The financial management of SMEs in hanoi

1 INTRODUCTION 1. Reason for choosing thesis: The Vietnam SMEs also have limitations in management, especially financial management. The limitations of financial management is one of the reasons why most difficult SMEs get loans from commercial banks. However, the in-depth study of the financial management of SMEs in most of the world refers to the financial management of the relationship with the other variables of the SMEs. For example, research on the relationship between technology variables to financial performance, by developing indicators of financial performance (So Young Soh et all, 2009), or studies of the impact of access to financial services to the financial performance of SMEs in the fisheries sector in African countries (John Linton et all, 2012), Michael Peer et all (1998) studied the influence of the evaluation to project the performance of SMEs in the UK. 2. The aim of the thesis research Thread made with 3 main objectives: - Investigate and describe the financial management practices of small and medium-sized enterprises in Hanoi. - To study the impact of these factors in financial management and financial results of the management of small and medium enterprises in Hanoi. - To propose a complete solution for the financial management of small and medium enterprises in Hanoi. 3. Objects and scope of research - Research Subjects: TC management activities of SMEs. - Scope of Study: SMEs in Hanoi. 4. Research Methodology 2 Quantitative methods, the data collected will be processed by the computer and the SPSS statistics software. 5. New contributions of the thesis - Formalized previous research on TC managers of SMEs - If the status of SME managers TC on Hanoi. Analysis of the practical aspects of TC and TC management of SMEs. - Data analysis and description of the impact of each factor in the outcome TC management financial management of SMEs in the province's capital. - Develop financial management model for SMEs in the province's capital. 6. Layout of the thesis The thesis is organized into five chapters: Chapter 1: Overview of Research Issues Chapter 2: Basic theory of financial management of SMEs Chapter 3: Research Methodology Chapter 4: Research results Chapter 5: Perfecting the financial management of SMEs in Hanoi Also includes an appendix of tables and statistics of primary data, secondary research purposes. CHAPTER 1 OVERVIEW OF RESEARCH ISSUES 1.1. The situation related research 1.1. 1. The study abroad Great Britain (2011) emphasized the objectives of financial management including liquidity, profitability and growth. Therefore, the specific areas that financial management should be concerned with the management of liquidity (cash flow, working capital management), earnings management (profit 3 analysis, profit planning) and development management (planning and funding decisions). Sudhindra Bhat (2008) consider the specific area of financial management covers all areas related to the items on the balance sheet of the business. The specific areas of financial management including working capital management, long-term asset management, finance management, financial planning, planning and evaluating profitability. Eugene F. Brigham, Michael C. Ehrhardt (2008) defines financial management based on the mobilization and use of resources: financial management is interested in raising the necessary funds to finance the assets and operation of the business, the amount allocated threads between competing applications, and to ensure that the funds are used effectively and efficiently in achieving corporate goals. PK Jain (2007) also pointed out three major financial decisions including investment decisions, financing decisions and dividend decisions. Sudhindra Bhat (2008) suggested another way to identify the key decisions of financial management is to look at the balance sheet of a business. There are many decisions related to the items on the balance sheet accounting. However, they are classified into three main categories: investment decisions, financing decisions and the decisions of profit distribution. 1.1.2. The local research In Vietnam, the theme of SMEs are also quite a lot of research interest, studied under many angles. Finance's theme of SMEs, such as tools, financing solutions, credit to SME development is also a Fellow of the study. Nghiem Van Bay thesis (2009) entitled, "The credit solutions to promote SME development in Vietnam" has studied an overview of the actual use of credit to support the development of knowledge SMEs in Vietnam in the coming time. Thesis "The solution capacity of SMEs in Vietnam Finance today" by 4 Pham Thi Van Anh (2012) evaluated the status of SMEs financing capacity in Vietnam for 5 years (2007-2011) at 4 criteria: size and growth of capital, self- funded and debt capital raising capabilities, profitability, ability to ensure the safety of financing business. Monographs "which results in the use of small and medium enterprises" by Dam Van Hue (2006) has studied and evaluated the status of capital of the company using it. 