 1985). However, transactional leadership is focused on pecuniary and non-pecuniary transactions. This leadership approach explains practises in which a supervisor rewards workers for high commitment and/or successful success or penalises them if their work effort or outcomes are unsatisfactory (Bass, 1985). Incentive strategies are also used to enhance employees’ achievement of business goals. It is no exceptional mistake to interpret a word in terms of their effects, but the consequences are particularly unacceptable. The most significant thing is that the fundamental management approach and its results are not analysed in depth (Van Knippenberg & Sitkin, 2013). Together, transactional and transformational leadership make up the active components of what is referred to as the “full-range leadership theory” (Antonakis, Cianciolo, & Sternberg, 2004), it also holds a passive component, namely laissez-faire leadership, described as the lack of active leadership. For example, if transformational management itself motivates staff, the interaction between leadership and employee morality cannot be evaluated because the dependent variable becomes a defining component of the Independent. For example, the full-scale model does not answer to why four dimensions of transition leadership exist, how they distinguish and how they communicate, and the underlying unity of their power. So if leadership and staff involvement are not related, leadership in this sense of this concept is inherently not transformational. Second, the aspects of transformational and transactional leadership are not completely theorised (Van Knippenberg & Sitkin, 2013). In this respect, transition leaders’ core ambition is to enable employees to surpass the concern they have in the good of their business (Wright, Moynihan, & Pandey, 2012; Wright & Pandey, 2010). We claim that the distinctive theoretical element of transformational leadership is the goal of the leader to enable the higher order needs of workers. I also recommend that the idea of transformational leadership should capture the systematically inspired effort of management, so that they can share their own organisational goals. Transformational leaders do not specialise at changing workers, but leadership practises are distinguished by an optimism that staff appreciate how the organisation will contribute to what is viewed as productive performance. I clarify more below why every behaviour is transforming. In addition, I explain. Leaders would regard these three practises as essential for employee achievement through self-interest transcendes in organisational goals. The first behavioural aspect involves the leader’s effort to articulate the vision of the organisation. It is described as a transformational activity, as leaders are supposed to see the existence of a clear goal as a significant predictor of unselfish employee action. The second element of actions is an attempt to share vision with all colleagues, who can ultimately do so. In a bid to share the mission, leaders of changing leadership aim to build a shared understanding of the relationship between actions and vision goals. Once again, the key argument is that this sharing of energies is necessary for leaders to believe that people want to continue to achieve the vision and the value of this sense-making has been shown in organisational psychology research, to teach and restrict employee (Weick, Sutcliffe, & Obstfeld, 2005). Scientific evidence endorses that this can be correct (Locke & Latham, 2002), but the main theoretical conflict also lies in the fact that leaders expect the creation of a consistent strategy for the company as required to ensure that workers accomplish corporate targets for reasons other than self-interest. It’s a question of making the company vision into a reality as you strive to create an attractive vision which employees believe to appeal. The third behavioural element in our transformative leadership conceptualisation is action to support a shared task in the short and long term. Members are expected to use these steps as an opportunity to facilitate continued vision acceptance and co-operation. By consistently emphasising the activities of employees in relation to the organisation and its task, management will strive to strengthen their views on the importance of the job and the tools necessary to carry out these activities in the short and long term Wright et al. (2012), and this makes it an important part of the philosophy of transformational leadership.
Leadership that advances an innovative, open and solid environment, in addition to collaboration, should advance the use of moving good examples, direct interactions and a common vision. A survey of groups under pioneering administration, Bass (1990), affirms the unassuming and constructive outcome of such authority on strengthening. He likewise finds that groups under groundbreaking pioneers are more powerful. Worker strengthening, portrayed straightaway, might be a basic component of this culture. As going before research by and large finishes up, individuals in administration positions should assume liability for building a culture that urges representatives to help the association’s vision and, while, makes an open air with free correspondence, acknowledgment of disappointments, regard for groundbreaking thoughts, and an aggregate soul of moving in the direction of a shared objective.
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