vMSMEs, Fair Competition and the Path to Inclusive Economic Growth

By Dr Thuta Aung

AS Myanmar pre­pares to celebrate MSME Day later this month, it is timely to reflect on the important role of micro, small and medium enterprises in the national economy and on the conditions required for their continued development.

MSMEs are not merely small business units. They are produc­tive forces of the nation. Across regions and states, MSME owners and entrepreneurs create employ­ment, support families, produce goods and services needed by local communities, preserve traditional skills, introduce new ideas, and contribute to the circulation of in­come within the domestic econo­my. In this sense, MSME devel­opment is closely connected with national economic development, poverty reduction, employment creation and the strengthening of domestic production.

MSME development has been prioritized at the highest level of the State, with the President and the Government emphasizing the need to strengthen MSMEs, promote domestic production, improve product quality, offer fair prices, create employment oppor­tunities and support the broader development of the national econ­omy. These objectives are impor­tant not only for individual busi­nesses, but also for the productive capacity and economic resilience of the State.

MSME Day should therefore be regarded not only as a cere­monial occasion, but also as a reminder of the need to build an enabling business environment where capable MSMEs can sur­vive, improve and grow.

From the perspective of com­petition policy, MSME develop­ment depends on more than hard work alone. MSME owners and entrepreneurs may be innovative, disciplined and determined, but they also need fair access to mar­kets. They need the opportunity to reach customers, distribute their products, obtain inputs, offer ser­vices and compete on merit. When markets are open and competi­tive, MSMEs can grow through better quality, reasonable prices, improved service, creativity and local knowledge.

However, when markets are restricted by unfair practices, even capable MSMEs may face unnec­essary obstacles. This is why com­petition policy is directly relevant to MSME development.

Fair competition does not mean opposing large enterprises. Large enterprises are also impor­tant for investment, employment, technology, logistics, infrastruc­ture and export capacity. A strong national economy needs enter­prises of different sizes. But fair competition means that market strength should not be used in a way that unfairly blocks the path of smaller players. Business suc­cess should come from efficiency, innovation, quality and service, not from preventing others from en­tering or competing in the market.

One practical issue in this regard is the practice of forced bundling or tying. In ordinary com­mercial life, some forms of pack­age sales may be reasonable and beneficial to consumers. However, where a powerful market player requires customers to buy one product or service as a condition for obtaining another, and where such practice restricts customer choice, excludes competitors or prevents smaller businesses from accessing the market, it may be­come a competition concern.

For MSMEs, this issue can be significant. A small or medi­um enterprise may have a good product, reasonable prices and strong local demand. Yet it may still find difficulty if customers are effectively locked into a package controlled by a much larger player. In such a situation, the problem is not necessarily the weakness of the MSME. The problem may be that the market itself is not suffi­ciently open for fair, merit-based  competition.

Preventing unfair bundling, restrictive arrangements and abuse of market power is there­fore not separate from MSME de­velopment. It is part of creating a fair business environment. When larger market players compete responsibly, MSMEs are given more space to improve, innovate and grow. Consumers also benefit because they receive more choice, better quality and fairer prices.

The Myanmar Competition Commission, in accordance with the objectives of the Competition Law, has an important role in promoting fair competition, pre­venting anti-competitive conduct and supporting a business envi­ronment where enterprises can compete fairly. This role should be understood as complementary to national MSME development efforts. Competition policy does not replace training, financing, technology support or market promotion. Rather, it strengthens these efforts by helping to ensure that MSMEs can actually use their capabilities in the marketplace.

For example, if MSMEs re­ceive training but cannot access markets, their potential remains limited. If they obtain financing but face exclusionary practices, their growth remains constrained. If they improve product quality but customers are tied to restrictive arrangements, the economy loses the benefit of their productivity. Therefore, MSME support and fair competition must move together.

A whole-of-economy ap­proach is needed. Government departments, regulatory bodies, financial institutions, chambers of commerce, large enterprises, training providers and MSME as­sociations all have important roles. Financial institutions can design products suited to the realities of MSMEs. Training providers can help MSME owners improve busi­ness planning, accounting, qual­ity control, branding and digital capability. Large enterprises can support MSMEs through fair pro­curement, responsible distribution practices and partnership models. Regulators can promote clarity, fairness and predictability.

MSME owners and entrepre­neurs also have their own respon­sibilities. They should continue to improve quality, maintain fair prices, adopt better management practices, use technology where possible, and build trust with cus­tomers. Fair competition protects opportunity, but long-term suc­cess still depends on discipline, productivity and continuous im­provement.

The aim is not to protect ineffi­cient businesses from competition. The aim is to ensure that compe­tition itself is fair. A fair market rewards better products, better services, better prices and bet­ter management. It encourages businesses to improve. It gives consumers more choice. It allows capable MSMEs to grow into strong local enterprises, regional businesses, national brands and future exporters.

As Myanmar celebrates MSME Day, we should honour the contribution of MSME own­ers and entrepreneurs throughout the country. Their businesses may begin on a small scale, but their collective contribution to employ­ment, domestic production and national economic resilience is significant.

MSMEs do not ask for mar­kets to be made easy. They ask for markets to be made fair.

If the country can continue building an environment where MSMEs receive support, where larger enterprises compete re­sponsibly, where consumers enjoy fair prices and wider choice, and where anti-competitive practices are properly addressed, MSME development will become a strong­er foundation for inclusive eco­nomic growth.

MSME Day is therefore more than a celebration of small busi­nesses. It is a national reminder that productive enterprises, fair competition and inclusive growth must advance together for the ben­efit of the State and the people.

Dr Thuta Aung is Vice-Chair­man of the Myanmar Compe­tition Commission. (The views expressed in this article are per­sonal and do not necessarily re­flect the views of organizations the author is affiliated with.)