Survey highlights challenges for startups
Survey highlights challenges for startups
Startup businesses in Laos continue to grow at a lower rate than neighbouring countries while entrepreneurs still face numerous challenges in the sector, according to a Toh-Lao Coworking Space (TCS) survey.
The survey highlighted slow growth as new startups still are limited in their abilities to turn creative ideas into viable businesses, have limited access to finance, and especially lack laws and policies to encourage their activities.
Consequently, it will be difficult for the Small-Medium Enterprise Promotion and Development Office to realise its plans for Laos to have 500,000 new startups and small-medium entrepreneurs by 2020.
The country had only two percent of the population engaged in small business which was still low compared to its population of 6.4 million, according to office officials.
Founder of TCS, MsSouphaphoneChanthavong explained they were now working in cooperation with partners such Mekong Biz, Lotus Fund, Tiger Mekong, Australian Aid and Asian Development Bank through Mekong Business Initiative (MIB) to aid the development of local startups.
MIB aims to provide consultants for young people and entrepreneurs in Mekong countries including Laos to advise start-ups on how to access finance sources while building up networks with angel investors.
MsSouphaphone hoped that MIB would aid startups in Laos while bringing them to the attention of angel investors.
This would lead to Lao startups seeking opportunities to cooperate with other investors to further boost their businesses.
Early this year, Toh-Lao also launched Mekongs Next Top Mentors Project to enhance regional startup networks as a single market for investors as well as encoura ging entrepreneurs to make contributions to the next programme and get more insightful information about the regional market.
Laos had only a small number of startups including four businesses with excellent potential, according to Toh-Lao.
However, they remain optimistic for Lao startup prospects given the economic growth in the country and region.
