The Role Of Small And Medium Sized Enterprises In The Growth Of The Laos' Economy

SMEs play an important role in the economic and social development of Laos,especially in terms of product production,trade financing,employment levels,and the improvement of people's living standards.The low operating costs of SMEs can make a full use of domestic resources,help stimulate Laos' economic growth,and be able to adapt to a rapidly changing conditions in a timely manner,especially in the economy with the financial crisis period.The Lao government recognizes the important role of SMEs development,given that it influences the domestic economy.The government has committed to stimulate the growth of SMEs which has been shown by formulating policies,strategies and development plan to promote and support this sector such as establishing relevant and supportive mechanism.The Lao government also concentrates on integrating domestic SMEs with the regional and global markets.By doing so,they wish for a stable economic development in Laos.Therefore,it is significantly important to study the role of SMEs in Laos' economic growth.This paper mainly studies the role of SMEs in Laos' economic growth,it includes five chapters: The first chapter introduces the background and the significance of the study of Lao SMEs,and summarizes relevant literatures;explains the research ideas,methods,innovations and deficiencies of the papers.The second chapter focuses on the concept and definition standards of SMEs,and elaborates the definition of SMEs in Laos,the status of enterprises and SMEs.The third chapter analyzes the development status and existing problems of SMEs in Laos,including imperfect enterprise registration,lack of entrepreneurial cultivation ability,lack of consulting services,insufficient financial support,limited competitiveness and market access.The fourth chapter analyzes the important role of SMEs in Laos' economic growth,including the growth of SMEs in the national economy,the creation of employment opportunities,the role of SMEs in the market,the creation of technology and the production of large enterprises.The fifth chapter proposes countermeasures for the development of small and medium-sized enterprises in Laos,comprising of establishing a small and medium-sized enterprise incubation base,providing financial support,improving technological innovation,promoting cooperation between small and medium-sized enterprises and large enterprises,promoting exports,and tariff policies.