Factors Affecting Business Success of Small & Medium Enterprises (SMEs); Case Study of Thailand

Abstract

Purpose: The purpose of this research is to conduct a study on the factors affecting business success of Small & Medium Enterprises (SMEs), with a Case Study of Thailand. Design/ Methodology/Approach: For the research methodology, the paper adopted the desktop literature review method (desk study), which  involved a vast and detailed review of studies and research addressing the on the factors affecting business success of Small & Medium Enterprises (SMEs), with a Case Study of Thailand. Simultaneously, an in-depth research of the top keywords related to the same topic was conducted  in various databases. As a result, the study was purely qualitative, drawing its findings from secondary sources of information. Findings: The results show that customer and market, and resources and finance played an important role in ensuring the SMEs business success in Thailand. Innovative product, quality, cost, reliability, and services are the key strategic dimension in business success. Innovative product gives added value to the customer and it is important to achieve a suitable balance between product quality and costs. Small-business owners must have a missionary zeal about their products or services, be willing to be personally involved in it, be willing to stick with the business, be able to define the market clearly and pay attention to details and proactiveness. Beside that, companies must compete based on their strength and specialization which is classified as cost leadership. Originality/Value: The study concluded that the SMEs Characteristic, Customer and Markets, the way of doing Business & Cooperation, Resources and Finance, and External Environment have significant positive effect on the Business Success of SMEs in Thailand. Management know-how, Product and Services, and Strategy were found to have no significant effect on the Business Success of SMEs in Thailand.