Together for micro, small and medium-sized enterprises growth in Cambodia

Phnom Penh, 6 July 2023_ Oxfam and Young Entrepreneurs Association of Cambodia (YEAC) co-organize a “Sustainable Business Forum” today under the theme of “Together for Micro, Small and Medium-sized Enterprises Growth in Cambodia” to promote responsible, inclusive​​ and sustainable business practices in Cambodia. ­­

Oxfam and YEAC see a direct link from their support in inclusive and sustainable business to promote environmental responsibility, social responsibility, and economic growth. Implementing sustainable business practices is a win-win strategy for both SMEs and society. By prioritizing sustainability, small and medium enterprises can reduce cost, improve efficiency, and enhance their brand reputation. At the same time, these practices contribute to the overall well-being of the society by reducing carbon footprint, minimizing waste and pollution, and conserving natural resources. Sustainable business practices can benefit society at large by addressing global challenges, such as climate change, inequality, and poverty.

Oxfam via Inclusive Green Economy (IGE) program works with public and private sector actors to promote inclusive business models, with a gender focus, that create an enabling environment for small scale producers (SSPs) to be more resilient against climate change. The support includes business technical assistance, access to finance, access to market, and access to technology. Oxfam tries to incorporate SSPs and women in the value chain by training them on both soft and hard skills to help them have a diversify livelihood.

Oxfam National Director Ms. Sophoan Phean said: “Embracing inclusive and responsible business practices not only holds immense importance for driving economic growth but also plays a crucial role in alleviating poverty. As part of the private sector, SMEs/MSMEs play an instrumental role in this aspect, but they require assistance to expand and adopt these practices. Therefore, we recognize the necessity of supporting them to operate in a more responsible, inclusive and sustainable manner. Oxfam believes public, private partnerships (PPP) in collaboration with the NGO sector can harness the needed resources, and expertise to support the growth of SMEs/MSMEs for a more equitable and prosperous future for Cambodia and the ASEAN.”

YEAC has a mandate to empower young entrepreneurs and enhance their entrepreneurship and success by creating a platform for networking, sharing, learning, and synergizing business opportunities thereby contributing to productive employments and economic development. Inclusive business is one of the main agendas of YEAC, so their operations and technical assistance continue to focus on promoting inclusive business across their members. YEAC has built SME’s capacities with series of training, seminars, skill development, acceleration program, standard requirements, and compliances for their competitiveness. The award program for outstanding young entrepreneurs is the process of motivating them to take action to achieve inclusive and sustainable business.  

Oknha Pech Bolen, President of YEAC said: “Recently, Young Entrepreneurs Association of Cambodia has established a Young Entrepreneurs Development Center (YEDC) to support capacity building of young entrepreneurs especially YEAC's members in order to compete in ASEAN and beyond, to access to investment opportunities, as well as to join venture with local and international investors. YEAC's vision is for Digital, Inclusive and Innovative MSMEs in Cambodia”.

SMEs represent 99% of registered businesses in Cambodia and employ about 70% of workers. SMEs operate and create opportunities across sectors; they employ different labor force segments, including low-skilled workers, and provide skill development opportunities. Thus, SMEs have a critical role to play in addressing social and environmental challenges through growth, sustainability, and inclusion. The forum provides an insight on sustainable business practices that contribute to local economic activity, social well-being, and environmental footprint. In 2020, the Ministry of Industry, Science, Technology and Innovation (MISTI) approved a strategy for promoting an enabling environment for inclusive business in Cambodia known as (the IBeeC strategy).

H.E. Dr. Heng Sokkung, Secretary of State of Ministry of Industry, Science, Technology & Innovation, and President of IBeeC Steering Group said “Small and medium enterprises (SMEs) play an important role in socio-economic development, which is a necessary factor that we should all be involved in encouraging SMEs to embrace the principles of sustainability and inclusiveness. The Ministry of Industry, Science, Technology & Innovation, through the IBeeC Steering Group, has always paid close attention to this topic and has continued to promote inclusive business in Cambodia, which is an initiative to create a win-win situation: 1) Promoting livelihoods of the poor and low-income people 2) Promoting and maintaining business profits for business owners 3) Sustainable and inclusive socio-economic development.

The forum concludes on a positive note highlighting a need for kind of “Sustainable Business Platform” to keep the momentum of sustainable business practices going in Cambodia. Most SMEs and stakeholders are interested in the platform. They see it as an engagement opportunity to go beyond corporate social responsibility and promote sustainability that contributes towards green growth which is in line with the commitment of the Royal Government of Cambodia. With the current local and regional focus towards inclusive economy for green growth, and sustainable development, there are indeed many opportunities for SMEs/companies to harness disruption for recovery and sustainability.