The financial management of SMEs in hanoi

1
INTRODUCTION
1. Reason for choosing thesis:
The Vietnam SMEs also have limitations in management, especially
financial management. The limitations of financial management is one of the
reasons why most difficult SMEs get loans from commercial banks.
However, the in-depth study of the financial management of SMEs in
most of the world refers to the financial management of the relationship with
the other variables of the SMEs. For example, research on the relationship
between technology variables to financial performance, by developing
indicators of financial performance (So Young Soh et all, 2009), or studies of
the impact of access to financial services to the financial performance of
SMEs in the fisheries sector in African countries (John Linton et all, 2012),
Michael Peer et all (1998) studied the influence of the evaluation to project
the performance of SMEs in the UK.
2. The aim of the thesis research
Thread made with 3 main objectives:
- Investigate and describe the financial management practices of small and
medium-sized enterprises in Hanoi.
- To study the impact of these factors in financial management and financial
results of the management of small and medium enterprises in Hanoi.
- To propose a complete solution for the financial management of small and
medium enterprises in Hanoi.
3. Objects and scope of research
- Research Subjects: TC management activities of SMEs.
- Scope of Study: SMEs in Hanoi.
4. Research Methodology

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Quantitative methods, the data collected will be processed by the computer

and the SPSS statistics software.
5. New contributions of the thesis
- Formalized previous research on TC managers of SMEs
- If the status of SME managers TC on Hanoi. Analysis of the practical
aspects of TC and TC management of SMEs.
- Data analysis and description of the impact of each factor in the outcome TC
management financial management of SMEs in the province's capital.
- Develop financial management model for SMEs in the province's capital.
6. Layout of the thesis
The thesis is organized into five chapters:
Chapter 1: Overview of Research Issues
Chapter 2: Basic theory of financial management of SMEs
Chapter 3: Research Methodology
Chapter 4: Research results
Chapter 5: Perfecting the financial management of SMEs in Hanoi
Also includes an appendix of tables and statistics of primary data, secondary
research purposes.


CHAPTER 1
OVERVIEW OF RESEARCH ISSUES
1.1. The situation related research
1.1. 1. The study abroad
Great Britain (2011) emphasized the objectives of financial management
including liquidity, profitability and growth. Therefore, the specific areas that
financial management should be concerned with the management of liquidity
(cash flow, working capital management), earnings management (profit

3
analysis, profit planning) and development management (planning and

funding decisions).
Sudhindra Bhat (2008) consider the specific area of financial
management covers all areas related to the items on the balance sheet of the
business. The specific areas of financial management including working
capital management, long-term asset management, finance management,
financial planning, planning and evaluating profitability.
Eugene F. Brigham, Michael C. Ehrhardt (2008) defines financial
management based on the mobilization and use of resources: financial
management is interested in raising the necessary funds to finance the assets
and operation of the business, the amount allocated threads between
competing applications, and to ensure that the funds are used effectively and
efficiently in achieving corporate goals.
PK Jain (2007) also pointed out three major financial decisions including
investment decisions, financing decisions and dividend decisions.
Sudhindra Bhat (2008) suggested another way to identify the key decisions of
financial management is to look at the balance sheet of a business. There are
many decisions related to the items on the balance sheet accounting.
However, they are classified into three main categories: investment decisions,
financing decisions and the decisions of profit distribution.
1.1.2. The local research
In Vietnam, the theme of SMEs are also quite a lot of research interest,
studied under many angles. Finance's theme of SMEs, such as tools, financing
solutions, credit to SME development is also a Fellow of the study. Nghiem
Van Bay thesis (2009) entitled, "The credit solutions to promote SME
development in Vietnam" has studied an overview of the actual use of credit
to support the development of knowledge SMEs in Vietnam in the coming
time. Thesis "The solution capacity of SMEs in Vietnam Finance today" by

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Pham Thi Van Anh (2012) evaluated the status of SMEs financing capacity in

