19 Nov 2012

Access to finance main barrier to business for ni-Vanuatu

11:28 am on 19 November 2012

Research on the level of entrepreneurial activity in Vanuatu has found that the main obstacle to going into business is access to finance.

The Australian aid-funded study - conducted by Auckland's Unitec as part of the Global Entrepreneurship Monitor - surveyed more than one thousand people from all over the country.

The research leader, a lecturer and programme head from Unitec's department of marketing and management, says limited capital or the lack of collateral is a typical constraint in developing countries.

Malama Solomona says there are other drawbacks in Vanuatu, including poor roading and the influence of culture, but developments in telecommunications are helping people get into business.

"In terms of landline density very minimal but definitely the growth of the mobile communication has become a fostering factor especially for the outer islands and rural communities, that was really seen as very progressive - and also compared with other islands such as Tonga."