Factors affecting micro, small, and medium-sized enterprise development in developing Asia: Findings from a probabilistic principal component analysis

Shinozaki, Shigehi o; Miyakawa, Daisuke; A ahan, Romeo
Wo king Pape
Fac o s a ec ing mic o, small, and medium-sized en e p ise
de elopmen in de eloping Asia: Findings om a p obabilis ic p incipal
componen analysis
ADB Economics Wo king Pape Se ies, No. 715
P o ided in Coope a ion wi h:
Asian De elopmen Bank (ADB), Manila
Sugges ed Ci a ion: Shinozaki, Shigehi o; Miyakawa, Daisuke; A ahan, Romeo (2024) : Fac o s
a ec ing mic o, small, and medium-sized en e p ise de elopmen in de eloping Asia: Findings om
a p obabilis ic p incipal componen analysis, ADB Economics Wo king Pape Se ies, No. 715, Asian
De elopmen Bank (ADB), Manila,
h ps://doi.o g/10.22617/WPS240032-2
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h ps://hdl.handle.ne /10419/298161
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ASIAN DEVELOPMENT BANK
ASIAN DEVELOPMENT BANK
6 ADB A enue, Mandaluyong Ci y
1550 Me o Manila, Philippines
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ADB ECONOMICS
WORKING PAPER SERIES
NO. 715
Feb ua y 2024
Fac o s A ec ing Mic o, Small, and Medium-Sized En e p ise
De elopmen in De eloping Asia
Findings om a P obabilis ic P incipal Componen Analysis
To iden i y ac o s a ec ing mic o, small, and medium-sized en e p ise (MSME) de elopmen , his pape
p oposes a p obabilis ic p incipal componen analysis me hod ha wo ks despi e cu en da a limi a ions.
The es ima ion esul s sugges ha sound MSME c edi ma ke s, di e si ied inancing op ions, suppo o
new businesses and job c ea ion, and ac i e MSME pa icipa ion in global ma ke places play a c i ical ole
in ensu ing a smoo h business eco e y om a ious c ises and shocks a ec ing de eloping Asia and he
Paci ic.
Abou he Asian De elopmen Bank
ADB is commi ed o achie ing a p ospe ous, inclusi e, esilien , and sus ainable Asia and he Paci ic,
while sus aining i s e o s o e adica e ex eme po e y. Es ablished in 1966, i is owned by 68 membe s
—49 om he egion. I s main ins umen s o helping i s de eloping membe coun ies a e policy dialogue,
loans, equi y in es men s, gua an ees, g an s, and echnical assis ance.
FACTORS AFFECTING MICRO,
SMALL, AND MEDIUM-SIZED
ENTERPRISE DEVELOPMENT
IN DEVELOPING ASIA
FINDINGS FROM A PROBABILISTIC PRINCIPAL
COMPONENT ANALYSIS
Shigehi o Shinozaki, Daisuke Miyakawa, and Romeo A ahan
ASIAN DEVELOPMENT BANK
The ADB Economics Wo king Pape Se ies
p esen s esea ch in p og ess o elici commen s
and encou age deba e on de elopmen issues
in Asia and he Paci ic. The iews exp essed
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e lec he iews and policies o ADB o
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hey ep esen .
ADB Economics Wo king Pape Se ies
Shigehi o Shinozaki, Daisuke Miyakawa,
and Romeo A ahan
No. 715 | Feb ua y 2024
Shigehi o Shinozaki ([email protected] g) is a senio
economis and Romeo A ahan ( a ahan.consul an @
adb.o g) is a consul an a he Economic Resea ch and
De elopmen Impac Depa men . Daisuke Miyakawa
([email protected]) is a p o esso a Waseda
Uni e si y, and chie economis o UTokyo Economic
Consul ing Inc. (UTEcon).
Fac o s A ec ing Mic o, Small, and Medium-Sized
En e p ise De elopmen in De eloping Asia:
Findings om a P obabilis ic P incipal Componen Analysis
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ABSTRACT
Limi ed da a on mic o, small, and medium-sized en e p ises (MSMEs) make i di icul o
go e nmen s o design app op ia e MSME policies in Asia and he Paci ic. To iden i y ac o s
a ec ing MSME de elopmen and p omo e e idence-based policymaking, we p opose a
p obabilis ic p incipal componen analysis me hod ha wo ks despi e cu en da a limi a ions. The
s udy uses ime-se ies MSME da a collec ed om 25 de eloping membe coun ies o he Asian
De elopmen Bank (ADB) h ough he Asia Small and Medium-Sized En e p ise Moni o p ojec .
The es ima ion esul s sugges ha sound MSME c edi ma ke s, di e si ied inancing op ions,
suppo o new businesses and job c ea ion, and ac i e MSME pa icipa ion in global
ma ke places play a c i ical ole in ensu ing a smoo h business eco e y om a ious c ises and
shocks a ec ing de eloping Asia and he Paci ic.
Keywo ds: SME de elopmen , access o inance, inancial inclusion, SME policy, p obabilis ic
p incipal componen analysis, Sou heas Asia, Sou h Asia, Cen al and Wes Asia, he Paci ic
JEL codes: D22, G20, L20, L50

1. In oduc ion
De eloping Asian economies con inue o eco e om he co ona i us disease (COVID-19)
pandemic ha began in Ma ch 2020, al hough economic g ow h di e s by coun y. Con inuous
global economic unce ain y, howe e , has ampli ied downside isks—including high in la ion,
cu ency dep ecia ion, and global supply chain dis up ions accele a ed by egional poli ical
u bulence. In Sou heas Asia, a eco e y in ou ism pa ly con ibu ed o he egion’s 5.6% g ow h
in 2022; bu i is o ecas o d op o 4.6% in 2023 gi en con inued weak expo s. In Sou h Asia,
economic and poli ical c ises in Pakis an and S i Lanka pushed he egion’s g ow h down om
6.7% in 2022 o 5.4% in 2023. In Cen al and Wes Asia, he ongoing impac om he Russian
in asion o Uk aine helped lowe he egion’s g ow h om 5.1% in 2022 o a o ecas 4.6% in
2023. In he Paci ic, a s ong pos -pandemic ou ism ebound ene gized he egion’s sha p
economic eco e y o 6.1% g ow h in 2022; bu i is o ecas o slow o 3.5% in 2023 pa ly due o
labo sho ages accele a ed by emig a ion om small island coun ies o Aus alia and New
Zealand (ADB 2023a).
Mic o, small, and medium-sized en e p ises (MSMEs) help d i e g ow h ac oss de eloping Asia
and he Paci ic, gi en hei la ge sha e o business en e p ises, job c ea ion, and economic ou pu .
Gi en hei impac , go e nmen s in he egion ha e aken se e al policy measu es o p omo e
MSME de elopmen . They commonly p omo e en ep eneu ial de elopmen (especially o you h
and women), use o echnology ha encou ages business inno a ion, expanded ma ke access
by in e na ionalizing MSMEs, human capi al and skills de elopmen , and be e access o inance.
Bu cons ain s on MSME de elopmen emain in mos coun ies. These include a lack o an
en ep eneu ial cul u e, high dependence on cash ansac ions ha s ymie inno a ion, a la ge
pe cen age o un egis e ed o in o mal businesses, limi ed expo s o pa icipa ion in global
ma ke s, skilled labo sho ages, and s uc u al p oblems limi ing access o o mal inancial
se ices o wo king and g ow h capi al. This aises he ques ion how go e nmen s can enhance
policies and hei implemen a ion o p omo e MSME de elopmen owa d mo e inclusi e, esilien
g ow h.
Be e unde s anding he MSME business en i onmen and s uc u al p oblems ha inhibi g ow h
is c i ical be o e designing a easible policy amewo k on MSME assis ance. Howe e , he lack
o da a on MSMEs makes his ex emely di icul . To help go e nmen s p omo e e idence-based
MSME policymaking, he Asian De elopmen Bank (ADB) has, since 2020, p o ided benchma k
indica o s on MSME de elopmen and access o inance h ough i s annual Asia Small and
Medium-Sized En e p ise Moni o (ASM). As o No embe 2023, he ASM co e s MSMEs in 25
ADB de eloping membe s in Sou heas Asia, Sou h Asia, Cen al and Wes Asia, and he Paci ic.
Insu icien da a, howe e , emains a majo p oblem.
A solid quan i a i e e alua ion on MSME de elopmen using su icien , accu a e, and compa able
da a emains a challenge bo h na ionally and egionally. Incomple e da a on MSMEs led global
ins i u ions—such as he O ganisa ion o Economic Co-ope a ion and De elopmen (OECD), he
Economic Resea ch Ins i u e o ASEAN and Eas Asia (ERIA), and he In e na ional T ade Cen e
(ITC)— o p opose a quali a i e app oach using assessmen ma ices o pe o mance a ings o
median compa isons based on a ailable da a o e alua e MSME de elopmen and
compe i i eness, bo h na ionally and egionally.
The ASM p ojec has also explo ed a new way o quan i a i ely iden i y ac o s a ec ing MSME
de elopmen h ough i s ASM da abase. In 2021, i de eloped a new ial ha deals wi h MSME
da a limi a ions—a a ian o a s anda d p incipal componen analysis (PCA) ha supplemen s
some missing MSME da a—a p obabilis ic PCA (ADB 2022). The pilo es co e ed 15 coun ies
2
om Sou heas Asia and Sou h Asia along wi h a i m-le el da a analysis o Vie Nam. While his
con ibu ed o he new MSME de elopmen index, insu icien da a limi ed he p oposed model’s
abili y o es ima e mo e accu a ely he ac o s ha ep esen MSME ac i i ies. Mo e es - uns o
addi ional coun ies a e needed o p oduce a eliable index conduci e o e idence-based policy
design on MSMEs in he egion. In 2023, we success ully compiled ime-se ies MSME da a
co e ing 25 coun ies. Wi h his new da ase , his s udy e-es ima es ac o s ha explain he
MSME de elopmen pa h by egion and coun y and e hinks how o de elop a quan i a i e
app oach o be e assess MSME de elopmen .
Sec ion 2 summa izes he MSME landscape in de eloping Asia, ex ac ed om ADB (2023b).
Sec ion 3 e iews global MSME da a ini ia i es in Asia and he Paci ic. Sec ion 4 explains he
me hodology and da ase used o analysis. Sec ion 5 discusses he es ima ion esul s in ou
g oups—(i) all coun ies, (ii) Sou heas Asia, (iii) Sou h Asia, and (i ) Cen al and Wes Asia. This
is ollowed by associa ed policy implica ions in Sec ion 6 and conclusions in Sec ion 7.
2. MSME Landscape in De eloping Asia
MSMEs domina e he p i a e sec o in Asia and he Paci ic. Acco ding o ADB (2023b), based on
a ailable da a in pa icipa ing coun ies h ough 2022, MSMEs in Asia and he Paci ic accoun ed
o an a e age 96.6% o all en e p ises, 55.8% o he o al wo k o ce, and 28% o a coun y’s
economic ou pu (Table 1). Da a collec ed depend on he na ional MSME de ini ion o each
coun y. Mos MSMEs se e small domes ic ma ke s, wi h many engaged in dis ibu i e ade and
in o mal business. Cash domina es hei business model and he e is li le incen i e o g ow
u he —ca ego ized as “s abili y-o ien ed” i ms. Wi h a la ge base o in o mal businesses, he
o icial MSME con ibu ion o a coun y’s economic ou pu is likely well below i s ac ual impac .
