Novel Insights for Successful Microcredit Policies and Gender Dynamics: A Comparative Study of Rural Entrepreneurs in Vietnam and Thailand

Access to finance is critical for rural non‐farm self‐employment businesses in Southeast Asia, but financial constraints and gender discrimination impede their growth. Existing literature largely overlooks vulnerable groups like rural household businesses. This study investigates finance credit access challenges for female‐managed non‐farm businesses among rural entrepreneurs in Vietnam and Thailand. Valid instrumental variables address bias and endogeneity. Results indicate no evidence of discrimination against women in credit access. In fact, some evidence suggests moderate discrimination favoring women. A comparison of microcredit policies suggests that Vietnam's interventionist approach may be more effective in supporting wealth accumulation than Thailand's more liberal, market‐oriented model.