Vietnam for 5 years (2007-2011) at 4 criteria: size and growth of capital, self-
funded and debt capital raising capabilities, profitability, ability to ensure the
safety of financing business. Monographs "which results in the use of small
and medium enterprises" by Dam Van Hue (2006) has studied and evaluated
the status of capital of the company using it.
1.2. Overview of SMEs
1.2.1. The development of SMEs in Vietnam
- Newly registered businesses reduce, increase dissolution and bankruptcy
- Revenue decreased
- Income tax reduction
- Current tax increase
1.2.2. The development of SMEs in Hanoi
At the time of 12/2010, the number of enterprises in Hanoi by capital
and by location.
Total number of SMEs with less than 50 billion capital is 225.469
enterprises, accounting for 26.67% of the total enterprises in the country, this
shows that SMEs in Hanoi well developed, creating a significant revenue
source to the capital each year.
1.2.3. SME structure Hanoi
According to research and report latest SME associations in 2012, the
structure of enterprises by industry (the industry considered relative, because
most of the businesses are registered multidisciplinary, but usually only one
or two business mainstream industry).

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CHAPTER 2
BASIC PROBLEMS OF FINANCIAL MANAGEMENT
SMALL AND MEDIUM ENTERPRISES

2.1. Overview of SMEs

2.1.1. Definition of SMEs
SMEs are business establishments registered business in accordance with
law, is divided into three levels: micro, small, medium, according to total
capital (total capital equivalent to total assets is defined in the table balance
sheet of the enterprise) or the average number of employees (total capital is
the priority criteria) [7], namely:
• Micro enterprises: less than 10 employees.
• Small businesses: agriculture, forestry and fisheries, industry and
construction: from 10 to 200 employees and capital of 20 billion VND
or less; Trade and services: from 10 to 50 employees and capital of 10
billion VND or less.
• Medium enterprises: agriculture, forestry and fisheries, industry and
construction: from 200 to 300 employees and capital from 20 to 100
billion; Trade and services: from 50 to 100 workers and capital from
the 10 to 50 billion.
2.1.2. Characteristics of SMEs
- Features the organization's structure: fewer personnel; Organizational units
such as departments often unclear; Not deep specialization of personnel in the
unit; Seniority employees in the unit are usually low, often have a higher
proportion of young big business.
- Typical technologies and intellectual content: SMEs often do not participate
in the high-tech sector or apply high technology to production; Knowledge

6
content, the gray matter in the products of these units are usually not much.
Tends to be small.
- Typical capital and financial management: small capital, fixed assets low,
low ability unsecured; Rarely has the financial ability to mobilize rapidly,
with large costs and low interest rates; Often there is no CFO With small
business unit accounting and finance professionals often low, bringing

multitasking.
- Flexibility and efficiency: easily switch personnel structure, business
structure; Easy to switch main areas of activity of the company in the
direction of market volatility, volume up and down easily; Often the average
capital cost / low labor, but the results are often higher for capital,
employment outcomes for society generally higher.
- Characteristics of SMEs in Hanoi: Results lower production business; young
entrepreneurs; have diverse lines of business; better access to information.
2.2. Theoretical framework and concepts of corporate financial
management
Financial management is the use of the information accurately reflect
the financial condition of a unit to analyze its strengths and weaknesses,
establish an action plan, plans to use the funds, assets fixed, the demand for
labor in the future in order to achieve specific goals to increase the value for
that unit [45].
Financial management is the management of the impact to the financial
performance of the business. It is done through a mechanism. It is a
mechanism of corporate financial management. Financial management
mechanisms are now understood as an overall method, forms and tools are
employed to manage the financial operations of the business in the specific
conditions in order to achieve the goals certain [18].
2.3. The content of the basic financial management

