Impacts of the business size on the profit of enterprises in the Mekong delta

Abstract

The paper aims to investigate impacts of the business size on the profit through primary data collated from 495 enterprises randomly chosen in the Mekong Delta. As the results indicate, the profit depends on the business size in the form of a cubic function. Additionally, the ratio of current assets to sales, the sales growth rate, the human resource quality, and the manager?s attitude towards risks have positive relations with the profit. By contrast, the competitiveness responds negatively to the profit. Especially, impacts of unofficial costs on the profit are the ?-shape of the square function. Based on estimates, some recommendations to enhance the profit are also provided.