Microfinance Banks and Entrepreneurial Growth Among the Youth in Daegu City, South Korea

Abstract

Entrepreneurial growth is one of the critical determinants of the economic development of a country. Entrepreneurial growth includes the process of improving entrepreneurial skills and knowledge among individuals with the help of providing well-organized training and developing supporting institutions. Raising entrepreneurial growth among the youth can be the foundation of increasing employment opportunities. Microfinance banks have been mainly designed to improve the living conditions of the less fortunate or underprivileged. Hence, the study sought to examine the effect of microfinance banks on entrepreneurial growth among the youth in South Korea. The study adopted the descriptive research design. The collection of the data was done among the youth in Daegu City. The study used purposive sampling to collect the data. Hence, the study sampled 892 youth purposively. The collection of the data was done using questionnaires. The analysis of the information was done using descriptive and inferential statistics. The descriptive statistics entailed describing the study data, while the inferential statistics incorporated the computation of the correlation and regression analyses. The study findings showed that microfinance banks have a positive and significant effect on entrepreneurial growth among the youth in South Korea. The study concluded that microfinance institutions are evident tools for entrepreneurship growth because of the numerous services they provide and their role in developing young entrepreneurs. Young entrepreneurs need to be more receptive to new methods and prepared to make financial decisions to ensure growth. The study recommended that microfinance banks in South Korea should continue supporting the youth. It is recommended that microfinance banks fund youth entrepreneurs without many conditions. Microfinance banks should organize good training programmes for youth business owners. The government should also continue with the entrepreneurial growth among the youth in South Korea. Keywords: Microfinance Banks, Entrepreneurial Growth, Youth, Daegu City, South Korea