7
There are five main elements of financial management processes in order
to achieve the goal of business is to maximize asset value for owners:
2.3.1. Selection of Investment Opportunities
[21] The construction and selection of investment projects due to various
parts of the business done in collaboration. On the financial perspective, the
main thing to consider is the result primarily of finance. Selection of

investment opportunities is one of the important contents of financial
management as it creates value for the enterprise. Where to invest, what?
When investment is appropriate? And investment scale like?
2.3.2. Mobilizing capital
All operations of the business require capital to operate. Financial
managers need to determine the level of capital requirements for the operation
of the business in the period. The working capital includes capital tied-term
and long-term capital, managers need to mobilize adequate resources to
ensure adequate operational needs of the business.
2.3.3. Management and cost accounting
The cost is represented by the entire amount of labor wasted life and
character of that labor now spent to carry out productive activities during
certain business. Production cost is an important indicator of the system
economic indicators report for the financial management of the business and
is closely related to business management and accounting thu.Quan well costs
will contribute increase sales for businesses.
2.3.4. Profit distribution and reinvestment
Profit is the goal of business activity, is an indicator that businesses have
particular interest as it relates to the existence, development and expansion of
the business. Can not talk now operating well, high in the results when
corporate profits fell. Enterprises need to have the optimal method of profit
distribution, appropriation and use of corporate funds. Accumulated profit is

8
an important source for businesses in general and SMEs in particular,
additional fixed capital and working capital to facilitate expansion of
production and business activities.
2.3.5. Analysis and financial planning
Financial analysis for business managers to:
- Create a regular cycle to assess the operational management during the

period was over, the implementation of fiscal balance, profitability, liquidity
and financial risk in the operation of the business
- Ensure that the decision of the Board of Directors in accordance with the
actual situation of enterprises, such as investment decisions, funding,
distribution of profits; Provide baseline information for the financial
projections; Pursuant to check, control activities, management of the business.
The financial activities of the company should be anticipated through
financial planning. Make good financial planning tool is essential for
enterprises to actively melon solutions in time when the volatility of the
market. The process of financial planning is the process of making financial
decisions appropriate to achieve the objectives of the business.
2.4. Evaluation results of financial management
Results of financial management is understood that bring results from
the way the financial management of business owners through the
implementation of the contents of financial management, how good or not
good. This outcome was assessed through indicators of corporate finance. The
financial indicators are often considered when evaluating the results of the
financial management of the business, including [9]:
• Group liquidity ratios - Capacity assessment payments
• Group the leverage ratio - Capacity Assessment capital balance
• Group operating ratio - rating business capacity

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• Group profit ratios - Capacity Assessment profit
2.4.1. The liquidity ratio - Capacity assessment payments
Payment capacity of the enterprise is the capacity to repay maturing debt
of all kinds of enterprises, is an important criteria reflect the financial position
and business of the business, assess important aspects of the financial results
of the business, through the evaluation and analysis in this regard can clearly
see the financial risks of the business.

- Current ratio (current ratio The - Rc) Rc = current assets / current liabilities
Accounts
- Net Working Capital: Working capital = net total of current assets - total
current liabilities.
- Quick Ratio (The Quick Ratio - Rq): Rq = (current assets - Inventories) /
short-term debt
.
2.4.2. The operating ratio - rating business capacity
The capacity of the enterprise business is the capacity of circulating
capital enterprises, is an important aspect of evaluating the financial
performance of the business. Because of corporate capital is used to invest in
assets: liquid assets and fixed assets, the need to measure results using total
assets, and each component of total assets.
- The rate of inventory turnover-turnover stocks (Inventory Ratio - Ri):
Ri = Net Sales / Inventory.
- The average collection period (Average Collection Period - ACP):
ACP = Accounts Receivable / Sales per day
- Results using the entire property (The Total Assets Utilization - TAU)
TAU = Net sales / total assets
2.4.3. The leverage ratios - Assessment of capacity to balance capital
Capitalized balance capacity is the ability of financial autonomy of
enterprises. Managers should evaluate the results raise capital to ensure
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results using maximum capital. This is important not only for business but a
top concern of investors, suppliers, lenders, If the financial autonomy of
enterprises creates strong trust for the relevant object, thereby creating
favorable conditions for enterprises in many aspects of business and increased
working capital for the business.
- Debt ratio (Debt Ratio - Rd) Rd = Total debt / Total assets
- Ratio of interest-rate time can pay (Times Interest Earned Ratio- Rt): Rt =

