ENTREPRENEURIAL TRAITS AS CATALYSTS FOR PRIVATE ECONOMIC DEVELOPMENT: INSIGHTS FROM VIETNAM

This study investigates the factors influencing private economic development in Vietnam and examines the moderating role of entrepreneurial traits. Using Partial Least Squares Structural Equation Modeling on data from 1,060 private enterprises across three regions, we find that market conditions, preferential policies, human resources and institutional quality positively affect private economic development, whereas input costs have a negative effect. Notably, entrepreneurial traits significantly moderate the relationships between infrastructure, market conditions, media and private economic development. The model explains 48.8 percent of the variance in private economic development, highlighting the complex interplay between entrepreneurial characteristics and the business environment. This research contributes to the literature by providing a comprehensive understanding of private sector development drivers in emerging economies and underscores the critical role of entrepreneurial traits in moderating the effect of economic and institutional factors. The findings offer valuable implications for policymakers and entrepreneurs in fostering private sector growth.