Perceptions matter for SMEs

       The personal characteristics of small business owners are a major determinant to their success in Thailand, says Siriporn Allapach, a lecturer at the International College of Suan Sunandha Rajabhat University.
       Her study on factors influencing the success of small enterprises in central Bangkok focused on employee viewpoints and indicated that business owners must have certain characteristics that benefit small enterprises, while other factors including market orientation,business process and strategic intelligence are only part of the formula for success.
       Therefore, she says, employers must assume the responsibility to recognise,address, and correct flawed character-istics and personal traits.
       Future entrepreneurs should pay close attention to perceptions or biases, and particularly to those of their employees,prospective customers and competitors,in order to increase firm efficiency.
       The study found that by identifying and developing desirable characteristics,entrepreneurs can foster a strong corporate climate.
       Entrepreneurs who focus on their positive characteristics are able to identify alternatives and plan for the future which should lead to improved performance,compared to less forward-thinking individuals.
       Entrepreneurs in small enterprises should recognise the impact of personal characteristics on their ability to manage a small team of employees or they risk losing a competitive advantage over larger competitors with strong foundations and stable management teams.
       In general terms, small, family-run businesses with minimal structure and strategic outlook face a greater risk of failure if they are unable to make efficient use of self-perception and preferenceindicated characteristics.
       Dr Siriporn said small enterprises are the backbone of Thailand's economy so studying their success factors should benefit new entrepreneurs. The study also finds small enterprises have common characteristics: a hierarchy in administration, family-style management, seniority, a single decision maker, and a lack of investment in human capital.