Legal situation of capital support for youth entrepreneurs through the credit guarantee funds

Abstract

In the current phase, start-up businesses have been affirming their development potential with a substantial role, especially youth-owned start-ups. In particular, capital is consistently a prerequisite, influencing the feasibility and success of start-up businesses. Though, youth-owned businesses always face many potential risks, which inevitably lead to certain difficulties in the process of raising capital. Thereby, there is undoubtedly an urgent need to support capital mobilization for these start-up projects. In which, raising capital through credit guarantee funds is one of the effective methods to solve the capital needs of these businesses. The article presents an overview and the role of credit guarantee funds as well as the current law on supporting capital for youth entrepreneurs through credit guarantee funds. Thereby, the article points out the limitations of the current law, simultaneously proposes several solutions to improve the efficiency of capital support activities for youth-owned start-ups through credit guarantee funds.