Improving Micro-, Small and Medium Enterprise’s Access to Start-up Financing in ASEAN
 Countries

Lack of access to finance constitutes a major setback to the development of the micro-,
 small and medium-sized enterprise (MSME) sector in the countries of the Association of Southeast
 Asian Nations (ASEAN). MSMEs are confronted with stringent funding constraints in traditional
 lending and capital markets, in particular at the early stages of their activity. Demand and
 supply of capital to MSMEs thus entails more complex issues compared to the larger firms. This
 paper presents a number of policy actions that have the potential to mitigate the financing
 challenges faced by MSMEs in ASEAN at the start-up stage by enhancing the potential of
 alternative funding sources such as business angel investment, crowdfunding, venture capital
 investment and SME stock markets.