None heless, “g ow h-o ien ed” and inno a i e i ms ha wan o expand in o global ma ke s ha e
g adually inc eased ac oss he egion, al hough hey emain a small ac ion o MSMEs. Based
on a ailable da a h ough 2022, MSME expo s accoun ed o an a e age 26.3% o o al expo
alue. And MSME expo g ow h is slowing, mainly due o he weak expo en i onmen globally.
Low business di e si ica ion limi s a coun y’s g ow h po en ial, sugges ing he need o c ea ing
mo e inno a i e and globalized small i ms, s a ups, and an en ep eneu ial base, bo h na ionally
and egionally.
Limi ed access o inance emains a ch onic ba ie o MSME g ow h. The MSME c edi ma ke
emains small in Asia and he Paci ic. ADB (2023b) epo ed ha bank loans o MSMEs a e aged
10.6% o a coun y’s g oss domes ic p oduc (GDP) and 22% o o al bank lending. The pandemic
esponse boos ed comme cial bank lending o MSMEs, p o ided go e nmen eme gency
inancial assis ance o s eng hened new lending o MSMEs h ough subsidized loan p og ams,
e inancing acili ies, and special c edi gua an ees. Despi e his, MSME nonpe o ming loans
emained high, a e aging 7.2% o o al MSME bank loans in he egion. The lack o al e na i e
inancing op ions beyond adi ional bank c edi limi s inno a ion and business oppo uni ies o
iable MSMEs, s a ups, and en ep eneu s.
3
Table 1: MSMEs in De eloping Asia and he Paci ic
(pe cen age sha e)
All Coun ies
Sou heas Asia Sou h Asia Cen al and
Wes Asia
MSME
d
e elopmen
 Numbe o MSMEs o
o al en e p ises
96.6% 98.0% 99.6% 99.2%
 MSME employees o
o al employees
55.8% 66.4% 76.6% 51.9%
 MSME con ibu ion o
economic ou pu
28.0% 41.2% 17.7% 41.5%
 MSME expo s o o al
expo alue
26.3% 13.3% 37.4% 28.3%
Access o inance (bank c edi )
 MSME loans o na ional
GDP
10.6% 13.3% 5.2% 11.1%
 MSME loans o o al
bank loans
22.0% 12.3% 12.5% 33.1%
 MSME NPLs o o al
MSME loans
7.2% 5.3% 12.1% 4.3%
GDP = g oss domes ic p oduc , MSME = mic o, small, and medium-sized en e p ise, NPL = nonpe o ming loan.
No es: Repo ing coun ies only. Da a based on la es a ailable da a un il 2022. Da a o all coun ies co e 25 coun ies:
10 om Sou heas Asia; 5 om Sou h Asia; 7 om Cen al and Wes Asia; and 3 om he Paci ic.
Sou ce: Asia SME Moni o 2023 da abase
.
3. Global MSME Da a Ini ia i es
Se e al global ini ia i es a e de eloping indices o measu e speci ic aspec s o MSMEs—such as
access o ma ke s, in as uc u e, inance, skills de elopmen , use o echnology and inno a ion,
business ope a ions and adminis a ion, compe i i eness, and policy and egula o y amewo ks
(Table 2). Mul ila e al o ganiza ions such as he OECD, ERIA, ITC, and Wo ld Bank G oup ha e
been using a ious analy ical app oaches o o e come he lack o su icien MSME da a.
The OECD p oduces wo ela ed epo s on SME de elopmen : (i) he SME and En ep eneu ship
Ou look and (ii) Financing SMEs and En ep eneu ships (OECD Sco eboa d). Launched in 2002,
he En ep eneu ship Ou look e iews 6 dimensions wi h 29 subdimensions using c oss sec ional
da a o median compa ison. Dimensions include (i) ins i u ional and egula o y amewo ks, (ii)
ma ke condi ions, (iii) in as uc u e, (i ) access o inance, ( ) access o skills, and ( i) access o
inno a ion asse s (OECD 2023). The subdimensions include (i) egula ions, cou s and laws, land
and housing, public go e nance, compe i ion, and axa ion; (ii) domes ic ma ke s, global ma ke s,
public p ocu emen , and ade and in es men ; (iii) logis ics, ene gy, esea ch and de elopmen
(R&D) and inno a ion, he in e ne and in o ma ion and communica ions echnology (ICT); (i )
sel - unding, deb , he inancial sys em, and al e na i e ins umen s; ( ) adul li e acy, he labo
ma ke , en ep eneu ial cul u e, aining, and educa ion; and ( i) echnology, R&D, o ganiza ion
and p ocesses, ma ke ing, and da a. I co e s OECD membe s, including, om Asia, Aus alia,
Japan, New Zealand, and he Republic o Ko ea.
The OECD Sco eboa d, launched in 2012, is an annual epo ocusing on ends in SME inancing
and policies o 48 coun ies. In 2022, i included 11 coun ies om Asia—Aus alia, Geo gia,
Indonesia, Japan, Kazakhs an, Malaysia, New Zealand, he People's Republic o China (PRC),
he Republic o Ko ea, Thailand, and Tü kiye. I e iews 5 inancial dimensions wi h 25
subdimensions (indica o s): (i) alloca ion and s uc u e o bank c edi o SMEs; (ii) ex en o public
4
suppo o SME inance; (iii) c edi cos s and condi ions; (i ) nonbank sou ces o inance; and ( )
inancial heal h (OECD 2022). The OECD cons uc s he indica o s mainly using supply-side da a
om s anda dized o ms illed in by banks, o he inancial ins i u ions, s a is ics o ices, and
go e nmen agencies. The co e indica o s include o al lending (o e all and SMEs), new lending
(o e all and SMEs), sho - e sus long- e m SME loans, di ec go e nmen SME loans,
go e nmen loan gua an ees, in e es a es (o e all and SMEs), colla e al (SMEs), and
bank up cies (SMEs), among o he s.
The OECD and ERIA p oduced an ASEAN SME Policy Index in 2014 and 2018 ou lining he
policy landscape o SME de elopmen . I e alua es he scope and in ensi y o SME de elopmen
policies h ough 8 dimensions wi h 25 subdimensions: (i) p oduc i i y, echnology, and inno a ion;
(ii) en i onmen al policies a ge ing SMEs; (iii) access o inance; (i ) access o ma ke s and
in e na ionaliza ion; ( ) ins i u ional amewo k; ( i) legisla ion, egula ion, and axes; ( ii)
en ep eneu ial educa ion and skills; and ( iii) social en e p ises and inclusi e en ep eneu ship
(OECD and ERIA 2018). These a e measu ed in h ee s ages: (i) planning and design; (ii)
implemen a ion; and (iii) moni o ing and e alua ion. Pa icipa ing go e nmen s sha e hei SME
da a and assess SME policies. They also conduc su eys o key s akeholde s and p i a e sec o
ep esen a i es o help supply missing in o ma ion needed o quali a i e analysis. Fo each
subdimension, esponden s sco e he s eng hs and weaknesses o cu en SME policies on a
scale om 1 o 6, wi h highe sco es indica ing a be e le el o policy de elopmen and
implemen a ion.
The ITC’s SME Compe i i eness Ou look annually e iews SME de elopmen and inancing
condi ions in 85 coun ies including se e al om Asia (ITC 2022). I aims o acili a e
implemen a ion o Uni ed Na ions Sus ainable De elopmen Goals 8 and 9. The epo p oduces
an SME Compe i i eness Index based on 3 dimensions wi h 39 subdimensions: (i) i m
capabili ies (SME's abili y o manage esou ces unde i s con ol); (ii) business ecosys em
( esou ces and compe encies needed o enhance a i m’s compe i i eness); and (iii) na ional
en i onmen (go e nmen unc ionali y and policy implemen a ion). Each dimension is measu ed
on h ee abili ies: (i) capaci y o compe e (en e p ise e iciency); (ii) capaci y o connec
(in o ma ion and knowledge ga he ing/exploi a ion); and (iii) capaci y o change (human and
inancial capi al in es men s). The index assesses he compe i i e s eng hs and weaknesses by
i m size on a 0–100 scale, analyzing ime-se ies da a ob ained om seconda y da a including (i)
he Wo ld Bank’s En e p ise Su eys, Ease o Doing Business Index, and Logis ics Pe o mance
Index; (ii) he In e na ional Mone a y Fund’s (IMF) Wo ld Economic Ou look; and (iii) he ITC’s
Ma ke Access Map. Fi m size classi ica ions use he de ini ion om Wo ld Bank En e p ise
Su eys.1 S eng hs and weaknesses a e measu ed based on a e e ence le el o pe capi a
GDP.
As men ioned, he Wo ld Bank G oup egula ly eleases h ee ela ed epo s: (i) he In e na ional
Finance Co po a ion (IFC) MSME Finance Gap Repo ; (ii) he En e p ise Su eys; and (iii) he
Doing Business epo . The la es IFC epo was eleased in 2017 (wi h upda es as needed),
co e ing 128 coun ies including 29 ADB de eloping membe s (IFC 2017). Da a co e gene al
indica o s such as MSME landscape, bank lending, and nonbank inance da a. I es ima es he
po en ial demand o inancing in eme ging economies compa ed wi h cu en supply, and
calcula es he “ inance gap.” The epo is conside ed a benchma k o MSME inancing needs in
10 ad anced economies. MSME ca ego ies include indus y (manu ac u ing, se ices, o e ail),
1 The En e p ise Su eys de ine small i ms as ha ing 5-19 employees, medium i ms 20-99, and la ge i ms 100+
employees. h ps://www.en e p isesu eys.o g/en/me hodology.
11
The second equali y holds as (𝑥,𝑧) (𝑖 = 1,⋯,𝑛) is independen .
In summa y, he EM algo i hm al e na ely epea s wo s eps: an expec a ion s ep o log 𝑝(𝑋,𝑍|𝜃)
wi h ega d o 𝑝(𝑍|𝑋,𝜃) and o calcula e he k- h a ge unc ion 𝑄(θ), and a maximiza ion s ep
o maximize i . Al hough he e is no gua an ee o ob aining a global op imal solu ion, con e gence
o i s likelihood is gua an eed by i s de i a ion. This me hod is pa icula ly use ul o es ima ing
pa ame e s in la en a iable models whe e he op imiza ion o simul aneous dis ibu ions is
di icul .
Applying he EM algo i hm o he p obabilis ic PCA model, he simul aneous dis ibu ions can be
w i en as ollows:
Then, he condi ional dis ibu ion 𝑝(𝑧|𝑥,𝜃) o 𝑧 wi h k− h pa ame e s is gi en by he ollowing:
This objec means ha he mean < 𝑧> and he co a iance < 𝑧𝑧
> o 𝑧 unde 𝑝(𝑧|𝑥,𝜃) can
be w i en espec i ely as ollows, wi h 𝑊
𝑊+ σ𝐼 deno ed as 𝑀:
By ex ac ing e ms which ela e o 𝜃 om 𝑄, we ge he k− h a ge unc ion:

12
Finally, 𝜃 is calcula ed by di e en ia ing he a ge unc ion by (𝜇,𝑊,𝜎) and inding a unique
s a iona y poin :
unde he condi ion μ= 0.
