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MYANMAR BUSINESS SURVEY: DATA ANALYSIS AND POLICY IMPLICATIONS Figure 3.7. Major obstacles to business operations Corruption Skilled labour Lack of technology Access to space Political instability Interest rates Access to capital External finance Supply of electricity Working capital Domestic competition Inflation Export market info Domestic market info Local inputs Unskilled labour Relationship with authorities Foreign competition International sanctions Tax burden Telecommunications Low demand Foreign inputs Labour regulations Tax collection process Property rights Supply of petrol Customs and trade regulations Transport and logistics Registration- admin procedures Registration- fees Supply of water Foreign exchange Exchange rate 0 20 40 60 80 100 Per cent No obstacle Very severe obstacle Source: ESCAP-OECD-UMFCCI Myanmar Business Survey Database. 2. Severity of obstacles appears to vary by sector While corruption was found to be the most severe obstacle for all firms in the sample (figure 3.7), firms in agriculture were most concerned about interest rates. Some 20 per cent of the sampled firms in the sector cited interest rates together with the lack of technology, skilled labour and political instability as very severe obstacles. Firms in extractive industries were most concerned with corruption. Fifty per cent of the 121 sampled firms operating in those industries (e.g., mining and quarrying) rated corruption as a very severe obstacle. Other issues of concern included skilled labour, lack of technology and working capital. Note that the majority of firms in this industrial category are smaller firms. Firms in manufacturing were also very concerned about corruption. More than 20 per cent of the sampled firms in this sector listed corruption, technology, access to office space and high interest rates as very severe obstacles in that order. Firms in the trade sector (wholesale and retail trading), were most concerned about political instability, while firms operating hotels and restaurants were most concerned about access to skilled labour. Firms in other services frequently rate access to space as a very severe obstacle. These results suggest that addressing these obstacles requires a nuanced approach as firms in different sectors have different concerns (figure 3.8). A simple one-size-fits-all approach will not be sufficient. 24
CHAPTER 3. Data analysis Figure 3.8. Top four obstacles in each sector Agriculture Interest rates Lack of technology Skilled labour Political instability 0 20 40 60 80 100 Per cent Manufacturing Corruption Lack of technology Access to space Interest rates 0 20 40 60 80 100 Per cent Hotels and restaurants Skilled labour Corruption Interest rates Political instability 0 20 40 60 80 100 Per cent Extractive industries Corruption Skilled labour Lack of technology Working capital 0 20 40 60 80 100 Per cent Trade Political instability Lack of technology Skilled labour Corruption 0 20 40 60 80 100 Per cent Other services Access to space Skilled labour Corruption Access to capital 0 20 40 60 80 100 Per cent No obstacle Very severe obstacle Source: ESCAP-OECD-UMFCCI Myanmar Business Survey Database. 3. Small firms find lack of financing to be a very severe obstacle While more than 20 per cent of large firms (250+ employees) identified interest rates as a very severe obstacle, smaller firms appeared to have more trouble getting access to finance (figure 3.9). Small-sized firms (10-49 employees) are the most affected with close to 20 per cent of them reporting that the lack of access to capital, external finance and working capital were very severe obstacles. This result can be expected, given the excessive regulations that constrain the underdeveloped banking sector in Myanmar. Further liberalization with institutional capacity-building in the banking sector will no doubt expand access to muchneeded credit for smaller firms. Figure 3.9. Access to financing, by size of firm Interest rates Access to capital Large Medium Small Micro Small Micro Medium Large 0 20 40 60 80 100 Per cent 0 20 40 60 80 100 Per cent External finance Working capital Small Medium Micro Large Small Micro Medium Large 0 20 40 60 80 100 Per cent 0 20 40 60 80 100 Per cent No obstacle Very severe obstacle Source: ESCAP-OECD-UMFCCI Myanmar Business Survey Database. 25
Page 1 and 2: Myanmar Business Survey Aaron Soans
Page 3 and 4: Myanmar Business Survey: Data Analy
Page 5: FOREWORD With vast natural resource
Page 9 and 10: Acknowledgements This publication w
Page 11 and 12: 2. Market conditions As the country
Page 13 and 14: Abbreviations and acronyms ADB AEC
Page 15 and 16: FIGURES Page 1.1 Structure of the b
Page 17 and 18: CHAPTER 1. Business environment Int
Page 19 and 20: CHAPTER 1. Business environment as
Page 21 and 22: CHAPTER 1. Business environment Whi
Page 23 and 24: CHAPTER 1. Business environment wit
Page 25 and 26: CHAPTER 1. Business environment was
Page 27 and 28: CHAPTER 1. Business environment por
Page 29 and 30: CHAPTER 2. Methodology and data col
Page 35 and 36: CHAPTER 3. Data analysis CHAPTER 3.
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Page 39: CHAPTER 3. Data analysis Overall bu
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Page 75 and 76: CHAPTER 3. Data analysis AGRIBUSINE
Page 81 and 82: CHAPTER 4. Policy implications The
Page 83 and 84: CHAPTER 4. Policy implications and
Page 85 and 86: CHAPTER 5. Limitations and future r
Page 87 and 88: eferences Abe, M. (2014). “Growin
Page 89: eferences (undated). “Enterprises
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MYANMAR BUSINESS SURVEY: DATA ANALY
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United Nations ESCAP Rajadamnern No
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