Factors influencing small and medium enterprises access to finance in vietnam using logit model

Abstract

Because of their GDP outputs and employment generation, SMEs has the important function in Vietnam. Nevertheless, SMEs in Vietnam still had the challenges to access the credit loan. The study explores the effect of firm's innovation and firm's characteristics on the access of credit in SME firms. A Logit model was conducted to conclude these relationships based on 195 enterprises across seven regions in 2005, 2007, 2009, 2011, 2013, and 2015. These findings indicate that business characteristics and business innovation are important factors of accessing credits