Survey highlights challenges for start-ups in Laos
VIENTIANE - Start-up businesses in Laos continue to grow at a lower rate than neighbouring countries while entrepreneurs still face numerous challenges in the sector, according to a Toh-Lao Coworking Space (TCS) survey.
The survey highlighted slow growth as new start-ups still are limited in their abilities to turn creative ideas into viable businesses, have limited access to finance, and especially lack laws and policies to encourage their activities.
Consequently, it will be difficult for the Small-Medium Enterprise Promotion and Development Office to realise its plans for Laos to have 500,000 new start-ups and small-medium entrepreneurs by 2020.
The country had only two percent of the population engaged in small business which was still low compared to its population of 6.4 million, according to office officials.
Founder of TCS, Souphaphone Chanthavong explained they were now working in cooperation with partners such Mekong Biz, Lotus Fund, Tiger Mekong, Australian Aid and Asian Development Bank through Mekong Business Initiative (MIB) to aid the development of local start-ups.
MIB aims to provide consultants for young people and entrepreneurs in Mekong countries including Laos to advise start-ups on how to access finance sources while building up networks with angel investors.
Souphaphone hoped that MIB would aid start-ups in Laos while bringing them to the attention of angel investors.
This would lead to Lao start-ups seeking opportunities to cooperate with other investors to further boost their businesses.
Early this year, Toh-Lao also launched Mekong’s Next Top Mentors Project to enhance regional start-up networks as a single market for investors as well as encouraging entrepreneurs to make contributions to the next programme and get more insightful information about the regional market.
Laos had only a small number of start-ups including four businesses with excellent potential, according to Toh-Lao.
However, they remain optimistic for Lao start-up prospects given the economic growth in the country and region.
