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Entrepreneurship, Government Policy and Performance of SMEs in Laos

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  • Souksavanh VIXATHEP

    (Graduate School of Economics, Kyoto University)

Abstract

The study evaluates the performance of SMEs in Laos in light of entrepreneurs' capacity, government facilitation, and characteristics of firms and customers using firm-level data. Reflecting ability and experiences of owner/manager, her age and practical education and the use of modern equipment (personal computers) are among the most important factors contributing to firm performance. Knowledge on legal framework related to business and membership in business associations are also found to be helpful in SMEs' performance. Domestic firms are inferior to foreign-owned enterprises, while limited enterprises are leading others. Firms in various locations show comparable performance. On the other hand, government facilitation and customer characteristics do not appear to have any impact on firm performance. The findings imply the need for effective SME promotion policies and related policies, such as enhancing the effectiveness of education, both formal education and vocational/technical training; improving the dissemination and enforcement of laws and regulations related to business; and attracting more FDI and efficient foreign enterprises.

Suggested Citation

  • Souksavanh VIXATHEP, 2014. "Entrepreneurship, Government Policy and Performance of SMEs in Laos," GSICS Working Paper Series 28, Graduate School of International Cooperation Studies, Kobe University.
    • Handle: RePEc:kcs:wpaper:28
    as

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    File URL: http://www.research.kobe-u.ac.jp/gsics-publication/gwps/2014-28.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    entrepreneurship; human capital; SME; Laos;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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