Performance Measurement that Affects Business Profits: A Case Study of SMEs in Food Industry Sector in Cambodia
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Abstract
The purpose of this paper is to study the performance measurement that affects business profits of small and medium-sized enterprises (SMEs) in the food industry sector in Cambodia and to propose the findings for entrepreneurs to monitor their business operation and profit. The data was collected from 291 samples from the population of SMEs in the food industry sector in Phnom Penh, Cambodia. In addition, the researcher employed questionnaire survey as a tool for data collection, and the sample was randomly selected from the population of 1,210 owners or managers of the business. Furthermore, the data in this study was analyzed by using SPSS regarding with the descriptive statistics such as mean, standard deviation, percentage, and multiple discriminant technique. Moreover, based on the results from the discriminant analysis, it found that there are two independent variables of performance measurements namely, capital and customer satisfaction affect the business profits of SMEs in food industry sector. Apart from that, based on the results of this study the researcher be able to propose some guidelines for entrepreneurs in order to monitor their business operation and profit such as entrepreneurs must effectively manage the inventory, expenditures, revenues, cash flow, and entrepreneurs must carefully manage customer problems, and product return as it all found at the medium level of opinion. Therefore, according to the results it might be concluded that SME entrepreneurs, especially entrepreneurs in the food industry sector should focus more on performance measurement in term of customer satisfaction by building good relationships with customers, retaining existing customers and acquiring new customers as many as possible, and improving entrepreneurship skills in order to have the ability to manage the capital performance and thus would gain the financial growth and sustain the business in the competitive environment.
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