EconPapers    
Economics at your fingertips  
 

Exploring the Roots of Small and Medium Enterprise Financing Issues in Myanmar

Ei Ei Thein, Atsushi Niigata and Kazuo Inaba

International Journal of Economics and Finance, 2025, vol. 17, issue 3, 58

Abstract: Financial constraints are one of the top significant barriers for the growth and survivals of small and medium enterprises (SMEs). This study focuses on the causes of the SME financing issues in Myanmar before the covid-19 period from both demand side (SMEs) and supply side (banks). The study conducts a comparative analysis of SME financing between Myanmar and other ASEAN countries, as well as that of SMEs in comparison to large enterprises (LEs) within Myanmar. It utilizes firm-level data from the World Bank’s Business Environment and Enterprise Performance Survey (2014-2017) and country-level financial data from the Global Financial Development Database and Doing Business Survey (2010-2019) across eight ASEAN countries. The findings reveal that both Myanmar’s SMEs and its banking sector have internal weaknesses that hinder SME financing. Myanmar’s SMEs show weaknesses in key areas such as information and communication technology (ICT) skills, the use of audited financial statements, and export capabilities. Despite these shortcomings, Myanmar SMEs, particularly in the manufacturing sector, demonstrate growth potential in employment and innovation, like ASEAN SMEs. On the supply side, Myanmar’s banking sector shows inefficiencies, including high market concentration, low market stability, limited credit creation, and weak contract enforcement. These factors exacerbate collateral requirements for SMEs, further impeding their access to bank loans. As a results, Myanmar’s SMEs face more serious collateral challenges and lower financing opportunities than their ASEAN counterparts. To improve SME financing in Myanmar, policies must address the weaknesses on both the demand and supply sides.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ccsenet.org/journal/index.php/ijef/article/download/0/0/51299/55704 (application/pdf)
https://ccsenet.org/journal/index.php/ijef/article/view/0/51299 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:17:y:2025:i:3:p:58

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().

 
Page updated 2025-05-11
Handle: RePEc:ibn:ijefaa:v:17:y:2025:i:3:p:58