Impacts of Micro Financing on the Sustainability of Entrepreneurs in South Korea


  • Toyun Kim Kratzer Seoul National University
  • Cheong Gim Liu Seoul National University
  • Hajun Choi Heo Seoul National University



Entrepreneurs boost employment development by creating new opportunities once they get into the market. Entrepreneurs are essential for several economies all over the world. Hence, the study sought to examine the impact of microfinancing on the sustainability of entrepreneurs in South Korea. The research employed a descriptive research design. The target population was small-scale entrepreneurs and microfinance institutions in Seoul City in South Korea. The data was analyzed utilizing both descriptive and inferential statistics. The study findings indicated that microfinancing has a positive impact on the sustainability of entrepreneurs. However, the study noted that young entrepreneurs encounter significant obstacles in accessing low-cost capital due to the asymmetric information issue between those who give out and those who want the capital, which impedes their development. Lack of access to financing in low-income nations is generally regarded as one of the primary impediments to creating entrepreneurial activities. The study concluded that microfinance institutions are prominent for entrepreneurship growth and sustainability. The study recommended that microfinancing institutions are required to put more effort into financing entrepreneurs. Entrepreneurs themselves need to be more responsive to new ideas and prepared to make financial dedications to ensure development. Furthermore, it is recommended that sensitization of the entrepreneurs before credit extension is required to them via considerable financial literacy training and supervisory skills advancements.

 Keywords: Micro Financing, Sustainability, Entrepreneurs, South Korea

Author Biographies

Toyun Kim Kratzer, Seoul National University

Postgraduate student, Seoul National University

Cheong Gim Liu, Seoul National University

Lecturer, Seoul National University

Hajun Choi Heo, Seoul National University

Lecturer, Seoul National University


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How to Cite

Kratzer, T. K., Liu, C. G., & Heo, H. C. (2022). Impacts of Micro Financing on the Sustainability of Entrepreneurs in South Korea. Journal of Finance and Accounting, 6(2), 1–10.