Factors Influence Business Operations of SMEs Enterprise in Bounneua District, Phongsaly Province

Abstract

This research aims to study the business conditions of SME entrepreneurs and study the importance of factors affecting the business of SME entrepreneurs. The population used in the study is 258 SME entrepreneurs in Bounneua District, Phongsaly Province. The sample group can be determined using Taro Yamane's formula at a 95% confidence level, which results in an appropriate sample size of 157 people; A questionnaire is used as a tool to collect and compile data, and the statistics used to analyze this data include frequency values, percentages, average values, standard deviations, and multiple regression analysis conducted with the Ordinary Least Square (OLS) method in the SPSS version 27 statistical data analysis

Research findings indicate that small enterprises account for 71.32% of the total, with a registered capital of 100 billion Kip, while medium-sized enterprises account for 28.68%, with a registered capital of 175.12 billion Kip. When categorized by sector, the trade sector accounts for 45.61%, services for 32.22%, and manufacturing for 22.17%. Furthermore, eight factors comprising economic, political, social, technological, financial and readiness, environmental and legal, entrepreneurial characteristics, and market and business opportunities are all significantly associated with and impact business operations, with statistical significance at the 0.05 level.