Business practices of small link chuẩn của w88 medium enterprises in Thai Nguyen province

ABSTRACT:
The number of enterprises in Vietnam has increased drastically in the past few years, 98% of which registered in Vietnam are SMEs. This trend has tremendous impact not only on the economic aspect, but also on social, cultural link chuẩn của w88 even political affair in the country. However, despite of the obvious contribution of SMEs to the government link chuẩn của w88 the people Vietnam, there were times that the SMEs decreased their quantity. Difficulties in capital financing, technology, quality of resources link chuẩn của w88 most particular on the financial management aspect are some identified barriers link chuẩn của w88 problem of SMEs in Vietnam.
Keywords: Business, small link chuẩn của w88 medium enterprises, Thai Nguyen province.

1. Introduction
The report clearly shows that the statistics as projected by the Ministry of Justice vigorously increase the number of SMEs in Vietnam in the past few years which accounted to 97%. This trend has tremendous impact not only on the economic aspect, but social, cultural link chuẩn của w88 even political affair in the country. On the economic side alone, the growth is manifested through link chuẩn của w88 by the contribution of either new income or additional income for entrepreneur, job opportunity, local link chuẩn của w88 foreign investment, increase capital. Poverty reduction, industrial support, business enhancement, link chuẩn của w88 others. Unemployment problem so to speak in Vietnam may in one way or another be solved by encouraging more people link chuẩn của w88 Indi dual to engage or invest in small link chuẩn của w88 medium enterprise because it evidently shows that it created more job. Taxes link chuẩn của w88 fees payment from SMEs are likewise may increase doubled link chuẩn của w88 even tripled every year to support the government to fund their other program.
However, despite of the obvious contribution of SMEs to the government link chuẩn của w88 the people Vietnam as well, there were times that the SMEs decreased their number. The statistics pointed out that during the period of 2011-2015, the trend was from 83,600 in 2010, 77,500 in 2011, to 69,800 2012 link chuẩn của w88 in 2013 there was 76, 900. Difficulties in capital financing, technology, quality of resources link chuẩn của w88 most particular on the financial management aspect are some identified barriers link chuẩn của w88 problem of SMEs in Vietnam. Knowledge link chuẩn của w88 training on the financial management may considered as one of the causes of the ups link chuẩn của w88 down of SMEs in Vietnam (To Hoai Nam, 2014).
As the potential role in the growth of economy Vietnam, many studies into SMEs performance have conducted to recognize their performances. Notwithstanding, almost empirical studies only focused on each determinant separately. Specifically, in a study of the business practices it may greatly construed the significant impact not only to the entrepreneurs but to the government in general. Moreover, international trade, which includes export link chuẩn của w88 import performance is also supposed to be key determinants for the improvement SMEs profit (Maurel, 2009; Wagner, 2012; Park et al., 2010). Hence, this research synthesizes several key factors having impact on SMEs business practices.
Good business practices is critical to the success of any business, but it is particularly important in small to medium enterprises (SMEs) where the risk of insolvency is often little more than an unpaid invoice away. A key concern for small business owner-managers is cash flow management, or more specifically the cash conversion cycle. This is the firms ability to generate cash from its customers invoices, link chuẩn của w88 the time it takes to collect these accounts receivable.
Due to the important role of small link chuẩn của w88 medium-sized enterprises, many countries have focused on encouraging this type of enterprise development. Institutional support nature to encourage include: Support to create a favorable business environment (development link chuẩn của w88 promulgation of the law on small link chuẩn của w88 medium enterprises, to facilitate licensing, supply information, etc.), the business support capacity building (training resources management, technology support, etc.), link chuẩn của w88 the support of credit (bank established professional for small link chuẩn của w88 medium enterprise loans, credit guarantees for enterprises, the establishment of venture capital companies, etc.), link chuẩn của w88 other support (such as business premises).
2. Objectives of the study
The study aimed to evaluate the business practices of SMEs in Thai Nguyen Provience link chuẩn của w88 proposed a development scheme/plan. Specifically, it sought to attain the following objectives: To determine the characteristics of the respondents; To deteremine the business practices of Small link chuẩn của w88 Medium Enterprises in Thai Nguyen Province; To determine significant differences on practices when grouped according to their background characteristics; To determine the problems of SMEs in the conduct of business practices link chuẩn của w88 To develop a manual to enhance the conduct of business practices of SMEs in Thai Nguyen Province.
3. Scope link chuẩn của w88 delimitation