1.2. Overview of SMEs 1.2.1. The development of SMEs in Vietnam - Newly registered businesses reduce, increase dissolution and bankruptcy - Revenue decreased - Income tax reduction - Current tax increase 1.2.2. The development of SMEs in Hanoi At the time of 12/2010, the number of enterprises in Hanoi by capital and by location. Total number of SMEs with less than 50 billion capital is 225.469 enterprises, accounting for 26.67% of the total enterprises in the country, this shows that SMEs in Hanoi well developed, creating a significant revenue source to the capital each year. 1.2.3. SME structure Hanoi According to research and report latest SME associations in 2012, the structure of enterprises by industry (the industry considered relative, because most of the businesses are registered multidisciplinary, but usually only one or two business mainstream industry). 5 CHAPTER 2 BASIC PROBLEMS OF FINANCIAL MANAGEMENT SMALL AND MEDIUM ENTERPRISES 2.1. Overview of SMEs 2.1.1. Definition of SMEs SMEs are business establishments registered business in accordance with law, is divided into three levels: micro, small, medium, according to total capital (total capital equivalent to total assets is defined in the table balance sheet of the enterprise) or the average number of employees (total capital is the priority criteria) [7], namely: • Micro enterprises: less than 10 employees. • Small businesses: agriculture, forestry and fisheries, industry and construction: from 10 to 200 employees and capital of 20 billion VND or less; Trade and services: from 10 to 50 employees and capital of 10 billion VND or less. • Medium enterprises: agriculture, forestry and fisheries, industry and construction: from 200 to 300 employees and capital from 20 to 100 billion; Trade and services: from 50 to 100 workers and capital from the 10 to 50 billion. 2.1.2. Characteristics of SMEs - Features the organization's structure: fewer personnel; Organizational units such as departments often unclear; Not deep specialization of personnel in the unit; Seniority employees in the unit are usually low, often have a higher proportion of young big business. - Typical technologies and intellectual content: SMEs often do not participate in the high-tech sector or apply high technology to production; Knowledge 6 content, the gray matter in the products of these units are usually not much. Tends to be small. - Typical capital and financial management: small capital, fixed assets low, low ability unsecured; Rarely has the financial ability to mobilize rapidly, with large costs and low interest rates; Often there is no CFO With small business unit accounting and finance professionals often low, bringing multitasking. - Flexibility and efficiency: easily switch personnel structure, business structure; Easy to switch main areas of activity of the company in the direction of market volatility, volume up and down easily; Often the average capital cost / low labor, but the results are often higher for capital, employment outcomes for society generally higher. - Characteristics of SMEs in Hanoi: Results lower production business; young entrepreneurs; have diverse lines of business; better access to information. 2.2. Theoretical framework and concepts of corporate financial management Financial management is the use of the information accurately reflect the financial condition of a unit to analyze its strengths and weaknesses, establish an action plan, plans to use the funds, assets fixed, the demand for labor in the future in order to achieve specific goals to increase the value for that unit [45]. Financial management is the management of the impact to the financial performance of the business. It is done through a mechanism. It is a mechanism of corporate financial management. Financial management mechanisms are now understood as an overall method, forms and tools are employed to manage the financial operations of the business in the specific conditions in order to achieve the goals certain [18]. 2.3. The content of the basic financial management 7 There are five main elements of financial management processes in order to achieve the goal of business is to maximize asset value for owners: 2.3.1. Selection of Investment Opportunities [21] The construction and selection of investment projects due to various parts of the business done in collaboration. On the financial perspective, the main thing to consider is the result primarily of finance. Selection of investment opportunities is one of the important contents of financial management as it creates value for the enterprise. Where to invest, what? When investment is appropriate? And investment scale like? 2.3.2. Mobilizing capital All operations of the business require capital to operate. Financial managers need to determine the level of capital requirements for the operation of the business in the period. The working capital includes capital tied-term and long-term capital, managers need to mobilize adequate resources to ensure adequate operational needs of the business. 