Changes in Capital Seeking and Utilization Behavior of Small and Medium-Sized Enterprises in the Fintech Era

Abstract

This study aims to provide an in-depth exploration of the changes in the capital seeking and utilization behavior of small and medium-sized enterprises (SMEs) in Vietnam during the Fintech era, focusing on their experiences and decision-making processes. Using a qualitative research method with an interpretive approach, the study conducted semi-structured interviews with 20 SME managers experienced in borrowing from both traditional banks and Fintech platforms. The findings paint a multifaceted picture, indicating that SMEs make a 'strategic trade-off' between cost and speed, prioritizing Fintech capital for urgent needs despite higher interest rates. Notably, risk perception has shifted from tangible collateral risks to digital risks such as data security and legal ambiguity. The convenience of Fintech is also fostering a short-term capital management mindset, and trust has become a decisive factor in platform selection.

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