EBIT / interest expense
- Funded Ratio: Funded Ratio = Equity / total assets
2.4.4. The ratio of profits - profits Capacity Assessment
Through profit ratio, the management capacity assessment of corporate
profits, the profit ability of the business. Because profit is the end result of the
business of business, profit is the main goal of the existence of the business, is
an important aspect in evaluating the results of the financial management of
the business. Investors, owners, managers, are interested in the capacity of
corporate profits.
- Rate of Return on Equity (ROE Business owners - ROE): ROE = Net
Income / Equity
- Business interests Assets (ROA): ROA = earnings before interest and
taxes / assets Or: ROA = Net income / assets
2.5. Model and hypotheses
Hypothesis 1: The content of financial management does not have any
relationship to the payment capacity of SMEs in Hanoi.
Hypothesis 2: The content of financial management does not have any
relationship to the business capacity of SMEs in Hanoi.
Hypothesis 3: The contents of financial management does not have any
relationship to the balancing capability of SMEs in the capital Hanoi.
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Hypothesis 4: The contents of financial management does not have any
relationship to the benefit of SMEs capabilities in Hanoi.
Financial Management


Figure 2.1: Model theory research


CHAPTER 3: RESEARCH METHODOLOGY

3.1. Study Design
3.1.1. Scale
In this study, the authors have chosen the form of closed questions, ie the
questionnaire design will make always the answer choices with the statement
of the respondent's assessment (is the asset management main) completely
agree, agree, not sure, disagree, totally disagree.
3.1.2. Sampling
To achieve the research objectives set out at the beginning of the study, non-
probability design to select a random sample forms are convenient to use and
is considered reasonable to conduct research topic this. The reason for
Selection of Investment
Opportunities

Organization of raising capital

Cost management and cost
accounting

Distribution of profits and re-
invest

Analysis and Financial
Planning


Results of financial management
Capacity payments
Business capacity
Weight capacity double capital
Capacity to profit

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choosing this method of sampling because the respondents readily accessible,
they are willing to answer a questionnaire study and less costly in time and
cost required to gather research information. Sample size: sample size is 410
originally planned, but when carried by only 306 votes.
3.1.3. Cleaning and data encryption
After collecting the questionnaire, to be cleaned in the following manner:
Check out all the preliminary questionnaire, remove the faulty boards or
inconsistent answers. Next, the collected votes will be entered into the
computer. Data from individual answers on each vote is encoded according to
the rules and standards to ensure logic. After data entry is complete, a series
of commands in the SPSS software was performed to check and clean the data
before final analysis.
3.2. Data analysis techniques
3.2.1. Testing the reliability of the scale
Cronbach's alpha to test the reliability of the variables used to measure
each element of financial management. These variables can not guarantee the
reliability will be removed from the scale and will not appear in the factor
analysis.
3.2.2. Correlation coefficient and linear regression analysis
First of all, the correlation coefficient between the results for the financial
management elements of financial management will be considered. Next,
linear regression analysis using multivariate methods ordinary least squares
(ORDINAL Least Squares - OLS). Enter the variable selection methods were
conducted. Coefficient of determination adjusted R2 is used to determine the
suitability of the model. Finally, to ensure the reliability of the regression
equation is eventually built accordingly.

