The effect of entrepreneurial ecosystem on entrepreneurial success of small and medium enterprises (SMES) - An empirical study in Ho Chi Minh city

Abstract

In the last few years, entrepreneurial activities in Vietnam, especially in Ho Chi Minh city are booming. However, the failure rates of local entrepreneurial enterprises are remarkable. Examining in detail, we can make inferences that the individual factors (the entrepreneurs’ traits, the entrepreneurs’ personality, the entrepreneurs’ leadership style and so forth) and the external factors (the regulation, the taxes, the culture and so forth) might be responsible for these failures. In the scope of this study, we chose to analyze the effect of the entrepreneurial ecosystem, the term represents the phrase “external factors” in the literature but more comprehensive, on the success of entrepreneurial enterprises. The study was conducted in the context of Ho Chi Minh City with the founders of small and medium enterprises were chosen as the target respondents. The questionnaires were conveniently delivered to the respondents at start-up conferences and through e-mail. Totally, there were 215 questionnaires collected but only 196 sample qualified. The obtained results convincingly demonstrate that the regulatory framework, funding and finance; the human capital; the support system and the cultural support are the four factors which have a significant impact on the entrepreneurial success. Keywords: Entrepreneurial Ecosystem, Entrepreneurial Success, SMEs.