Women-Led Enterprises Drive MSME and Economic Development in Cambodia.

The Economic Census of Cambodia 2022 conducted by National Institute of Statistics under the Ministry of Planning, has provided comprehensive insights into the dynamics of the country's business environment with a particular focus on the growing influence of women entrepreneurs in shaping the socio-economic landscape.

This analysis explores the pivotal role women-led businesses play in driving the development of Micro, Small, and Medium Enterprises (MSME) and subsequently the overall Cambodian economy.

This economic census ventured beyond mere traditional economic metrics by purposively bypassing sectors like agriculture and government, aiming instead to unravel the nuanced fabric underpinning Cambodia's economy. This ambitious census aspires to serve as a keystone for informed governance, providing a data-driven basis for economic and policy strategic planning.

With an emphasis on statistical findings, this report highlights the significant contribution of female entrepreneurship to economic development in The Kingdom of Cambodia.

The Rise of Women Entrepreneurs in The Kingdom Of Cambodia

Amidst a global movement toward gender inclusivity in business, Cambodia has marked a significant stride with a 49% increase in economic entities over the last decade, witnessing women spearheading 69.1% of these ventures. This remarkable transition, from roughly 505,134 establishments in 2011 to 753,670 in 2022, not only illustrates a substantial growth in quantitative terms but also highlights the pivotal role that women entrepreneurs are playing in shaping Cambodia's economic future.

As of March 1, 2022, the economic landscape in Cambodia featured 753,670 establishments, engaging a total workforce of 2,980,569 individuals. The gender division within this workforce showed 1,139,207 males (38.2%) and 1,841,362 females (61.8%), thus underscoring a predominant female participation. When street businesses are excluded, the numbers slightly adjust to 676,597 establishments with 2,864,256 engaged individuals.

These figures, when compared to the 2011 census, showcase not just a notable increase in the number of establishments by around 49% but also a 70.9% surge in engagement, propelling an annual growth rate of 5.0% which starkly surpasses the population growth rate of about 1.4%.

Creation of Opportunities by Women owned Enterprises

Cambodia's economic landscape is experiencing a dynamic shift, with enterprises flourishing not only in city centers but also within the heart of rural communities. This expansion is stitching together a diverse economic tapestry that traverses geographic boundaries. These businesses play a sizable role in collective employment, providing jobs to nearly 3 million individuals, of which a substantial majority are women, totaling 1.84 million. This widespread involvement of women-led ventures marks a decisive turn toward more equitable and inclusive economic growth.

The Shift Towards Service-Oriented Ventures

The Cambodian business sphere is increasingly characterized by a preponderance of service-related enterprises, now representing 93% of all economic activity. Ranging from traditional retail to progressive tech-oriented services, this transformation reflects a broader global movement toward knowledge and service-based industries. It underlines the flexibility and creativity that fuel the momentum of Cambodian women entrepreneurs as they adapt to and shape this modern economic evolution.

Street Businesses

Street businesses, including an array of stalls and kiosks, form an integral component of Cambodia's entrepreneurial fabric, accounting for 77,073 entities or 10.2% of all establishments. These grassroots ventures are steered predominantly by women, who represent approximately 75% of street business owners. The high proportion of micro-enterprises in this sector, with 89% employing just one or two people, depicts a realm where entrepreneurial zeal meets small-scale operations.

Average Annual Sales Per Entity?

Cambodian businesses reportedly made an average of USD 67,252 each year. Nevertheless, a notable gender gap becomes apparent from these numbers; businesses with male representatives recorded an average yearly sale of USD 133,541, whilst those with female representatives reported USD 37,686. Male-led or owned businesses made four times more than female-led or owned businesses. This difference highlights a key area for improving gender equality in business wages.

Concluding Summary

Women’s economic contributions are vital to Cambodia’s overall socioeconomic development. By participating in a wide range of economic activities, women not only support their families but also contribute to community development and national economic growth. The census data underscores the importance of including women in economic planning and development strategies to achieve sustainable and inclusive growth.