Strategic Risk Determinants Influencing Growth of SMEs: The Case of Vietnam

Abstract

Risk is inherent in all business functions and in every kind of activities. This is especially true for small and medium sized enterprises (SMEs) that are most exposed to the harmful effects of the risks, due to limited resources and structural features. Therefore, this study is conducted for identifying the relationship and impact strategic risk determinants including Political risks, Technological risks, Social risks on the growth of 30 small and medium forest enterprises (SMFEs) in Dien Bien as the case study. Political risks, Technological risks, Social risks are independent variables and the growth of SMFEs is a dependent variable. Data were collected through the questionnaire survey and using mean, correlation and regression analysis for this paper. The results show that there is a statistically significant negative correlation between strategic risk determinants on SMFEs growth.

Keywords: Political risks, Technological risks, Social risks, Growth, SMEs