Creating Jobs and Income for the Poor in Vietnam Through Policies to Support Development of Small Businesses

Abstract

Small businesses account for a large proportion and the majority of the business system of countries. The development of the small business system has a profound impact on the economy as well as the development of society and local communities. When small businesses develop, they will attract local workers, create jobs and income for workers, especially for the poor, contributing to improving living conditions and reducing income inequality; on the other hand, small business development not only creates jobs but also stimulates supporting industries, improves infrastructure and contributes to local budgets. Therefore, implementing policies to support small business development is always necessary and meaningful for each country and each locality. This study discusses policies to support small business development, including: Supporting small businesses to develop management and operation capacity and attract workers; and Supporting small businesses to develop the economy, society and serve the community and locality. At the same time, the author analyzes and evaluates the impact of the above policies to support small business development on the issue of job creation and income of the poor. Based on the theoretical framework, the author conducted a survey of 270 small business managers in 3 provinces representing 3 regions of Vietnam, including: Bac Giang province (North), Nghe An province (Central), Tay Ninh province (South). The survey results are the basis for the author to draw research conclusions and discuss solutions to promote small business development, which are meaningful and suitable to the socio-economic characteristics in Vietnam.