The impact of policies on providing assistance for startup on startup opportunitie

elopment, infrastructure, stability macroeconomics, health care and education. Based on GEM (2016) model; Pinho, JC (2016) authors Ali Davaria and Taraneh Farokhmanesh (2017) in the context of Iran have studied the policies that impact startup opportunities including culture and society, and the 4 programs and policies of government, general education (primary and secondary) and graduate education, financial and non-financial assistance policies. 1.1.1. Institution Institution is the ability to set rules, check or review other's compliance with them and where necessary punitive measures are needed to make adjustments to future behavior (Scott 1995). 1.1.2. Cultural and social standards Valdez and Richardson (2013) consider entrepreneur's perceptions of social norms related to their ability to take advantage of startup opportunities. Social and cultural norms shape human behavior and can be seen as an interaction between people living in the same social environment (Hofstede 1991). 1.1.3. Education and training Busenitz et al (2000) suggested that the knowledge and skills that people in a country are related to the establishment and operation of a new business are in line with the results of a survey by GEM (2016), this survey has included entrepreneurial education and training as a variable to explain entrepreneurial perceptions of startups. 1.1.4. Financial assistance for startups Investment and finance policies are among the top priority policies in developing countries to support investment in local businesses, especially small and medium enterprises (SMEs) and other transnational corporations are investing in these countries. 1.1.5. Infrastructure Ali Davaria and Taraneh Farokhmanesh (2017) said that infrastructure support should focus on increasing the quality and quantity of consulting services, technical services and training. 1.1.6. Startup opportunities Davidsson, (2015) states that opportunity is a concept that cannot be clearly defined, it is found that few works give a clear definition of opportunity, so the authors have argue for the definition to apply an opinion consistently. However, there is broad consensus that opportunities do not come naturally but 5 are the result of entrepreneur’s efforts to act and to develop (Alvarez et al. 2015). 1.2. Overview of national research In Vietnam, there are many studies on policies on providing assistance for startup, these studies focus on the following main directions. Research on factors influencing startup intentions Research direction on policies on providing assistance for startup, build and complete the legal framework for startups in Vietnam 1.3. Research gaps Table 1.1: Summary of major policies on providing assistance for startup from review research No Source Major policies 1 GEM Institutions; The infrastructure; Macroeconomic stability; primary education and health care; University education; Financial support; R&D; Tax support; Develop an efficient labor market. 2 OECD Framework Institutions; Market; Financial support; Risky investment; Education and training for startups; Entrepreneurship event culture program. 3 Hall &Sobel Public policy reforms; Input factors such as human resources, venture capital, technology, infrastructure, patents and protection of intellectual property rights. 4 Lundstrom&Stevenson Motivation; Opportunity; Skill 5 Framework for entrepreneurship development when comparing the difference between the Promote entrepreneurship; Entrepreneurship education; Improved business environment; Financial support; The infrastructure; Support vulnerable groups 6 startup support policies of different countries 6 Kuzilwa Framework Contextual factors; Institutional factors; Personal factors 7 UNCTAD Framework General policy (macroeconomic stability, labor market, infrastructure); Start-up policy (increase funding, safe exit, support for minorities) 8 Peng &Lee Divide start-up support policies by purpose (1) Maximize profits (2) Minimize losses during bankruptcy, dissolution 9 Pinho Institutions, education, culture, finance, infrastructure, and start-up opportunities. The PhD student states that studies in Vietnam have not focused on clarifying the model of policies affecting startup opportunities, as well as clarifying the concepts of "startup opportunities", so the PhD student chooses the approach is to synthesize, analyze and evaluate the impact of policies on providing assistance for startup to startup opportunities. 