Female entrepreneurs' motivations, problems, and success factors: Evidence from Vietnam

Vietnam has experienced remarkable economic growth since it adopted the economic reform policy known as “Doi Moi” in 1986. The transition from a centrally planned economy to a market oriented economy has been accompanied by a thriving market of private enterprises. It is estimated that around 25 percent of enterprise owners in Vietnam are women and the percentage of women-owned enterprises will reach 30% in 2015. Women enterprises contributed significantly to the job creation and economic growth in Vietnam.

Objectives: Existing literature on Vietnamese women entrepreneurs mainly focuses on the barriers and difficulties they face in doing business. This study takes a broader perspective and examines key areas of motivation, success factors and problems related to women entrepreneurship in Vietnam. It provides insights into the current status of women entrepreneurs and their needs. The findings will help policy makers build a support system for the development of women entrepreneurship.

Methods: One hundred and seventy women entrepreneurs in Binh Duong and Binh Phuoc provinces located 30 and 50 miles respectively from Saigon, Vietnam were randomly selected for this study. The survey instrument used in this study is composed of 26 questions and divided into several categories, such as business characteristics, motivations, success factors, and problems encountered by entrepreneurs. These variables were measured using a Likert Scale ranging from a low of 1 to a high of 5.

Results: Findings show that the two most important reasons for business ownership are to increase income and to be one’s own boss. Friendliness to customers and good location, however, are considered the leading factors for business success. The most critical problems encountered by Vietnamese women entrepreneurs are reported to be competition and the inability to attract and retain high quality employees. The entrepreneurs also report a low level of business related stress.  A majority of them felt that they received little support from their family and friends in their endeavors.  Results of the factor analysis suggest that women entrepreneurs would benefit from government support and financial market liberalization.