When he se o da a 𝑋 is missing some alues, each 𝑥 is decomposed in o he ollowing wo
e ms o easie explana ion:
The wo a iables 𝑠 and 𝑡 co espond o he obse ed coo dina es and missing coo dina es,
espec i ely. When 𝑥 consis s o 𝑢 obse ed coo dina es and missing coo dina es, (𝑠) is he
𝑗− h obse ed coo dina es o 𝑥, and (𝑡) is he 𝑗− h missing coo dina es o 𝑥. The e o e, 𝑠 and
𝑡 a e 𝑢-dimensional and 𝑣-dimensional, while 𝐼
∈ ℝ× and 𝐼
∈ ℝ× a e de ined as
ollows:
Then, he simul aneous dis ibu ion o 𝑠,𝑡,𝑧 unde ixed 𝐼 and 𝐼 can be w i en as ollows:
Also, he e a e condi ional dis ibu ions abou 𝑧 and 𝑡 unde he obse ed 𝑠:
13
We de ine and calcula e 𝑚 and 𝐷 wi h he mean and a iance o 𝑡 and 𝑧 unde he ixed 𝑠. Using
hese dis ibu ion unc ions, we can de i e he EM algo i hm o da a wi h missing alues by
ega ding bo h 𝑡 and 𝑧 as la en a iables.
5. Es ima ion Resul s
This sec ion p esen s he es ima ion esul s o (i) all 25 coun ies, (ii) Sou heas Asia, (iii) Sou h
Asia; and (i ) Cen al and Wes Asia. A egional es ima ion o he Paci ic was no conduc ed as
he e we e only 3 coun ies included in he model. A obus ness es was done by applying ano he
a ian o P-PCA o agg ega e da a o he 25 coun ies (Appendix 4).
5.1. All Coun ies
The P-PCA was applied o coun y-le el panel da a o 25 coun ies o see he ime-se ies
dynamics o MSME de elopmen in Asia and he Paci ic. Th ee ac o s we e ob ained—p incipal
componen (PC)1 o PC3 (Figu e 1, Table 3). PC1 makes he la ges con ibu ion o he a ia ion
in coun y-le el panel da a (59%), ollowed by PC2 (15%) and PC3 (7%), explaining 80% in o al
(Table 4). Fac o loadings a e so ed in descending o de (Table A3.1). A da ke ed colo
indica es a posi i e impac o he end in he p incipal componen , while a da ke blue means a
nega i e impac . Each ac o is o hogonal o each o he and ela ed o each a iable wi h speci ic
ac o loadings. Key ac o s ha o m each PC can hus be ex ac ed.
PC1-PC3 o med h ee di e en end cu es on MSME de elopmen (Figu e 1). PC1 aces a
low line un il he middle o he sample pe iod, hen ises om 2015 un il i slows a e 2020. I
sugges s ha MSMEs el he e ec s o he a e ma h o he 2008–2009 global inancial c isis
(GFC) un il 2014, when eco e y accele a ed un il de elopmen slowed a e he COVID-19
pandemic sp ead in 2020. O e all, i indica es “a slow eco e y agains he shocks.” PC2 emains
low un il 2011, mo es up un il he 2015 peak, hen declines a e wa d. I sugges s ha MSMEs
made ela i ely apid eco e y om he GFC, hen decele a ed de elopmen a ound he la e pa
o he 2014–2016 Russian Financial C isis (RFC), and shi ed o he nega i e a e 2019,
accele a ed by he 2020–2021 COVID-19 pandemic. I indica es “ ela i ely as eco e y agains
he shocks bu sensi i e o he shocks.” The PC3 cu e is mo e complica ed, ising soon a e he
GFC wi h i s i s peak in 2011, bo oming ou in 2016 (RFC), and ising again a e wa d. I
sugges s “a quick eco e y agains he shocks bu e y sensi i e o he shocks.”
In PC1 (slow eco e y), he main ac o s slowing MSME de elopmen we e nonpe o ming loans
by banks, NBFIs, and o MSMEs (e.g., Pakis an, Kazakhs an, B unei Da ussalam, Malaysia, and
Vie Nam). Nega i e ac o loadings also indica ed “MSME loans" (e.g., Tajikis an, Kazakhs an,
Papua New Guinea, and Geo gia), which means ha inc eased MSME loans in some coun ies
lowe ed he le el o MSME de elopmen unde PC1. This sugges s ha he deli e y o low quali y
MSME loans wi h inc eased nonpe o ming loans in he coun ies men ioned likely con ibu ed o
MSMEs’ slow GFC eco e y un il 2014. In con as , he main ac o s ha boos ed MSME
de elopmen we e (i) bank loans (e.g., he Philippines, Fiji, he Ky gyz Republic, and India), (ii)
numbe o MSMEs (e.g., Indonesia, Nepal, Geo gia, Vie Nam, and he Ky gyz Republic), and (iii)
MSME ou pu (e.g., Indonesia and Pakis an). This sugges s ha s eady deli e y o bank loans o
businesses likely ca alyzed he inc ease in numbe o MSMEs (new small business c ea ion) and
ou pu , b inging MSMEs back o hei g ow h pa h a e 2015.
In PC2 ( ela i ely as eco e y), key d i e s ha lowe ed MSME de elopmen we e also
nonpe o ming loans by banks, NBFIs, and o MSMEs (e.g., Geo gia, Fiji, Bangladesh,
14
Uzbekis an, he Philippines, Thailand, Papua New Guinea, he Ky gyz Republic, Vie Nam,
Cambodia, and S i Lanka). On he o he hand, ac o s ha accele a ed MSME de elopmen we e
(i) numbe o MSME employees (e.g., India, Uzbekis an, Vie Nam, Geo gia, Tajikis an, Malaysia,
Indonesia, and he Philippines), (ii) MSME ou pu (e.g., Tajikis an, Uzbekis an, and Geo gia), (iii)
MSME loans (e.g., he Lao PDR, he Philippines, Thailand, and Malaysia), and (i ) equi y ma ke
capi aliza ion (e.g., he Lao PDR, S i Lanka, and Pakis an). PC2 sugges s ha nonpe o ming
MSME loans likely slowed MSME de elopmen a e he GFC and he COVID-19 pandemic, while
imp o ed deli e y o MSME loans and he eco e y o ma ke -based inance esul ed in a be e
en i onmen o new MSME jobs and enhanced ou pu . This likely suppo ed he ela i ely as
eco e y and g ow h o MSME businesses a e he GFC.
In PC3 (quick bu sensi i e eco e y), nonpe o ming loans by banks and o MSMEs (e.g., he
Lao PDR, Indonesia, and Tajikis an) we e again he main d i e s slowing MSME de elopmen .
Fac o s ha aised he MSME de elopmen le el we e (i) bank loans (e.g., Malaysia, Thailand,
A menia, and India), (ii) ma ke capi aliza ion (e.g., Indonesia, Papua New Guinea, and
Bangladesh), (iii) MSME ou pu (e.g., Malaysia, Kazakhs an, Aze baijan, Geo gia, and he Ky gyz
Republic), and (i ) MSME expo s and/o impo s (e.g., Indonesia and he Ky gyz Republic).
Al hough PC3 showed a small con ibu ion o explaining MSME de elopmen , i sugges s ha
expanded bank lending and capi al ma ke s likely helped he apid eco e y o MSME expo s
and ou pu and quickly accele a ed MSME de elopmen . Bu due o weak inancial ma ke s and
in e na ional ade o MSMEs, i emained highly sensi i e o shocks like he GFC, RFC, and
COVID-19 pandemic.
O e all, he es ima ion esul s o all coun ies show ha sound MSME c edi ma ke s, di e si ied
inancing op ions (ma ke -based inance), suppo o new business de elopmen and job
c ea ion, along wi h ac i e MSME pa icipa ion in global ma ke s play a c i ical ole o he smoo h
eco e y om c ises and shocks in de eloping Asia and he Paci ic. Sound, esilien inance
sec o de elopmen is indispensable o sus ainable MSME g ow h na ionally.
Figu e 1
:
Time Se ies
Plo s
o Es ima ed P incipal Componen
s
—
All Coun ies
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 PC2 PC3
15
Table 3
:
Time Se ies P
l
o s o Es ima ed P incipal Componen s
—
All Coun ies
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table
4
:
Con ibu ion o Each Es ima ed P incipal Componen
—
All Coun ies
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
5.2. Sou heas Asia
Fo Sou heas Asia, h ee PC ac o s (PC1-PC3) we e also ob ained (Figu e 2, Table 5). PC1
makes he la ges con ibu ion o he a ia ion in coun y da a (59%), ollowed by PC2 (16%) and
PC3 (7%), explaining 82% in o al (Table 6). Fac o loadings a e so ed in descending o de (Table
A3.2).
PC1-PC3 in Sou heas Asia ollowed simila end cu es as in “all coun ies” bu wi h somewha
mo e complica ed shapes (Figu e 2). PC1 emains low un il 2014, hen ises o a 2017 peak,
be o e decele a ing g ow h wi h a d op in 2022. I indica es a slow eco e y pa h om he GFC.
PC2 also emains low un il 2011, mo es up un il he peak in 2014, and hen declines a e wa d—
eaching i s peak a yea ea lie han in “all coun ies.” I indica es a as eco e y om he GFC
bu sensi i e o shocks such as he RFC and he pandemic. PC3 gene a ed a complica ed shape
wi h equen ups and downs du ing 2007–2022. I bo oms ou in 2011, mo es up o a peak in
2014, hen alls un il 2018 be o e ising again o a peak in 2021. I indica es ha MSME
de elopmen is e y sensi i e o shocks such as he GFC, RFC, and he pandemic, while also
quickly eco e ing.
In PC1 (slow eco e y), he nega i e cu e un il 2014 is explained by nega i e ac o loadings
deno ed by nonpe o ming loans by banks and o MSMEs (e.g., B unei Da ussalam, Malaysia,
Vie Nam, and he Philippines). In con as , he posi i e cu e a e 2015 is explained by posi i e
ac o loadings deno ed by (i) bank loans and NBFI loans (e.g., he Philippines, Vie Nam, he Lao
PDR, Thailand, and Singapo e), (ii) numbe o MSMEs (e.g., Indonesia and Vie Nam), and (iii)
MSME ou pu (e.g., Indonesia, B unei Da ussalam, and Thailand). PC1 sugges s ha inc eased
nonpe o ming loans likely con ibu ed o hei slow eco e y om he GFC. Bu imp o ed lending
by banks and NBFIs likely acili a ed new small business c ea ion and a ebound in ou pu ,
allowing a e u n o de elopmen g ow h a e 2015.
In PC2 ( as eco e y), he nega i e cu e un il 2011 and a e 2019 is also explained by nega i e
ac o loadings deno ed by nonpe o ming loans by banks, NBFIs, and o MSMEs (e.g., Thailand,
Vie Nam, Myanma , Cambodia, and he Philippines). The posi i e cu e peaking in 2014 is
explained by posi i e ac o loadings deno ed by (i) MSME loans (e.g., he Lao PDR, he
Philippines, Thailand, and Malaysia), (ii) ma ke capi aliza ion (e.g., he Lao PDR, Singapo e, and
Thailand), and (iii) numbe o MSME employees (e.g., Vie Nam, Malaysia, he Philippines, and
Indonesia). PC2 sugges s ha he high le el o nonpe o ming loans in he inance sec o likely
Yea 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 -0.17 -0.21 -0.25 -0.27 -0.32 -0.30 -0.25 -0.17 0.03 0.19 0.26 0.30 0.33 0.31 0.27 0.19
PC2 -0.23 -0.25 -0.19 -0.17 -0.05 0.13 0.30 0.42 0.44 0.33 0.26 0.09 -0.05 -0.17 -0.25 -0.26
PC3 -0.42 -0.34 -0.31 0.28 0.37 0.35 0.20 0.03 -0.14 -0.22 -0.07 0.07 0.15 0.06 0.21 0.29
I em PC1 PC2 PC3
Con ibu ion a io 0.59 0.15 0.07
Cumula i e con ibu ion a e 0.59 0.74 0.80
16
impeded MSME de elopmen a ound he GFC and he pandemic, while expanded MSME lending,
he capi al ma ke eco e y (including dedica ed MSME equi y ma ke s such as Ca alis in
Singapo e and mai in Thailand), along wi h mo e MSME jobs likely helped he ela i ely as
MSME de elopmen pos GFC.
