Author(s): Nguyen Phan Thu Hang
The widespread of Covid-19 and economic uncertainties have brought many challenges to society and enterprises. In addition to the impact on people, Covid-19 has been rapidly causing disruptions in business and consumption. Besides, business efficiency is always the top concern of every business because business efficiency reflects the ability to combine inputs, minimizing operating costs and interaction to achieve profit goals. Thereby, business efficiency will reflect the leader’s ability to perform the enterprise’s leadership function, use resources to accomplish goals, and complete the highest efficiency in business activities. Businesses are constantly improving business efficiency, especially in the context of increasingly fierce global competition today. Therefore, the paper aims to find out how management skills impact the business efficiency of small and medium enterprises (SMEs) in Ho Chi Minh City. The author surveyed 700 managers related to SMEs and applied structural equation modeling (SEM). The findings of the paper had the management skills affected business efficiency with 1% significance. Based on the results, the author gave several recommendations to improve business efficiency at SMEs.