Evaluation of capital accessibility of small and medium enterprises in Nghe An

Abstract

In the competitive market economy, capital accessibility is of great importance for the success of a business. This paper is concerned with the capital accessibility of 189 small and medium enterprises in Nghe An province. The key issues being studied involve (i) capital accessibility of small and medium enterprises in Nghe An at present; (ii) evaluating the difficulties in accessing to capital sources. The findings show that small and medium enterprises in Nghe An experience considerable difficulty in accessing to capital. The capital sources for these enterprises are mainly from domestic commercial banks. The paper also suggests solutions to improve capital accessibility for small and medium enterprises in Nghe An, including: (1) making transparent the enterprises’ accounting and financial system and activities; (2) Encouraging the development of business property appraisal services; (3) providing financial supports via the credit guarantee fund model; (4) managing the interest-rate risks to improve the credit capital accessibility; and (5) promoting managerial skill training activities for small and medium enterprises.