A study on the factors affecting the decision of individual business households to become enterprises in Ninh Thuan province

Nguyen Van Dung

Le nguyen Thanh Thinh

Faculty of Management - International Economics Lac Hong University

A study on the factors affecting the decision of individual business households to become enterprises in Ninh Thuan province. This study explores the factors affecting the decision of individual business households to become enterprises in Ninh Thuan province. This study uses the convenient sampling method with 212 valid survey questionnaires. The study also uses Cronbach's Alpha, exploratory factor analysis (EFA) and linear regression analysis to test hypotheses. The study finds out that there are five factors affecting the decision of individual business households to become enterprises in Ninh Thuan province. These factors are management capacity of business household head, business environment, cultural environment, credit accessibility, and state support and preferential policies. Based on the study’s findings, some policy implications are made to help state agencies have appropriate policies to encourage more individual business households become enterprises in Ninh Thuan province, and to better support small and medium-sized enterprises.