Central Institute for Economic Management (CIEM) former Director Le Dang Doanh said that small enterprises could achieve success if leaders adopt clear business strategies and show self confidence, the Vietnam Economic News reported on March 10.

According to the General Statistics Office’s data, in January 2014, Vietnam had 6,900 newly-established enterprises, an increase of 15.7 percent of the number of enterprises.

However, registered capital only reached 43.7 trillion VND, an increase of 11.5 percent compared to December 2013. The number of newly-established enterprises increased while registered capital reduced.

According to the General Statistics Office’s data, in 2013, Vietnam had 76,955 newly-established enterprises, an increase of 10.1 percent compared to 2012.

However, registered capital only reached 398.7 trillion VND, a decline of 14.7 percent compared to 2012.

General Statistics Office General Director Nguyen Bich Lam said that if the average capital size of a newly-established enterprise reached 6.68 billion VND in 2012, its figure declined to 5 billion VND in 2013.

Many ideas showed that production activities and competitiveness capacity of newly-established enterprises were estimated to be worsened. However, according to Le Dang Doanh, a small enterprise with small capital could compete with large enterprises. If leaders focus on researching the market, techniques and technology and staying away from pursuing immediate profits, they can achieve success. In particular, in addition to indulgence, entrepreneurs need to show self confidence to start up a business.

According to Le Dang Doanh, in 2013, many Vietnamese enterprises bankrupted or halted operation 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 the 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.

Le Dang 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 staff, contributing to ensuring better living conditions for them.

Entrepreneurs need to learn experiences from older generations and make a profit to help enterprises in general and staff in particular overcome difficulties. “If entrepreneurs take care of their staff, they can achieve success,” Le Dang Doanh said.

Another important issue to help small enterprises achieve success is aware of their position and spending. Phu Thai Group Chairman of the Board of Directors Pham Dinh Doan said that young entrepreneurs should stay away from pursuing immediate profits.-VNA