Cambodia Investment Review
Cambodia’s entrepreneurial ecosystem faces a pivotal moment in 2025 as stakeholders finalize the country’s first Entrepreneurial Ecosystem Roadmap (EBN), designed to tackle persistent structural challenges while unlocking significant opportunities for growth, innovation, and regional integration.
The roadmap was presented at the 10th Ecosystem Builder Network (EBN) meeting held on March 18 at the Khmer Enterprise Business Development Center. The event gathered 30 ecosystem actors — including government agencies, development partners, investors, INGOs — to validate the refined roadmap and outline concrete steps for implementation.
The initiative comes amid increasing recognition that while Cambodia’s entrepreneurial sector has grown steadily, deep-rooted issues such as fragmented support systems, limited access to finance, human capital gaps, and weak market linkages continue to hold back startups and small businesses. At the same time, emerging opportunities — driven by digital innovation, diaspora engagement, and regional market expansion — offer a potential pathway for the Kingdom to strengthen its entrepreneurial base.
Clear Priorities to Build a Thriving Entrepreneurial Ecosystem
The roadmap initiated in 2022 — developed over several years of consultations, analysis, and workshops — is centered on six strategic pillars: Support, Policy, Markets, Culture, Human Capital, and Finance. It provides a blueprint to align ecosystem players with Cambodia’s development goals and create a more cohesive and inclusive environment for entrepreneurs.
Data collected from stakeholder consultations highlighted several priority challenges:
- Market access, human capital development, and access to finance were identified as the most difficult areas for entrepreneurs to navigate.
- Fragmented and overlapping support programs, particularly concentrated in Phnom Penh, were found to leave rural entrepreneurs underserved.
- A weak connection between the local ecosystem and the Cambodian diaspora limits knowledge transfer, investment potential, and international market entry.
However, the roadmap also points to major opportunities:
- Cambodia’s young population and growing digital economy position the country well to foster innovation and tech-driven startups.
- Diaspora engagement could unlock talent, networks, and capital from Cambodians living abroad.
- Emerging sectors such as renewable energy, agriculture tech, and creative industries provide new growth avenues for SMEs and startups.
Strategic Recommendations to Address Systemic Barriers
The roadmap proposes a wide range of interventions designed to address these challenges and maximize opportunities:
1. Strengthening Support Systems:
Recommendations include standardizing program frameworks, extending entrepreneurial support to rural areas, and creating structured pathways for diaspora involvement. The goal is to build a more resilient and coordinated support network, reducing program duplication and improving service quality.
2. Expanding Access to Finance:
With limited innovative financial products available, particularly for women and marginalized groups, the roadmap calls for the development of tailored financial models and enhanced investment readiness programs. It also advocates for better coordination of grant schemes and the establishment of financial literacy and advisory platforms to improve SME financial practices.
3. Enhancing Market Access:
Cambodian SMEs struggle with fragmented domestic market access and barriers to meeting global standards. The roadmap proposes a National Market Expansion Program focused on helping SMEs comply with certifications and ESG standards while facilitating integration into regional and global value chains.
4. Shifting Entrepreneurial Culture:
Cultural barriers, including risk aversion and the fear of failure, continue to discourage entrepreneurship. The roadmap recommends initiatives to promote entrepreneurial success stories, normalize failure as part of business growth, and expand mentorship networks — especially for women, youth, and marginalized groups.
5. Aligning Human Capital with Market Demands:
A significant mismatch remains between education programs and market needs. The roadmap calls for practical entrepreneurship education at the high school level, better alignment of training programs with industry demands, and investment in data-driven curriculum reforms.
6. Improving Policy and Regulation:
Policy gaps and unclear regulatory frameworks create obstacles for startups and SMEs. The roadmap advocates for clearer definitions of startups, streamlined business registration and closure processes, and stronger coordination between national and local government bodies.
Collaboration Pillar and ‘Give a Day’ Continues to Drive Engagement
At the heart of the roadmap’s implementation is the Collaboration Pillar, led by the ‘Give a Day’ initiative — a regular forum for ecosystem players to build trust, share knowledge, and refine strategies. Since its launch, ‘Give a Day’ has engaged 1,397 participants from 329 organizations, reinforcing Cambodia’s ecosystem connectivity.
For 2025, a series of monthly ‘Give a Day’ events are planned in Phnom Penh, Siem Reap, and Battambang, ensuring that voices from both urban centers and the provinces are heard. These gatherings will further align efforts, gather feedback, and track progress against the roadmap’s ambitious goals.
Balancing Structural Reform and Emerging Opportunities
While Cambodia’s entrepreneurial landscape faces undeniable structural hurdles, the EBN’s first roadmap meeting represents a significant step toward long-term ecosystem development. By directly addressing issues like fragmented support, finance gaps, and human capital constraints, the roadmap offers a comprehensive framework for reform.
At the same time, new economic sectors and increasing regional integration present Cambodia with opportunities to position itself as a competitive hub for entrepreneurship in Southeast Asia. The roadmap encourages all stakeholders — from government bodies to private investors — to act collectively in seizing these opportunities while building a more inclusive, diverse, and resilient entrepreneurial ecosystem.
With continued commitment, collaboration, and strategic action, Cambodia’s ecosystem builders believe the country can unlock its entrepreneurial potential and drive sustainable economic growth in the years ahead. The EBN event is co-financed by Khmer Enterprise, the Swiss Agency for Development and Cooperation (SDC), and the Korea International Cooperation Agency (KOICA) and co-implemented by Khmer Enterprise and Swisscontact.
