Factors affecting business performance include managerial competence, employee training and capabilities, age of the enterprise, size of the enterprise, access to raw materials, access to credit, enterprise risk-taking propensity, marketing competence, location of the enterprise, workplace conditions, networking with business associations, access to capital, access to credit, technology adopted, inflation, interest rates, tax regimes, labor laws, government bureaucracy, security, road infrastructure, telecommunications infrastructure, access to power supply, political factors, legal factors, local and foreign competition, product quality, product differentiation, branding strategy, R & D activities, enterprise leverage, enterprise liquidity, enterprise society relationships, use of enterprise assets and resources, enterprise corporate governance,
The following are some empirical studies on factors affecting the performance of business enterprises across the globe.
Factors affecting the performance of small and medium enterprises (SMEs) in Laos
This study investigated factors affecting the performance of SMEs in Laos. The study made use of secondary data (2018) surveyed by the World Bank. A sample size of 208 enterprises was drawn from 1892 enterprises featured in the World Bank survey (2018). Descriptive statistics were used to establish the relationship between variables under study. The findings were presented in relevant tables (Sisounonth & Chansomphou, 2025).
The findings revealed that the performance of SMEs in Laos was significantly affected by access to finance, level of innovation by the enterprise, owner’s management skills and experience, SME age, number of laborers employed by the SME, and number of times employees undergo training. On the other hand, gender of managers, SME size, location, and the industry in which the SME operated had no significant influence on enterprise performance (Sisounonth & Chansomphou, 2025).
Factors affecting business performance in Vietnam: expanding theoretical measurements
This study explored factors that impact business performance in Vietnam. Participants were randomly selected from accountants, managers, sales staff, and lecturers in the study area. Data collection was done using questionnaires. The results of the study were presented using appropriate tables (Thuy et al., 2023).
According to the results, external factors affecting business performance include the legal environment in which the firm is operating, economic and technical characteristics of the business fields, and the economic environment of the business. On the other hand, the findings revealed that the internal factors affecting business performance include business strategies used by the firm, qualifications and capabilities of the owner, qualifications and capabilities of the employees, reasonable use of enterprise assets and capital, and the extent to which the firm exploited its resources and technological capabilities (Thuy et al., 2023).
Factors affecting firm performance: does corporate governance implementation matter?
This study investigated the influence of corporate governance implementation on the performance of firms listed in the Indonesian stock exchange market. The study used secondary data obtained from the financial statements of 88 firms operating in the non-financial sector in Indonesia. The financial statements were analyzed using the panel regression analysis common effect model. Findings were presented using appropriate tables (Soesetio et al., 2023).
The results revealed that firms that held a high number of board meetings performed better than those that held few meetings. Furthermore, the findings of the study indicated that firm performance was affected by leverage, asset turnover, and sales growth. In addition, the size of the firm had a significant impact on firm performance. In other words, large firms with more resources and capabilities will always perform better than small-sized firms whose resources and capabilities are still limited (Soesetio et al., 2023).
Factors affecting the performance of small and medium enterprises (SMEs) regarding the sustainable development goals – the case of foreign direct investment firms in Vietnam
This study sought to identify factors influencing performance of SMEs in Vietnam while considering the Sustainable Development Goals (SDGs). The target population included 1500 SMEs operating in the wood industry, the steel industry, the food sector, and the beverage sector, from 10 major cities and provinces of Vietnam. The study utilized the one-weighted input quantity analysis and the frontier stochastic analysis (SFA) methods for processing research data. The results from the DEA method were input into the Tobit regression model in order to identify the production efficiency of the SMEs. The results of data analysis were presented using appropriate tables of variance, observations, mean, standard deviation, and minimum and maximum (Thu & Xuan, 2023).
The findings revealed that increasing the size of the enterprise even by one employee led to a subsequent increase in operation technical efficiency. In addition, the results indicated the SMEs that had been in business for many years operated more efficiently compared to those that had been in business for a few years. Thus, the age of an enterprise determines its ultimate operational efficiency. The results indicated that young SMEs were faced with the challenge of not being able to access and apply modern technologies in their operations. The results also indicated that an increase in the ratio of renewable consumptions to total energy consumptions to 1% resulted in increased technical efficiency in the operations of the target SMEs. The findings also established that an increase of the ratio of loans to total assets to 1% resulted in a subsequent increase in the operational technical efficiency of the enterprise (Thu & Xuan, 2023).