2.3.3. Management and cost accounting The cost is represented by the entire amount of labor wasted life and character of that labor now spent to carry out productive activities during certain business. Production cost is an important indicator of the system economic indicators report for the financial management of the business and is closely related to business management and accounting thu.Quan well costs will contribute increase sales for businesses. 2.3.4. Profit distribution and reinvestment Profit is the goal of business activity, is an indicator that businesses have particular interest as it relates to the existence, development and expansion of the business. Can not talk now operating well, high in the results when corporate profits fell. Enterprises need to have the optimal method of profit distribution, appropriation and use of corporate funds. Accumulated profit is 8 an important source for businesses in general and SMEs in particular, additional fixed capital and working capital to facilitate expansion of production and business activities. 2.3.5. Analysis and financial planning Financial analysis for business managers to: - Create a regular cycle to assess the operational management during the period was over, the implementation of fiscal balance, profitability, liquidity and financial risk in the operation of the business - Ensure that the decision of the Board of Directors in accordance with the actual situation of enterprises, such as investment decisions, funding, distribution of profits; Provide baseline information for the financial projections; Pursuant to check, control activities, management of the business. The financial activities of the company should be anticipated through financial planning. Make good financial planning tool is essential for enterprises to actively melon solutions in time when the volatility of the market. The process of financial planning is the process of making financial decisions appropriate to achieve the objectives of the business. 2.4. Evaluation results of financial management Results of financial management is understood that bring results from the way the financial management of business owners through the implementation of the contents of financial management, how good or not good. This outcome was assessed through indicators of corporate finance. The financial indicators are often considered when evaluating the results of the financial management of the business, including [9]: • Group liquidity ratios - Capacity assessment payments • Group the leverage ratio - Capacity Assessment capital balance • Group operating ratio - rating business capacity 9 • Group profit ratios - Capacity Assessment profit 2.4.1. The liquidity ratio - Capacity assessment payments Payment capacity of the enterprise is the capacity to repay maturing debt of all kinds of enterprises, is an important criteria reflect the financial position and business of the business, assess important aspects of the financial results of the business, through the evaluation and analysis in this regard can clearly see the financial risks of the business. - Current ratio (current ratio The - Rc) Rc = current assets / current liabilities Accounts - Net Working Capital: Working capital = net total of current assets - total current liabilities. - Quick Ratio (The Quick Ratio - Rq): Rq = (current assets - Inventories) / short-term debt . 2.4.2. The operating ratio - rating business capacity The capacity of the enterprise business is the capacity of circulating capital enterprises, is an important aspect of evaluating the financial performance of the business. Because of corporate capital is used to invest in assets: liquid assets and fixed assets, the need to measure results using total assets, and each component of total assets. - The rate of inventory turnover-turnover stocks (Inventory Ratio - Ri): Ri = Net Sales / Inventory. - The average collection period (Average Collection Period - ACP): ACP = Accounts Receivable / Sales per day - Results using the entire property (The Total Assets Utilization - TAU) TAU = Net sales / total assets 2.4.3. The leverage ratios - Assessment of capacity to balance capital Capitalized balance capacity is the ability of financial autonomy of enterprises. Managers should evaluate the results raise capital to ensure 10 results using maximum capital. This is important not only for business but a top concern of investors, suppliers, lenders, If the financial autonomy of enterprises creates strong trust for the relevant object, thereby creating favorable conditions for enterprises in many aspects of business and increased working capital for the business. - Debt ratio (Debt Ratio - Rd) Rd = Total debt / Total assets - Ratio of interest-rate time can pay (Times Interest Earned Ratio- Rt): Rt = EBIT / interest expense - Funded Ratio: Funded Ratio = Equity / total assets 2.4.4. The ratio of profits - profits Capacity Assessment Through profit ratio, the management capacity assessment of corporate profits, the profit ability of the business. Because profit is the end result of the business of business, profit is the main goal of the existence of the business, is