THE BUSINESS CAPACITY OF SMALL AND MEDIUM ENTERPRISES IN HANOI

Abstract

Hanoi is the capital of the country, has a high economic growth rate, and contributes greatly to the total budget revenue of the country, of which SMEs account for about 97.2% of the total number of registered enterprises. SMEs contribute to creating over 50% of jobs in businesses and contribute significantly to Hanoi City's budget revenue. SMEs have become the backbone of the city's growth and development. SMEs growing in number, having a reasonable structure, and operating effectively will determine the scale and competitiveness of the city. This study was conducted with the aim of identifying, analyzing, and measuring the business capacity of small and medium enterprises in Hanoi by using qualitative and quantitative research methods. Using a qualitative approach, semi-structured interview techniques, and in-depth cognitive investigation research, reflect the specific explanations of Hanoi small and medium-sized enterprise administrators about their business capabilities as SMEs in Hanoi. Quantitative research methods were carried out with SPSS software, including Cronbach's alpha, EFA analysis, independent t-tests, and ANOVA analysis. On the basis of a review of previous studies and after interviewing experts, the study has identified and analyzed four scales (component attributes) of the business capacity of small and medium enterprises in Hanoi. Based on this result, the study proposes some recommendations to improve the psychological capital of employees, thereby improving the business capacity of small and medium enterprises in Hanoi.

Keywords: business capacity (BC), small and medium enterprises (SMEs), economics, business administration

JEL codes: M10, M19, M20, A14