Socio-economic factors affecting small business performance among Chisokone marketers in the Kitwe district of Copperbelt Province, Zambia
This study assessed socio-economic factors affecting the performance of small businesses among Chisokone marketers in the Kitwe district, Zambia. The target population included all the small businesses operating in the target population. Qualitative and quantitative research techniques were adopted in the study. study. The study adopted purposive and simple random sampling to obtain the sample for the study. Consequently, 10 council members for the Kitwe district and 90 marketers in the Chisokone market were selected to form the sample for the study. The collected data was analyzed using qualitative techniques. The results were presented using tables of frequencies, percentages, graphs, figures, and pie charts (Thelma, 2023).
According to the findings, the following factors were identified as hindrances to the performance of small businesses in the study area: lack of sufficient capital to run the business, lack of collateral to access credit facilities, owners’ lack of management skills and experience to effectively operate the business, lack of technological advancement, hostile tax regimes, high interest rates that made business debt very expensive, high rates of inflation, which made the cost of doing business rise, and stiff competition from business rivals (Thelma, 2023).
Factors that impact the business performance of enterprises: the case of Vietnam
This study evaluated factors affecting the performance of enterprises in Vietnam. The target population included 283 Vietnamese enterprises. Research respondents included the accountants, department managers, and CEOs of the target enterprises. An online questionnaire was sent to each one of these responses, and feedback of 255 was registered. Descriptive statistics, reliability assessment, exploratory factor analysis (EFA), and linear regression analysis were employed during data processing. The findings were presented in tables of frequencies, percentages, and means (Thuy et al., 2023).
According to the results, financial ability of the enterprise had the greatest impact on business performance. This was followed by management capabilities of the enterprise, including knowledge and skills; marketing factors, including marketing skills/marketing strategy/market research/domestic and foreign competition; business capacity, specifically entrepreneurial skills/motivation level/risk-taking propensity/persistence and courage; and technology capabilities, including machinery and equipment being used/adoption of appropriate IT for the business (Thuy et al., 2023).
Unravelling factors influencing firm performance: evidence from the SMEs in the tourism industry
This study examined the role of internal resources and the external environment on the performance of SMEs operating in the tourism sector in Saudi Arabia. The target population included all the SMEs operating in the hotel sector in Saudi Arabia. 350 key managerial staff of the selected SME hotels constituted participants for the study. Data collection was done using self-administered questionnaires. Data analysis was accomplished using the Smart Partial Least Squares (SmartPLS) approach. The results were presented using tables of frequencies, percentages, and means (Samad, 2022).
The findings revealed that internal resources, represented by human capital and innovation, positively contributed to the performance of SME hotels in Saudi Arabia. Secondly, the results demonstrated that the external environment represented by technology, environmental systems, and relationship building had a positive impact on the performance of SME hotels in Saudi Arabia (Samad, 2022).
Factors affecting business performance: A case study of small and medium enterprises (SMES) in Ho Chi Minh City
This study sought to identify factors affecting the performance of SMEs in HCMC. The target population included all the SMEs operating in the study area. 700 participants for the study were drawn from the leaders managing the SMEs in the study area. Data collection was done using online questionnaires. Structural Equation Modeling (SEM) was employed during data analysis. The results were presented using appropriate tables (Tien, 2021).
The findings revealed that factors affecting the performance of SMEs in Ho Chi Minh City include the management competence of the enterprise, the quality of products (goods and services) offered by the enterprise, adopted information technologies, adopted digital technologies, the financial competence of the enterprise, and the marketing competence of the enterprise (Tien, 2021).
Analysis of some factors affecting business performance from non-financial aspects at enterprises in Nam Dinh Province
This study investigated the effect of non-financial aspects of an enterprise on its performance. The target population included business enterprises operating in the Nam Dinh province. Data was collected from 520 respondents drawn from different enterprises using a questionnaire. The collected data were analyzed using the exploratory factors analysis (EFA) technique, total variance technique, Pearson correlation analysis, and regression model analysis. The results were presented using frequencies, percentages, and charts (Nguyen & Nguyen, 2021).
The findings revealed that the following non-financial aspects of the business affect its performance:
· Use of enterprise resources and capabilities such as human capital and emerging technologies.
· Market orientation required to meet customer needs.
· Information technology, which is related to efficiency.
· Local policies, procedures, and infrastructure.
· Capital accessibility and how it is utilized.
· Government policies (Nguyen & Nguyen, 2021).
