ABSTRACT

Small and Medium Enterprises (SMEs) drive industrial progress, improve an economy’s ability to deal with shocks and are recognized as breeding grounds of innovation which is a crucial part of the Cambodian economy, contributing to both economic and social development. SMEs play an important role in: (i) creating jobs (ii) generating income for low-income people and vulnerable populations, and (iii) fostering economic growth, social stability, and contributing to the growth of a dynamic private sector.

This paper focus on the production issues only where it aims to find factors affecting the growth of SMEs, that are divided into three folds such as technology, labor force, and capital. The research will employ the grounded theory as methodology.

However, SMEs have many challenges. Access to finance is still the main issue while SMEs bank has been established. Technical knowledge and skills are the main issues for labor including migration problems. Technology updated is still limited for growing SMEs.