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http://dx.doi.org/10.13106/jafeb.2022.vol9.no1.0353

The Impact of Capital on Growth of Small and Medium Enterprises: Evidence from Vietnam  

HA, Van Dung (Faculty of International Economics, Banking University of Ho Chi Minh City)
NGUYEN, Van Tung (Faculty of International Economics, Banking University of Ho Chi Minh City)
DANG, Truong Thanh Nhan (Faculty of Business Administration, Banking University of Ho Chi Minh City)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.1, 2022 , pp. 353-362 More about this Journal
Abstract
Small and medium businesses (SMEs) play a critical role in the economy, yet they are plagued by a shortage of finance. Determining the influence of cash sources both inside and outside the firm is critical to the company's survival and growth. As a result, the purpose of this research is to determine the impact of capital on the growth of SMEs in Vietnam. The key factors of this research are equity and liabilities, which are two proxies for a firm's capital. The data is based on the results of a survey conducted every two years from 2005 to 2015, which included over 2,600 SMEs in 20 processing and manufacturing industries in ten provinces and cities, including Hanoi, Hai Phong, Ho Chi Minh City, Ha Tay, Phu Tho, Nghe An, Quang Nam, Khanh Hoa, Lam Dong, and Long An. The findings show that characteristics such as equity capital, total workforce growth rate, and male entrepreneurs have a positive impact on enterprise growth, whereas liabilities, firm age, and export have a negative impact on enterprise growth. The study has demonstrated that equity has a positive impact while liabilities have a negative impact on the growth of Vietnamese SMEs.
Keywords
SMEs Growth; Equity; Liability; Bayes; Vietnam;
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Times Cited By KSCI : 3  (Citation Analysis)
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