Assessing the factors influencing location. the business performance of restaurants of the district of Muadzam Shah, Malaysia
Assessing the factors influencing location. The business performance of restaurants of the district of Muadzam Shah, Malaysia
This study examined factors influencing the performance of restaurants operating in the Muadzamdzam Shah Location. The target population included 25 restaurants located in the Southeast of Pahang state. Data collection was done using questionnaires. Descriptive statistics were used to analyze the collected data (Ramli & Surbaini, 2020).
In order to boost Muadzam’s performance of restaurants, the researchers recommended that business owners should observe hygiene while handling food. The restaurants should also sell food at affordable prices in order to beat competition. In addition, they should engage employees who have passed medical tests. The engaged employees should also have the requisite training and skills required for food handling. The enterprises should also use the right ingredients while preparing the food. This ensures that only good quality food is offered to customers (Ramli & Surbaini, 2020).
Factors affecting micro and small enterprises’ performance: a case study of Jimma Town in Ethiopia
Factors affecting micro and small enterprises’ performance: a case study of Jimma Town in Ethiopia
This study investigated factors influencing the performance of micro and small enterprises operating in the manufacturing, construction, trade, urban agriculture, and service sectors in Jimma Town. The target population included 343 micro and small enterprises selected from a total of 2420 enterprises operating in the study area. Both primary and secondary data were collected in the study. Primary data was collected using questionnaires. Both descriptive and inferential statistics were employed during data analysis. The results were presented in tables using frequencies, percentages, and means (Gudeta, 2020).
It was established that the factors affecting the performance of micro and small enterprises in the study location included access to finance, adopted technologies, workplace conditions, infrastructure, politico-legal factors, the owner’s entrepreneurial skills, the owner’s managerial capabilities, and the marketing strategies employed by the business (Gudeta, 2020).
Assessment of factors affecting the performance of micro and small-scale (MSE) enterprises: a case study of Assosa Town
Assessment of factors affecting the performance of micro and small-scale (MSE) enterprises: a case study of Assosa Town
This study explored internal and external factors affecting the performance of MSEs in Assosa town. The target population included MSEs operating in Assosa town. The target population included 252 MSEs registered by the development office of Assosa City. Respondents included the owners or managers of MSEs operating in the study area. Questionnaires were the main instruments of data collection (Dereje et al., 2019).
The findings revealed that MSE performance is affected by the following factors: owner’s age, level of education, prior experience, and family size. Other factors included age of the enterprise, access to raw materials, access to credit, infrastructure, and marketing strategies (Dereje et al., 2019).
Factors affecting the business performance of enterprises: evidence from Vietnam’s small and medium-sized enterprises
Factors affecting the business performance of enterprises: evidence from Vietnam’s small and medium-sized enterprises
This study sought to identify factors that affect the performance of SMEs listed in the Vietnam stock market. The target population included 456 SMEs listed in the Vietnam stock market. Data collection was done using questionnaires and inspection of the financial statements of the target SMEs. Data analysis was done using descriptive statistics. The multivariate linear regression model based on the least squares method was used to establish the factors affecting SME performance (Xuan et al., 2019).
According to the findings, the following factors were shown to have a significant influence on the performance of target SMEs: access to government support, owner’s level of education, the scale of the enterprise, society relationships of the enterprise, and revenue growth rate. The results further revealed that enterprise performance is affected by the firm’s growth rate, profitability, and industry cohesion of the enterprise (Xuan et al., 2019).
Factors affecting firm performance in manufacturing companies in the Indonesian Stock Exchange
Factors affecting firm performance in manufacturing companies in the Indonesian Stock Exchange
This study sought to establish the influence of leverage, liquidity, growth, firm age, and firm size on business performance. The target population included 44 manufacturing firms listed in the Indonesian stock exchange market. Secondary data was used in the study. The classic assumption test (using the Jarque-Bera test), the heteroscedasticity test, the multicollinearity test, the t test, and regression analysis were used during data analysis. The results were presented using appropriate tables (Ekadjaja et al., 2019).
The findings revealed that high leverage can cause the performance of the firm to decline. In addition, the findings indicated that high liquidity translated to better company performance. Also, the results showed that high growth positively impacted on firm performance. Furthermore, it was established that the longer the firm age, the better its performance. Finally, the findings revealed that an increase in company size resulted in high performance (Ekadjaja et al., 2019).
