Boosting Women Entrepreneurs To Drive Cambodia's Economic Growth

The American Chamber of Commerce (AmCham) in Cambodia's Women's Steering Committee, in partnership with the Cambodia Women Entrepreneur Association (CWEA), organised an event on July 27, 2024 at the Oakwood Premier Phnom Penh, to address key challenges faced by women in small and medium enterprises (SMEs) in Cambodia, including limited access to finance, complex legal and regulatory compliance obligations, and low levels of digital adoption.

Organised with the support of Wing Bank, the event was held in the presence of H.E. Chea Ratha, Secretary of State of the Ministry of Commerce, and featured special breakout sessions focused on financial management and access to finance, legal and regulatory compliance, and marketing, digital and technology adoption.  

“This event is a testament to AmCham's dedication to supporting women entrepreneurs in Cambodia. We believe that empowering women-led SMEs is not only beneficial for individual businesses but also for the overall economic development of the country,” said Kim Tan, Chair of the AmCham Women's Steering Committee, during her welcome remarks.

The event gathered over 80 attendees, focusing on supporting and empowering women entrepreneurs in Cambodia to develop and grow their businesses. The goal was to offer women entrepreneurs valuable insights, practical advice, and essential resources to help them overcome challenges and drive business growth.

Women Entrepreneurs Form The Backbone Of Cambodia's Economy

Delivering her keynote remarks, H.E. Chea Ratha noted the important role women play in boosting Cambodia's economy, saying “women entrepreneurs are driving innovation, creating jobs, and fostering inclusive growth” in the country.

She further added:

Women entrepreneurs are the backbone of our economy. Women entrepreneurs represent 61 per cent of the business in Cambodia, that including 62 per cent of micro-sized businesses and 26 per cent of small and medium-sized enterprises. SMEs in Cambodia, which include many women-owned businesses, account for 70 per cent of total employment and contribute to 58 per cent of Cambodia’s GDP.

Ratha also shared some of the main steps taken by the ministry of commerce to improve the business environment for SMEs, including:

1. Enacting an E-Commerce Law in 2020 to facilitate online business operations and ensure greater security and trust in electronic transactions – she noted that this can also help to open up new avenues for women entrepreneurs outside of traditional offline boundaries.
2. Streamlining the business registration process – since the launch of the online business registration platform in December 2020, Ratha shared that over 10,000 businesses have registered online with a significant number being women-led enterprises.
3. Establishing an intellectual property (IP) office at the ministry of commerce – the office provides support in securing trademarks, patents, and copyrights, ensuring that business owners' intellectual property is safeguarded.
4. Opening a hotline to contact the General Department of Consumer Protection – the 1266 hotline addresses questions related to trade, business registration, and consumer complaints.
5. Developing a Free Trade Agreement (FTA) portal – the ministry is currently in the process of developing a FTA portal to provide comprehensive information on Cambodia's trade agreements.
6. Leading negotiations on the ASEAN Digital Economy Framework Agreement – this initiative aims to create a cohesive and inclusive digital economy in the region to accelerate digital trade, govern data, promote innovation, and drive productivity-led inclusive growth across ASEAN, with negotiations expected to be finalised by 2025.
7. Supporting women entrepreneurs – Ratha shared that the ministry has initiatives, such as the ‘Neary Rattanak’, which aim to enhance the status of women in Cambodian society, as well as other policies and programs that support women’s empowerment and gender equality, including providing vocational training, improving access to healthcare, and ensuring legal protections against gender-based violence.

Financial Support Programs For Women-Led SMEs – Wing Bank's Services

The event's sponsor, Wing Bank, particularly shed light on the main financial challenges that women entrepreneurs face in Cambodia due to limited access to affordable and flexible financing options. 

“Many entrepreneurs also lack comprehensive knowledge of financial management, leading to inefficient use of resources and missed opportunities,” Han Peng Kwang, CEO of Wing Bank, told B2B Cambodia. “Traditional banking often requires significant collateral from borrowers to secure their loans, which many women entrepreneurs do not possess, making it difficult for them to secure loans.”

“In response, Wing Bank, in collaboration with the Credit Guarantee Corporation of Cambodia (CGCC) and the Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC), has forged a strategic partnership that addresses collateral challenges faced by many SMEs and enhances financial literacy among FASMEC members across the Kingdom by providing collateral-free financial solutions secured with credit guarantees from the state-owned CGCC,” he added.

In addition to the minimal or zero collateral requirements, Han highlighted a number of Wing Bank's other services and financial products that are tailored for women-owned SMEs, including flexible loan options, repayment methods that align with customer cashflow, and competitive interest rates. 

“We recognise that financial literacy is crucial for sustainable growth, hence, we provide extensive financial literacy programs and business training workshops to equip entrepreneurs with the necessary skills to manage their finances effectively… Additionally, we run mentorship and networking programs to help women entrepreneurs connect, learn, and grow their businesses," he added.

Empowering women entrepreneurs especially in the SME and MSME segments is not just a social imperative but a catalyst for Cambodia's economic growth.

Han also shared that Wing Bank has also routinely provided its support to various organisations and associations, through which the bank has engaged with the entrepreneurial community to create a more supportive ecosystem for SMEs, including the Cambodia Chamber of Commerce (CCC), FASMEC, the Techo Startup Center, Khmer Enterprise, Pact Cambodia, International Business Chamber (IBC), and the Young Entrepreneurs Association Cambodia (YEAC).

“By supporting women-led SMEs, we are driving innovation, fostering inclusive growth, and investing in Cambodia's prosperity. Together, we can create a thriving ecosystem where every woman entrepreneur can succeed and contribute to our shared future,” Han concluded.

This article was adapted from a supplied press release.
 

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