Local Business Environment – Theory, Practice: Case Study in Thanh Hoa Province

The prevailing business environment in a region or locality has a significant impact on the performance of businesses in that region or locality. A healthy business environment can not only enhance the growth and success of businesses, but also enhance their ability to sustain and develop sustainably in the locality. The literature review shows that a small number of empirical studies have examined the local business environment. This study attempts to highlight the factors that make up the business environment in provincial localities, as well as clarify the level of satisfaction that entrepreneurs themselves receive from them. For the purpose of the survey, information was provided by 156 entrepreneurs from Thanh Hoa province, who assessed the level of improvement in the local business environment using a 5-point Likert scale, a type of personal interview scale. Principal component analysis of 6 factors showed that factors related to the economic environment, local legal and institutional environment were assessed to have a higher level of influence on improving the local business environment than the group of factors related to the local science, technology and socio-cultural environment.