A Review of Studies on Financial Support and Financing Constraints for SMEs in Laos.

Abstract

Small and medium-sized enterprises (SMEs) represent the most active component of the Lao economy. Financing constraints and financial exclusion have, to some extent, hindered the growth and development of SMEs. Many studies, both locally and internationally, on financing constraints and financial support for SMEs in Laos have continued to deepen as the country's SMEs have grown. This paper studied Laos' domestic financial environment to conceptually explain its financing constraints by combing through related literature. This paper examines theoretical frameworks on financial support for SMEs in Laos, categorizes financial support models in various countries, and lastly gives theoretical support and practical experience for developing a financial support model suited for SMEs in Laos.