Relationship The Causal Relationship between Financial Slack Resource Factors, Corporate Entrepreneurship Factors Affecting on Growth of Small and Medium Enterprises in Bangkok

Abstract

Increasing enterprise capabilities is essential for enterprise of all sizes, especially for growing small and medium enterprises. Financial resources are important factor for entrepreneurial management, and nowadays, access to financial resources outside the enterprise is more difficult and complex, which is a key reason for the growth of the enterprises. The objective of this research was to study the causal relationship between financial slack resource factors and corporate entrepreneurial factors that affecting on growth of small and medium enterprises in Bangkok. The research was carried out by quantitative research type. The questionnaires were used for data collection from the   entrepreneurs / executives of small and medium enterprises. From a sample of 384 peoples, which was obtained from the simple sampling method and analyzed by the structural equation model with LISLEL 8.80. The research found that the financial slack resources factors had a positive affect on enterprise growth at the level of 0.37 and the corporate entrepreneurial factors  had a positive affect on enterprise growth at the level of 0.41, indicating that if the entrepreneur/executive of the enterprise have control of operating expenses, it will result  increase in net profits, which can be used to fund the initiatives of new strategies or new practices use within the enterprise to create growth for the enterprise, especially the growth in the form of return on sales. Therefore, the financial slack resources are considered an important factor that can be reflected in use of resources within the enterprise to resulting in a return in the form of increased profits due to cost control.