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CHAPTER 4: FINDINGS
4.1. An overview of the research data:
The author conducted 306 investigations SMEs. Among them, there are 50
private companies (16.3%), 105 Co., Ltd. (representing 34.3%) and 150 joint-
stock companies (49%).
Table 4.1: Disaggregation types of enterprises in the sample
Type of business

Frequency

Percent

Valid Percent
Cumulative
Percent
Valid

Công ty tư nhân 50
16.3
16.3
16.3
Công ty TNHH 105
34.3
34.3
50.7
Công ty cổ phần 150
49.0
49.0
99.7
Missing 1

.3
.3
100.0
Total 306
100.0
100.0

Source: Data analysis thesis
4.2. Analysis of the reliability and relevance of the scale
The scale reliability was tested using Cronbach's Alpha tool.
Reliability Statistics

Cronbach's
Alpha
N of
Items
.849

34

The test results are reliable with Cronbach's Alpha scale showing all
scales are theoretically allows achieving reliability. In the EFA analysis, the
authors extracted using Principal Component Analysis method with Varimax
rotation and stops when extracting factor eigenvalue greater than 1.
EFA analysis results showed that the coefficient of KMO (Kaiser-
Meyer-Olkin) = 0816 should be EFA consistent with the data. Chi-square
statistic of Bartlett expertise 4346.459 valued at 0.000 significance is thus
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observed variables are correlated with each other considering the overall
scope.

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.816
Bartlett's Test of Sphericity

Approx. Chi-Square 4346.459
df
561
Sig.
.000
4.3. The statistical analysis described
4.3.1 Selection and Training opportunities
SMEs have to draw up a DT project, using indicators such as NPV TC,
IRR, in the selection and decision-Tel. This is the best media manager Tel
decision correctly and gives businesses better business results. Investment
decision-making of enterprises based on the most up investment projects (data
in tables 4.4 and 4.5). Still many SMEs in Hanoi Tel decision not to consult
the original TC (see Table 4.6), with 34% of SMEs at the time did not refer
(as the casual), only 51% of enterprises Reference and Consultation
Committee comments critical to the investment decision of the business
owner.
4.3.2 Organization of raising capital
When businesses need capital to 33.3%, there is the use of equity (Table
4.11), inability to raise external capital. This is one of the weaknesses of
SMEs in the organization raise capital. Few businesses have to find ways to
raise capital loan heating (Table 4:13): only 11.5%. Meanwhile, 57.1% of
firms have to borrow money from banks (Table 4:14). This proves that the
access of SMEs which have been many changes in a good way. As many as
173 enterprises (accounting for 57.1%) was the capital of the bank loan when
in need of capital. (Table 4:14). Thus, the number of SMEs access to bank

loans increasing. This is a good sign for the mobilization of SMEs in
particular and the financial management of SMEs in general.
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4.3.3 Cost management and cost accounting
Most SMEs often informatics applications in financial management and
the most common applications is creation of financial statements. The
financial statements have been prepared and analyzed regularly. This
indicates that SMEs are interested in the methods of financial reporting and
the preparation of financial reports has become routine for most SMEs. 63.2%
of SME manufacturing costs classified according to the content of the
economic costs (Table 4:24). This classification clearly shows the cost of
labor and the labor of live animals in the entire production cost. This problem
is important and necessary to identify key cost management and check
balance with other plans, such as cost estimation, planning procurement,
financial plans,.
4.3.4 Distribution of profits and re-invest
Overall, profit distribution policy and reinvestment in SMEs have
different flexibility, depending on the situation of business connections.
Regarding the setting up of financial reserves: the setting up of financial
reserves in SMEs is a problem, a need for policy reserves set aside in each
SME financing for the prevention of financial risks business. Regarding the
setting up investment funds to develop, with: 48.8% DN not remitted funds
from development profit after tax; only 21.5% of firms remitted funds to
develop a minimum of 50% of profit after tax (Table 4:33).
4.3.5 Analysis and Financial Planning
The SME reporting and financial analysis of them based on financial
indicators, but not much (less than 50% of enterprises). This proves especially
SME enterprises in Hanoi has gradually standardizing financial management
of the business, come up with a business management apparatus finance all
the activities and specialization. Financial planning is also done SMEs all the

