Impact of microfinance on microbusiness development in Vietnam
Keywords:
micro business microenterprise, microfinance, development, performance.
Abstract
The paper aims to analyze impact of microfinance in particularly microcredit on the development of microbusiness in Vietnam. Using GLS (generalized least squares) method and survey data of microbusiness across 8 provinces/ cities in Vietnam, the research findings reveal that microcredit has positive effect on profit and productivity of microbusiness, however the level of effect is different across business sectors and geographic areas. Besides, the paper shows that business skill training has not shown clear impact on microbusiness performance.