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Social Capital, Credit Choices And Growth In Vietnamese Household Businesses

Author

Listed:
  • PHUOC VU HA

    (University of Economics, The University of Danang, Vietnam, 71 Ngu Hanh Son Street, Danang 550000, Vietnam)

  • MICHAEL FRÖMMEL

    (Department of Economics, Ghent University, Belgium, Sint-Pietersplein 5, 9000 Ghent, Belgium)

Abstract

The study provides the impact of social capital on credit choices and growth of household businesses in Vietnam by using a data sample of 3,813 observations. Social capital is considered at different levels: micro for human capital and macro for social networks. It concludes that although both levels of social capital influence credit choices of household businesses, the micro level of social capital plays an important role in improving the household business’s growth, including asset and income growth. The study develops a broader view about the use of resources and financing choices in household businesses in Vietnam. Accordingly, it highlights the importance of social capital from multiple aspects — the household business itself, human capital, social networks and government — on the development of Vietnamese household businesses.

Suggested Citation

  • Phuoc Vu Ha & Michael Frömmel, 2019. "Social Capital, Credit Choices And Growth In Vietnamese Household Businesses," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-19, September.
    • Handle: RePEc:wsi:jdexxx:v:24:y:2019:i:03:n:s1084946719500171
    DOI: 10.1142/S1084946719500171
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    2. Li, Qinghai & Yu, Yangcheng & Li, Yanru & Sun, Guanglin, 2023. "Heterogeneous Social network shape ability and willingness of rural residents to repay loans in China," Research in International Business and Finance, Elsevier, vol. 65(C).

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