Vietnam is a country with a rapidly growing business landscape, home to over 500,000 companies, with a staggering 98% being Small and Medium Enterprises (SMEs). These businesses collectively contribute a substantial 40% to Vietnam’s GDP and provide jobs for around 77% of the nation’s workforce. That’s a lot of economic muscle! But what does it take to steer these SMEs toward success? This is a question that often goes unanswered, especially when it comes to emerging markets like Vietnam.
Amidst the limited research focusing on Vietnamese entrepreneurship, a particular sector caught our attention – the public relations industry. This field is relatively new in Vietnam, having only been recognized for the past two decades. With a growing demand for public relations services, both domestic and international agencies have started to make their mark in Vietnam. So, what’s the deal with public relations startups in this dynamic market? Should you seek more details, you can download the original research article of this post here.
Getting to Know the Entrepreneurs
Our recent study aims to uncover the traits, motivations, and roles of founders in Vietnamese public relations companies during the crucial growth stage. We wanted to understand what drives these entrepreneurs and what decisions they make as their businesses expand. Here’s what we found:
Roles During Growth
As these companies take flight and navigate the challenging growth stage, entrepreneurs wear many hats. They are both senior public relations practitioners or consultants and businesspeople. Most founders find managing the company more demanding than working directly with clients, with tasks like staff recruitment, development, and retention proving to be the most challenging. It’s no surprise that they regard human resource skills as essential.
Finding new clients is also a top challenge. Since these agencies often start small with limited capital, competing for new clients is a constant struggle. Despite these challenges, founders tend to keep their roles consistent, even as their businesses grow. They continue to be involved in all aspects of their business and make the final decisions. In this industry, it’s common for the founders to be the executive managers, leading to smaller, boutique agencies with fewer than 50 employees. Most founders prefer a moderate pace of growth over rapid expansion.
Developing Managerial Skills
To thrive during the growth stage, founders must develop managerial capabilities. While there’s no consensus on the traits needed to control a company, determination and self-trust were highlighted. In terms of skills, there is a strong emphasis on business-related skills like management, human resources, and finance. These skills are seen as critical for handling the various challenges that emerge during the growth phase. Additionally, strategic thinking, consulting skills, and negotiation skills are also key components.
Motivations and Control
Entrepreneurs’ motivations vary, with some taking the opportunity as it arises, while others look for more challenges by starting their own business. Interestingly, none of the participants initially set out to pursue control or high growth when they started their businesses. The study involved two groups of participants: one that retained control during the growth stage and one that released some control. Surprisingly, there was no significant difference in their motivations.
The Bigger Picture
This study reveals that entrepreneurs in the Vietnamese public relations industry spend more time managing their companies than working with clients, necessitating the acquisition of managerial skills. It’s a common challenge to find the right candidates to delegate to, which leads many founders to keep tight control. The preference here is for moderate growth to maintain stability and manageability.
So, what can we take away from this research? Well, it provides a valuable insight into Vietnamese SMEs and entrepreneurship, especially in the public relations sector. This knowledge could be a game-changer for entrepreneurs and industry practitioners. With a better understanding of the motivations, roles, and challenges faced by startups in different sectors, business owners can make informed decisions to navigate their growth journey effectively.
In a nutshell, understanding entrepreneurship in emerging markets like Vietnam can offer new opportunities for businesses to thrive and contribute to national and global economies. This research not only expands the body of knowledge but also empowers industry practitioners to make informed decisions. Public relations firms, in particular, can avoid pitfalls and adapt to industry best practices. So, here’s to more success stories in Vietnam’s public relations industry!
Reference
Ly-Le, T. M. (2021). Small business entrepreneurship in Vietnam: The case of the public relations industry. DeReMa (Development Research of Management): Jurnal Manajemen, 16(2), 145-157. https://doi.org/10.19166/derema.v16i2.3760