3. ENTERPRISE MANAGEMENT
3.1 MICRO-ENTERPRISES IN MYANMAR
Small, Medium and Micro Enterprises (SMMEs) form a large part of Myanmar’s
employed citizenry and have the potential to grow into large enterprises promoting employment and contributing to the country’s GDP. According to the
Private Industrial Enterprise Law of 1990, and its 2011 revision, the government
is focusing on small- and medium-sized industries. The stated purpose of the
new law is two fold:
First, to develop the economy throughout the country by promoting the development of small and medium enterprises (SMEs), to create job opportunities, to
generate new incomes and raise the standard of living.Second, to provide a conducive environment for SME development that facilitates growth and improve
competitiveness, including easy access to business-related information, technical
support services, funding, and access to national and international market.”
The law also notes the need to establish the “necessary legal and administrative
framework for enabling SMEs to flourish by reducing barriers for businesses” as
well as the need to promote entrepreneurship, innovation, vocational education
and training, and financing mechanisms. In April 2012, the government established the Central Department of Small and Medium Enterprises Development
(commonly referred to as the SME Development Center) under the Ministry of
Industry to guide, support and monitor the performance of SMEs.1
While many necessary frameworks to enable SMEs have been established there
is very little done for the Bottom of the Pyramid (BoP) Micro Enterprises in Myanmar. Our current research shows there are several BoP Micro Enterprises and
there has been no research done in the past to record their number and to study
the challenges these Micro Entrepreneurs (MEs) face.
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This section therefore explores the Micro Enterprises in Myanmar. Here, we will
be looking at the different types of enterprises the MEs own, identify their moti
vations on starting these enterprises, understand the business location
rationale, identify various sources of initial capital, their income, expenditure,
suppliers, services required to support business, marketing and customer relationship management.
3.1.1 TYPES OF MICRO-ENTERPRISES
For the purpose of this research, Micro Entrepreneurs (MEs) from trade, service
and manufacturing sectors were selected for the interview. The definitions of
micro-entrepreneur, manufacturing, service and trade are as below:
Micro Entrepreneur: A micro-entrepreneur is the one who earns his/her own
livelihood through micro business ventures which could be in the manufacturing, service or trade sector.
Manufacturing: A business activity in which the micro-entrepreneur makes the
product himself/herself before selling it to the end consumer. Popular examples
of this would be roadside food stalls, juice centers etc. Farming/cultivation of
any kind is not included in this research.
Service: A business activity in which the micro-entrepreneur renders a service
and earns money. This activity typically leverages on a personal skill. Coaching
classes and transportation services are examples of a service being rendered.
Trade: A business activity in which the owner does not manufacture anything,
rather he/she purchases and sells the product (typically in finished goods form).
Retails shops are one such example of trading.
Out of the total sample of the MEs interviewed, most were from trade in Yangon, service in Mandalay and Mawlamyine, and manufacturing in Nay Pyi Taw
and Bago.
1 Bissinger, J. & Maung, L.M. (2014) Subnational Governments and Business
in Myanmar. Retreived from the website http://www.asiafoundation.org/resources/pdfs/SubnationalGovernmentsandBusinessinMyanmarEnglish.pdf