Performance Measurement that Affects SMEs Business Profits: Case Study of SMEs in Khon Kaen Province

This study aims to measure performance measurement related to business profi ts of small and medium-sized enterprises (SMEs). The study was conducted by using self-administered questionnaires which were distributed to a sample group of 400 SME entrepreneursin Khon Kaen Province, in the north-eastern region of Thailand. The data was analyzed using SPSS, in regarding with chi-square test, and multinomial logistic regression. By using the multinomial logistic regression, it shows that this method is able to predict the performance measurements related to business net profi ts of SMEs with an accuracyof 51.3%. It was found that, there are two factors, time and fi nance, signifi cantly aff ecting business profi t based on the results of the multinomial logistic regression models. As a result, performance measurement related to business profi ts of SMEs shows that SMEsentrepreneurs should focus on time and fi nancial factors. It could aff ect business profi ts at a high net of 15% or more. It can be concluded that SMEs can obtain a higher possibility of net profi t if the performance measurement is taken into account in those businesses