THE government needs to do more to promote small enterprise, according to the results of a study released Wednesday.
The study was based on a comprehensive listing of Cambodian enterprises, seen as the first step towards an economic census due for completion in March 2012.
According to the study, performed by the National Institute of Statistics, Cambodia has just 28.1 establishments per 1,000 people, compared with 96.7 in Indonesia and 35 in Laos.
“It seems that a policy to promote the inauguration of new establishments is required,” the report concluded.
An establishment was defined as an enterprise or part of an enterprise situated in a single location in which the main productive activity accounts for most of the income generated by the enterprise.
The report, which was supported by the Japan International Cooperation Agency, found that 70 percent of Cambodia’s 376,761 establishments consist of just one or two people.
Just 12.3 percent involve five or more people, 3.5 percent involve 10 or more and only 0.2 percent, or 692 enterprises, have more than 100 people involved. The country has only 106 enterprises with more than 1,000 people, the report showed.
Cambodian Economic Association President Chan Sophal said the survey showed Cambodia was still in its initial stage of economic development.
“The government should try to encourage and attract more big investors to invest in Cambodia in order to increase the strength of its economy and to expand the size of enterprises,” he said.