Constraints to the growth of small firms in Northern Myanmar
AbstractThis paper uses survey data collected from North Western Myanmar to analyze business activity and determine the most binding constraints to firm growth. While the level of entrepreneurship is very high, most firms earn low income and are small and informal with no employees. The most binding constraints are related to financing and competition. We find that informal credit constrained firms grew 8.4% less in 2008-2010. This lack of credit combined with an apparent aversion to debt, limit investment despite high returns. Returns on investments are about 73% per year, which is within the range found in other developing countries.
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Bibliographic InfoPaper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series CIS Discussion paper series with number 577.
Length: 35 p.
Date of creation: Dec 2012
Date of revision:
rural investment climate; enterprise development; poverty reduction; small firms growth; Myanmar;
Other versions of this item:
- Bah, El-hadj M. & Cooper, Geoff, 2012. "Constraints to the Growth of Small Firms in Northern Myanmar," MPRA Paper 39819, University Library of Munich, Germany.
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
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