The Yangon Region government is seeking to develop of micro, small, and medium enterprises (MSME) as part of its larger growth plans, Yangon Region Chief Minister U Phyo Min Thein says.
Last year, the government surveyed MSMEs in the region and urged small business owners to register as official with the government in order to receive more official assistance.
As part of its efforts to boost MSMEs, the regional government has been providing financial assistance to 100 selected companies to help them grow and access markets more quickly. The selected companies were also recommended for loans from banks. The companies were chosen based on their growth potential and business type.
Currently SMEs have access to financing from private backs dispersing foreign-aid funding or from state-backed Myanma Economic Bank. The loans generally require collateral or credit guarantee insurance.
According to Yangon Region Minister of Planning and Finance U Myint Thaung, of the 100 selected MSME companies selected, 40 qualified to receive loans from banks. The regional government is currently working with the other 60 through the MSEM development project to ensure that they will qualify for bank loans.
As some of the companies selected for the programme are home-based, they lack proper documentation and financial records. This, in turn, prevents them from applying for loans. U Phyo Min Thein says goal now is to help such businesses set up things such as financial reports and business plans so the can more easily apply for loans.
The regional government is now about to select another 100 MSME enterprises for the programme, the chief minister said.
The focus for the selection will be on micro-businesses in sectors such as tourism services, agriculture and livestock, among others, said U Myint Thaung.
According to government statistics, more than 98 percent of business in the country are categorised as micro, small, and medium enterprise, mainly involved in food and beverages, construction materials, clothing, and personal goods.
There are over 70,000 registered SME enterprises in the country, and only 2000 qualify for bank loans.
