Financing and measuring organizational performance of SMEs in Thailand and Vietnam | |
| Author | Doan Thi Thai Hanh |
| Call Number | AIT RSPR no.SM-03-54 |
| Subject(s) | Small business--Thailand Small business--Vietnam |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report; no. SM-03-54 |
| Abstract | The role of small and medium-sized enterprises (SMEs) in the economy cannot be ignored, especially in developing counh·ies like Thailand and Vietnam, where they form a significantly integrated component of the national economic development. The governments of both counh·ies have acknowledged the role played by SMEs and have continuously h·ied to create a favourable policy environment for them. Given this fact, as SMEs expand their scope and scale, they have to face numerous consh·aints and challenges, among them the most acute are accessing finance and monitoring business performance. As macro-level statistics on the conh·ibution of this sector to both countries are available, relatively little is understood about the dynamics of SMEs at the level of the individual firm, i.e. how the firm is actually operated and managed. Thus, the governments' support initiatives do not always meet the SMEs' needs. SMEs are not minimized large enterprises. They have their own advantages and disadvantages. Large firms may have little problem in obtaining medium-tenn and longte1m funds from banks. Yet for SMEs, both in Vietnam and Thailand, as in other developing counh'ies, the major long-term funding still come from informal sources, though recently the access to institutional financing to them has become easier, though still challenging. One of the reasons of SMEs having difficulties getting formal loans is because most owners are not able to present lenders with reliable information about their business results - this fact resulted from the lack of a h·ustworthy approach in measuring and managing the business performance. This paper attempts to look into the two mentioned issues: (i) how SMEs in Thailand and Vietnam obtain funds for their activities, and (ii) how they monitor their perfo1mance in relation to the funds acquired. To some extent, Thailand has made further achievements in the establishment and improvement of SME suppo11 system. SME owners and managers in Thailand are also more exposed to and competent than their Vietnamese peers in management skills. However, the two countries share several similarities. Therefore, Viehmm can draw some lessons from Thailand in developing its highly potential SME sector to a new level. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-54 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sununta Siengthai |
| Examination Committee(s) | Do Ba Khang; Venkatesh, Sundar |
| Scholarship Donor(s) | The Government of France |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2003 |