An Analysis of Performance Drivers in the Food MSME Sector: Evidence from Nay Pyi Taw

Abstract

Food Micro, Small, and Medium Enterprises (Food MSMEs) constitute a vital sector of Myanmar’s economy by generating employment and supporting household incomes. Despite their importance, the growth of these enterprises is often constrained by owner demographics, business characteristics, and institutional factors. This study employed multiple regression analysis using survey data from 158 Food MSMEs in the Nay Pyi Taw region to examine determinants of their performance, measured as sales revenue, and the explanatory variables are shaped by the demographic characteristics of owners and managers, business characteristics, and the institutional characteristics of these MSMEs. The findings reveal that firm size, firm age, current capital, fixed assets, enterprise type, and geographical distribution significantly and positively influence sales revenue. Conversely, owner and manager characteristics (age and education) are negatively and marginally significant, and external support factors (training participation and access to business information) were not statistically significant, although some showed positive directional effects. The R-squared value of the model is 0.723, highlighting the strength of the model among these variables. These results highlight the limited effectiveness of current support initiatives and indicate the need for better-targeted interventions. Policy implications include strengthening access to capital, promoting market expansion strategies, and tailoring training programs to address the practical needs of Food MSMEs. Such measures are essential for enhancing competitiveness and ensuring the sustainable development of the food sector.