Financial Liquidity Risk Affects Potential of Small and Medium Enterprise (SMEs) of Service Business in Nonthaburi

Abstract

         This research aims to 1) study the factor elements of financial liquidity risk affecting the potential of Small and Medium Enterprise (SMEs) in service business in Nonthaburi province, and 2) examine the confirmatory factors of the financial liquidity risk that affect the potential of Small and Medium Enterprise (SMEs) in service business in Nonthaburi province. The research sampling was a simple random sampling. The item-objective congruence (IOC) index was 0.784, and the reliability value was 0.945. The results of the research found that Small and Medium Enterprise (SMEs) in service business in Nonthaburi was at financial liquidity risk in term of economic fluctuation ( = 4.513, S.D.= 0.634), followed by working capital requirements risk ( = 4.492, S.D.= 0.714), working capital management ( = 4.233, S.D.= 0.826) and finally, the source of fund for short-term loans and other sources of funds risk ( = 4.204, S.D.= 0.810), respectively. The research also found that the congruent index with the empirical data was c²= 176.489, df= 101, c²/df = 1.7474, p-value = 0.065, RMSEA = 0.034, SRMR= 0.029, GFI = 0.990, AGFI = 0.993 meaning the model was consistent with empirical data.