By: Dav Ansan

Abstract

If there are many competitors in the market, the purchasing firm can obtain high quality at low price without the need to manage the internal problems.

This is quite sure to business unit, but only to some extend in terms of a nation trade. It is skeptical that Cambodia could afford to avoid strong dependence on imported goods. Micro and Small Industry (MSI), characterized most significantly for local or family economy in this country, is a focal point to above fact and now getting more concern from both local and international, private and government development agencies in the wake of the government strategy to reduce poverty particularly.

Taking part in government commitment to be full member of World Trade Organization, MSI would be a base in this beginning stage of economic and industrial development. However, looking back to Cambodia status to position itself in open trade regime, over 10 years up till now, no one could assume that it is not sure that the boosting process is under way smoothly and upward.

What are challenges to face and works to be done? What is really to be concerned about is the absence of state policy that specifically covers SMI sub-sector in national economy. From this point of view, this research is initiated. The a hypothesis is brought up in response to a fact (first finding) that why does the number of SMI firms keep increasing annually by nearly 7-8% last couple years, but this growth is not critically considered as contribution to the upgrade of local manufactured product. Imported products mostly from our next-door countries is reportedly nearly 70% on the marketplace and particularly they are about food processing in which Cambodia could afford its potential. Right to the point, duties and tasks of institutions involved are taken into problematic statement after some literature review on other countries’ experience being studied.

Physically in the context of Cambodia Industry, Micro and Small Industry (MSI) is found suitable to be the so-called Small and Medium Scale Industry (SMI) in many countries. It is because self employed and informal unit are taking substantial part in this sub sector. Target entrepreneurs’ responses on their business information and contact with authorities involved are the useful sources in such the way research findings have to be interpreted. The study as a whole about the both sides, private business units and government administration, in term of relation, management, finds many shortages contributing to either the weaknesses of private side or very limited efforts of ministrial administration.

Briefly answering to the main question why the number of SMIs unit keep increasing annually at the meantime where imported goods reportedly are imported and sold vigorously on the domestic market, the finding explains that local entrepreneurs from small scale side are mostly intelligent enough to avoiding producing substitute products from the outside door.

Finally, many research findings are summed up obviously for the purpose of sharing recommendation to the interested parties in this study, as well as other stakeholders in Small Scale Industry development business.

Institution: Royal Academy of Cambodia

Supervisor: Ms Prom Tevy (Ph.D)

Degree: Master of Economic