an important aspect in evaluating the results of the financial management of the business. Investors, owners, managers, are interested in the capacity of corporate profits. - Rate of Return on Equity (ROE Business owners - ROE): ROE = Net Income / Equity - Business interests Assets (ROA): ROA = earnings before interest and taxes / assets Or: ROA = Net income / assets 2.5. Model and hypotheses Hypothesis 1: The content of financial management does not have any relationship to the payment capacity of SMEs in Hanoi. Hypothesis 2: The content of financial management does not have any relationship to the business capacity of SMEs in Hanoi. Hypothesis 3: The contents of financial management does not have any relationship to the balancing capability of SMEs in the capital Hanoi. 11 Hypothesis 4: The contents of financial management does not have any relationship to the benefit of SMEs capabilities in Hanoi. Financial Management Figure 2.1: Model theory research CHAPTER 3: RESEARCH METHODOLOGY 3.1. Study Design 3.1.1. Scale In this study, the authors have chosen the form of closed questions, ie the questionnaire design will make always the answer choices with the statement of the respondent's assessment (is the asset management main) completely agree, agree, not sure, disagree, totally disagree. 3.1.2. Sampling To achieve the research objectives set out at the beginning of the study, non- probability design to select a random sample forms are convenient to use and is considered reasonable to conduct research topic this. The reason for Selection of Investment Opportunities Organization of raising capital Cost management and cost accounting Distribution of profits and re- invest Analysis and Financial Planning Results of financial management Capacity payments Business capacity Weight capacity double capital Capacity to profit 12 choosing this method of sampling because the respondents readily accessible, they are willing to answer a questionnaire study and less costly in time and cost required to gather research information. Sample size: sample size is 410 originally planned, but when carried by only 306 votes. 3.1.3. Cleaning and data encryption After collecting the questionnaire, to be cleaned in the following manner: Check out all the preliminary questionnaire, remove the faulty boards or inconsistent answers. Next, the collected votes will be entered into the computer. Data from individual answers on each vote is encoded according to the rules and standards to ensure logic. After data entry is complete, a series of commands in the SPSS software was performed to check and clean the data before final analysis. 3.2. Data analysis techniques 3.2.1. Testing the reliability of the scale Cronbach's alpha to test the reliability of the variables used to measure each element of financial management. These variables can not guarantee the reliability will be removed from the scale and will not appear in the factor analysis. 3.2.2. Correlation coefficient and linear regression analysis First of all, the correlation coefficient between the results for the financial management elements of financial management will be considered. Next, linear regression analysis using multivariate methods ordinary least squares (ORDINAL Least Squares - OLS). Enter the variable selection methods were conducted. Coefficient of determination adjusted R2 is used to determine the suitability of the model. Finally, to ensure the reliability of the regression equation is eventually built accordingly. 13 CHAPTER 4: FINDINGS 4.1. An overview of the research data: The author conducted 306 investigations SMEs. Among them, there are 50 private companies (16.3%), 105 Co., Ltd. (representing 34.3%) and 150 joint- stock companies (49%). Table 4.1: Disaggregation types of enterprises in the sample Type of business Frequency Percent Valid Percent Cumulative Percent Valid Công ty tư nhân 50 16.3 16.3 16.3 Công ty TNHH 105 34.3 34.3 50.7 Công ty cổ phần 150 49.0 49.0 99.7 Missing 1 .3 .3 100.0 Total 306 100.0 100.0 Source: Data analysis thesis 4.2. Analysis of the reliability and relevance of the scale The scale reliability was tested using Cronbach's Alpha tool. Reliability Statistics Cronbach's Alpha N of Items .849 34 The test results are reliable with Cronbach's Alpha scale showing all scales are theoretically allows achieving reliability. In the EFA analysis, the authors extracted using Principal Component Analysis method with Varimax rotation and stops when extracting factor eigenvalue greater than 1. EFA analysis results showed that the coefficient of KMO (Kaiser- Meyer-Olkin) = 0816 should be EFA consistent with the data. Chi-square statistic of Bartlett expertise 4346.459 valued at 0.000 significance is thus 14 observed variables are correlated with each other considering the overall scope. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .816 Bartlett's Test of Sphericity Approx. Chi-Square 4346.459 df 561 Sig. .000 4.3. The statistical analysis described 4.3.1 Selection and Training opportunities SMEs have to draw up a DT project, using indicators such as NPV TC, IRR, in the selection and decision-Tel. This is the best media manager Tel decision correctly and gives businesses better business results. Investment decision-making of enterprises based on the most up investment projects (data in tables 4.4 and 4.5). Still many SMEs in Hanoi Tel decision not to consult the original TC (see Table 4.6), with 34% of SMEs at the time did not refer (as the casual), only 51% of enterprises Reference and Consultation Committee comments critical to the investment decision of the business owner. 4.3.2 Organization of raising capital When businesses need capital to 33.3%, there is the use of equity (Table 4.11), inability to raise external capital. This is one of the weaknesses of SMEs in the organization raise capital. Few businesses have to find ways to raise capital loan heating (Table 4:13): only 11.5%. Meanwhile, 57.1% of firms have to borrow money from banks (Table 4:14). This proves that the access of SMEs which have been many changes in a good way. As many as 173 enterprises (accounting for 57.1%) was the capital of the bank loan when in need of capital. (Table 4:14). Thus, the number of SMEs access to bank loans increasing. This is a good sign for the mobilization of SMEs in particular and the financial management of SMEs in general. 15 4.3.3 Cost management and cost accounting Most SMEs often informatics applications in financial management and the most common applications is creation of financial statements. The financial statements have been prepared and analyzed regularly. This indicates that SMEs are interested in the methods of financial reporting and the preparation of financial reports has become routine for most SMEs. 63.2% of SME manufacturing costs classified according to the content of the economic costs (Table 4:24). This classification clearly shows the cost of labor and the labor of live animals in the entire production cost. This problem is important and necessary to identify key cost management and check balance with other plans, such as cost estimation, planning procurement, financial plans,. 4.3.4 Distribution of profits and re-invest Overall, profit distribution policy and reinvestment in SMEs have different flexibility, depending on the situation of business connections. Regarding the setting up of financial reserves: the setting up of financial reserves in SMEs is a problem, a need for policy reserves set aside in each SME financing for the prevention of financial risks business. Regarding the setting up investment funds to develop, with: 48.8% DN not remitted funds from development profit after tax; only 21.5% of firms remitted funds to develop a minimum of 50% of profit after tax (Table 4:33). 4.3.5 Analysis and Financial Planning The SME reporting and financial analysis of them based on financial indicators, but not much (less than 50% of enterprises). This proves especially SME enterprises in Hanoi has gradually standardizing financial management of the business, come up with a business management apparatus finance all the activities and specialization. Financial planning is also done SMEs all the way. 16 4.3.6. Capacity payments 71/306 SMEs always repay maturing debt, DN 20/206 was never paid on the debt. 62/306 SMEs maintain its solvency ratio at current high levels. 4.3.7. Business capacity SME 19/306 ratio Inventory turnover is low, 47/306 now maintain the inventory turnover ratio at a high level. 28/306 SMEs maintain the average collection period at a high level, 25/306 now maintains the average collection period is low. 4.3.8. Weight capacity double capital 102/306 SME debt ratio at a reasonable level, 24/306 enterprises with high debt ratios. 36/306 SMEs solvency ratio is low, 44/306 enterprises solvency ratio at a high level. 4.3.9. Capacity to profit 95/306 SMEs achieve high ROA, ROA businesses 19/306 low, 191/306 firms averaged. 41/306 SMEs achieve high ROE, ROE businesses 143/306 low, 112/306 firms averaged. 140/306 SMEs have poor profitability, 42/306 enterprise profitability as expected now. 4.4. Regression analysis correlation 4.4.1. Regression analysis correlated with the dependent variable is the capacity payment Five factors include selections investment opportunities, capital raising Organisation, cost management and cost accounting, profit distribution and 17 reinvestment, and analysis and financial planning are intended impact statistical significance to the payment capacity of the selected enterprises. Specific independent variables could explain 68.1% of the group rate variability indices capacity assessment payment; factors including cost management and cost accounting have the greatest impact on the liquidity index group (represented by the partial correlation coefficient is 0.245 the largest). 