In PC3 (sensi i e eco e y), he nega i e cu e a ound wo poin s in 2011 and 2018 is explained
by nega i e ac o loadings deno ed by (i) nonpe o ming loans by banks, NBFIs, and o MSMEs
(e.g., he Lao PDR, Singapo e, B unei Da ussalam, Thailand, and Vie Nam) and (ii) MSME loans
(e.g., Thailand, he Philippines, and he Lao PDR). The posi i e cu e a ound wo poin s in 2014
and 2021 is explained by posi i e ac o loadings deno ed by (i) loans by banks, NBFIs, and
MSME lending (e.g., Singapo e, B unei Da ussalam, and Cambodia) and (ii) ma ke capi aliza ion
(e.g., Malaysia [ACE and LEAP ma ke s] and he Philippines [SME Boa d]). PC3 gene a ed a
di e en cu e han o “all coun ies”, mo e p onounced in he e ec o access o inance. I
sugges s ha low quali y MSME loans wi h inc eased nonpe o ming loans in coun ies such as
Thailand and he Lao PDR likely kep MSME de elopmen supp essed in he egion (especially
in 2016–2018 amid he global economic slowdown). Bu di e si ied inancing op ions om bank
c edi along wi h nonbank and ma ke -based inance likely helped MSMEs eco e om he
shocks smoo hly, while ola ile inancial ma ke s held back esilience.
Figu e 2
:
Time Se ies P
l
o s o Es ima ed P incipal Componen s
—
Sou heas Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table 5
:
Time Se ies P
l
o s o Es ima ed P incipal Componen s
—
Sou heas Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 PC2 PC3
Yea 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 -0.28 -0.28 -0.25 -0.27 -0.32 -0.29 -0.15 -0.07 0.07 0.26 0.31 0.27 0.30 0.27 0.27 0.17
PC2 -0.21 -0.23 -0.26 -0.12 -0.01 0.23 0.42 0.46 0.39 0.19 0.16 0.02 -0.12 -0.16 -0.24 -0.28
PC3 0.14 0.04 0.00 -0.26 -0.29 -0.20 0.16 0.30 0.28 -0.24 -0.32 -0.41 -0.20 0.23 0.31 0.26

17
Table
6
:
Con ibu ion o Each Es ima ed P incipal Componen
—
Sou heas Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
5.3. Sou h Asia
In Sou h Asia, h ee ac o s we e ob ained om he P-PCA, bu PC1 and PC2 ends we e
swapped (Figu e 3, Table 7). PC1 makes he la ges con ibu ion o he a ia ion in coun y da a
(59%), ollowed by PC2 (22%) and PC3 (8%), explaining 89% in o al (Table 8). Fac o loadings
a e so ed in descending o de (Table A3.3).
PC1-PC3 in Sou h Asia gene a ed di e en end cu es om “all coun ies” es ima es (Figu e 3).
PC1 emains low un il 2010, mo es up un il i s 2014 peak, and hen declines a e wa d. I indica es
a as eco e y om he GFC (a yea ea lie han he end in “all coun ies”) bu was sensi i e o
he global economic slowdown and he pandemic. PC2 emains low un il 2015, hen ises h ough
2019, be o e declining un il 2021. I indica es a slow eco e y om he GFC and Sou h Asia’s
economic slowdown. The PC3 end was somewha e e sed om he end in “all coun ies.” I
bo oms ou in 2013, mo es up o a peak in 2017, hen d ops a e wa d bo oming ou in 2022. I
indica es MSME de elopmen was sensi i e o he egion’s economic and poli ical ins abili y (e.g.,
India be o e he cu en adminis a ion s a ed in 2014, and economic and poli ical c ises in
Pakis an and S i Lanka om a ound 2019) as well as he shock om he pandemic.
In PC1 ( as eco e y), he nega i e cu e un il 2010 and a e 2019 is explained by nega i e
ac o loadings deno ed by nonpe o ming loans by banks, NBFIs, and o MSMEs (e.g., India,
Bangladesh, Pakis an, and S i Lanka). MSME loans in India and Pakis an we e also iden i ied as
nega i e ac o s, sugges ing ha he deli e y o low quali y MSME loans wi h high le els o
nonpe o ming loans in hese coun ies likely impeded MSME de elopmen in he egion. The
posi i e cu e peaking in 2014 is explained by posi i e ac o loadings deno ed by (i) NBFI loans
and ma ke capi aliza ion (e.g., S i Lanka, Pakis an, and Bangladesh) and (ii) numbe o MSME
employees (e.g., India and Nepal). A eco e y in nonbank and ma ke -based inance, along wi h
inc eased MSME jobs, likely suppo ed a smoo h shi back o g ow h. Bu he MSME unding
en i onmen was likely sensi i e o economic and poli ical en i onmen changes, especially a e
2019.
In PC2 (slow eco e y), he nega i e cu e un il 2015 is explained by nega i e ac o loadings
deno ed by MSME loans and nonpe o ming loans by banks, NBFIs, and o MSMEs in Pakis an
and India, sugges ing ha inc eased MSME loans accompanying ising nonpe o ming loans in
hese coun ies likely made MSMEs eco e slowly om he GFC and he egion’s s agnan
economic g ow h. The posi i e cu e a e 2016 is explained by posi i e ac o loadings deno ed
by (i) loans by banks and o MSMEs (e.g., Bangladesh, Pakis an, S i Lanka, and India), (ii)
numbe o MSMEs (e.g., Nepal), and (iii) MSME ou pu (e.g., Bangladesh and Pakis an). A e
2016, imp o ed bank lending and MSME loans along wi h an en i onmen conduci e o new small
businesses and be e p oduc i i y likely boos ed MSME de elopmen .
In PC3 (sensi i e eco e y), he nega i e, downwa d end du ing 2010–2013 and a e 2019
(economic c ises in Pakis an and S i Lanka) is explained by nega i e ac o loadings deno ed by
I em PC1 PC2 PC3
Con ibu ion a io 0.59 0.16 0.07
Cumula i e con ibu ion a e 0.59 0.75 0.82
18
nonpe o ming loans by banks and NBFIs (e.g., S i Lanka, Pakis an, and Bangladesh). The
posi i e cu e be o e he GFC and du ing 2016–2018 (linked o he new adminis a ion in India)
is explained by posi i e ac o loadings deno ed by MSME loans and NBFI loans (e.g., Pakis an,
Bangladesh, and India). PC3 was mo e a ec ed by access o inance o MSME de elopmen . I
sugges s ha high le els o nonpe o ming loans by banks and NBFIs likely led o a slowdown in
MSME de elopmen . Bu once he MSME c edi ma ke and he nonbank inance indus y
expanded, MSME de elopmen quickly u ned posi i e, al hough i s g ow h pa e n was likely
highly sensi i e o shocks, such as egional economic c ises, poli ical condi ions, and he
pandemic.
Figu e 3
:
Time Se ies P
l
o s o Es ima ed P incipal Componen s
—
Sou h Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table 7
:
Time Se ies P
l
o s o Es ima ed P incipal Componen s
—
Sou h Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table
8
:
Con ibu ion o Each Es ima ed P incipal Componen
—
Sou h Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 PC2 PC3
Yea 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 -0.22 -0.34 -0.26 -0.09 0.02 0.20 0.32 0.44 0.41 0.38 0.26 0.08 -0.004 -0.10 -0.14 -0.08
PC2 -0.08 -0.15 -0.30 -0.36 -0.35 -0.33 -0.23 -0.13 -0.006 0.08 0.22 0.27 0.36 0.27 0.24 0.27
PC3 0.44 0.26 0.08 -0.07 -0.14 -0.20 -0.22 -0.003 -0.001 0.25 0.37 0.28 -0.03 -0.33 -0.32 -0.35
I em PC1 PC2 PC3
Con ibu ion a io 0.59 0.22 0.08
Cumula i e con ibu ion a e 0.59 0.80 0.89
19
5.4. Cen al and Wes Asia
As in o he egions, h ee ac o s we e ob ained in Cen al and Wes Asia om he P-PCA (Figu e
4, Table 9). PC1 makes he la ges con ibu ion o he a ia ion in coun y da a (63%), ollowed
by PC2 (15%) and PC3 (8%), explaining 85% in o al (Table 10). Fac o loadings a e so ed in
descending o de (Table A3.4).
PC1-PC3 show simila ends on MSME de elopmen as hose in “all coun ies” (Figu e 4). PC1
emains low un il 2014, ising in 2015–2018 be o e slowing a e wa ds, indica ing a slow eco e y
om he GFC. PC2 emains low un il 2010, ises o a 2015 peak, and hen declines wi h a nega i e
cu e a e 2019, indica ing a ela i ely apid eco e y om he GFC bu sensi i e o shocks like
he RFC and he pandemic. PC3 bo oms ou in 2009 (GFC), peaks in 2011, hen d ops un il 2016
(RFC). I ises a e wa d wi h e a ic mo emen du ing he pandemic, sugges ing a quick bu e y
sensi i e eco e y om shocks.
In PC1 (slow eco e y), he nega i e cu e un il 2014 is explained by nega i e ac o loadings
deno ed by (i) nonpe o ming bank loans (e.g., Kazakhs an, Aze baijan, and Uzbekis an) and (ii)
MSME loans (e.g., Kazakhs an, Tajikis an, and Geo gia). The posi i e cu e a e 2015 is
explained by posi i e ac o loadings deno ed by (i) bank loans and hose o MSMEs (e.g., he
Ky gyz Republic, A menia, and Geo gia), (ii) numbe o MSMEs (e.g., Geo gia, he Ky gyz
Republic, and Kazakhs an), and (iii) numbe o MSME employees (e.g., Aze baijan, Kazakhs an,
and Geo gia). PC1 sugges s ha inc eased MSME lending wi h high le els o nonpe o ming
loans in coun ies such as Kazakhs an likely slowed he eco e y om he GFC. Bu imp o ed
bank lending likely suppo ed c ea ing new MSMEs and jobs in coun ies such as Geo gia, helping
hem shi o g ow h.
In PC2 ( as eco e y), he nega i e cu e un il 2010 and a e 2019 is explained by nega i e
ac o loadings deno ed by nonpe o ming loans by banks, NBFIs, and o MSMEs (e.g.,
Uzbekis an, Geo gia, and he Ky gyz Republic). The nega i e cu e la gely e lec ed he ends
in Uzbekis an. The posi i e cu e du ing 2011–2018—peaking in 2015—is explained by posi i e
ac o loadings deno ed by (i) numbe o MSME employees (e.g., Uzbekis an, Geo gia, and
Tajikis an), (ii) MSME ou pu (e.g., Tajikis an, Uzbekis an, and Geo gia), and (iii) MSME expo s
and/o impo s (e.g., Uzbekis an and he Ky gyz Republic). PC2 sugges s ha a high le el o
nonpe o ming loans likely impeded MSME de elopmen . Inc eased job c ea ion, highe ou pu ,
and in e na ionaliza ion o MSMEs likely helped d i e MSME de elopmen .
