The Asia Foundation

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Improving the Business Environment in Cambodia

Market-led economic growth is a proven, effective means of reducing poverty. In Cambodia, the best way to achieve economic growth is to encourage the expansion of micro, small and medium enterprises (MSMEs), which dominate the economic landscape. The large majority of MSMEs are located in the provinces. At present, little is being done to improve the business environment for rural MSMEs. MSME owners are among the worst affected by opaque regulations, lack of information, and costs associated with corruption and over-regulation. The Asia Foundation’s economic reform program in Cambodia focuses on supporting the policymaking process of reform, empowerment of the private sector, particularly provincial MSMEs, and developing a more business-friendly environment.

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