Study on Access to Financial Services for Small and Medium Agribusiness Enterprises in Cambodia

This paper sheds light on the nature and the level of utilization of financial services by the agribusiness sector and their interface with the financial sector in Cambodia. It identifies the gaps between supply and demand for financial services by studying the data on financial indicators, as well as the perception of financial services. The primary source of information for this study is a survey of 1,030 agribusinesses in Cambodia in thirteen provinces, collected in 2011. The paper discusses the following in detail:

• Characteristics of Cambodian agribusinesses, background of the financial sector in the country, and identification of barriers to access to finance;
• Financial terms of commercial transactions and business volumes of the agribusiness sector along with data on working capital, fixed assets, and seasonality of financing requirements;
• Access to finance with a focus on utilization level of finance, providers of financial services, borrowings, lending terms, agribusiness perceptions about financial institutions and products, and awareness of various financial services and products;
• Policy implications of the study with a focus on encouraging formalization of agribusinesses, facilitation of investments in modernization of the agribusiness sector, and increasing the efficiency of the financial sector through diversified financial products and services customized for agribusinesses.