Ms. Chea Serey, Director General of the National Bank of Cambodia, has highlighted the importance of small and medium enterprises (SMEs) that have contributed significantly to supporting the national economic growth and helping the livelihood of people living in rural areas.

Ms Serey made the remarks at the 8th Annual Macroeconomic Conference on “Challenges and Policies for the Development of Small and Medium Enterprises in Cambodia” organised by the National Bank of Cambodia on December 22.

According to Ms Serey, small and medium enterprises account for about 99 percent of the total enterprises and accounted for nearly 60 percent of GDP and more than 70 percent of employment.

She added that SMEs have a significant contribution in supporting institutional environment, economic activities and promoting people’s livelihoods and reducing poverty, especially among rural residents.

“SME development will contribute to strengthening the economy by creating supply to meet domestic demand, reducing the import of some consumer goods from abroad and creating more domestic jobs. These factors will support the diversification of the national economy and promote the transformation of Cambodia into a high-middle-income country,” she said.

She also pointed out that previous studies have shown that SMEs in Cambodia faced many business challenges as obstacles to sustainable development. These include: Lack of management skills and skilled labour, lack of capital and access to official finance, lack of information on local and export markets, competition from large enterprises, and imports of goods and so on.

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Author: Khmer Times

Source: Khmer Times

Publication date: 23 December 2021