Factors Affecting Competitiveness of Small and Medium Enterprises in Southern Region of Thailand

Abstract

This study aims to (1) examine the general characteristics of small and medium enterprises (SMEs) in Southern Region, and (2) analyze the factors influencing the competitiveness, measured by the profitability of SMEs in Southern Region, based on the Diamond Model framework. The study sample consisted of 382 SMEs in Southern Region, selected using proportional stratified random sampling. Data were analyzed using descriptive statistics and multiple regression analysis. The descriptive statistics revealed that SMEs in Southern Region vary in size and age, with most being small to medium-sized enterprises and an average age of approximately 16 years. A majority of the enterprises demonstrated a high level of competitive potential, based on a potential scoring criterion, with 112 enterprises classified as such. Conversely, 90 enterprises exhibited low competitive potential, among which 44 enterprises had low levels of demand and customer purchasing needs. The multiple regression analysis indicated that demand condition is statistically significant factors affecting profit growth rates. This demonstrates that customer demand is a crucial factor in stimulating profit growth and enhancing the competitiveness of enterprises. Therefore, entrepreneurs should prioritize the development of products or services that meet customer needs more effectively. It is also essential to consistently monitor and analyze customer demand data to use this information for product and service improvement in line with market needs, thereby enhancing the efficiency and competitiveness of the enterprises.