FINANCIAL RESOURCES AND THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES

Abstract

According to Porter (1990), competitiveness is the capacity of an organization to generate, preserve, apply, and generate new competitive advantages in order to produce goods that are more productive and of higher quality than those of its rivals, increase its market share, provide high wages for its workers, and foster the organization's long-term growth. The research aims to examine the relationship between financial resources and the competitiveness of SMEs in Phu Tho province. A survey with 250 employees in SMEs in Phu Tho province was conducted. A total of 185 respondents with full information were used for data entry and analysis. Through quantity methodology, we used Cronbach's alpha, EFA, and correlation analysis to determine the relationship between financial resources and dependent variables, such as competitiveness. The results showed that financial resources had positive relationships with the competitiveness of SMEs in Phu Tho province. From the findings, this study suggests several recommendations to improve the competitiveness of SMEs in Phu Tho province, such as: supporting SMEs to access international markets; supporting human resource development or investment support; improving their financial capacity; strengthening their ability to receive local support policies; SMEs promoting investment in market research, trade promotion, and branding activities. The results are considered a useful reference for SMEs in Phu Tho province.