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 Volume 10, Issue 4 (April 2023), Pages: 32-43


 Review Paper

 The impact of accessible capital on labor growth of small and medium enterprises in Vietnam


 Van Dung Ha, Van Tung Nguyen *, Nhan Truong Thanh Dang


 International Economics Faculty, Banking University of Ho Chi Minh City, Ho Chi Minh City, Vietnam

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 * Corresponding Author. 

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There are significant constraints that limit the present SMEs from extending up in terms of labor and employment. Firms have a higher demand for workforce and thus create employment when enlarging their business operation scale. There has been a theoretical gap related to the labor growth of SMEs in developing countries, such as Vietnam, and a necessity of finding solutions to overcome difficulties in accessing capital to foster firms’ labor growth. Most of the previous studies on growth used the statistical frequency method. Meanwhile, the results of the Bays method can ignore the influence condition due to the small sample or missing observations. While previous studies often used debt ratio or financial leverage in the model, these are two different approaches. This study used the Bayesian estimation method to examine the labor growth of SMEs in Vietnam due to the impact of equity and liabilities, which better reflects the impact of each specific component of capital used for business growth, along with a group of control variables. The research results demonstrate that debt has a positive effect while equity has a negative impact on business growth. Enterprise size, male entrepreneurs, and businessmen with educational and vocational qualifications in the group of undergraduate and graduate, college, and vocational secondary schools have a positive impact on the growth of enterprises. Firm age, export factors, and untrained entrepreneurs have a negative impact on firm growth.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (

 Keywords: SMEs growth, Equity, Liability, Bayes, Vietnam

 Article History: Received 22 August 2022, Received in revised form 6 December 2022, Accepted 3 January 2023


No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.


 Ha VD, Nguyen  VT, and Dang NTT (2023). The impact of accessible capital on labor growth of small and medium enterprises in Vietnam. International Journal of Advanced and Applied Sciences, 10(4): 32-43

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