Taxes and capital obstacles for small business owners
The exclamations of dismay that come from small-business people in Cambodia when someone tries to take a picture of their shop are to be expected, as they believe the photo will be used to make them pay taxes they cannot afford, but that doesn’t mean they aren’t working hard. Kim Srun, has been running a small grocery shop on street 2002 since 1991, when he and his family decided to move to Phnom Penh. He was faced with the immediate challenge of not having enough capital to begin his business. To overcome the obstacle he borrowed some money from friends and relatives, and the rest from a micro-finance company. … “Customers are increasing and my income seems to be stable,” Kim said, but most customers want to purchase goods on credit. The liability of customers not paying what they owe is tough for Kim because his capital isn’t increasing. … Small, family run grocery shops are very competitive as Kim can attest. “I have fought with my neighbors, but it was mere shenanigans, nothing serious,” who own a similar shop next to his own. …
