Microfinance Promotes Development of Vietnamese Small Enterprises

Abstract

Microfinance is a tool to promote the development of small enterprises, helping them overcome initial financial difficulties with loans - financial support, with easy conditions and other non-financial support such as consulting, training, technical support to develop production and business. This study analyzes microfinance in the role of promoting the development of small enterprises in the form of financial support and non-financial support. Based on the theoretical framework developed, the author surveyed 300 managers of 150 small enterprises in 3 provinces of Vietnam, including Lang Son province (North), Quang Ngai province (Central), Tay Ninh province (South). The research results show that microfinance promotes the development of small enterprises in Vietnam, but mainly financial support, limited in the aspect of non-financial support, while non-financial support has a long-term impact, realizing the strategic goals of small enterprises. From the research conclusion, the author discusses policy solutions to promote the overall role of microfinance for the sustainable development of small enterprises.