Based on information from various sources, in general, SMEs difficulties in the region range from lack of market access ability; difficult to access for finance; lack to modern technologies; lack of management skills; low skilled workers; lack of access to information on markets, technology and sources of raw materials; no link to export markets; limited entrepreneurship skill to identify market opportunity; low innovation capability; limited communication channels, and no or low linkage between SMEs and LE (large enterprises). Among these constraints, difficulties with access to financial facilities and export markets are the key bottlenecks to SME development in the region. Thus, to be able to make use of greater market opportunities that will be generated by the implementation of AEC next year and hence to be the key players in the region, ASEAN SMEs face the following challenges: easy access to financing, easy access to markets (domestic as well as in other member states), easy access to advanced technology and to be able to do innovation, to have well-developed infrastructure, security in doing business/investment, human capital development, and to be supported by good legal and regulatory framework. It is indeed very important that SMEs in all member states give their serious efforts to deal with those shortages and challenges with full supports from the government for one simple reason: with the implementation of AEC 2015, the business landscape will become more complex and SMEs have to operate in a highly competitive and rapidly-changing environment. Consequently, they have to perform consistently in an efficient and productive manner as they face a variety of issues to develop, grow and achieve sustainability in the market. - Dr Tulus TH Tambunan, Contributing Author of MSME News Network
Posted on: Wed, 21 Jan 2015 03:17:42 +0000
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