The Entrepreneur Characteristics and Business Innovation Effect on Business Success of Small and Medium Enterprises of Product Manufacturing Business in the Upper Northeastern Region

Abstract

This research consists purposes were 1. to examine the influence of entrepreneurial characteristics on the operational success of small and medium-sized enterprises (SMEs) in the manufacturing sector in the Upper Northeastern region of Thailand and 2. to investigate the influence of business innovation on the operational success of SMEs in the same region and sector. This was a quantitative research and the research instrument used was a questionnaire. The sample consisted of 351 SME entrepreneurs in the manufacturing sector located in the Upper Northeastern region. The sample size was determined using Taro Yamane’s formula (1973) with a margin of error of 0.05 and selected through stratified random sampling. The data collected from the questionnaires were analyzed using descriptive statistics, including percentage, mean and standard deviation Additionally, the data were analyzed using multiple regression analysis with the Ordinary Least Squares (OLS) technique. The findings revealed that 1) Entrepreneurial characteristics, including creativity, perseverance, innovativeness, and technical skills, have a statistically significant positive influence on the operational success of small and medium-sized enterprises (SMEs). However, the characteristic of risk-taking does not show a statistically significant positive influence. This reflects the unique traits of entrepreneurs in the Upper Northeastern region of Thailand, who tend to emphasize business stability and 2) Business innovation (IB) has a positive influence on business success (BS) (β = .12, p < 0.01). The adoption of new ideas within the organization helps enhance operational efficiency and contributes to greater overall success.