THE IMPACT OF FINANCIAL CAPITAL ON THE SURVIVAL OF STARTUPS IN THE MEKONG DELTA REGION, VIETNAM
DOI:
https://doi.org/10.18623/rvd.v23.5480Palabras clave:
Startup Survival, Financial Capital, Human Capital, COVID-19, Mekong DeltaResumen
Background: in the Mekong Delta, startups continue to face significant challenges in accessing and effectively utilizing financial capital. Despite national efforts to foster an innovation-driven entrepreneurial ecosystem, the Mekong Delta lags behind major economic centers like Hanoi and Ho Chi Minh City, Vietnam. Objective: This study explores the factors influencing startup survival in the Mekong Delta region of Vietnam, based on the inheritance of theory and previous research works from bothdomestic and international contexts, the proposed research model encompasses the following factors: Financial capital, Human Capital, COVID-19 and Startup Survival. Methodology: Using the Cox Proportional Hazards Model, the research examines the impact of various types of financial capital—founder equity, debt capital, venture capital, angel capital, family and friends’ funding (FFF), and government support—on startup survival. Result: The findings reveal that founder equity increases the risk of failure, while debt capital, venture capital, and angel capital significantly reduce the risk of failure. Family and friends’ funding also provides protective benefits during early stages, though over-reliance on it can pose risks. Additionally, the moderating role of human capital, including industry experience and education, is crucial in enhancing the effective use of financial resources and improving survival prospects. Conclusion: This study offers valuable insights for managers on optimizing financial capital, leveraging human capital, and building adaptive strategies to improve startup survival, particularly in challenging environments like the Mekong Delta. Unique Contribution: The study further demonstrates that the COVID-19 pandemic exacerbated failure risks for startups relying on founder equity, while debt financing provided resilience. Key Recommendation: The results emphasize that while founder equity may increase the risk of failure, debt financing provides a protective effect, especially during crises like COVID-19. The role of human capital, including industry experience and education, further moderates the impact of financial resources on survival.
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