Solutions for building corporate culture in small and medium-sized enterprises in Thanh Hoa City today.

Small and medium-sized enterprises (SMEs), which account for 97% of businesses in Thanh Hoa City, are currently facing numerous challenges in building corporate culture. However, with flexibility and the ability to communicate directly, SMEs can create a strong corporate culture by defining core values, communicating transparently, and encouraging innovation.

The "Red Star Roundtable" program, themed "The Mission of Entrepreneurs," was organized by the Thanh Hoa City Business Association on the evening of November 30, 2024. Photo: Archival material.

Thanh Hoa City is the economic , cultural, and social center of Thanh Hoa province. In recent years, the city has consistently ranked first in the province in the number of newly established businesses. From 2021 to the present, the city has established 6,519 new businesses, exceeding the target set in Resolution 05-NQ/TU (6,500 businesses). Nearly 20,000 businesses have registered in the city, of which 9,328 are currently operating, with small and medium-sized enterprises (SMEs) accounting for nearly 97% of the total number of businesses.

Small and medium-sized enterprises (SMEs) play a crucial role in the city's economic development. Their small size in terms of capital and personnel allows them to maintain high flexibility and easily adapt to market changes thanks to their streamlined decision-making processes. The relationship between leaders and employees is often close, facilitating direct communication, but access to resources and technology is limited, making investment in innovation and human resource development challenging.

SMEs often focus on niche markets or local customers, where they can differentiate themselves, but face challenges in retaining talent due to limited benefits and development opportunities. However, with a strong entrepreneurial spirit and creativity, SMEs are always ready to experiment with new ideas, clearly demonstrating flexibility and enthusiasm in their business operations.

To improve business efficiency, it is essential to build and develop a positive and strong corporate culture. However, the current implementation of corporate culture in SMEs in the city still faces many challenges and limitations.

Due to their small size, these businesses often focus primarily on maintaining operations and short-term growth, neglecting the development of corporate culture. Internal communication in many SMEs lacks transparency and effectiveness, leading to untimely and incomplete information dissemination.

Furthermore, due to limited financial resources, training, personnel development, and employee welfare policy development are often under-invested, making it difficult to retain employees and build long-term commitment.

However, some businesses have recognized the importance of corporate culture and are striving to build an open, flexible, and innovative work environment to gain a competitive advantage in a volatile market.

In particular, it is important to recognize that SMEs have many unique advantages in building corporate culture.

With their compact size and simple organizational structure, SMEs can easily adjust their core values and cultural policies to suit local realities. Direct communication between leaders and employees facilitates quick and effective dissemination of cultural messages, creating a close-knit and friendly work environment.

Furthermore, flexible management allows SMEs to quickly experiment with and implement new ideas, creating an environment that encourages innovation. A strong entrepreneurial spirit from leaders often spreads to all employees, helping to build a culture of unity and shared goals.

These factors give SMEs an advantage in building a distinctive corporate culture and adapting easily to market changes.

Solutions for building corporate culture in small and medium-sized enterprises in Thanh Hoa City today.

Members of the Association visited and experienced products displayed at the Hai Tien tourist market (Hoang Hoa). Photo: Archival material.

Based on the above advantages and challenges, several solutions can be applied to improve the effectiveness of building corporate culture in SMEs in Thanh Hoa City.

First, clearly define your vision, mission, and core values.

SMEs need to build and communicate core values that align with the company's development goals. These values not only guide daily operations but also help all employees understand and wholeheartedly pursue common goals, creating a solid foundation for corporate culture.

Secondly, promote transparent and effective communication.

Internal communication plays a crucial role in building culture. SMEs need to create an open, transparent communication environment where information is clearly shared between leaders and employees, helping to strengthen engagement and minimize misunderstandings at work.

Thirdly, continuous training and development of personnel.

To build a culture of learning and innovation, SMEs need to focus on investing in training programs for their employees. Developing professional skills and leadership capabilities helps improve the quality of human resources and fosters a sense of belonging between employees and the organization.

Fourth, encourage creativity and innovation.

A successful corporate culture is always linked to innovation. SMEs need to encourage employees to contribute new ideas and experiment with initiatives at work. This helps the company adapt flexibly to the market and maintain competitiveness.

Fifth, create a friendly and flexible work environment.

A harmonious, friendly, and flexible work environment is crucial in building a positive culture. SMEs should create a comfortable working environment for employees, encourage creativity and collaboration between departments, thereby improving work efficiency and employee satisfaction.

Thus, building a corporate culture in small and medium-sized enterprises (SMEs) in Thanh Hoa City plays a crucial role in the city's sustainable development. Despite facing many challenges, SMEs have the advantage of flexibility and direct communication. Clearly defining core values, promoting transparent communication, investing in personnel training, encouraging innovation, and building a friendly work environment will help SMEs create a strong culture, improve work efficiency, and maintain a competitive advantage.

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