In PC3 (sensi i e eco e y), he downwa d cu e a ound he GFC and RFC is also explained by
nega i e ac o loadings deno ed by nonpe o ming loans by banks, NBFIs, and o MSMEs (e.g.,
Tajikis an, Uzbekis an, and A menia). The nega i e cu e in he PC3 la gely e lec ed he ends
in Tajikis an. The posi i e cu e du ing 2010–2014 and a e 2017 is explained by posi i e ac o
loadings deno ed by (i) MSME expo s and/o impo s (e.g., he Ky gyz Republic and Geo gia),
(ii) MSME ou pu (e.g., Kazakhs an, Aze baijan, Geo gia, and he Ky gyz Republic), and (iii) NBFI
loans ( he Ky gyz Republic). PC3 sugges s ha MSMEs el he ha d impac s om inancial c ises
(GFC and RFC) wi h poo access o quali y bank c edi and NBFI loans, mo e p onounced in
Tajikis an. Howe e , highe MSME o eign ade, ou pu , and imp o ed access o NBFI loans likely
encou aged MSME de elopmen , ye i emained e y sensi i e o shocks like he GFC, RFC, and
he pandemic.
20
Figu e 4: Time Se ies Plo s o Es ima ed P incipal Componen s—
Cen al and Wes Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table 9: Time Se ies Plo s o Es ima ed P incipal Componen s—
Cen al and Wes Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
Table 10: Con ibu ion o Each Es ima ed P incipal Componen —
Cen al and Wes Asia
PC = p incipal componen .
Sou ce: Calcula ed based on ADB Asia SME Moni o 2023 da abase.
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 PC2 PC3
Yea 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PC1 -0.22 -0.23 -0.24 -0.25 -0.29 -0.28 -0.27 -0.19 0.05 0.15 0.23 0.34 0.32 0.30 0.27 0.23
PC2 -0.27 -0.28 -0.19 -0.17 0.03 0.10 0.23 0.36 0.41 0.34 0.30 0.12 -0.06 -0.19 -0.28 -0.29
PC3 -0.33 -0.25 -0.35 0.24 0.40 0.35 0.25 0.04 -0.30 -0.32 0.03 0.15 0.18 0.03 0.21 0.07
I em PC1 PC2 PC3
Con ibu ion a io 0.63 0.15 0.08
Cumula i e con ibu ion a e 0.63 0.77 0.85
27
Table A1.4:
Paci ic
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion; obs = obse a ions; S.D. = s anda d
de ia ion.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable Uni Obs Mean Median S.D. Min Max
Bank loans ou s anding $ million 16 2,571 2,641 783 1,566 3,568
Nonpe o ming bank loans $ million 16 109 99 69 28 282
MSME loans ou s anding $ million 16 216 190 138 35 415
Ma ke capi aliza ion $ million 16 854 545 537 405 1,921
Bank loans ou s anding $ million 14 4,535 5,420 2,170 494 6,273
Nonpe o ming bank loans $ million 14 166 160 123 0 365
MSME loans ou s anding $ million 8 1,195 1,034 410 928 2,170
NBFI loans ou s anding $ million 11 509 511 46 430 586
Nonpe o ming NBFI loans $ million 11 56 51 18 23 83
Ma ke capi aliza ion $ million 7 25,573 23,541 12,499 10,981 41,408
Numbe o MSMEs 11 4,472 4,614 585 3,277 5,218
Bank loans ou s anding $ million 16 374 362 71 246 465
Nonpe o ming bank loans $ million 16 19 18 3 15 25
MSME loans ou s anding $ million 11 128 123 42 63 200
Samoa
Fiji
Papua New Guinea

28
Appendix 2: Missing Da a, 2007–2022
Table
A
2.1:
Sou heas Asia
Lao PDR = Lao People’s Democ a ic Republic; MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance
ins i u ion; n/a., = no a ailable.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MSME ou pu n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
NBFI loans ou s anding
Nonpe o ming NBFI loans
Ma ke capi aliza ion n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o employees n/a., n/a., n/a., n/a., n/a., n/a.,
MSME ou pu n/a., n/a., n/a., n/a., n/a., n/a.,
MSME expo s n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding n/a., n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a., n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion
Bank loans ou s anding
Nonpe o ming bank loans n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a.,
Ma ke capi aliza ion n/a., n/a., n/a., n/a.,
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o employees n/a.,
MSME ou pu n/a.,
MSME expo s n/a., n/a., n/a., n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding
Nonpe o ming MSME loans
NBFI loans ou s anding
Ma ke capi aliza ion n/a., n/a.,
Numbe o MSMEs n/a., n/a., n/a.,
Bank loans ou s anding n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs
Numbe o employees
Bank loans ou s anding n/a.,
Nonpe o ming bank loans n/a.,
MSME loans ou s anding n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a.,
Ma ke capi aliza ion
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o employees n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
MSME ou pu n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a.,
Ma ke capi aliza ion n/a.,
Numbe o MSMEs
Numbe o employees n/a.,
MSME ou pu
MSME expo s
MSME impo s
Bank loans ou s anding
Nonpe o ming bank loans n/a., n/a.,
MSME loans ou s anding
Nonpe o ming MSME loans n/a., n/a.,
Ma ke capi aliza ion
Numbe o MSMEs n/a.,
Numbe o employees n/a.,
Bank loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion n/a., n/a.,
Myanma
B unei Da ussalam
Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Singapo e
Thailand
Vie Nam
29
Table A2.2:
Sou h Asia
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion; n/a., = no a ailable.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MSME ou pu n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a.,
Numbe o employees n/a., n/a., n/a., n/a., n/a.,
MSME ou pu n/a., n/a., n/a., n/a.,
MSME expo s n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o employees n/a., n/a., n/a., n/a.,
Bank loans ou s anding n/a.,
Ma ke capi aliza ion n/a.,
MSME ou pu
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding
Nonpe o ming MSME loans
NBFI loans ou s anding
Nonpe o ming NBFI loans
Ma ke capi aliza ion
Bank loans ou s anding
Nonpe o ming bank loans
NBFI loans ou s anding
Nonpe o ming NBFI loans n/a., n/a.,
Ma ke capi aliza ion
Bangladesh
India
Nepal
Pakis an
S i Lanka
30
Table A2.3:
Cen al and Wes Asia
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion; n/a., = no a ailable.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Numbe o MSMEs n/a.,
Numbe o employees n/a., n/a.,
MSME ou pu n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
NBFI loans ou s anding
Ma ke capi aliza ion
Numbe o MSMEs n/a.,
Numbe o employees n/a.,
MSME ou pu n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs n/a.,
Numbe o employees n/a.,
MSME ou pu n/a.,
MSME expo s n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
MSME impo s n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a.,
NBFI loans ou s anding
Ma ke capi aliza ion n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs
Numbe o employees
MSME ou pu
Bank loans ou s anding
Nonpe o ming bank loans n/a.,
MSME loans ou s anding
NBFI loans ou s anding
Numbe o MSMEs n/a.,
Numbe o employees n/a.,
MSME ou pu n/a.,
MSME expo s n/a.,
MSME impo s n/a.,
Bank loans ou s anding
Nonpe o ming bank loans n/a.,
MSME loans ou s anding n/a.,
NBFI loans ou s anding
Ma ke capi aliza ion
Numbe o MSMEs n/a.,
Numbe o employees n/a., n/a.,
MSME ou pu n/a., n/a.,
Bank loans ou s anding n/a.,
Nonpe o ming bank loans n/a., n/a., n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming MSME loans n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a.,
Nonpe o ming NBFI loans n/a.,
Numbe o MSMEs
Numbe o employees
MSME ou pu
MSME expo s
MSME impo s
Bank loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming bank loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion n/a., n/a., n/a.,
Geo gia
A menia
Aze baijan
Kazakhs an
Ky gyz Republic
Tajikis an
Uzbekis an
31
Table A2.4:
Paci ic
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion; n/a., = no a ailable.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding
Ma ke capi aliza ion
Bank loans ou s anding n/a., n/a.,
Nonpe o ming bank loans n/a., n/a.,
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
NBFI loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Nonpe o ming NBFI loans n/a., n/a., n/a., n/a., n/a.,
Ma ke capi aliza ion n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a., n/a.,
Numbe o MSMEs n/a., n/a., n/a., n/a., n/a.,
Bank loans ou s anding
Nonpe o ming bank loans
MSME loans ou s anding n/a., n/a., n/a., n/a., n/a.,
Samoa
Fiji
Papua New Guinea
32
Appendix 3: Fac o Loadings Based on P obabilis ic P incipal Componen Analysis
Table A3.1: All Coun ies
Con inued on nex page
Coun y Va iable PC1 Coun y Va iable PC2 Coun y Va iable PC3
Philippines Bank loans ou s anding 0.98 Tajikis an MSME ou pu 0.88 Malaysia Bank loans ou s anding 0.76
Indonesia Numbe o MSMEs 0.97 India Numbe o employees 0.87 Indonesia Ma ke capi aliza ion 0.72
Nepal Numbe o MSMEs 0.96 Uzbekis an Numbe o employees 0.86 Malaysia MSME ou pu 0.68
Indonesia MSME ou pu 0.92 Aze baijan Nonpe o ming bank loans 0.85 Papua New Guinea Ma ke capi aliza ion 0.66
Fiji Bank loans ou s anding 0.92 Vie Nam Numbe o employees 0.82 Kazakhs an MSME ou pu 0.63
Philippines NBFI loans ou s anding 0.92 Lao PDR Ma ke capi aliza ion 0.80 Thailand Bank loans ou s anding 0.57
Ky gyz Republic Bank loans ou s anding 0.91 Lao PDR MSME loans ou s anding 0.76 Bangladesh Ma ke capi aliza ion 0.57