4.4.2. Regression analysis correlated with the dependent variable is the business capacity Three factors including the Organization of raising capital, cost management and cost accounting, profit distribution and reinvestment impact significantly the capacity of business enterprises are selected. Option Two factors are investment opportunities and analysis and financial planning no statistically significant change in the activity index (Sig. Respectively in 0164 and 0825, greater than 0:05). Specifically, the model obtained can explain 56.5% of the variation in the capacity of business enterprises; Organizations factors including capital raising biggest impact to the team performance indicators (represented by the partial correlation coefficient is largest 0283). 4.4.3. Regression analysis correlated with the dependent variable is the weight capacity for capital Four factors include: Selecting Investment Opportunities, Mobilizing capital, distribution of profits and reinvest, analysis and financial planning and has significant impact on the statistical capacity of the capital balance selected businesses. Factor cost management and cost accounting no statistically significant change in the balance of capital capacity (Sig. Equal 0.290, greater than 0:05). Specifically, the model obtained can explain 71.3% of the variation in capital balance capacity of the company; Analyze which factors and financial planners have the greatest impact on the group balance 18 debt leverage index (shown by the partial correlation coefficient is maximum 0283). 4.4.4. Regression analysis correlated with the dependent variable is the capacity to benefit Three factors including cost management and cost accounting, profit distribution and re-investment, planning and analysis and financial impact brought significant benefit to the capacity of enterprises choice. Option Two factors are investment opportunities and capital mobilization Organization no statistically significant change to the benefit of the capacity of the selected enterprises (Sig. Respectively by 0115 and 0999, larger 0:05). Specifically, the model obtained can explain 52.8% of the variation in the capacity of corporate profits; factors including cost management and cost accounting have the greatest impact to the capacity of corporate profits is selected (shown by the partial correlation coefficient is 0.407 the largest). 4.5. Synthesis of study results 4.5.1. The main findings from the statistical analysis described - Selection of investment opportunities: SMEs have to draw up an investment project, using the financial indicators such as NPV, IRR, in the selection and decision making investment. - To raise capital: When businesses need capital to 33.3%, there is to use equity (Table 4:11), does not have the ability to raise outside capital. - Cost management and cost accounting: Most SMEs often informatics applications in financial management and the most common applications is creation of financial statements. - Profit distribution and reinvestment: In general, the division of profits and re-invest in SMEs with different flexibility, depending on the situation of business connections. 19 - Analysis and Financial Planning: The SME reporting and financial analysis of them based on financial indicators, but not much (less than 50% of enterprises). 4.5.2. The main findings from the regression analysis This study indicates that the contents of financial management, including: (1) Selection of investment opportunities, (2) Organization and mobilization of capital, (3) cost management and cost accounting, (4 ) profit distribution and reinvestment, and (5) analysis and financial planning are linked and impact on financial results management. Table 4:58: Summary of regression models obtained Partial correlation coefficients are not standardized Selection of Investment Opportunities Organization of raising capital Cost management and cost accounting Distribution of profits and re- invest Analysis and Financial Planning Capacity payments 0.109 0.216 0.171 2.245 0.196 0.096 Business capacity 0.578 0.044 0.283 0.282 0.132 0.095 Weight capacity double capital 0.158 0.151 0.238 0.045 0.263 0.283 Capacity to profit -0.099 0.086 0.0008 0.407 0.269 0.133 Source: Data analysis thesis CHAPTER 5 FINISHING SOLUTIONS FINANCIAL MANAGEMENT AREAS OF SMEs IN HANOI 5.1. Basic view of the complete financial management of SMEs 20 SMEs play important role in socio-economic development of Vietnam. So complete financial management of SMEs to help businesses with grave financial good health and productive activities a good business is essential. 5.1.1. Completing the financial management of SMEs should comply with the provisions of law 5.1.2. Completing the financial management of SMEs should implement immediately, ensuring regular and legacy has agreed a short-term and long-term 5.1.3. Perform a complete synchronization of content management and finance towards priority 5.2. The view of the results of financial management of SMEs in Hanoi Results of financial management of SMEs in the study were divided into 5 groups: (1) A group of enterprises that do not meet certain criteria (DN 158) meant that financial firms are poorly managed, are unprofitable, high risk of bankruptcy. Enterprises need more effort, gradually turn focus to target groups results management to achieve individual targets. (2) Group 1 businesses achieve targets (53 enterprises) businesses of poor financial management (3) Group 2 businesses achieve targets (48 enterprises) business financial management at an average (4) Group 3 enterprises achieve the target group (2 firms): corporate financial management is quite good (5) For the 4 businesses achieve the target group (45 firms): the financial management business achieved good results 5.3. Complete solutions for financial management of SMEs in Hanoi [...]