Workers at Thanh Hoa Company in northern Ninh Binh Province make handicraft items for export. — VNA/VNS Photo Dinh Hue

HA NOI (Biz Hub) — Small enterprises can succeed if the leaders adopt clear business strategies and show self-confidence, stated Central Institute for Economic Management (CIEM) former director Le Dang Doanh.

This was reported by Viet Nam Economic News yesterday.

According to data furnished by the General Statistics Office in January 2014, Viet Nam had 6,900 newly-established enterprises, which is a 15.7 per cent increase in the number of enterprises.

However, registered capital only reached VND43.7 trillion (US$2.08 billion), an increase of 11.5 per cent as compared to December 2013. The number of newly-established enterprises increased more as compared to the registered capital.

Viet Nam had 76,955 newly-established enterprises in 2013, an increase of 10.1 per cent as compared to 2012.

However, registered capital only reached VND398.7 trillion ($18.98 billion), a decline of 14.7 per cent as compared to 2012.

General Statistics Office General Director Nguyen Bich Lam remarked that if the average capital size of a newly-established enterprise reached VND6.68 billion ($318,090) in 2012, its figure declined to VND5 billion ($238,095) in 2013.

It is widely believed that the production activities and competitiveness capacity of newly-established enterprises were estimated to have worsened. However, according to Le Dang Doanh, a small enterprise with small capital can compete with large enterprises. If leaders focus on researching the market, techniques and technology, and stay away from pursuing immediate profits, they can achieve success. In addition to indulgence, entrepreneurs need to show self-confidence to start a new business.

Doanh also said that in 2013, many Vietnamese enterprises faced bankruptcy or halted their operations, while some enterprises still strongly developed, such as Minh Long Ceramics , and the Rang Dong Light Source and Vacuum Flask Joint Stock Company.

They are not huge businesses, but with creativity, they have made outstanding achievements in business and production activities. In February 2014, Minh Long Ceramics received an award by the Minister of Science and Technology.

Doanh also advised leaders to show self-confidence, strength, and intelligence. In particular, leaders should focus on researching the market to create necessary goods serving consumer demands.

In addition to self-confidence, strength, and intelligence, entrepreneurs need to take care of their staff, which will contribute to ensuring better living conditions for them.

Entrepreneurs need to learn from the experiences of the older generations and make a profit to help enterprises, in general, and staff, in particular, to overcome difficulties.

"If entrepreneurs take care of their staff, they can achieve success," Doanh noted.

Another important issue to help small enterprises in achieving success is to have awareness of their position and spending.

Phu Thai Group Chairman of the Board of Directors Pham Dinh Doan emphasized that young entrepreneurs should stay away from pursuing immediate profits. — VNS