The ability to access credit capital of small and medium enterprises in Binh Duong Province

Abstract

The study evaluated several factors affecting the ability to access credit capital of small and medium enterprises in Binh Duong province. Through survey data from 450 enterprises, the authors analyzed several factors, including enterprise capacity, social relations of enterprises, business plans, financial statements of enterprises, institutional quality, ability to adapt to risks of enterprises, banks, and credit institutions, and entrust loan organization. The results show that, in addition to businesses needing to improve their internal capabilities, they need to improve the support from banks, credit institutions, and entrust loan organizations that could help enterprises to access formal credit.