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

elevant industrial committees and associations in an area-by-area basis.
A well-conceived business plan can as a roadmap for a business owner concerning
his business activities, a guide for proper allocation and mobilization of available
resources, and a way to keep all stakeholders in the business informed on its viability.
However, most business owners do not have the ability to prepare proper business plans.
A moderate knowledge on management and finance is a prerequisite in preparing a
good business plan. So these courses should be offered within the industrial zones or
business training schools organized by trade associations and industrial committees.
Banks should be encouraged to rely on the business plan submitted by a loan applicant
in making loan decisions, that should include the term and size of loans. Programs like
seminars and workshops should be initiated to help business owners realize the
importance of a good business plan before starting a business as well as throughout the
entire life of a business. More importantly, the skills of preparing business plans and
project proposals should be taught in business schools and institutes of economics,
where students are trained to become business entrepreneurs in the future.
A working knowledge on financial management, especially on how to manage cash
flow, is necessary for business owners to be able to maximize the use of money they
borrowed from banks. Again, workshops, seminars, and training courses are necessary
to introduce such skills and knowledge to businessmen, especially the traditional
businessmen in the countryside.
Government and trade associations should initiate moves to build a good
relationship between businessmen and bankers by participating in discussions,
seminars, and symposiums. By developing a close and good relationship among these
players, each side will understand and be able to sensitize the problems and constraints
of the other side. This is the best way to reduce lack of understanding banking
procedures by the businessmen and use of onerous and unfriendly banking procedures
on the part of banks in making loans to business.
By using demand-side remedy programs as discussed above, SMEs owners in
Myanmar will become well-qualified customers not only for financing from banks but
also from other emerging financing institutions for the SME sector, such as venture
capital funds, regional trust funds, and financing and leasing companies.
8.3 Suggestions to improve supply-side conditions
Supply-side problems are caused by the lack of specialized funding programs for
the SME sector, tighter regulations on the activities of commercial banks, and the small
number of banking and non-banking financial institutions in Myanmar. Like other
countries in the region, Myanmar has development banks (Myanmar Agriculture Bank,