Impacts of Micro Financing on the Sustainability of Entrepreneurs in South Korea
DOI:
https://doi.org/10.53819/81018102t5052Abstract
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
References
Abbasi, W. A., Wang, Z., & Abbasi, D. A. (2019). Potential sources of financing for small and medium enterprises (SMEs) and role of government in supporting SMEs. Journal of Small Business and Entrepreneurship Development, 5(2), 39-47.
Anderson, K. (2020). Microcredit: Fulfilling or belying the universalist morality of globalizing markets. Yale Hum. Rts. & Dev. LJ, 5, 85.
Christensen, L. J., Parsons, H., & Fairbourne, J. (2019). Building entrepreneurship in subsistence markets: Micro-franchising as an employment incubator. Journal of business research, 63(6), 595-601.https://doi.org/10.1016/j.jbusres.2009.03.020
Cusmano, L., & Thompson, J. (2018). Alternative financing instruments for SMEs and entrepreneurs: The case of mezzanine finance.
Heo, U., Jeon, H., Kim, H., & Kim, O. (2018). The political economy of South Korea: economic growth, democratization, and financial crisis. Maryland Series in Contemporary Asian Studies, 2008(2), 1.
Khan, H. (2018). Building an Innovative Economy through Managed Creative Destruction: A Theory with Applications to South Korea.
Koh, H. L., Solarin, S. A., Yuen, Y. Y., Ramasamy, S., & Goh, G. G. (2021). The impact of microfinance services on socio-economic welfare of urban vulnerable households in Malaysia. International Journal of Business and Society,22(2), 696-712.https://doi.org/10.33736/ijbs.3752.2021
Liu, W. C., & Hsu, C. M. (2018). The role of financial development in economic growth: The experiences of Taiwan, Korea, and Japan. Journal of Asian Economics, 17(4), 667-690.https://doi.org/10.1016/j.asieco.2006.06.007
Mia, M. A., Dalla Pellegrina, L., Van Damme, P., & Wijesiri, M. (2019). Financial inclusion, deepening and efficiency in microfinance programs: evidence from Bangladesh.The European Journal of Development Research,31(4), 809-835.https://doi.org/10.1057/s41287-018-0188-6
https://doi.org/10.53819/81018102t5052
Minniti, M., & Naudé, W. (2021). What do we know about the patterns and determinants of female entrepreneurship across countries?. The European Journal of Development Research, 22(3), 277-293.https://doi.org/10.1057/ejdr.2010.17
Niethammer, C., Saeed, T., Mohamed, S. S., & Charafi, Y. (2020). Women Entrepreneurs and Access to Finance in Pakistan. Women's Policy Journal of Harvard, 4.
Pei-Wen, T., Zariyawati, M. A., Diana-Rose, F., & Annuar, M. N. (2018). Impact of microfinance facilities on Sustainability of small medium enterprises in Malaysia. World Applied Sciences Journal, 34(12), 1845-1849.
Rehman, H., Moazzam, D.A., & Ansari, N. (2020). Role of microfinance institutions in women empowerment: A case study of Akhuwat, Pakistan. South Asian Studies, 30(1).
Shul’gat, V. (2019). The Indirect Effect Of Micro-lending In Ukrainee (Doctoral dissertation, Kyiv School of Economics).
Thaher, L. M., Radieah, N. M., & Wan Norhaniza, W. H. (2021). The Effect of Microfinance Services on Women Entrepreneurship: A Case Study in Jordan. The Journal of Asian Finance, Economics and Business, 8(5), 807-815.
Wang, X. (2020). The impact of microfinance on the development of small and medium enterprises: The case of Taizhou, China. The Johns Hopkins University, Baltimore, MD, USA.
Weber, C., & Kratzer, J. (2021). Social entrepreneurship, social networks and social value creation: A quantitative analysis among social entrepreneurs. International Journal of Entrepreneurial Venturing 1, 5(3), 217-239.https://doi.org/10.1504/IJEV.2013.055291
Wennekers, S., & Thurik, R. (2019). Linking entrepreneurship and economic growth. Small business economics, 13(1), 27-56.https://doi.org/10.1023/A:1008063200484
