Research Project Reports

Small and Medium Enterprises (SMEs) Access to Finance in Selected East Asian Economies

By Charles Harvie, Sothea Oum, Dionisius Narjoko (Eds.)

ERIA Research Project Report 2010-14

Posted: March 2011

Abstract


Findings from ERIA's SME research project in FY 2009 confirms that access to finance is amongst the most critical factors determining the competitive readiness of regional SMEs and their ability to fully exploit and participate in the global economy and business opportunities from regional economic integration and, in particular, participation in regional production networks. Well recognized in the literature, access to funding is the lifeblood of any enterprise, enabling it to grow, and to generate more output and employment. There is considerable evidence to support the contention that SMEs, in particular, face a number of obstacles and problems in accessing finance, mainly related to their limited resources and perceived risk by lenders. This is particularly problematic and worrisome for policy makers, given that SMEs and entrepreneurship are widely recognized as being the key sources of dynamism, innovation, and flexibility in advanced industrialized, emerging market and developing economies, and are major net job creators in these economies. Without access to finance, SMEs are unable to invest, impairing their capacity to: improve productivity; raise competitiveness; promote innovation; generate employment; and contribute to economic growth and development.


List of Project Members


PROFESSOR FUKUNARI KIMURA (PROJECT SUPERVISOR): Chief Economist, Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia. Professor, Faculty of Economics, Keio University, Japan.

DR. CHARLES HARVIE (PROJECT LEADER):Associate Professor, Head of School, Director, Centre for Small Business and Regional Research, School of Economics, Faculty of Commerce, University of Wollongong, New South Wales, Australia.

DR. SOTHEA OUM (PROJECT COORDINATOR): Associate Researcher, Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia.

DR. DIONISIUS A. NARJOKO: Researcher, Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia.

DR. SUN XUEGONG: Senior Fellow, Institute of Economic Research, National Development and Reform Commission (NDRC), China.

DR. LIU XUEYAN: Research Fellow, Institute of Economic Research, National Development and Reform Commission (NDRC), China.

PROFESSOR RAJAH RASIAH:Regulatory Study Chair, Centre of Regulatory Studies, University of Malaya, Malaysia.

DR. CHAIYUTH PUNYASAVATSUT: Associate Professor, Faculty of Economics, Thammasat University, Thailand.

DR. ZAKIR MACHMUD: Director, for Economic and Policy Research, Institute for Economic and Social Research (LPEM), Faculty of Economics, University of Indonesia (FE-UI).

MR. AINUL HUDA: Researcher, for Economic and Policy Research, Institute for Economic and Social Research (LPEM), Faculty of Economics, University of Indonesia (FE-UI).

DR. RAFAELITA M. ALDABA: Senior Research Fellow, Philippine Institute for Development Studies (PIDS), Philippines.

DR. VO TRI THANH:Vice President, Central Institute for Economic Management (CIEM), Vietnam.

DR. TRAN TIEN CUONG: Director of Enterprise Reform and Development Department, Central Institute for Economic Management (CIEM), Vietnam.

MR. BUI VAN DUNG: Deputy Director of Enterprise Reform and Development Department, Central Institute for Economic Management (CIEM), Vietnam.

TRINH DUC CHIEU, MA: Researcher of Enterprise Reform and Development Department, Central Institute for Economic Management (CIEM).

MR. LUYNA UNG: Head of Social Policy Research Division, Supreme National Economic Council (SNEC), Cambodia.

MR. SOVUTHEA HAY: Researcher/ Economic Consultant, Supreme National Economic Council (SNEC), Cambodia.

DR. PHOUPHET KYOPHILAVONG: RAssociate Professor, Director, Research Division, Department of Economics and Business Management, National University of Laos.



Full Report


RPR-2010-14

Contents


Front cover

Table of Contents

List of Project Members

Acknowledgment

Executive Summary

CHAPTER 1: Overview: Small and Medium Enterprises' (SMEs') Access to Finance in Selected East Asian Economies

CHAPTER 2: Framework Chapter: SME Access to Finance in Selected East Asian Economies

CHAPTER 3: Small and Medium Enterprises' (SMEs') Access to Finance in Selected East Asian Economies

CHAPTER 4: SMEs Access to Finance in Cambodia1

CHAPTER 5: SMEs Access to Finance: Evidence from Laos

CHAPTER 6: Small and Medium Enterprises Access to Finance in Vietnam

CHAPTER 7: SMEs Access to Finance in Thailand

CHAPTER 8: Financing Small and Medium Manufacturing Firms in Malaysia

CHAPTER 9: SMEs' Access to Finance: An Indonesia Case Study

CHAPTER 10: SMEs Access to Finance: Philippines

CHAPTER 11: Small and Medium Sized Enterprises' Access to Finance in China

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