20 May

Burmese Startups Are On Their Own

By admin

Screen Shot 2015-05-20 at 8.14.38 PM

With the surge being observed in many developing countries in terms of their economic growth and privately-owned small and medium businesses, each country has to face problems of its own. In sundry countries many e-commerce ventures like Kaymu have always tried to accommodate and facilitate startups and entrepreneurial activities to boost the countries’ e-commerce sector. However, in some of the countries like Myanmar, startups face particular problems. According to different sources, following are some of the major hurdles faced by Burmese startups and how do they cope up with it.

Rampant Cronyism

Many of the young entrepreneurs blame the rampant cronyism that governs the country’s politics. Only powerful people with political and financial resources get the chance of starting and running new setups. CEO of Information Matrix Thaung Su Nyein believes that even though the global and powerful local companies lack in creative and innovative ideas, they still try to create problems for the youngsters to start their own businesses. This is of course very discouraging for the budding entrepreneurs.

Unsolicited High Internet Costs

The high costs of internet deters the nascent startups to begin their activities. Some people interviewed a year ago told that it costs at least 500 US dollars to get a broadband internet connection installed. This is merely for the installation. Further it costs more than 100 bucks for monthly bill. And all of this is true about a country whose GDP is among the lowest in East Asian countries.

Not only is the broadband costly, number mobile internet user amount to less than 10 percent in this roughly 60 million population. This figure is very discouraging for those businesses whose audience and customer are majorly online.

According to some of the experts Myanmar is undoubtedly an untapped ocean of resources. Once you ease up the internet charges, people will start using it and will ultimately benefit those who want to create some positive impact in country’s economy.

Lack Of Government Interest and Exogenous Pressure

According to some of the local SMEs, the foreign companies are too powerful and rich with resources. Therefore, they have the advantage of running whatever business they can by using government resources. Meanwhile the government has failed to provide the young businesses their due share and basic necessity. Power cuts, for example, bug a lot.

Tun Thura Tet, founder of the Burma’s largest software house Myanmar Information Technology (MIT) disclosed that how the ‘big boys’ have taken over the country’s software houses. The only way for local people to be part of that market is to partner with them.

Keeping all of the above factors in mind, the Burmese startups are on their own. In order to survive, they are doing their best to create the best possibilities out of these circumstances.

Leave a Reply

Your email address will not be published. Required fields are marked *