way.
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4.3.6. Capacity payments
71/306 SMEs always repay maturing debt, DN 20/206 was never paid on
the debt.
62/306 SMEs maintain its solvency ratio at current high levels.
4.3.7. Business capacity
SME 19/306 ratio Inventory turnover is low, 47/306 now maintain the
inventory turnover ratio at a high level.
28/306 SMEs maintain the average collection period at a high level,
25/306 now maintains the average collection period is low.
4.3.8. Weight capacity double capital
102/306 SME debt ratio at a reasonable level, 24/306 enterprises with high debt
ratios.
36/306 SMEs solvency ratio is low, 44/306 enterprises solvency ratio at a high
level.
4.3.9. Capacity to profit
95/306 SMEs achieve high ROA, ROA businesses 19/306 low, 191/306
firms averaged.
41/306 SMEs achieve high ROE, ROE businesses 143/306 low, 112/306
firms averaged.
140/306 SMEs have poor profitability, 42/306 enterprise profitability as
expected now.
4.4. Regression analysis correlation
4.4.1.
Regression analysis correlated with the dependent variable is the
capacity payment

Five factors include selections investment opportunities, capital raising
Organisation, cost management and cost accounting, profit distribution and

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reinvestment, and analysis and financial planning are intended impact
statistical significance to the payment capacity of the selected enterprises.
Specific independent variables could explain 68.1% of the group rate
variability indices capacity assessment payment; factors including cost
management and cost accounting have the greatest impact on the liquidity
index group (represented by the partial correlation coefficient is 0.245 the
largest).
4.4.2. Regression analysis correlated with the dependent variable is the
business capacity
Three factors including the Organization of raising capital, cost
management and cost accounting, profit distribution and reinvestment impact
significantly the capacity of business enterprises are selected. Option Two
factors are investment opportunities and analysis and financial planning no
statistically significant change in the activity index (Sig. Respectively in 0164
and 0825, greater than 0:05). Specifically, the model obtained can explain
56.5% of the variation in the capacity of business enterprises; Organizations
factors including capital raising biggest impact to the team performance
indicators (represented by the partial correlation coefficient is largest 0283).
4.4.3. Regression analysis correlated with the dependent variable is the
weight capacity for capital
Four factors include: Selecting Investment Opportunities, Mobilizing
capital, distribution of profits and reinvest, analysis and financial planning
and has significant impact on the statistical capacity of the capital balance
selected businesses. Factor cost management and cost accounting no
statistically significant change in the balance of capital capacity (Sig. Equal
0.290, greater than 0:05). Specifically, the model obtained can explain 71.3%
of the variation in capital balance capacity of the company; Analyze which
factors and financial planners have the greatest impact on the group balance
18

debt leverage index (shown by the partial correlation coefficient is maximum
0283).
4.4.4. Regression analysis correlated with the dependent variable is the
capacity to benefit
Three factors including cost management and cost accounting, profit
distribution and re-investment, planning and analysis and financial impact
brought significant benefit to the capacity of enterprises choice. Option Two
factors are investment opportunities and capital mobilization Organization no
statistically significant change to the benefit of the capacity of the selected
enterprises (Sig. Respectively by 0115 and 0999, larger 0:05). Specifically,
the model obtained can explain 52.8% of the variation in the capacity of
corporate profits; factors including cost management and cost accounting
have the greatest impact to the capacity of corporate profits is selected (shown
by the partial correlation coefficient is 0.407 the largest).
4.5. Synthesis of study results
4.5.1. The main findings from the statistical analysis described
- Selection of investment opportunities: SMEs have to draw up an
investment project, using the financial indicators such as NPV, IRR, in the
selection and decision making investment.
- To raise capital: When businesses need capital to 33.3%, there is to use
equity (Table 4:11), does not have the ability to raise outside capital.
- Cost management and cost accounting: Most SMEs often informatics
applications in financial management and the most common applications is
creation of financial statements.
- Profit distribution and reinvestment: In general, the division of profits
and re-invest in SMEs with different flexibility, depending on the situation of
business connections.
19
- Analysis and Financial Planning: The SME reporting and financial
analysis of them based on financial indicators, but not much (less than 50% of

enterprises).
4.5.2. The main findings from the regression analysis
This study indicates that the contents of financial management,
including: (1) Selection of investment opportunities, (2) Organization and
mobilization of capital, (3) cost management and cost accounting, (4 ) profit
distribution and reinvestment, and (5) analysis and financial planning are
linked and impact on financial results management.
Table 4:58: Summary of regression models obtained

