Impacts of economic crisis on SMEs

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Mawlamyine, November (1)

Although the military leader said he would fully assist small and medium-sized enterprises (SMEs), which have been affected by the coup, in reality, most businesses have found it more difficult to continue operating, SME businessmen told Than Lwin Times.

When the military leader took power, he said that the country's economy had improved and promised to grant loans for the development of SMEs, but it was not implemented in practice, and entrepreneurs are struggling to keep their jobs from closing down.

After the military coup, SMEs are facing challenges in continuing their business due to rising prices of raw materials, unstable dollar prices, and rising fuel prices.

The economic situation is no longer good. Transactions are just a third of what they once were and SMEs also have many difficulties with rising commodity prices and lower transactions.

I have to say that I was lucky that the business did not close down. There are many people who are worse than me, a businessman said.

Because the military council controls the dollar, SMEs are buying raw materials at a higher price in the open market. After the military coup, local workers left for foreign countries, causing a labor shortage in the country.

A steel manufacturer said that since the military coup, it has been difficult for SMEs to continue their business due to the power outage, a metal iron businessman said.

Small and medium business owners said that because the economy cannot improve due to the changing economic policy and political instability in the country, as a military leader, it is necessary to establish a specific policy and really understand the situation on the ground and provide effective assistance.

However, manufacturers are still facing great difficulties due to the current decline in foreign investment and the rise in the price of raw materials, an economist said.

Across the country, there are hundreds of thousands of SMEs.

However, as a result of the military coup, SMEs are finding it difficult to continue operating, and several are closing their businesses owing to losses.

News – Than Lwin Times

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