Factors Affecting Business Performance of Small and Medium Enterprises in the Mekong Delta Region of Vietnam

Abstract

Introduction: Several studies have been conducted to understand the factors affecting the business performance of small and medium enterprises (SMEs). Small and medium-sized firms are the subject of policy, consumer, and management research. Studying small and medium enterprises' business performance helps assess the challenges and opportunities that these enterprises face, thereby proposing appropriate solutions to improve operational efficiency.

Objectives: The research objective is to determine the factors affecting the business performance of small and medium enterprises in the Mekong Delta. On that basis, propose some solutions to improve the business performance of enterprises.

Methods: The study uses a combination of qualitative and quantitative methods, in which qualitative research is conducted to build a model and complete the survey questionnaire. Quantitative research collects primary data from a business survey on a 5-point Likert scale. After being collected from the survey subjects, the data were coded, cleaned, and analyzed through the steps of assessing the reliability of the scale through Cronbach's Alpha coefficient, exploratory factor analysis (EFA), correlation analysis, and multivariate linear regression analysis to test the model and research hypotheses

Results: The results of the survey data analysis with 240 small and medium enterprises conducted through the steps of assessing the reliability of the scale using Cronbach's Alpha, exploratory factor analysis (EFA), correlation analysis, and multiple linear regression analysis show that the business performance of enterprises is affected by six factors including Employee competency, Financial resources, Leader, Corporate culture, Technology platform, Digital Business Strategy. Based on the research results, propose policy implications to improve the business performance of enterprises.

Conclusions: Based on the research results, propose policy implications to improve the business performance of enterprises.