Geo gia Numbe o MSMEs 0.88 Philippines MSME loans ou s anding 0.76 Aze baijan MSME ou pu 0.53
Ky gyz Republic MSME loans ou s anding 0.87 S i Lanka NBFI loans ou s anding 0.76 Indonesia MSME expo s 0.50
Cambodia NBFI loans ou s anding 0.87 Thailand MSME loans ou s anding 0.75 Ky gyz Republic NBFI loans ou s anding 0.50
Vie Nam Numbe o MSMEs 0.86 Pakis an Ma ke capi aliza ion 0.73 A menia Bank loans ou s anding 0.49
India Bank loans ou s anding 0.84 Geo gia Numbe o employees 0.72 Geo gia MSME ou pu 0.48
Vie Nam NBFI loans ou s anding 0.84 Tajikis an Numbe o employees 0.70 Philippines Numbe o MSMEs 0.47
Ky gyz Republic Numbe o MSMEs 0.82 Uzbekis an MSME ou pu 0.70 Ky gyz Republic MSME ou pu 0.44
India Nonpe o ming bank loans 0.82 Tajikis an Nonpe o ming NBFI loans 0.70 India Bank loans ou s anding 0.44
Nepal Numbe o employees 0.79 Geo gia MSME ou pu 0.68 Thailand Numbe o employees 0.39
Aze baijan Numbe o employees 0.79 Papua New Guinea Bank loans ou s anding 0.67 Ky gyz Republic MSME impo s 0.39
Lao PDR Bank loans ou s anding 0.79 Malaysia MSME loans ou s anding 0.67 A menia NBFI loans ou s anding 0.39
Pakis an MSME ou pu 0.78 Singapo e Ma ke capi aliza ion 0.67 Myanma Nonpe o ming NBFI loans 0.39
Nepal Bank loans ou s anding 0.78 Tajikis an Nonpe o ming bank loans 0.65 Vie Nam Nonpe o ming bank loans 0.38
Vie Nam Bank loans ou s anding 0.77 Malaysia Numbe o employees 0.64 Samoa Bank loans ou s anding 0.37
Pakis an Bank loans ou s anding 0.77 Indonesia Numbe o employees 0.60 S i Lanka Ma ke capi aliza ion 0.35
S i Lanka Bank loans ou s anding 0.77 Tajikis an Nonpe o ming MSME loans 0.59 Myanma NBFI loans ou s anding 0.34
Geo gia Bank loans ou s anding 0.77 Thailand Ma ke capi aliza ion 0.57 Philippines Numbe o employees 0.33
Fiji MSME loans ou s anding 0.77 Philippines Numbe o employees 0.56 Nepal Bank loans ou s anding 0.33
Kazakhs an Numbe o employees 0.76 Lao PDR Bank loans ou s anding 0.56 Uzbekis an Numbe o MSMEs 0.32
Bangladesh MSME ou pu 0.74 Uzbekis an MSME expo s 0.54 Ky gyz Republic Nonpe o ming bank loans 0.32
S i Lanka Nonpe o ming NBFI loans 0.74 S i Lanka Ma ke capi aliza ion 0.54 Vie Nam Numbe o MSMEs 0.31
Myanma Numbe o MSMEs 0.72 B unei Da ussalam Nonpe o ming NBFI loans 0.52 Geo gia Bank loans ou s anding 0.31
Thailand Bank loans ou s anding 0.72 B unei Da ussalam NBFI loans ou s anding 0.48 Malaysia MSME loans ou s anding 0.31
A menia Bank loans ou s anding 0.72 Aze baijan Bank loans ou s anding 0.45 Pakis an Nonpe o ming bank loans 0.30
Papua New Guinea Nonpe o ming bank loans 0.71 Pakis an MSME ou pu 0.44 Nepal Numbe o employees 0.29
Bangladesh MSME loans ou s anding 0.71 India Numbe o MSMEs 0.43 Geo gia MSME impo s 0.29
Kazakhs an Numbe o MSMEs 0.69 Pakis an Nonpe o ming bank loans 0.43 Papua New Guinea NBFI loans ou s anding 0.29
Samoa Bank loans ou s anding 0.69 Tajikis an Bank loans ou s anding 0.41 Thailand MSME loans ou s anding 0.28
Cambodia Bank loans ou s anding 0.68 Ky gyz Republic MSME impo s 0.39 Vie Nam Numbe o employees 0.27
A menia NBFI loans ou s anding 0.68 Bangladesh Ma ke capi aliza ion 0.38 Uzbekis an MSME impo s 0.27
Myanma Nonpe o ming NBFI loans 0.68 Malaysia Bank loans ou s anding 0.37 S i Lanka Nonpe o ming bank loans 0.27
Vie Nam Ma ke capi aliza ion 0.68 S i Lanka Bank loans ou s anding 0.35 Thailand MSME impo s 0.25
Bangladesh Bank loans ou s anding 0.65 Geo gia NBFI loans ou s anding 0.35 Ky gyz Republic Ma ke capi aliza ion 0.25
Uzbekis an MSME impo s 0.64 A menia Nonpe o ming bank loans 0.34 Indonesia MSME ou pu 0.24
Myanma NBFI loans ou s anding 0.64 Aze baijan NBFI loans ou s anding 0.34 India MSME ou pu 0.24
Kazakhs an NBFI loans ou s anding 0.64 Samoa Bank loans ou s anding 0.32 Geo gia MSME expo s 0.24
A menia Nonpe o ming bank loans 0.63 Malaysia MSME ou pu 0.31 Uzbekis an MSME expo s 0.24
India Numbe o MSMEs 0.62 Fiji Bank loans ou s anding 0.31 Philippines MSME loans ou s anding 0.24
Thailand MSME ou pu 0.62 Fiji MSME loans ou s anding 0.31 Vie Nam Nonpe o ming NBFI loans 0.24
Singapo e Nonpe o ming MSME loans 0.62 Philippines Numbe o MSMEs 0.30 Malaysia MSME expo s 0.23
Fiji Ma ke capi aliza ion 0.62 Samoa Nonpe o ming bank loans 0.30 Ky gyz Republic MSME expo s 0.23
Lao PDR NBFI loans ou s anding 0.61 Nepal Numbe o employees 0.29 Geo gia NBFI loans ou s anding 0.23
Singapo e Bank loans ou s anding 0.60 India Nonpe o ming bank loans 0.28 Kazakhs an Nonpe o ming bank loans 0.22
B unei Da ussalam MSME ou pu 0.57 Tajikis an MSME loans ou s anding 0.27 Cambodia Bank loans ou s anding 0.20
Geo gia Numbe o employees 0.55 Malaysia MSME expo s 0.26 Aze baijan Nonpe o ming bank loans 0.19
Indonesia Bank loans ou s anding 0.55 Ky gyz Republic MSME loans ou s anding 0.24 India MSME loans ou s anding 0.19
Thailand Nonpe o ming MSME loans 0.55 Pakis an NBFI loans ou s anding 0.24 Geo gia MSME loans ou s anding 0.19
Pakis an NBFI loans ou s anding 0.55 Indonesia Ma ke capi aliza ion 0.24 Nepal Numbe o MSMEs 0.18
Bangladesh NBFI loans ou s anding 0.54 Thailand Bank loans ou s anding 0.22 Geo gia Numbe o employees 0.18
Ky gyz Republic MSME ou pu 0.51 Vie Nam NBFI loans ou s anding 0.22 India Numbe o MSMEs 0.17
Philippines Numbe o employees 0.49 Geo gia Ma ke capi aliza ion 0.22 Thailand MSME ou pu 0.17
Indonesia Nonpe o ming bank loans 0.49 Indonesia Numbe o MSMEs 0.21 Uzbekis an MSME ou pu 0.17
Thailand Numbe o MSMEs 0.48 Philippines Ma ke capi aliza ion 0.21 Uzbekis an Nonpe o ming bank loans 0.16
Papua New Guinea Bank loans ou s anding 0.48 Geo gia Numbe o MSMEs 0.20 Tajikis an MSME ou pu 0.15
S i Lanka NBFI loans ou s anding 0.48 Vie Nam Numbe o MSMEs 0.18 Cambodia Nonpe o ming bank loans 0.15
Nepal Ma ke capi aliza ion 0.47 Singapo e Numbe o employees 0.18 Singapo e Ma ke capi aliza ion 0.15
Indonesia Numbe o employees 0.46 Thailand Numbe o employees 0.18 India MSME expo s 0.14
Thailand Nonpe o ming bank loans 0.46 Kazakhs an Nonpe o ming bank loans 0.17 Aze baijan Bank loans ou s anding 0.14
Malaysia MSME loans ou s anding 0.46 Pakis an Bank loans ou s anding 0.16 Ky gyz Republic Numbe o MSMEs 0.13
Indonesia Nonpe o ming MSME loans 0.45 Kazakhs an Numbe o employees 0.15 Fiji Nonpe o ming bank loans 0.13
Indonesia MSME expo s 0.44 Singapo e Bank loans ou s anding 0.15 Papua New Guinea MSME loans ou s anding 0.11
Thailand Numbe o employees 0.43 Ky gyz Republic MSME ou pu 0.12 Pakis an MSME ou pu 0.10
Indonesia MSME loans ou s anding 0.43 Aze baijan Numbe o employees 0.11 Thailand MSME expo s 0.10
Uzbekis an Numbe o MSMEs 0.42 India Bank loans ou s anding 0.11 Myanma Bank loans ou s anding 0.10
Samoa Numbe o MSMEs 0.42 Pakis an Nonpe o ming MSME loans 0.11 Cambodia NBFI loans ou s anding 0.10
Aze baijan MSME ou pu 0.42 Ky gyz Republic NBFI loans ou s anding 0.10 Ky gyz Republic Bank loans ou s anding 0.10
Uzbekis an Numbe o employees 0.40 Kazakhs an Numbe o MSMEs 0.08 Singapo e MSME ou pu 0.10
Philippines MSME loans ou s anding 0.40 Singapo e NBFI loans ou s anding 0.08 Uzbekis an Numbe o employees 0.09
Cambodia Nonpe o ming NBFI loans 0.40 Ky gyz Republic Bank loans ou s anding 0.05 Philippines Nonpe o ming bank loans 0.09
Samoa MSME loans ou s anding 0.39 Nepal Numbe o MSMEs 0.04 B unei Da ussalam Nonpe o ming bank loans 0.09
Cambodia Ma ke capi aliza ion 0.39 Kazakhs an Bank loans ou s anding 0.03 Ky gyz Republic MSME loans ou s anding 0.08
Malaysia MSME ou pu 0.38 Bangladesh Nonpe o ming bank loans 0.03 Kazakhs an Numbe o MSMEs 0.08
India MSME expo s 0.38 Singapo e Nonpe o ming bank loans 0.02 S i Lanka Bank loans ou s anding 0.08
Malaysia Bank loans ou s anding 0.37 B unei Da ussalam MSME ou pu 0.02 Geo gia Nonpe o ming bank loans 0.08
Cambodia Nonpe o ming bank loans 0.36 Indonesia MSME ou pu 0.02 B unei Da ussalam Bank loans ou s anding 0.08
Singapo e NBFI loans ou s anding 0.36 A menia NBFI loans ou s anding 0.00 Pakis an Nonpe o ming NBFI loans 0.08
Geo gia MSME ou pu 0.35 Samoa Numbe o MSMEs -0.01 Kazakhs an Numbe o employees 0.08
Singapo e Ma ke capi aliza ion 0.35 Tajikis an Numbe o MSMEs -0.03 Aze baijan NBFI loans ou s anding 0.07
A menia Ma ke capi aliza ion 0.35 Ky gyz Republic Numbe o MSMEs -0.03 Cambodia Nonpe o ming NBFI loans 0.07
India Numbe o employees 0.34 Kazakhs an MSME ou pu -0.04 Geo gia Ma ke capi aliza ion 0.07
Indonesia Ma ke capi aliza ion 0.34 B unei Da ussalam Nonpe o ming bank loans -0.05 Tajikis an MSME loans ou s anding 0.07
Philippines Numbe o MSMEs 0.33 A menia Numbe o employees -0.07 Geo gia Numbe o MSMEs 0.07
Aze baijan Numbe o MSMEs 0.32 India NBFI loans ou s anding -0.08 Philippines Bank loans ou s anding 0.07
Malaysia Numbe o MSMEs 0.31 Philippines Bank loans ou s anding -0.09 Pakis an Nonpe o ming MSME loans 0.06
Thailand MSME loans ou s anding 0.31 A menia Bank loans ou s anding -0.12 Kazakhs an NBFI loans ou s anding 0.06

33
con inued
Lao PDR = Lao People’s Democ a ic Republic; MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium
-
Sized En e p ise Moni o 2023 da abase.
