Factors affecting capital size of enterprises in Dak Nong Province

Abstract

The research focused on analyzing factors affecting capital size of enterprises in Dak Nong Province using multivariate regression model. Results show that business sector, import-export business, type of business registration, production and business location, age and share by other organizations in the capital structure of enterprises are determinants of capital size of enterprises in Dak Nong Province. Accordingly, the study proposes recommendations to local government so as to support enterprises, including: (i) promulgating and implementing priority policies for the development of agricultural sector and import-export business; (ii) encouraging private and one-member limited liability companies to expand their capital to gain the economics of scale; (iii) promoting investment in transport development, rural infrastructure to support enterprises; (iv) speeding up the implementation of the investment process and licensing progress for enterprises; and (v) calling for investment from the large organizations, enterprises and investors.