Abstract
The study provides the impact of social capital on credit choices and growth of household businesses in Vietnam by using a data sample of 3,813 observations. Social capital is considered at different levels: micro for human capital and macro for social networks. It concludes that although both levels of social capital influence credit choices of household businesses, the micro level of social capital plays an important role in improving the household business’s growth, including asset and income growth. The study develops a broader view about the use of resources and financing choices in household businesses in Vietnam. Accordingly, it highlights the importance of social capital from multiple aspects — the household business itself, human capital, social networks and government — on the development of Vietnamese household businesses.
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