Enhancing Access to Finance for Technology Entrepreneurs : Analysis of Highly Innovative, High Growth Start-Ups in Vietnam, Cambodia, and Nepal

The first part of the study provides contextual background to the financing gaps and associated barriers, which restrict access to finance for HI start-ups. These barriers are driven by both supply and demand sides of the financing equation. Supply side barriers include: high transaction costs associated with financing; high levels of credit risk associated with HI start-ups; high collateral required by financial institutions; non-conducive legal and regulatory environments for investment in HI start-ups; lack of start-up expertise and dedicated resources by financiers; and finance products that are not tailored to HI start-ups needs and circumstances. Demand side barriers include: reliance by HI start-ups on informal financing sources; lack of awareness on the process to apply for funding from formal financing sources; low levels of financial literacy by HI start-ups; and the fear of losing control by involving external investors. This section also contains a broad overview of the country frameworks governing the start-up sector, together with some of the initiatives relating to access to finance. The second part of the study covers the fieldwork undertaken in Vietnam, Cambodia, and Nepal. The fieldwork gathered views from investee firms (irrespective of whether they were successful in raising finance or not), investors, and other stakeholders. The fieldwork was aimed at understanding the severity of the financing gap for HI start-ups, the stage(s) of financing impacted by lack of access to finance, and the sources of financing for HI start-ups. Lastly, financing catalyst recommendations address non-financing impediments, which if overcome will have a positive impact on access to finance.

Bibliographic Details

Main Author:	World Bank Group
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCESS TO BANK, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCING, ACCESS TO LOANS, ACCESS TO MARKET, ADVISORY SERVICES, AGRICULTURAL INCOME, ANGEL GROUP, ANGEL INVESTOR, ANGEL INVESTORS, APPLICATION PROCEDURES, APPLICATION PROCESS, AVAILABILITY OF FINANCE, BALANCE SHEET, BALANCE SHEETS, BANK LOANS, BANKING NETWORK, BANKS, BORROWER, BORROWING, BUSINESS ACTIVITIES, BUSINESS ACUMEN, BUSINESS CONFIDENCE, BUSINESS INCUBATION, BUSINESS INCUBATOR, BUSINESS INCUBATORS, BUSINESS INFORMATION, CAPACITY BUILDING, CAPITAL GROWTH, CAPITAL INJECTION, CAPITAL MARKET, CAPITAL MARKETS, CAPITAL RAISING, CASH FLOW, CASH FLOWS, CC, CENTRAL BANK, CHAMBER OF COMMERCE, COLLATERAL, COLLATERAL FOR LOANS, CORPORATE GOVERNANCE, CREDIT BUREAU, CREDIT BUREAUS, CREDIT GAP, CREDIT GAPS, CREDIT GUARANTEE, CREDIT GUARANTEES, CREDIT RISK, CREDIT SCORING, CULTURAL BARRIERS, CURRENCY, CUSTOMER BASE, CUSTOMER SERVICE, DEBT, DEBT FINANCING, DEBT SECURITIES, DEPOSIT, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE INSTITUTIONS, DEVELOPMENT OF FINANCE, DUE DILIGENCE, E-COMMERCE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC REFORMS, ENTERPRISE DEVELOPMENT, ENTERPRISE REGISTRATION, ENTREPRENEUR, ENTREPRENEURIAL FINANCE, ENTREPRENEURS, ENVIRONMENTAL PROTECTION, EQUITY FINANCING, EQUITY FUND, EQUITY INVESTMENT, EQUITY INVESTMENTS, EQUITY MARKETS, EXCHANGE COMMISSION, EXTERNAL INVESTORS, FINANCIAL ASSISTANCE, FINANCIAL CAPACITY, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENT, FINANCIAL INTERMEDIARIES, FINANCIAL LITERACY, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL RESOURCES, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCING ACCESS, FINANCING INITIATIVE, FINANCING NEEDS, FIRST CREDIT, FOREIGN INVESTMENT, FORMAL FINANCIAL INSTITUTIONS, FUND MANAGER, FUNDING SOURCE, FUNDING SOURCES, GOVERNMENT REGULATIONS, GOVERNMENT SECURITIES, GRANT FUNDING, GROSS DOMESTIC PRODUCT, GUARANTEE SCHEME, HOLDING, INCOME TAX, INDUSTRIAL ENTERPRISES, INFLATION, INFLATION RATE, INFORMAL FINANCING, INFRASTRUCTURE DEVELOPMENT, INNOVATION FINANCE, INTANGIBLE, INTANGIBLE ASSETS, INTANGIBLES, INTELLECTUAL PROPERTY, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL FINANCE, INTERNATIONAL STANDARDS, INVESTING, INVESTMENT CRITERIA, INVESTMENT OPPORTUNITIES, INVESTMENT PORTFOLIO, INVESTMENT PORTFOLIOS, INVESTMENT PROPOSAL, INVESTMENT RISK, INVESTMENT RISKS, INVESTMENT VEHICLES, INVESTOR CONFIDENCE, INVESTOR PROTECTION, JOINT STOCK COMPANY, LACK OF ACCESS, LACK OF AWARENESS, LACK OF COLLATERAL, LENDER, LENDERS, LEVELS OF COLLATERAL, LEVELS OF CREDIT, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LIMITED LIABILITY, LLC, LOAN AMOUNT, LOAN FUND, LOAN GUARANTEES, LOAN PORTFOLIO, LOAN PRODUCT, LOAN PRODUCTS, LOAN PROGRAM, LOAN TERMS, MAILING ADDRESS, MARKET DEVELOPMENT, MICRO ENTERPRISES, MICROFINANCE, MICROFINANCE INSTITUTIONS, NON-PERFORMING LOANS, NON-PROFIT LOAN, POLITICAL STABILITY, PRIVATE CAPITAL, PRIVATE EQUITY, PRIVATE INVESTORS, PROFESSIONAL DEVELOPMENT, PROFESSIONAL INVESTORS, PROPERTY AS COLLATERAL, PROPERTY RIGHTS, PROTECTION OF MINORITY SHAREHOLDERS, RED TAPE, REGULATORY FRAMEWORKS, REGULATORY POLICIES, REMITTANCES, REPAYMENT, RETURN, RETURN ON INVESTMENT, RETURNS, REVOLVING LOAN, RISK PROFILE, SECURITIES, SEED FUNDING, SELF-FINANCING, SMALL BUSINESS, SMALL BUSINESS OWNERS, SMALL ENTERPRISE, SMART MONEY, SOCIAL DEVELOPMENT, SOURCES OF FINANCE, START-UP, START-UPS, TANGIBLE ASSETS, TAX INCENTIVES, TECHNICAL ASSISTANCE, TRADING, TRANSACTION, TRANSACTION COST, TRANSACTION COSTS, TRUST FUND, VALUE OF COLLATERAL, VENTURE CAPITAL, VENTURE CAPITAL FIRM, VENTURE CAPITAL FIRMS, VENTURE CAPITAL FUND, VENTURE CAPITAL FUNDS, VENTURE CAPITAL INVESTMENT, VENTURE CAPITAL INVESTORS, VENTURE CAPITAL SOURCE, VENTURE CAPITALISTS, WOMEN ENTREPRENEURS,
Online Access:	http://documents.worldbank.org/curated/en/ https://hdl.handle.net/10986/20811
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