7 CHAPTER 2 THEORETICAL BASIS OF POLICIY ON PROVIDING ASSISTANCE FOR STARTUP 2.1. Business startup and business startup opportunity 2.1.1 Startup and innovative startup According to the Vietnamese definition, entrepreneurship is to start a new business or start a business. In the field of economics and business administration, entrepreneurship is associated with the term "Entrepreneurship", which is an individual taking advantage of market opportunities to create a new business (Lowell WB, 2003), The Phd student states that: “Starting a business is to take advantage of market opportunities to start a new business, in order to own - run the business by yourself or hire a manager, with the aim of bringing value to self as well as many benefits to society ". Innovative startup: Innovative startups (startups) are startups based on innovation (based on a new technology, or creating a new business form, or building a new market segment ...). That is, innovative startups must be different not only from local businesses, from all previous companies and from other businesses around the world. In Vietnam, according to the Law on providing assistance for small and medium-sized enterprises 2017, innovative startup is a startup process based on the creation or application of research results, technical solutions, technologies, and management solutions to improve. productivity, quality, added value of products and goods with rapid growth potential. 2.1.2. Business startup opportunities Concept: Opportunity is a concept that has been studied by many researchers around the world. Vietnamese dictionary defines "Opportunity is a favorable situation to do what you want". To grasp the favorable conditions, it requires sufficient resources and a willingness to take advantage of it (OECD, 2016). At the same point, Pinho (2016) thinks that opportunity is something that always exists all around us, it is important that people recognize and take advantage of 8 opportunities. Meanwhile, Peng & Lee (2013) said that opportunity is only really meaningful when it is utilized and brings positive results to society. Thus, startup opportunities are favorable conditions for individuals to grasp to start a business, creating a good goal for the society to develop economic, increase job opportunities, and startup opportunities. Whether to be utilized or not is due to many factors, but maintaining a society with many opportunities is a prerequisite for entrepreneurship development. Improving startup opportunities is to create more favorable opportunities to help entrepreneurs have the best conditions for starting a business. 2.2. Policy on providing assistance for startup 2.2.1. Concept, target of policy on providing assistance for startup Concept: Policy on providing assistance for startup is a tool to support startups and investors, including regimes, measures and specific regulations from starting a startup, building and developing start-up businesses, ensuring the simplification of the legal environment, supporting capital, supporting credit for management, technology, training and developing human resources, building a national startup culture, ... to achieve national startup strategy goal. 2.2.2. Bases for forming policy on providing assistance for startup: Based on the policy perspective of the Party and State Based on the current situation of startups in Vietnam 2.2.3. Entity issuing policy on providing assistance for startup: First of all, policy makers are the central government, the government directly issues and below that are decrees and circulars guiding the implementation by the ministry or ministerial-level agencies directly under the government. Based on legal documents from the central government, localities, specifically the chairperson of the People's Committee of the province or city, will promulgate more specific and specific policies suitable to the socio- economic development. suitable with natural conditions, natural resources, population characteristics, ... of each locality. 2.2.4 Principles of policy on providing assistance for startup 2.2.5 Contents of policy on providing assistance for startup: 9 2.2.5.1 Financial - credit policy on providing assistance for startup 2.2.5.2 Policy to support startup infrastructure: 2.2.5.3 Policy to support the development of education and training activities, to improve business capacity 2.2.5.4 Some other factors related to startup assistance. 