The impact of microfinance on entrepreneurial outcomes and the role of intangible resources of women entrepreneurs in Vietnam

Abstract

Microfinance has been discussed by numerous researchers in the assessment of its benefits towards poverty reduction in many developing countries. It is also considered as a life-changing tool for the poor who have little access to funds from formal lenders. Especially, microfinance is knowingly associated with women empowerment in poor set-ting with an aim to improve their well-beings. The driving forces from microfinance movement have struck women to recognize their potentials and spark up business plans regarding venture creation. In order to clarify about the success of women in entrepreneurial activities, the exposure of intangible resources possessed by women was presented in the light of resource-based theory. Intangible resources in this circumstance were concentrated on the constructs of psychological capital and social capital. The research approach adopted in this study includes the analysis of case studies from third party publications in combination with interview conduction. Through case studies, innovative business models of women entrepreneurs under the assistance of a microfinance provider, TYM Fund, were discovered rigorously. Meanwhile, the latter was carried out through an interviewing process with a gender expert in regard to a women-oriented project in rural area of Vietnam. The findings from this research led to develop new insights about transformational mindset of female entrepreneurs by positive motives and how they utilized their social resources from their extended networks. Also strengthening the role of intangible resources of women by the influence of micro-finance was highlighted. The study, as a result, underlined inspirational motivation and collaborative relations in the setting of community-based activities to support women in business undertaking. Main conclusion drawn from this study confirmed the efficiency of microfinance programs pertaining to intangible resources optimization as stimulus to the growth of women entrepreneurship in the context of Vietnam in medium term. Furthermore, it reinforced the necessity of active participation of women in microfinance institutions and emphasized on continuous efforts related to women empowerment in society.