Cambodia Investment Review
A newly published Social Network Analysis (SNA) Study offers a comprehensive examination of Cambodia’s entrepreneurial ecosystem, providing valuable insights into its evolution, strengths, and persistent gaps. Conducted under the Enhancing Entrepreneurial Ecosystem and Investments (3Ei) initiative, the study expands on previous research to assess ecosystem development in Phnom Penh, Siem Reap, and Battambang. The findings highlight the importance of collaboration, knowledge-sharing, and targeted interventions to foster a more connected and inclusive entrepreneurial landscape.
“SNA is crucially important to gain a deeper understanding of the current status, evaluation, and demands of three different yet connected ecosystems. Phnom Penh is the biggest ecosystem. Siem Reap is a growing ecosystem fit for micro, small, and medium enterprises (MSMEs) in tourism. Battambang is an emerging ecosystem suitable for MSMEs in agriculture and agro-processing. Khmer Enterprise remains committed to working with other support stakeholders to build a vibrant ecosystem where entrepreneurs can thrive in their respective environment,” said H.E. Dr. Chhieng Vanmunin, Delegate of the Royal Government in charge as the CEO of Khmer Enterprise.
Flow Of Resources, Access To Funding, & Gaps In Support Networks
The research builds upon a previous SNA study conducted between 2019 and 2021 in Phnom Penh under the Credit Suisse–Swisscontact (CSSC) Initiative. That study highlights the necessity of periodic assessments to track ecosystem growth and inform strategic decisions. The 2024 SNA expands its scope by incorporating data from Siem Reap and Battambang, aiming to establish a broader baseline for future analysis. It maps relationships between entrepreneurs, support stakeholders, and financial institutions, offering critical insights into the flow of resources, access to funding, and gaps in support networks.
“SNA 2024 builds on the insights and recommendations from our previous SNA study with Credit Suisse in 2021. This study aims to inspire and guide ecosystem stakeholders in fostering a resilient and innovative entrepreneurial environment. Collaboration and partnerships are central to this journey, emphasizing the power of collective effort in achieving shared goals. We deeply appreciate the contributions of entrepreneurs, entrepreneur support organizations (ESOs), and ecosystem players who made this study possible.” Dr. Daniel Setiawan Nugraha, Country Director, Swisscontact.
Improvements In Connectivity Among Entrepreneur Support Organizations
Since 2021, Cambodia’s entrepreneurial ecosystem has seen notable improvements, particularly in connectivity among Entrepreneur Support Organizations (ESOs) and other support stakeholders. On average, ESOs now maintain 7.5 strong connections (meaning that on average, ESOs collaborate in one form or another with 7 to 8 other support stakeholders), up from 6 in 2021. This reflects growing collaboration across various stakeholders, including investors, banks, and financial institutions. In 2024, four out of the top five most demanded services are now being effectively supplied by ESOs and their partners, signaling progress from the 2021 SNA study. However, market access remains a critical gap, with 59% of respondents highlighting it as a major need that is still insufficiently addressed.
Despite these advancements, challenges persist, especially in terms of inclusiveness and connectivity within Phnom Penh’s support network. Funding access continues to be a significant barrier, particularly for traditional businesses, though social and innovative ventures are finding more opportunities for external funding. ESOs still operate as generalists, with some growth in specialization, but this remains limited. The study emphasizes the need for more targeted interventions and structured platforms to support business growth, particularly in facilitating market access.
The recognition of Cambodian role models has increased, with 81% of respondents citing local entrepreneurs as influential figures, up from 74% in 2021. However, female representation among role models and mentors remains limited. Mentorship continues to be predominantly male, with mentors generally having less significant experience. Furthermore, Khmer Enterprise (KE) has strengthened its role as a central hub within Cambodia’s entrepreneurial ecosystem. Since its inception in 2019, KE has effectively bridged gaps in information, training, and funding, addressing critical needs for technical assistance and financing mechanisms for SMEs and Startups.
A First-Of-Its-Kind Look Into These Emerging Ecosystems
The analysis of Siem Reap and Battambang provides a first-of-its-kind look into these emerging ecosystems, revealing their strong local connections and inclusiveness but also identifying critical support gaps. Entrepreneurs in these regions require more specialized services, particularly in digital literacy, financial management, and market access. While mentorship networks are developing, there is a need for stronger investor engagement to support innovative businesses. The study underscores the importance of ongoing ecosystem monitoring and tailored interventions to address the unique challenges faced by each region.
The findings from this study reinforce the importance of strengthening ESO collaboration, enhancing mentorship programs, and developing structured platforms for networking and business matching. Recommendations include expanding specialized support services, fostering digital transformation, and incentivizing donor-backed initiatives that promote ecosystem-wide cooperation. These strategic actions aim to drive sustainable growth and ensure a more inclusive entrepreneurial environment across Cambodia.
For more details, access the full report here: Social Network Analysis Study 2024.
This Social Network Analysis (SNA) Study is a product of the Enhancing Entrepreneurial Ecosystem and Investments (3Ei) initiative, 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.