2.2.6 The policy components impacting startup opportunities: Derived from the overall review of the system of policies on providing assistance for startup in Vietnam, along with the reference of Pinho (2016); Ali Davaria and Taraneh Farokhmanesh (2017) (Impact of entrepreneurship policies on opportunity to startup). The graduate student forms a research model on the impact of startup support policies on startup opportunities including the above policies (financial support - credit, education, infrastructure), the impact of institutional factors (regulations, laws) along with the impact of cultural background on entrepreneurship, in particular, the above components include 2.2.6.1 Institution 2.2.6.2 Socio-cultural background 2.2.6.3 Start-up education 2.2.6.4 Financial assistance 2.2.6.5 Assistance from infrastructure 2.5. Factors affecting the policy on providing assistance for startup 2.5.1 Group of factors belongs to the policy context 2.5.2 Group of factors belonging to policy subjects 2.5.3 Group of factors belonging to policy objects 2.6. Lessons learned about the policy on providing assistance for startup: 2.6.1 Experience in policy formulation and implementation in a number of countries in the world 2.6.2 Lessons learned for Vietnam: From the analysis of successful cases from countries around the world, it shows that the good implementation of the startup support policy depends on the construction of: (1) Financial - credit assistance policies; (2) Policies to assist startup infrastructure (3) Policies to assist the development of education 10 and training activities, and improve business capacity. There are also other policy factors such as (4) Building, adjusting and completing the legal system, guiding documents on startup, legal documents related to businesses (institutional factors); (5) Building and developing a startup culture, rejecting prejudices about the private economy, building and promoting the image of entrepreneurs in the new era. CHAPTER 3 RESEARCH METHODS 3.1. Research model and scale 3.1.1 Foundation theory 3.1.1.1 GEM Research Framework (2016) 3.1.1.2 OECD Framework (2016) 3.1.1.3 The Framework of Hall & Sobel (2006) 3.1.1.4 Lundstrom & Stevenson's Framework for Entrepreneurship Development (2006) 3.1.1.5 Framework for entrepreneurship development based on a number of studies when comparing startup policies between different countries 3.1.1.6 Kuzilwa Entrepreneurship Framework 3.1.1.7 UNCTAD Framework 3.1.1.8 Peng & Lee's Policy Framework (2013) 3.1.1.9 Research on startup opportunities 3.1.2 Proposed research model Based on an overview of the research works and the basic theoretical framework above, the graduate student builds a research model that impacts the policy on providing assistance for startup to startup opportunities as follows: 11 Figure 3.1 Proposed Research Model Source: PhD student synthesizes and builds from general research Correlations between the independent variables and the dependent variable were established by the PhD student, synthesized from the review study to give the test as follows: H01 Regulations, policies, and laws that apply generally to businesses that affect startup opportunities. H02 Specific rules, policies, and laws for startups that affect startup opportunities. H03 National cultural background influencing startup opportunities. H04 Primary and secondary education and training (upper secondary education) have an impact on startup opportunities. H05 Higher education and training (professional education) has an impact on startup opportunities. H06 Financial assistance has a positive effect on increasing startup opportunities. H07 Infrastructure assistance has a positive effect on increasing startup opportunities. Startup opportunities Institution I (general policy, regulations) Institution II (separate regulations for newly established businesses) Social culture Education I (general education) Education II (professional education) Financial assistance The infrastructure 12 3.2. Research Process: 3.2.1 Qualitative research: 3.2.1.1 Objective: PhD student uses this method to learn in-depth about the impact content of supporting policies deployed in Vietnam, through in-depth interviews with managers, policy makers, and policy researchers, startups with successful and failed projects and college student groups. In addition, this method is also applied by the graduate student to determine the appropriateness and accuracy of the research model, adjust and filter the scale, adjust the language and context to suit the culture when studying in Vietnam. 3.2.2 Quantitative research: 3.2.2.1 Design questionnaire 3.2.2.2 Select samples and collect data As analyzed above, the subject of the survey, the author chose is a university student, because the PhD student thinks that this is the object that converges all the most necessary factors to seize the business opportunity, that is knowledge, skills, young people dare to take risks and actively learn new technologies and new trends in the world, so it is reasonable to choose this object to test the research model. In addition, to ensure the balance between the economic and technical sectors, the sampling will pay attention to balancing the "discipline", which means that this factor will be balanced when choosing the subjects to answer the questions in the questionnaire. Investigation subjects and data collection results • Data collection Data collection was conducted by the author in parallel through two methods. Firstly, the author sent questionnaires on google docs via 300 email addresses collected by the author (email addresses were collected from information of the homeroom teachers and student management departments of schools that the author selected as the object of the survey). Some questionnaires were assigned to the Facebook groups of classes for easier data collection and quicker access to information. As a result, there were 120 valid responses. 