Coun y Va iable PC1 Coun y Va iable PC2 Coun y Va iable PC3
Geo gia NBFI loans ou s anding 0.31 Ky gyz Republic MSME expo s -0.13 Malaysia Numbe o employees 0.05
India Ma ke capi aliza ion 0.31 Malaysia NBFI loans ou s anding -0.13 S i Lanka Nonpe o ming NBFI loans 0.04
Ky gyz Republic Ma ke capi aliza ion 0.31 Tajikis an NBFI loans ou s anding -0.13 Kazakhs an Bank loans ou s anding 0.04
Thailand Ma ke capi aliza ion 0.29 Philippines NBFI loans ou s anding -0.14 Malaysia Ma ke capi aliza ion 0.03
Bangladesh Ma ke capi aliza ion 0.27 Geo gia Nonpe o ming bank loans -0.15 Fiji MSME loans ou s anding 0.03
Ky gyz Republic Nonpe o ming bank loans 0.26 Nepal Ma ke capi aliza ion -0.18 Uzbekis an NBFI loans ou s anding 0.03
Lao PDR Nonpe o ming bank loans 0.23 Papua New Guinea Nonpe o ming bank loans -0.19 Malaysia Nonpe o ming MSME loans 0.03
Vie Nam Nonpe o ming NBFI loans 0.23 B unei Da ussalam Bank loans ou s anding -0.20 Fiji Ma ke capi aliza ion 0.02
Tajikis an MSME ou pu 0.21 Myanma Numbe o MSMEs -0.21 Thailand Numbe o MSMEs 0.01
Malaysia Ma ke capi aliza ion 0.20 Thailand MSME impo s -0.21 Lao PDR Bank loans ou s anding 0.01
Kazakhs an MSME ou pu 0.19 Bangladesh MSME loans ou s anding -0.22 Uzbekis an Bank loans ou s anding 0.01
Uzbekis an MSME expo s 0.16 Singapo e Nonpe o ming MSME loans -0.22 A menia MSME ou pu 0.00
Singapo e Nonpe o ming bank loans 0.16 Lao PDR Nonpe o ming bank loans -0.23 Indonesia Numbe o MSMEs -0.01
Philippines Nonpe o ming bank loans 0.15 Vie Nam Nonpe o ming bank loans -0.24 Myanma Numbe o MSMEs -0.01
Bangladesh Nonpe o ming bank loans 0.15 Kazakhs an MSME loans ou s anding -0.25 Singapo e Numbe o MSMEs -0.02
Philippines Ma ke capi aliza ion 0.14 Malaysia Numbe o MSMEs -0.26 S i Lanka NBFI loans ou s anding -0.02
Papua New Guinea Nonpe o ming NBFI loans 0.13 Pakis an MSME loans ou s anding -0.26 Papua New Guinea Bank loans ou s anding -0.03
S i Lanka Nonpe o ming bank loans 0.11 Uzbekis an MSME impo s -0.27 B unei Da ussalam NBFI loans ou s anding -0.03
Vie Nam Numbe o employees 0.09 Geo gia Bank loans ou s anding -0.27 Uzbekis an Ma ke capi aliza ion -0.03
Ky gyz Republic Numbe o employees 0.08 Thailand Numbe o MSMEs -0.28 Singapo e Numbe o employees -0.03
Singapo e MSME loans ou s anding 0.08 Thailand MSME ou pu -0.28 A menia Ma ke capi aliza ion -0.03
Geo gia Nonpe o ming MSME loans 0.07 Indonesia Nonpe o ming MSME loans -0.30 India Numbe o employees -0.04
Tajikis an Nonpe o ming NBFI loans 0.05 S i Lanka Nonpe o ming NBFI loans -0.31 Vie Nam Ma ke capi aliza ion -0.04
Geo gia Nonpe o ming bank loans 0.05 Thailand MSME expo s -0.32 Singapo e Nonpe o ming bank loans -0.04
India MSME ou pu 0.03 A menia Ma ke capi aliza ion -0.32 Philippines Nonpe o ming MSME loans -0.05
Tajikis an Nonpe o ming bank loans -0.04 Papua New Guinea MSME loans ou s anding -0.35 Papua New Guinea Nonpe o ming bank loans -0.05
Bangladesh Nonpe o ming NBFI loans -0.06 A menia Numbe o MSMEs -0.36 B unei Da ussalam MSME ou pu -0.06
Tajikis an Numbe o employees -0.09 A menia MSME ou pu -0.36 Thailand Ma ke capi aliza ion -0.07
Pakis an Ma ke capi aliza ion -0.09 Cambodia NBFI loans ou s anding -0.36 Bangladesh Nonpe o ming bank loans -0.09
Ky gyz Republic MSME expo s -0.14 Bangladesh NBFI loans ou s anding -0.36 Cambodia Ma ke capi aliza ion -0.09
Tajikis an Nonpe o ming MSME loans -0.15 Aze baijan MSME ou pu -0.37 Fiji Bank loans ou s anding -0.10
Uzbekis an Bank loans ou s anding -0.18 India Nonpe o ming MSME loans -0.37 Aze baijan Numbe o MSMEs -0.12
Lao PDR Ma ke capi aliza ion -0.19 Pakis an Nonpe o ming NBFI loans -0.37 India Nonpe o ming bank loans -0.14
India Nonpe o ming MSME loans -0.21 India Nonpe o ming NBFI loans -0.38 A menia Nonpe o ming bank loans -0.14
Philippines Nonpe o ming MSME loans -0.22 Geo gia MSME loans ou s anding -0.39 Tajikis an Numbe o employees -0.15
India NBFI loans ou s anding -0.25 Papua New Guinea Ma ke capi aliza ion -0.39 Geo gia Nonpe o ming MSME loans -0.15
Uzbekis an Nonpe o ming NBFI loans -0.25 Nepal Bank loans ou s anding -0.41 India Nonpe o ming NBFI loans -0.15
Fiji Nonpe o ming bank loans -0.28 Myanma Bank loans ou s anding -0.43 India Nonpe o ming MSME loans -0.16
Uzbekis an NBFI loans ou s anding -0.28 Samoa MSME loans ou s anding -0.46 Lao PDR NBFI loans ou s anding -0.19
India Nonpe o ming NBFI loans -0.28 Indonesia MSME expo s -0.47 Ky gyz Republic Numbe o employees -0.20
Uzbekis an Ma ke capi aliza ion -0.28 Malaysia Nonpe o ming MSME loans -0.48 Samoa Nonpe o ming bank loans -0.21
Ky gyz Republic MSME impo s -0.30 Myanma NBFI loans ou s anding -0.49 Philippines NBFI loans ou s anding -0.21
Lao PDR MSME loans ou s anding -0.30 Indonesia Nonpe o ming bank loans -0.50 Vie Nam Bank loans ou s anding -0.22
Uzbekis an MSME ou pu -0.31 Kazakhs an NBFI loans ou s anding -0.50 Malaysia Nonpe o ming bank loans -0.22
Singapo e Numbe o MSMEs -0.37 Myanma Nonpe o ming NBFI loans -0.50 Singapo e NBFI loans ou s anding -0.22
S i Lanka Ma ke capi aliza ion -0.37 Cambodia Bank loans ou s anding -0.51 Uzbekis an Nonpe o ming NBFI loans -0.22
Malaysia Numbe o employees -0.43 India Ma ke capi aliza ion -0.51 Singapo e MSME loans ou s anding -0.23
Aze baijan Nonpe o ming bank loans -0.44 Geo gia MSME impo s -0.52 Nepal Ma ke capi aliza ion -0.24
India MSME loans ou s anding -0.44 Malaysia Nonpe o ming bank loans -0.52 Aze baijan Numbe o employees -0.26
B unei Da ussalam Nonpe o ming NBFI loans -0.48 Cambodia Nonpe o ming bank loans -0.53 B unei Da ussalam Nonpe o ming NBFI loans -0.26
B unei Da ussalam Bank loans ou s anding -0.50 Singapo e MSME loans ou s anding -0.55 Philippines Ma ke capi aliza ion -0.28
Pakis an MSME loans ou s anding -0.50 Fiji Ma ke capi aliza ion -0.56 Bangladesh MSME ou pu -0.29
Uzbekis an Nonpe o ming bank loans -0.51 Ky gyz Republic Numbe o employees -0.58 Singapo e Nonpe o ming MSME loans -0.30
Samoa Nonpe o ming bank loans -0.52 Bangladesh MSME ou pu -0.58 Vie Nam NBFI loans ou s anding -0.31
Singapo e MSME ou pu -0.57 Lao PDR NBFI loans ou s anding -0.58 Pakis an Bank loans ou s anding -0.32
Papua New Guinea Ma ke capi aliza ion -0.57 Ky gyz Republic Ma ke capi aliza ion -0.58 Thailand Nonpe o ming bank loans -0.32
Singapo e Numbe o employees -0.58 Vie Nam Bank loans ou s anding -0.59 Bangladesh Nonpe o ming NBFI loans -0.34
A menia Numbe o MSMEs -0.59 Bangladesh Bank loans ou s anding -0.59 Singapo e Bank loans ou s anding -0.35
Papua New Guinea NBFI loans ou s anding -0.59 Vie Nam Ma ke capi aliza ion -0.60 Thailand Nonpe o ming MSME loans -0.35
Tajikis an NBFI loans ou s anding -0.64 Uzbekis an Nonpe o ming bank loans -0.61 Kazakhs an MSME loans ou s anding -0.36
Malaysia MSME expo s -0.65 Malaysia Ma ke capi aliza ion -0.61 Tajikis an Nonpe o ming NBFI loans -0.38
Geo gia Ma ke capi aliza ion -0.65 Indonesia Bank loans ou s anding -0.62 India NBFI loans ou s anding -0.39
Malaysia NBFI loans ou s anding -0.66 S i Lanka Nonpe o ming bank loans -0.62 Papua New Guinea Nonpe o ming NBFI loans -0.39
Geo gia MSME expo s -0.67 Cambodia Nonpe o ming NBFI loans -0.63 Samoa MSME loans ou s anding -0.40
Vie Nam Nonpe o ming bank loans -0.67 Papua New Guinea NBFI loans ou s anding -0.64 Indonesia MSME loans ou s anding -0.41
Myanma Bank loans ou s anding -0.68 Uzbekis an Numbe o MSMEs -0.66 Indonesia Numbe o employees -0.42
Tajikis an Numbe o MSMEs -0.69 Thailand Nonpe o ming MSME loans -0.66 Bangladesh Bank loans ou s anding -0.42
Geo gia MSME impo s -0.69 Vie Nam Nonpe o ming NBFI loans -0.66 Indonesia Bank loans ou s anding -0.45
Tajikis an Bank loans ou s anding -0.69 Philippines Nonpe o ming bank loans -0.67 Lao PDR MSME loans ou s anding -0.45
Pakis an Nonpe o ming bank loans -0.69 Ky gyz Republic Nonpe o ming bank loans -0.67 Tajikis an Bank loans ou s anding -0.46
Pakis an Nonpe o ming NBFI loans -0.69 Geo gia MSME expo s -0.68 Pakis an Ma ke capi aliza ion -0.46
Ky gyz Republic NBFI loans ou s anding -0.73 India MSME ou pu -0.70 A menia Numbe o employees -0.49
Malaysia Nonpe o ming MSME loans -0.75 Singapo e MSME ou pu -0.72 India Ma ke capi aliza ion -0.49
B unei Da ussalam NBFI loans ou s anding -0.76 Indonesia MSME loans ou s anding -0.72 Lao PDR Ma ke capi aliza ion -0.52
Thailand MSME impo s -0.77 Papua New Guinea Nonpe o ming NBFI loans -0.72 A menia Numbe o MSMEs -0.54
Malaysia Nonpe o ming bank loans -0.77 Cambodia Ma ke capi aliza ion -0.72 Bangladesh MSME loans ou s anding -0.59
