The impact of microfinance on the development of Vietnamese small enterprises

Ngo Sy Trung (), Nguyen Duc Hai (), Nguyen Van Tuyen (), Le Thi Bich Thao () and Tran Vinh Hoang ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 2, 1062-1069

Abstract: In developing countries, microfinance has affirmed its role as an important tool to promote the development of small businesses, helping them overcome initial financial difficulties by providing small loans with easy conditions, thereby creating opportunities for small businesses to develop production and operations. In general, microfinance not only provides capital (finance) but also enhances the capacity of small businesses through consulting, training, and technical support services (non-financial). In this study, the author focuses on analyzing the role of microfinance in promoting small business development through financial and non-financial support. The research model is built with 3 scales: Small Business Development; Financial Services; Non-Financial Services. The author conducted a survey in 3 provinces representing three regions of Vietnam, including Bac Ninh province (North), Quang Nam province (Central), and Binh Duong province (South). The survey subjects are small business managers, with a sample size of N = 240 people. The research results continue to confirm the role of microfinance in promoting small business development through financial and non-financial support measures; microfinance promotes small business development but tends to provide more financial support. Non-financial support is more limited, while non-financial support has an impact on long-term development, realizing the long-term goals of small businesses. From the results of this research, the author discusses policy solutions to further promote the role of microfinance in helping small businesses receive both financial and non-financial support to achieve sustainable development goals.

Keywords: Developing small enterprises; Financial services; Microfinance; Non-financial services; Vietnam. (search for similar items in EconPapers)
Date: 2025
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