13 Secondly, the author uses paper questionnaires which are randomly distributed to students in the last 2 years in all classes. 400 questionnaires were distributed to students at 10 universities. The author uses a familiar relationship with the test teachers, class leaders to ask random distribution in the classes, the results get 365 votes, then the author continues to eliminate the missing or returned answer sheets. In the end, the author obtained 355 qualified votes to use for quantitative analysis. Thus, a total of 475 votes were used for quantitative analysis in this study. 3.2.2.3 Methods of data analysis In this study, the author used SPSS software version 20, Cronbach alpha reliability test and Exploratory Factor Analysis (EFA) were used to test the scale. Then multivariate regression analysis is used to analyze the relationship between the independent variables and the dependent variable. 14 CHAPTER 4 STARTUP SITUATION AND POLICY ON PROVIDING ASSISTANCE FOR STARTUP IN VIETNAM 4.1 Overview of startup activities in Vietnam According to statistics on the number of enterprises having production and business results, the General Statistics Office reports that there are currently 560,417 enterprises, an increase of 11% compared to 2017, specifically classified by the following sectors: Figure 4.1 Structure of enterprises with business results by industry in 2018 Source: General Statistics Office Industry and construction 29% Agriculture, forestry and fisheries 1% Service 70% Number of businesses Industry and construction Agriculture, forestry and fisheries Service 15 Figure 4.2 Structure of enterprises with business results by type of business in 2018 Source: General Statistics Office 2018 Thus, state-owned enterprises account for nearly 1% (2486 enterprises) and non-sector enterprises up to 99% (541,753 enterprises), the statistics have clearly indicated the orientation of private economic development of the Party and State. According to the General Statistics Office, there are currently 14.51 million people working in enterprises with production and business results, specifically: State enterprises 1% Non-state enterprises 99% Number of businesses State enterprises Non-state enterprises 16 Figure 4.3: Labor structure by industry in 2018 Source: General Statistics Office 2018 4.2. Current status of startup policy on providing assistance in Vietnam According to Echelon - one of the leading business magazines in Southeast Asia, Vietnam currently has about 3,000 startups. According to the statistics of Topica Founder Institute (TFI) in 2017, Vietnam received 92 investment deals with a total capital of $ 291 million - nearly double the number of deals and nearly 50% of total investment compared to with 2016 (50 deals with USD205 million). Although there is a relatively strong growth, the capital investment for innovative startups in Vietnam is still relatively modest compared to the region and the world. According to Tech in Asian in 2017, Southeast Asia has attracted 7.86 billion USD of investment in startups, so the amount of investment that Vietnam has attracted accounts for a very small proportion - less than 5%. According to the prestigious startup magazine CB Insights, Vietnam ranks fourth in the amount of capital attracted to startups from 2012 to present, after Singapore, Indonesia and Malaysia. In Vietnam, there are currently 40 investment funds for innovative startups (figures as of the end of 2017) with the participation of large corporations, business promotion organizations and individual investors (or also known as "angel investor"); There are nearly 50 common startup working areas, concentrated mainly in Hanoi, Ho Chi Minh City, Da Nang. 4.2.1 Institution Industry and construction 64% Service 35% Agriculture, forestry and fisheries 1% Total number of employees Industry and construction Service Agriculture, forestry and fisheries 17 4.2.2 Cultural background 4.2.3 Education 4.2.4 Financial assistance Figure 4.1 Investment funds for startups with representative offices in Vietnam Source: Ministry of Science and Technology 2019 Angel investors: Figure 4.2 Start-up investment funds in Vietnam Source: Ministry of Science and Technology 2019 18 4.2.5 System of technical facilities for startups: 4.3. A number of problems and constraints