Asians running rings around SME sector

PAPUA New Guinea has seen a rise in Asian businesses.
Asians have dominated the SME sector even right into the PNG village setting.
The domination of Asians in small and medium-sized enterprise (SME) businesses in PNG can be attributed to several factors.
Historical context: PNG has a history of immigration from Asian countries, particularly China and Indonesia.
Many Asians migrated to PNG generations ago and established businesses, which have been passed down through families.
These businesses often have deep roots in the local economy. For instance, Tropicana retail business in Kokopo, Dae Won Trading in Mt Hagen and Leon Hardware.
Entrepreneurial spirit: Asian communities often have a strong entrepreneurial culture.
They are willing to take risks and invest in business ventures, which can lead to success in the SME sector.
Access to capital and resources: Asian business owners may have access to capital and resources from their networks, both within PNG and internationally. This can give them a competitive advantage in starting and expanding businesses.
Specialisation and niche markets: Asian-owned businesses in PNG often specialise in specific industries or niche markets where they have expertise or connections. This specialisation allows them to thrive in sectors where there may be less competition from local businesses.
Adaptability and innovation: Asian entrepreneurs are often adept at adapting to changing market conditions and embracing new technologies and business practices. This adaptability and innovation can help them stay competitive in the dynamic SME sector.
Government policies and regulations: Government policies and regulations may also play a role in shaping the business landscape in PNG. In some cases, policies related to immigration, trade, or investment may inadvertently favor Asian-owned businesses.
While the dominance of Asians in the SME sector in PNG may raise concerns about economic inequality or unfair competition, it’s essential to recognise the diverse contributions that different communities make to the economy. Supporting local entrepreneurship and creating opportunities for all segments of society to participate in the economy can help foster inclusive growth and development.
I don’t see a future for SME in PNG. This sector will remain stagnant unless the Government come in and intervene and, if they do, I don’t know they will revive this sector.

Justin Soga Max
Kerendah village