DOI:

Abstract

This paper aims at getting an insight into determinants of return of small and medium enterprises (SMEs) in the Mekong Delta through the estimation of the regression model in which return on sales (ROS), or operating profit margin, is a dependent variable, and determinants of their profit are independent variables. The estimation is based on primary data gathered from 1,017 enterprises in the period 2006 - 2010. The results reveal that their ROS is affected by (1) ratio of fixed assets to sales, (2) sizes of the enterprises, (3) the ratio of current assets to sales, (4) and (5) the age and origin of machinery, and (6) the GDP growth rate. The paper, thereby, proposes measures to raise SMEs' returns.

Keywords

Profit; Sales; Small And Medium Enterprises; Economic Growth.