Factors Affecting Business Success of Small-Medium Enterprise in Selected Areas of Zambales

Abstract

This study determined the factors that affect the business success of the Small and Medium Enterprise in the province of Zambales. The owners and employees assessed these factors. The factors include the characteristics of the SME, the management know- how, customers and markets, products and services, business strategy and cooperation, resources and finance, and the external environment. The business success indicators include the number of customers in three years, gross sales, profit, and return on investment. The study was conducted in the towns of Iba, Castillejos, and Subic. The enterprise includes food services, retail trade, water supply, hardware supplies, and cooperatives. The research design used was the descriptive survey with the questionnaire as the data-gathering tool. The researcher found out that most of the Small and Medium Enterprises that operate in Iba, Castillejos, and Subic are Food Services, Retail Trade, and Hardware Supplies, and have a minimum number of employees. Their starting capital is in millions of pesos, with an annual profit of less than a million. The respondents perceived that the factors that affect SME business success are in the following order: management know-how, customer and markets, resources and finance, characteristics of the business strategy and cooperation, external environment, and products and services. There is no significant difference on the perceptions of the employees towards characteristics of the SMEs and products and services, when they are grouped as to the number of employees; when the SMEs were grouped according to starting capital, no significant difference in their perceptions existed towards the characteristics of the SME, customers and markets and business strategy and cooperation, no significant difference in their perceptions towards characteristic of the SME when they were grouped according to type of SME. There was a significant relationship between the factors and the gross sales, number of customers, and return on investment. Based on the findings and conclusions, it is suggested that there is a need to sustain the good management know of the SME owners. Hardware suppliers may consider external carriers to transport products to arrive just in time and may outsource materials when necessary. The SMEs always need to consider changes in government regulations and policies in their organizational plan. The SMEs are encouraged to increase competition for possible export market opportunities.