0561289 - NHU-C 2023 RIV CH eng C - Conference Paper (international conference)
Alimukhamedova, Nargiza
Determinants of business development: importance of microfinance for startups.
Financial Technology (FinTech), Entrepreneurship, and Business Development: Proceedings of The International Conference on Business and Technology (ICBT 2021). Cham: Springer, 2022 - (Alareeni, B.; Hamdan, A.), s. 1013-1026. Lecture Notes in Networks and Systems, 486. ISBN 978-3-031-08086-9. ISSN 2367-3370. E-ISSN 2367-3389.
[International Conference on Business and Technology (ICBT 2021). Istanbul (TR), 06.11.2021-07.11.2021]
Institutional support: Cooperatio-COOP
Keywords : microfinance * formal borrowing * informal borrowing
OECD category: Applied Economics, Econometrics
Result website:
https://doi.org/10.1007/978-3-031-08087-6DOI: https://doi.org/10.1007/978-3-031-08087-6_70

Entrepreneurship is a vital engine for economic growth and development. The success of small enterprises and startups is an important agenda given that the failure rate tends to be high. Failure is often caused by lack of reliable sources of financing, which most entrepreneurs cannot obtain from formal sources such as commercial banks or crowdfunds. In this paper, we analyze the role of microcredit as an important alternative source of business startup financing. In contrast to the mainstream literature, we analyze the role of both formal and informal sources of financing. Empirical findings are based on a unique household dataset compiled from a household survey of entrepreneurs and non-entrepreneurs in Uzbekistan. The findings indicate that startup capital, gender, education, and household size constitute the determinants of business success. However, these factors differ slightly depending on whether entrepreneurs can borrow from microfinance institutions or not.
Permanent Link: https://hdl.handle.net/11104/0333978