The study was conducted only in Thai Nguyen Province. Only three SMEs were the subjects of the research namely; Joint Stock Company, Limited Company link chuẩn của w88 Private E Enterprise. Specifically, 329 representatives including managers or Chief Financial Officer (CFO) of small link chuẩn của w88 medium enterprises were the respondents. The main concern of the study is to evaluate the financial management practices link chuẩn của w88 performence of SMEs. The time frame of this study was 2014.
4. Population link chuẩn của w88 sampling
The respondents of the study were constituted by 329 representatives of small link chuẩn của w88 medium enterprises in Thai Nguyen province. The main respondents are managers or Chief Financial Officer (CFO) of the small link chuẩn của w88 medium-sized enterprises in Thai Nguyen province. Distribution of the population link chuẩn của w88 sample of the study is based on non-random sampling using purposive sampling as the respondents were all members of the SMEs link chuẩn của w88 convenience sampling due to specific willingness consideration in accepting link chuẩn của w88 answering the questionnaire.
5. Results link chuẩn của w88 discussions
5.1. Summary of Findings
Based upon the data gathered the following are revealed:
5.1.1. The characteristics of the respondents. (Table 1,2).Out of 329 respondents, 45% were coming from the private enterprises, 36% from the joint stock, then 17.6% from the limited companies. Table 2.
From the total respondents 104 were from trading link chuẩn của w88 services link chuẩn của w88 least were from agriculture, forestry link chuẩn của w88 fishing link chuẩn của w88 other services with total of 60. The highest scale capital was with trading link chuẩn của w88 services with 20-100 billion VND link chuẩn của w88 the lowest was 10 billiion or less in agriculture, forestry link chuẩn của w88 fishing link chuẩn của w88 other services. Director concurrently CFO has the highest proportion with 88.8% link chuẩn của w88 the lowest was enterprises has got CFO with only 9.7%.
5.1.2. Business Practices of SMEs. (Table 3, 4, 5, 6, 7)
Table 3 shows the weighted mean distribution of the Selection of Investment Opportunities variables that influence the SMS business practices. Statements 1, 2, 3 link chuẩn của w88 4 are rated with weighted mean of 3.43, 3.16, 3.32, 3.3 respectively with the equivalent interpretation as “Somewhat effectiveness”. Statements 2 link chuẩn của w88 7 are interpreted “Effectiveness” having weighted mean of 3.44 link chuẩn của w88 3.4 link chuẩn của w88 Statements 1 is “Low effectiveness” having weighted mean 2.0.Table 4 shows the weighted mean distribution of the Capital Mobilization variables that influence the SMS profitability. Statements 1,4 link chuẩn của w88 7 are rated with weighted mean of 2.94, 2.63, 3.04 respectively with the equivalent interpretation as “Somewhat effectiveness”. Statements 3 is interpreted “Effectiveness” having weighted mean of 3.54 link chuẩn của w88 Statements 2, 5, 6 are interpreted “Low effectiveness” having weighted mean of 2.43, 2.48, 2.4.Table 5 shows the weighted mean distribution of the Cost Management link chuẩn của w88 Accounting variables that influence the SMEs business practices. Statements 7 link chuẩn của w88 8 are rated with weighted mean of 3.36, 3.21, respectively with the equivalent interpretation as “Somewhat effectiveness”. Statements 3, 4, 5, 6 are interpreted “Effectiveness” link chuẩn của w88 Statements 1, 2 are “Low effectiveness”.Table 6 shows the weighted mean distribution of the Profit distribution link chuẩn của w88 reinvestment variables that influence the SMEs business practices. Statements 4, 5, 6, 7 are rated with weighted mean of 3.3, 2.63, 2.85, 3.37, respectively with the equivalent interpretation as “Somewhat effectiveness”. Statements 2, 3 are interpreted “Effectiveness” link chuẩn của w88 Statements 1 is “Low effectiveness”.Statements 5 link chuẩn của w88 6 are rated with weighted mean of 3.15, 3.07, respectively with the equivalent interpretation as “Somewhat effectiveness”. Statements 1, 2, 3, 4 are interpreted “Effectiveness”. Table 7.5.1.3. Proposed model of business practice for SMEs in Thai Nguyen provice. Table 8.
Business practices = - 0,272 + 0,286 * Selection of investment opportunities + 0,346 * Capital Mobilization + 0,278 * Cost management link chuẩn của w88 accounting + 0,144 * Profit distribution link chuẩn của w88 reinvestment + 0,281 * Financial analysis link chuẩn của w88 planning.
5.1.4. The problems of SMEs in the conduct of business practices. (Table 8)
The performances of the SMEs as to (a) Profitability; 217 of 329 SMEs surveyed (66%) were profitable link chuẩn của w88 the remainder (34%) were not profitable; profitability ratio; respondents were neutral with 55% on wether ROA is high, they disagreed with 41.9% on wether ROE is high, 41% of the respondents disagreed on the profitability is always as expected objective. (b) Liquidity; 100 percent of SMEs in the sample have a cash ratio less than 1.00. respondents were neutral or 63.5% link chuẩn của w88 always return successfully expired liabilities, they were neutral or 61.7% as the current payment is at high level, they disagreed with 48.9% that the net working capital is reasonable, neutral category or 63.5% were the response on the quick payment ratio is at high level. (c) Stability: illustrate that the majority of the respondents, 162 (49,2%) agree link chuẩn của w88 131 (39,8%) strongly agree that lack of understanding of financial reporting negatively affected the financial stability of the business.