Effects of internal and external factors on business performance of start-ups in South Korea: the engine of new market dynamics
Effects of internal and external factors on business performance of start-ups in South Korea: the engine of new market dynamics
This study explored the effects of start-up innovation systems, community support, and firm resources on enterprise performance. The target population included 213 start-ups operating in different industries in South Korea. The partial least squares structural equation model (PLS-SEM) was used to analyze structural relationships of venture creation activities (Seo & Lee, 2019).
According to the findings, local community support and external partnerships significantly affected the social norms and performance-based culture. In addition, the results indicated that discovery and exploitation, which are the key components of innovation in any start-up, are highly related to their dynamic capabilities. Furthermore, the findings established that the dynamic capabilities of a start-up are affected by the social norms and performance-based culture. Also, the findings revealed that both discovery and local community support play a vital role in improving the performance of the start-up (Seo & Lee, 2019).
Factors affecting the performance of small enterprises: the case of Addis Ketema Sub City, Addis Ababa, Ethiopia
Factors affecting the performance of small enterprises: the case of Addis Ketema Sub City, Addis Ababa, Ethiopia
This study explored factors affecting the performance of small enterprises operating in both service and industry sectors in the Sub City of Ketema in Addis Ababa, Ethiopia. The target population included 160 small enterprises operating in the study area. Participants for the study included the owners of these enterprises selected using a stratified sampling technique. Questionnaires were used to capture data about variables under investigation. The collected data was analyzed using descriptive statistics (Abebayehu, 2016).
According to the results, the factors hindering the performance of small enterprises in the study location included poor working premises, poor networking with existing trade organizations, lack of access to finance, lack of proper technology, and tough business operating regulations (Abebayehu, 2016).
Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa
Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa
This study investigated internal and external factors affecting the performance of small- and medium-sized enterprises in KwaZulu-Natal. The target population included all the SMEs operating in the study area. Respondents for the study were comprised of 74 owners of the SMEs registered by the Durban Chamber of Commerce. Data collection was done using questionnaires, which were administered online. Data analysis was accomplished using descriptive summary measures including means for continuous variables and percentages for categorical variables. A chi-square test of association was utilized to establish the relationship between variables under study. The results were presented using tables of frequencies, percentages, and means (Sharmilee & Muhammad, 2016).
According to the findings, the external factors hindering the performance of SMEs in KwaZulu-Natal include stiff competition from business rivals, stringent South African labor laws, hostile tax laws, unfavorable BEE laws, excessive government bureaucracy, unfavorable macroeconomic factors (strength of the Rand, high interest rate, and high inflation rate), unreliable power supply, inaccessible roads, poor telecommunications infrastructure, high rate of crime, and corruption. Internal factors hampering the performance of SMEs in the study area include managerial incompetence, lack of access to finance, and lack of modern technology (Sharmilee & Muhammad, 2016).
Factors influencing business performance in hotels and restaurants
Factors influencing business performance in hotels and restaurants
This study explored factors influencing the performance of micro- and small-sized businesses operating in the hotels and restaurants sector in Denmark. The target population included SMEs operating in the Danish hotel and restaurant sector, including hotels, youth hostels, camping sites, and holiday apartments. Data was collected from owners of SMES operating in the study area. The collected data was analyzed using the regression analysis technique in order to establish relationships between variables under study. The results were presented using relevant tables (Zhang & Enemark, 2016).
The findings indicated that the location of the enterprise played a significant role in determining the performance of the business. In this regard, hotels operating from the city centers registered better performance than those located elsewhere. The results also indicated that the size of the business had little influence on the performance of the enterprise. Furthermore, the findings revealed that SMEs that employed professionals such as trained chefs performed better than those that did not employ professionals. The results further showed that hotels that employed individuals with higher education performed better than those that did not employ such individuals. In addition, SMEs that employed minors, that is, workers below the age of 18 years, performed poorly compared to those that employed individuals whose age was above 18 years (Zhang & Enemark, 2016).
Factors affecting business performance: An empirical study in Thailand
Factors affecting business performance: An empirical study in Thailand
This study sought to identify factors influencing the performance of enterprises in the Thai garment industry. The target population included firms operating in the Thai garments industry. Participants included 178 senior executives registered with the Thai Garment Manufacturers’ Association. Questionnaires were used to collect both qualitative and quantitative data from the respondents. The collected data was analyzed using structural equation modeling that utilized the partial least squares (PLS) method. The findings were presented using tables of frequencies, percentages, and means (Chavalit et al., 2014).