... to the process of financial management to achieve corporate goals (maximizing asset to the owner): choice of investment opportunities, capital raising organization, management cost management and cost accounting, financial analysis and financial planning, profit distribution and reinvestment To evaluate the results of the financial management of small and medium enterprises, the author will examine the. .. firms): the financial opportunities, capital raising Organization, Distribution and reinvest profits, planning and management business achieved good results, it is necessary to maintain the financial impact analysis and statistical significance to balance the capacity of businesses financial management activities to achieve the same goals of the business which are selected In which factors Planning and Financial. .. assessment of business), (3) the leverage ratio - debt balance (balance of capacity assessment of capital), and (4) the index of profitability (profit capacity assessment) Topics 3 answer key research questions and hypotheses 5 To perform the designed to answer the self-assessment of effective control the financial management of their businesses will be limited by the subjectivity of the respondents (the financial. .. into the most powerful factor in the regression model obtained the greatest impact to the business capacity of the selected enterprises - Group 3 enterprises achieve the target group (2 firms): corporate Thus, the main business of business capacity, should now focus on financial management is quite good, need to maintain financial management doing good 3 content (in order of priority ueu): Organization... is the capital Hanoi Therefore, a need for research on the financial management of SMEs in specific sectors such as trade in services, industry and construction, agriculture, forestry and fisheries As mentioned at the beginning of this study, the ultimate goal of business is to maximize asset value for owners Good financial management is probably just one of the ways to achieve this and only study of. .. relationship and influence of the 5 groups of factors are (1) the choice of investment opportunities, (2) mobilize capital, (3) cost management and cost accounting, (4) the distribution of profits and reinvest, (5) analysis and financial planning and evaluation of the firms in the sample selection ways to save on 4 groups: (1) the liquidity ratio (rated capacity payments), (2) the performance indicators... raising more funds cost accounting, profit distribution and reinvestment, and Planning and 5.3.4 Improved capacity to benefit: financial analysts will impact significantly on the capacity of the enterprise Obtained regression model, there are 3 factors including cost payment choice In that factor cost management and cost accounting have the management and cost accounting, profit distribution and reinvestment,... planning and financial analysis of impacts to significant energy profitability statistical analysis of collected data, SPSS 16.0 software was used to test the of its businesses are selected In that factor cost management and cost reliability of the scale and perform statistical inference accounting have the greatest impact to profitability capacity of selected businesses The study results were obtained... factors including capital raising, cost management and cost accounting, profit - Group 2 businesses achieve targets (48 enterprises) business financial distribution and reinvestment can impact significantly the capacity of business management at medium enterprises should try to influence the quickest way of the selected enterprises Organizations that factors in raising capital have into the most powerful... opportunities, management to achieve individual targets profit distribution and reinvestment - Group 1 businesses achieve targets (53 enterprises) businesses of poor financial management, enterprises should try to influence the quickest way into the most powerful factor in the regression model obtained 5.3.2 Improved business capabilities: From the regression model, which can show 3 Organisation of factors including . profits, the profit ability of the business. Because profit is the end result of the business of business, profit is the main goal of the existence of the business, is an important aspect in. description of the impact of each factor in the outcome TC management financial management of SMEs in the province's capital. - Develop financial management model for SMEs in the province's. difficult SMEs get loans from commercial banks. However, the in- depth study of the financial management of SMEs in most of the world refers to the financial management of the relationship with the