Small and Medium Enterprise (SME) Strategies for Resilience and Growth During Economic Uncertainty in Cambodia

Abstract

This study investigates strategies that enhance resilience and growth among Cambodian Small and Medium Enterprise (SMEs) amid COVID-19-induced economic uncertainty. A survey was conducted as a nationally representative survey of 378 sampled enterprises across the agriculture, industry, and services sectors. Binary logistic regression (BLR) models were used to examine key factors that promote SME strategies for resilience and growth amid the economic uncertainty caused by COVID-19. The study shows that SMEs leveraging business associations significantly improved skill development, while digital banking adoption bolstered financial resilience. Firms with profit growth were 2.35 times more likely to invest in skills training. Conversely, innovation initiatives showed no significant adoption due to pandemic-driven financial constraints. Policy implications emphasize formalizing SME networks, accelerating access to digital banking, and enhancing owner education to mitigate economic shocks and foster adaptive capacity.