Lack of expertise, finance hindering Borikhamxay SMEs
Lack of expertise, finance hindering Borikhamxay SMEs
Difficulty in accessing expertise and affordable finance is holding back Borikhamxay province Small and Medium Enterprise (SME) development, according to a local business group official.
President of the province's Young Business Association, Mr Xayyaphet Chanthysone, said recently that despite the rapid growth of the Lao economy, SMEs need assistance when it comes to driving the nation's socio-economic development.
The province is now encouraging businesspeople to invest, but entrepreneurs still face challenges dealing with a deficiency of SME experts and reasonable finance to help push their development.
Mr Xayyaphet said he was pleased that investment and SME development in the province had doubled compared to last ye ar but more work was needed.
The province now has more than 100 entrepreneurs who launched businesses predominately in the agriculture sector such as commercial livestock production for the domestic market.
To boost SME development, the provincial association is hoping the government can provide assistance to improve farmers' technical knowledge and upgrade the quality and quantity of produce.
This is particularly important this year as Lao entrepreneurs prepare to compete with Asean countries when the AEC comes into being.
Currently, Laos still has a small percentage of SMEs compared to its population so to aid development of the sector the association is hosting business start-up courses including learning about business analysis and planning.
As part of SME promotion the association will also, in cooperation with the authorities, establish a dedicated fund for SMEs which will provide low interest loans to eligible businesses.
By doing so, it will be a critical tool to help local SMEs integrate with regional value chains and markets as well as enable them to become more competitive and be ready for the onset of the AEC.
vientiane times
