Improving the efficiency of capital mobilization channel for small and medium enterprises

Abstract

Small and medium-sized enterprises (SMEs) plays important role in sustainable socio-econmic growth of Vietnam. However, the development of SMEs have often faced with many difficulties and challenges from economic changes and its competition, especially from raising capital. This comes from the nature of the SME business with potentially risky in term of low capital scale, backward technology level, weakness of corporate governance, accordingly lack of ability to resis shocks of poor economic performances. The results of the analysis of capital channel for SMEs hav been pointing out advantages and disadvantages of each channel and the SMEs’ limitation as well in accessing external capital, which make recommendations to improve the efficiency of capital mobilization for SMEs.