Micro-, Small and Medium Enterprises in Tajikistan: Drivers of and Barriers to Growth

Abstract

This paper presents the results of a study of the micro-, small and medium enterprise (MSME) sector in Tajikistan, with a focus on its role in the economic growth of the country. Tajikistan has experienced a significant improvement in economic performance during the last decade. This growth is evident in sectors in which MSMEs operate, suggesting the need to better understand the sector and its role in national economic growth. The paper describes the results of a survey of 325 randomly selected, cluster-based enterprises in three key economic sectors in urban and rural areas across Tajikistan: retail trade and services, transportation and agriculture. The dataset provides detailed information on the personal characteristics of entrepreneurs, as well as specific factors influencing the growth of MSMEs, including labour, capital, information and barriers to growth. Analysis of the determinants of making investments, as well as the success of investment decisions of urban entrepreneurs, provides insight into the necessity of developing education opportunities on business and financial planning for MSME owners. Conclusions are presented to help guide policy and programmes that impact the MSME sector and the broader environment in which it functions.