The Growth of Export-Oriented Small and Medium Enterprises in Afghanistan, Kyrgyzstan and Tajikistan

This paper examines how small and medium-sized enterprises (SMEs) can serve as engines for economic growth. Relevant international trends are explored before we home in on the regional experience, focusing on Central Asia. It should be noted that the number of SMEs engaged in trade in the region is relatively limited, making the potential for growth significant. The bulk of the paper will consider findings from the four research papers published by the Institute of Public Policy and Administration at the University of Central Asia (UCA), seeking to put them into a broader context. This synthesis report draws primarily on the following reports: • Export Driven SMEs in Kyrgyzstan: The Garment Sector (Jenish 2014). • Informality and Gender: Study on Kyrgyz SME sector (Kapalova 2014). • Small and Medium Enterprises Development and Regional Trade in Afghanistan (Mashal 2014). • Dynamics of the SME Sector in Tajikistan (Tilekeyev 2014). For the purposes of this synthesis paper, we focus on four cross-cutting themes that emerge from the case studies but that are also relevant to the development of the SME sector outside the three countries considered. The four common themes that will be dealt with in more detail are: size of SMEs; the informality of the sector; domestic bottlenecks to trade and women and their engagement in SMEs.