Entrepreneurship, Human and Social Capital, and Government Policy in Small and Medium Enterprise Development in Laos

Abstract

Considering the contribution of entrepreneurship to economic development in Laos through small and medium enterprises, the paper addresses the relationship between entrepreneurial human and social capital, and successful entrepreneurship – business turnover and job creation. The analysis applies data extracted from the Enterprise Survey 2009 conducted by GIZ. The study finds that human and social capital enhances successful entrepreneurship in SMEs. The impact of entrepreneur's education on business success is largely limited to a relatively small firm size. The implementation of government policies needs an extensive improvement, if the government aims to achieve its target in promoting SME development. The findings pertain to the importance of government commitment and human resource development in the context of Laos.