Title Financing Small and Medium Enterprises in Myanmar Author(s ...

INSTITUTE OF DEVELOPING ECONOMIES
IDE Discussion Papers are preliminary materials circulated to
stimulate discussions and critical comments
IDE DISCUSSION PAPER No. 148
Abstract
Financing Small and Medium
Enterprises in Myanmar
Aung Kyaw*
April 2008
Small and medium enterprises (SMEs) share the biggest part in Myanmar economy
in terms of number, contribution to employment, output, and investment. Myanmar
economic growth is thus totally dependent on the development of SMEs in the private
sector. Today, the role of SMEs has become more vital in strengthening national
competitive advantage and the speedy economic integration into the ASEAN region.
However, studies show that SMEs have to deal with a number of constraints that
hinder their development potential, such as the shortage in power supply,
unavailability of long-term credit from external sources and many others. Among
them, the financing problem of SMEs is one of the biggest constraints. Such is deeply
rooted in demand and supply issues, macroeconomic fundamentals, and
* Assistant Lecturer, Yangon Institute of Economics, Myanmar, and former Research Associate of
IDE-JETRO for ERIA (Economic Research Institute for ASEAN and East Asia)
(draungkyaw@googlemail.com).