According to the findings, factors influencing performance of enterprises operating in the Thai garment sector include firm characteristics such as organizational leaders and teamwork. Additionally, the findings revealed that a firm’s strategy, specifically, product differentiation, research and development (R&D), and brand building, positively contributed to the performance of the enterprise. Furthermore, factors in the external environment, including international trade, government policy, and business alliances, had a positive effect on firm performance (Chavalit et al., 2014).
Citations
Abebayehu, T.W. (2016). Factors affecting the performance of small enterprises: the case of Addis Ketema Sub City. Unpublished Master’s Thesis submitted to St. Mary’s University School of Graduate Studies, Addis Ababa, Ethiopia.
Chavalit, N. Jirasek, T., and Wanno, F. (2014). Factors affecting business performance: an empirical study in Thailand. Research Journal of Business Management, 8(2), 89-103.
Dereje, M.L., Amsalu, B., Adugna, H., and Abebe, S. (2019). Assessment of factors affecting the performance of micro- and small-scale enterprises: a case study of an association. Reviewed Journal International of Business Management, 1(1), 20-41.
Ekadjaja, A., Wijaya, A., and Vernatta (2019). Factors affecting firm performance in manufacturing companies in the Indonesia Stock Exchange. Jurnal Akuntansi, 25(1), 154-167.
Gudeta, B.G. (2020). Factors affecting micro and small enterprises’ performance: A case study of Jimma Town, Ethiopia. A master’s thesis submitted to Jimma University College of Business and Economics, Jimma, Ethiopia.
Nguyen, T.L.A. and Nguyen, V.L. (2021). Analysis of some factors affecting business performance from non-financial aspects at enterprises in Nam Dinh Province. Proceedings of the International Conference on Research in Management & Technovation (ICRMAT), 19-27.
Ramli, J.A. and Surbaini, K.N. (2020). Assessing the factors influencing the business performance of restaurants of the district of Muadzam Shah. Global Business and Management Research: An International Journal, 12(4).
Samad, S. (2022). Unravelling factors influencing firm performance: evidence from the SMEs in the tourism industry. International Journal of Financial Studies, 10, 77.
Seo, Y.W. and Lee, Y.H. (2019). Effects of internal and external factors on business performance of start-ups in South Korea: The engine of new market dynamics. International Journal of Engineering Business Management, 11, 1-12.
Sharmilee, S. and Muhammad, H. (2016). Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa. Problems and Perspectives in Management, 14(2-2), 277-288.
Sisounonth, O and Chansomphou, V. (2025). The Factors Affecting the Performance of Small and Medium Enterprises (SMEs) in Laos. Chinese Business Review, 24(2), 60-68.
Soesetio, Y. Rudiningtyas, D.A., and Sukmawati, A.C. (2023). Factors affecting firm performance: does corporate governance implementation matter? Adpebi International Journal of Multidisciplinary Sciences, 2(1), 1-12.
Thelma, C.C. (2023). Socio-economic factors affecting small business performance among Chisokone marketers in the Kitwe district of Copperbelt Province, Zambia. International Journal of Science and Research Archive, 10(1), 648-657.
Thu, N.T.P. and Xuan, V.N. (2023). Factors affecting the performance of small and medium enterprises regarding the sustainable development goals – the case of foreign direct investment firms in Vietnam. Economies, 11, 72.
Thuy, V.T.T., Hung, D.N., Oanh, L.T.T., Tuyet, V.T.A., and Thu, B.T. (2023). Factors that impact the business performance of enterprises: the case of Vietnam. Journal of Organizational Behavior Research, 8(2), 27-39.
Thuy, V.T.T., Nhung, P.T.H., Oanh, L.T.T., and Hoa, N.T.K. (2023). Factors affecting business performance: expanding theoretical measurements. International Journal of Professional Business Review, 8(5), 1-18.
Tien, N.V. (2021). Factors affecting business performance: a case study of small and medium enterprises in Ho Chi Minh City. Journal of Management Information and Decision Sciences, 24(1), 1-12.
Xuan, V.N., Thu, N.T.P., and Anh, N.T. (2019). Factors affecting the business performance of enterprises: evidence from Vietnam’s small and medium-sized enterprises. Management Science Letters, 10, 865-870. Zhang, J. and Enemark, A.E. (2016). Factors influencing business performance in hotels and restaurants. Asia-Pacific Journal of Innovation in Hospitality and Tourism (APJIHT), 1.
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