5.1.5. Develop a manual to enhance the conduct of business practices of SMEs in Thai Nguyen Province

5.2. Conclusion
Based on the findings, this study therefore concluded that:
(1). SMEs in Vietnam engaged in private enterprises, with huge amount of investment link chuẩn của w88 most interested in trading link chuẩn của w88 services based on Director concurrently CFO.
(2). Business practices of SMEs at Thai Nguyen province are based on economic indicators, from financial committee opinion, link chuẩn của w88 assisted by Internal Rate of Return link chuẩn của w88 Profitability Index. Capital mobilization is basically coming from the financial institution. SMEs is dependent on the financial link chuẩn của w88 accounting division. They allocate part of their profit to other resources including human welfare link chuẩn của w88 reward fund. SMEs are not yet institutionalizing their financial literacy.
(3). Proposed model of business practice for SMEs in Thai Nguyen = - 0,272 + 0,286 * Selection of investment opportunities + 0,346 * Capital Mobilization + 0,278 * Cost management link chuẩn của w88 accounting + 0,144 * Profit distribution link chuẩn của w88 reinvestment + 0,281 * Financial analysis link chuẩn của w88 planning.
(4). There is a commonality as to the responses of the respondents having neutral stand on the practices of SMEs at Thai province on the basis of profitability, liquidity link chuẩn của w88 stability.
(5). Development scheme or plan is very important output for SMEs.
5.3. Recommendation
Based on the following findings link chuẩn của w88 conclusions, the following are recommended:
(1). The literacy, knowledge link chuẩn của w88 understanding of the financial management practices link chuẩn của w88 performance of SMEs must be the concern of all the SMEs in the Vietnam. Everyone in the community must be part link chuẩn của w88 involved in the system.
(2). Government with the assistance of other stakeholders must be able to formulate link chuẩn của w88 strictly apply thereafter mechanism to financial management practices link chuẩn của w88 performance SMEs.
(3). Regular monitoring link chuẩn của w88 review system of the business must be established.
(4). A development scheme in the business practices must be based on the principle of holistic participation, commitment link chuẩn của w88 concern of all sectors of the society, interdependencies of the various level of the government link chuẩn của w88 sectors of the society, partnership of all those organization, network, bodies link chuẩn của w88 alliances that share conviction in the development, broad-based awareness through education link chuẩn của w88 training process link chuẩn của w88 monitoring link chuẩn của w88 evaluation system, knowledge link chuẩn của w88 mechanism system, capacity-building in monitoring link chuẩn của w88 evaluation, link chuẩn của w88 leadership guidelines of the SMEs.
(5). To conduct studies of this nature to validate the result of the study. To use other variables or aspects, areas, concern link chuẩn của w88 respondents in the development of SMEs.
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THỰC TIỄN KINH DOANH CỦA CÁC DOANH NGHIỆP NHỎ VÀ VỪA TRÊN ĐỊA BÀN TỈNH THÁI NGUYÊN

ThS. Nguyễn Thị Thu Huyền

Khoa Tài chính - Trường Cao đẳng Kinh tế Tài chính Thái Nguyên

TÓM TẮT:

Số lượng các doanh nghiệp nhỏ và vừa (DNNVV) ở Việt Nam ngày càng tăng lên trong vài năm qua, 98% doanh nghiệp đăng ký ở Việt Nam là các DNVVN. Xu hướng này có tác động to lớn không chỉ về khía cạnh kinh tế, mà còn là vấn đề xã hội, văn hóa và thậm chí cả chính trị trong nước. Tuy nhiên, mặc dù có sự đóng góp đáng kể của các DNNVV đối với Chính phủ và nhân dân Việt Nam, nhưng cũng có những thời điểm DNNVV bị suy giảm số lượng. Những khó khăn trong việc huy động vốn, công nghệ, chất lượng nguồn lực và nhất là khía cạnh quản lý tài chính là một số rào cản đối với các DNNVV ở Việt Nam hiện nay.

Từ khóa: Kinh doanh, doanh nghiệp nhỏ và vừa, tỉnh Thái Nguyên.