Factors Influencing SME Survival and Adaptation in the Post-COVID-19 Era: Case Study in Luang Prabang City, Lao PDR

Abstract

This study examines the factors influencing the survival and adaptation of small and medium-sized enterprises (SMEs) after the spread of COVID-19 in Luang Prabang City, aiming to: 1) examine entrepreneurs' opinions on the importance of factors influencing survival and adaptation outcomes, and 2) examine the relationship between these factors and SME survival and adaptation outcomes after the COVID-19 pandemic in Luang Prabang City. Data were collected through a cross-sectional survey using questionnaires and structured interviews from 368 business operators, selected through stratified random sampling by business size, and analyzed using frequency, percentage, mean, standard deviation, and multiple regression analysis at a significance level of α = 0.05. Overall, internal factors were rated at a high level (mean = 3.95, SD = 0.36), led by organizational management, followed by marketing, finance, and lastly information technology. External factors were also rated at a high level (mean = 3.78, SD = 0.31), led by culture and society, followed by government policy, technology and innovation, and lastly the economy. At the 0.05 significance level, six factors significantly predicted survival and adaptation outcomes: management, marketing, government policy, economic, socio-cultural, and marketing-promotion factors, with management and marketing emerging as the strongest predictors. These findings offer evidence for policymakers to design more effective SME recovery strategies.