Partial
correlation
coefficients
are not
standardized

Selection of
Investment
Opportunities

Organization
of raising
capital
Cost
management
and cost
accounting
Distribution
of profits
and re-
invest

Analysis
and
Financial
Planning
Capacity

payments

0.109 0.216 0.171 2.245 0.196 0.096
Business
capacity
0.578
0.044 0.283 0.282 0.132 0.095
Weight
capacity
double
capital
0.158 0.151 0.238
0.045 0.263 0.283
Capacity
to profit
-0.099 0.086 0.0008 0.407 0.269 0.133
Source: Data analysis thesis


CHAPTER 5
FINISHING SOLUTIONS FINANCIAL MANAGEMENT
AREAS OF SMEs IN HANOI
5.1. Basic view of the complete financial management of SMEs
20

SMEs play important role in socio-economic development of Vietnam.
So complete financial management of SMEs to help businesses with grave
financial good health and productive activities a good business is essential.
5.1.1. Completing the financial management of SMEs should comply with
the provisions of law
5.1.2. Completing the financial management of SMEs should implement
immediately, ensuring regular and legacy has agreed a short-term and
long-term
5.1.3. Perform a complete synchronization of content management and
finance towards priority
5.2. The view of the results of financial management of SMEs in Hanoi
Results of financial management of SMEs in the study were divided into 5
groups:
(1) A group of enterprises that do not meet certain criteria (DN 158) meant
that financial firms are poorly managed, are unprofitable, high risk of
bankruptcy. Enterprises need more effort, gradually turn focus to target
groups results management to achieve individual targets.
(2) Group 1 businesses achieve targets (53 enterprises) businesses of poor
financial management
(3) Group 2 businesses achieve targets (48 enterprises) business financial
management at an average
(4) Group 3 enterprises achieve the target group (2 firms): corporate financial
management is quite good
(5) For the 4 businesses achieve the target group (45 firms): the financial
management business achieved good results
5.3. Complete solutions for financial management of SMEs in Hanoi
21
The following measures are proposed from the research results were
presented in Chapter 4 and complete perspective on financial management,
the perspective of financial management results presented above:

- Group business does not meet (158 businesses) now synonymous with
poor financial management, are unprofitable, high risk of bankruptcy.
Enterprises need more effort, gradually turn focus to target groups results
management to achieve individual targets.
- Group 1 businesses achieve targets (53 enterprises) businesses of poor
financial management, enterprises should try to influence the quickest way
into the most powerful factor in the regression model obtained.
- Group 2 businesses achieve targets (48 enterprises) business financial
management at medium enterprises should try to influence the quickest way
into the most powerful factor in the regression model obtained .
- Group 3 enterprises achieve the target group (2 firms): corporate
financial management is quite good, need to maintain financial management
results and current solutions focus on target groups is weak, is the most
powerful factor in group performance indicators (such as regression models
presented) to result in financial management management business
expectations.
- For businesses achieve targets 4 groups (45 firms): the financial
management business achieved good results, it is necessary to maintain the
financial management activities to achieve the same goals of the business.
5.3.1. Improved capacity payment:

From the obtained regression model, can be seen 5 Selection factors include
investment opportunities, capital raising Organisation, cost management and
cost accounting, profit distribution and reinvestment, and Planning and
financial analysts will impact significantly on the capacity of the enterprise
payment choice. In that factor cost management and cost accounting have the
22
biggest impact on the capacity of the enterprise payment chosen, impact
factor second Selecting investment opportunities, and on to the Distribution
factors and reinvest profits.