reduce startup opportunities (1) The institutions and policies to assist startups have not been completed yet, and the investment capital support is still weak (2) Educational policies have not really included startup education in the curriculum (3) In terms of startup support facilities: Limited access to scientific and technological information, affecting individuals' creative capacity, especially in remote areas. CHAPTER 5 ANALYSIS OF THE IMPACTS OF POLICY ON PROVIDING ASSISTANCE TO STARTUP OPPORTUNITIES 5.1. Sample descriptive statistics: - Statistics of sample characteristics - Analysis of mean values of variables 5.2. Measurement results: The Cronbach Alpha results show that most of the measures have satisfactory value (> 0.7), only the independent variable "Institution II" reaches 0.674, which is very close to 0.7. Almost values in the column of the total variable correlation coefficient are> 0.3. In particular, the observation of TC5 built by the graduate student also has values in the accepted region. However, there are 2 observed variables, TCI6 (Institution I.6) with a total variable correlation coefficient of 0.284 <0.3, corresponding to Cronback Alpha if the variable type is 0.767> 0.749 (common Cronback Alpha value of the independent variable Institution I) and observed variable TC1 (Financial Assistance 1) have a correlation coefficient of total variable is 0.189 <0.3 and Cronback Alpha value if the variable is 0.772> 0.702 (common Cronback Alpha value of the toxic variable financial assistance). Thus, it is necessary to consider removing these 2 observations from the model, the author found as follows: (1) The observed TCI6 variable, “The bureaucracy of the public authorities does not cause much hindrance to new firms” has had unexpected results which can be explained by underestimation by respondents. This judgment is understandable because in Vietnam, the bureaucracy of public 19 agencies is actively being improved, but still has many limitations. That is the reason why this observed variable received unexpected results, this is the basis for the solution in Chapter 6 of the thesis. (2) The observed variable TC1 is "It is easy to access capital in credit institutions" are 2 variables with unexpected results, the reason is that the surveyed subjects underestimate, not Trusting easy access to capital from credit institutions when starting a business, the objectivity may be due to credit institutions tightening lending regulations to limit bad debt, but also does not eliminate the possibility that there are obstacles in accessing loans from the staff of these credit institutions, and as such, this is also the existence that needs to be addressed in chapter 6 of the thesis. From the above comments, the PhD student decided to remove 2 observed variables from the original model to suit the research conditions in Vietnam. Results of running Cronback Alpha again after removing 2 observations TCI6 and TC1 are as follows: Thus, the following results of adjusting the independent and dependent variables in the model met the test requirements, specifically, the Cronback Alpha results of the variables in the model are: Institution I = 0.767; Institution II = 0.674; Culture = 0.845; Education I = 0.708; Education II = 0.802; Financial assistance = 0.772; Infrastructure = 0.823; Start-up opportunity = 0,801. These results, together with the indicators in the above table, are reliable enough to carry out further quantitative analysis. 5.3. Results of factor analysis to discover EFA The result KMO-meyer is 0.811 is required to be> 0.6. The observed variables are all downloaded with the results of the correct original factors with the lowest load factor of 0.509, highest of 0.845, ensuring requirements in factor analysis. (In the EFA analysis, the PhD student removed 2 observations made in the scale verification step, which are TCI6 and TC1). 5.4. Correlation analysis: According to the correlation value analysis below, we see that the relationship between the variables is reasonable, the sig value. are less than 0.05, which means they are both statistically significant. 5.5. Regression analysis: According to the linear regression results, the significance of the model is very small (Sig = 0.000) compared to the significance level of 5%, so the regression model is set appropriately, adjusted R2 value = 0.771 means that 20 77.1% of the dependent variation is explained by factors included in the model, the rest are other factors that have not been studied. The Durbin - Watson coefficient and the VIF coefficient of the model show that there is no autocorrelation phenomenon. The results of multivariate regression analysis 1. Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate Durbin- Watson 1 .986a .784 .771 .49015 1.941 2: ANOVAa Mode