Thus, the main business of the capacity payment, businesses should focus on
good 3 content has a major impact on capacity payments (in order of priority):
cost management and cost accounting, selection of investment opportunities,
profit distribution and reinvestment.
5.3.2. Improved business capabilities:
From the regression model, which can show 3 Organisation of factors
including capital raising, cost management and cost accounting, profit
distribution and reinvestment can impact significantly the capacity of business
of the selected enterprises. Organizations that factors in raising capital have
the greatest impact to the business capacity of the selected enterprises.
Thus, the main business of business capacity, should now focus on
doing good 3 content (in order of priority ueu): Organization and mobilization
of capital, cost management and cost accounting, profit distribution and
reinvested earnings.
5.3.3. Improved capacity capital balances:
Obtained regression model, with 4 Selection factors include investment
opportunities, capital raising Organization, Distribution and reinvest profits, planning and
financial impact analysis and statistical significance to balance the capacity of businesses
which are selected. In which factors Planning and Financial Analysis greatest impact to
capital balance capacity of selected businesses.
Thus, while weak business capital balance capacity, businesses should focus on
good 3 content (in order of priority): Analysis and Financial Planning, Distribution and
reinvest profits, The raising more funds.
5.3.4. Improved capacity to benefit:
Obtained regression model, there are 3 factors including cost
management and cost accounting, profit distribution and reinvestment, and
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planning and financial analysis of impacts to significant energy profitability
of its businesses are selected. In that factor cost management and cost
accounting have the greatest impact to profitability capacity of selected

businesses.
Thus, the weak corporate profits capability, enterprises should focus on
doing good 3 content (in priority order): cost management and cost
accounting, profit distribution and reinvestment, analysis and financial
planning.


CONCLUSIONS AND RECOMMENDATIONS
1. Conclusion
The subject of active research for financial management of small and
medium-sized enterprises. In particular, five key elements to the process of
financial management to achieve corporate goals (maximizing asset to the
owner): choice of investment opportunities, capital raising organization,
management cost management and cost accounting, financial analysis and
financial planning, profit distribution and reinvestment. To evaluate the
results of the financial management of small and medium enterprises, the
author will examine the relationship and influence of the 5 groups of factors
are (1) the choice of investment opportunities, (2) mobilize capital, (3) cost
management and cost accounting, (4) the distribution of profits and reinvest,
(5) analysis and financial planning and evaluation of the firms in the sample
selection ways to save on 4 groups: (1) the liquidity ratio (rated capacity
payments), (2) the performance indicators (capacity assessment of business),
(3) the leverage ratio - debt balance (balance of capacity assessment of
capital), and (4) the index of profitability (profit capacity assessment).
Topics 3 answer key research questions and hypotheses 5. To perform the
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statistical analysis of collected data, SPSS 16.0 software was used to test the
reliability of the scale and perform statistical inference.
The study results were obtained 5 regression model.
2. Limitations of the thesis and recommendations for further research

Due to the limitations of financial resources and human resources, this
study can only be achieved sample size is 306, therefore, a need for studies
with larger sample size for this topic because the sample size as large, the
accuracy of the higher studies.
One other limitation of this research is the survey subjects were limited
by business owners or managers of corporate finance. The questionnaire was
designed to answer the self-assessment of effective control the financial
management of their businesses will be limited by the subjectivity of the
respondents (the financial manager or business owner). Therefore, to ensure
accuracy of data, research needs to be done simultaneously with the
quantitative data. But also note that the analysis and evaluation indicators
such as ROA, ROE of SMEs will face many difficulties.
This study is limited by objects including joint stock companies, limited
liability companies and private enterprises with fewer than 300 employees
and less than 100 billion capital and geographical scope is the capital Hanoi.
Therefore, a need for research on the financial management of SMEs in
specific sectors such as trade in services, industry and construction,
agriculture, forestry and fisheries.
As mentioned at the beginning of this study, the ultimate goal of
business is to maximize asset value for owners. Good financial management
is probably just one of the ways to achieve this and only study of financial
management is not enough. Need research on factors affecting business
performance, affect profits, affect the capital structure of the business