Aze baijan Bank loans ou s anding -0.78 Aze baijan Numbe o MSMEs -0.73 Pakis an NBFI loans ou s anding -0.59
Thailand MSME expo s -0.79 Thailand Nonpe o ming bank loans -0.73 Tajikis an Nonpe o ming MSME loans -0.61
Geo gia MSME loans ou s anding -0.79 Philippines Nonpe o ming MSME loans -0.73 Indonesia Nonpe o ming bank loans -0.62
Papua New Guinea MSME loans ou s anding -0.80 Uzbekis an Ma ke capi aliza ion -0.73 Tajikis an Numbe o MSMEs -0.65
A menia Numbe o employees -0.81 India MSME expo s -0.74 Pakis an MSME loans ou s anding -0.65
Kazakhs an MSME loans ou s anding -0.81 India MSME loans ou s anding -0.78 Malaysia Numbe o MSMEs -0.67
A menia MSME ou pu -0.83 Uzbekis an Nonpe o ming NBFI loans -0.78 Tajikis an Nonpe o ming bank loans -0.67
Tajikis an MSME loans ou s anding -0.86 Uzbekis an NBFI loans ou s anding -0.85 Malaysia NBFI loans ou s anding -0.67
B unei Da ussalam Nonpe o ming bank loans -0.87 Bangladesh Nonpe o ming NBFI loans -0.85 Indonesia Nonpe o ming MSME loans -0.68
Aze baijan NBFI loans ou s anding -0.91 Fiji Nonpe o ming bank loans -0.87 Lao PDR Nonpe o ming bank loans -0.70
Kazakhs an Nonpe o ming bank loans -0.93 Geo gia Nonpe o ming MSME loans -0.87 Bangladesh NBFI loans ou s anding -0.70
Pakis an Nonpe o ming MSME loans -0.93 Singapo e Numbe o MSMEs -0.92 Tajikis an NBFI loans ou s anding -0.71
Kazakhs an Bank loans ou s anding -0.95 Uzbekis an Bank loans ou s anding -0.93 Samoa Numbe o MSMEs -0.86
34
Table A3.2:
Sou heas Asia
Lao PDR = Lao People’s Democ a ic Republic; MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance
ins i u ion.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable PC1 Coun y Va iable PC2 Coun y Va iable PC3
Indonesia Numbe o MSMEs 0.96 Lao PDR MSME loans ou s anding 0.92 Singapo e MSME loans ou s anding 0.71
Philippines Bank loans ou s anding 0.96 Lao PDR Ma ke capi aliza ion 0.89 B unei Da ussalam Bank loans ou s anding 0.68
Indonesia MSME ou pu 0.89 Vie Nam Numbe o employees 0.77 Philippines Nonpe o ming bank loans 0.68
Vie Nam NBFI loans ou s anding 0.88 B unei Da ussalam Nonpe o ming NBFI loans 0.76 Malaysia Ma ke capi aliza ion 0.68
Philippines NBFI loans ou s anding 0.87 Philippines MSME loans ou s anding 0.74 Philippines Ma ke capi aliza ion 0.61
Vie Nam Numbe o MSMEs 0.83 Thailand MSME loans ou s anding 0.72 Philippines Nonpe o ming MSME loans 0.55
Lao PDR Bank loans ou s anding 0.79 Malaysia Numbe o employees 0.71 Singapo e NBFI loans ou s anding 0.54
Thailand Bank loans ou s anding 0.73 Singapo e Ma ke capi aliza ion 0.70 Cambodia Bank loans ou s anding 0.49
Cambodia NBFI loans ou s anding 0.73 Malaysia MSME loans ou s anding 0.69 Vie Nam Nonpe o ming NBFI loans 0.45
Indonesia Numbe o employees 0.70 B unei Da ussalam NBFI loans ou s anding 0.67 Cambodia Nonpe o ming bank loans 0.43
Vie Nam Bank loans ou s anding 0.69 Philippines Numbe o employees 0.60 Malaysia Numbe o employees 0.42
Singapo e Bank loans ou s anding 0.67 Malaysia Bank loans ou s anding 0.52 Cambodia Nonpe o ming NBFI loans 0.42
Singapo e Nonpe o ming MSME loans 0.63 Malaysia MSME ou pu 0.50 Indonesia Numbe o employees 0.38
B unei Da ussalam MSME ou pu 0.60 Thailand Ma ke capi aliza ion 0.48 B unei Da ussalam NBFI loans ou s anding 0.36
Myanma Numbe o MSMEs 0.55 Indonesia Numbe o employees 0.46 Singapo e Bank loans ou s anding 0.32
Vie Nam Ma ke capi aliza ion 0.55 Lao PDR Bank loans ou s anding 0.45 Thailand Ma ke capi aliza ion 0.30
Thailand MSME ou pu 0.54 Malaysia MSME expo s 0.42 Philippines Numbe o MSMEs 0.29
Indonesia Nonpe o ming MSME loans 0.52 Philippines Numbe o MSMEs 0.40 Singapo e Nonpe o ming bank loans 0.25
Indonesia Nonpe o ming bank loans 0.51 Indonesia Ma ke capi aliza ion 0.30 Indonesia Nonpe o ming MSME loans 0.24
Indonesia Bank loans ou s anding 0.50 Singapo e Bank loans ou s anding 0.28 Cambodia NBFI loans ou s anding 0.23
Malaysia MSME loans ou s anding 0.50 Thailand Bank loans ou s anding 0.28 Singapo e Numbe o MSMEs 0.18
Philippines Numbe o employees 0.49 Philippines Ma ke capi aliza ion 0.23 Singapo e MSME ou pu 0.18
Cambodia Bank loans ou s anding 0.49 Vie Nam NBFI loans ou s anding 0.20 B unei Da ussalam Nonpe o ming NBFI loans 0.18
Philippines MSME loans ou s anding 0.48 Singapo e Numbe o employees 0.19 Indonesia MSME loans ou s anding 0.17
Lao PDR NBFI loans ou s anding 0.47 Singapo e NBFI loans ou s anding 0.19 Malaysia NBFI loans ou s anding 0.14
Thailand Nonpe o ming MSME loans 0.45 Thailand Numbe o employees 0.18 Vie Nam Bank loans ou s anding 0.12
Myanma NBFI loans ou s anding 0.45 Indonesia Numbe o MSMEs 0.16 Myanma NBFI loans ou s anding 0.12
Myanma Nonpe o ming NBFI loans 0.43 Vie Nam Numbe o MSMEs 0.15 Malaysia Bank loans ou s anding 0.11
Thailand Numbe o employees 0.41 Malaysia Numbe o MSMEs 0.11 Indonesia Nonpe o ming bank loans 0.09
Singapo e Ma ke capi aliza ion 0.41 B unei Da ussalam MSME ou pu 0.11 Malaysia MSME loans ou s anding 0.09
Indonesia Ma ke capi aliza ion 0.39 B unei Da ussalam Nonpe o ming bank loans 0.10 Singapo e Ma ke capi aliza ion 0.07
Thailand Numbe o MSMEs 0.38 Singapo e Nonpe o ming bank loans 0.09 Indonesia Bank loans ou s anding 0.06
Malaysia Bank loans ou s anding 0.37 Vie Nam Nonpe o ming bank loans 0.08 Philippines Bank loans ou s anding 0.06
Thailand MSME loans ou s anding 0.37 Indonesia MSME ou pu -0.01 Malaysia Nonpe o ming bank loans 0.05
Malaysia MSME ou pu 0.34 B unei Da ussalam Bank loans ou s anding -0.03 Philippines NBFI loans ou s anding 0.05
Singapo e NBFI loans ou s anding 0.33 Malaysia NBFI loans ou s anding -0.07 Malaysia Numbe o MSMEs 0.04
Thailand Nonpe o ming bank loans 0.32 Thailand MSME impo s -0.08 Thailand Bank loans ou s anding 0.03
Thailand Ma ke capi aliza ion 0.32 Lao PDR Nonpe o ming bank loans -0.13 Philippines Numbe o employees -0.02
Indonesia MSME loans ou s anding 0.31 Philippines Bank loans ou s anding -0.20 Thailand Nonpe o ming bank loans -0.04
Philippines Numbe o MSMEs 0.28 Thailand MSME expo s -0.21 Myanma Nonpe o ming NBFI loans -0.05
Malaysia Numbe o MSMEs 0.27 Singapo e Nonpe o ming MSME loans -0.24 Cambodia Ma ke capi aliza ion -0.06
Cambodia Nonpe o ming NBFI loans 0.20 Myanma Numbe o MSMEs -0.25 Vie Nam Ma ke capi aliza ion -0.07
Vie Nam Numbe o employees 0.17 Philippines NBFI loans ou s anding -0.26 Vie Nam NBFI loans ou s anding -0.07
Cambodia Nonpe o ming bank loans 0.16 Indonesia Nonpe o ming MSME loans -0.27 Malaysia Nonpe o ming MSME loans -0.08
Singapo e Nonpe o ming bank loans 0.15 Myanma Bank loans ou s anding -0.28 Lao PDR NBFI loans ou s anding -0.09
Cambodia Ma ke capi aliza ion 0.10 Malaysia Nonpe o ming MSME loans -0.32 Lao PDR Ma ke capi aliza ion -0.10
Philippines Ma ke capi aliza ion 0.08 Thailand MSME ou pu -0.36 Vie Nam Numbe o MSMEs -0.13
Lao PDR Ma ke capi aliza ion 0.07 Malaysia Nonpe o ming bank loans -0.37 Myanma Bank loans ou s anding -0.13
Indonesia MSME expo s 0.03 Thailand Numbe o MSMEs -0.42 Indonesia Numbe o MSMEs -0.14
Vie Nam Nonpe o ming NBFI loans -0.01 Singapo e MSME loans ou s anding -0.44 Lao PDR Bank loans ou s anding -0.16
Malaysia Ma ke capi aliza ion -0.04 Cambodia NBFI loans ou s anding -0.49 Vie Nam Nonpe o ming bank loans -0.18
Singapo e MSME loans ou s anding -0.08 Malaysia Ma ke capi aliza ion -0.49 Thailand Nonpe o ming MSME loans -0.20
Philippines Nonpe o ming bank loans -0.09 Indonesia MSME expo s -0.50 Lao PDR MSME loans ou s anding -0.21
Lao PDR Nonpe o ming bank loans -0.13 Cambodia Nonpe o ming bank loans -0.50 B unei Da ussalam Nonpe o ming bank loans -0.23
Lao PDR MSME loans ou s anding -0.20 Indonesia Nonpe o ming bank loans -0.53 Malaysia MSME ou pu -0.24
B unei Da ussalam Nonpe o ming NBFI loans -0.30 Cambodia Bank loans ou s anding -0.54 Thailand MSME expo s -0.28
Malaysia Numbe o employees -0.36 Philippines Nonpe o ming bank loans -0.56 Indonesia MSME ou pu -0.29
Philippines Nonpe o ming MSME loans -0.42 Philippines Nonpe o ming MSME loans -0.56 Thailand Numbe o MSMEs -0.30
Singapo e Numbe o MSMEs -0.57 Myanma NBFI loans ou s anding -0.58 Singapo e Numbe o employees -0.30
B unei Da ussalam Bank loans ou s anding -0.58 Singapo e MSME ou pu -0.61 Vie Nam Numbe o employees -0.30
Singapo e Numbe o employees -0.60 Cambodia Nonpe o ming NBFI loans -0.62 Thailand MSME ou pu -0.30
B unei Da ussalam NBFI loans ou s anding -0.63 Myanma Nonpe o ming NBFI loans -0.62 Indonesia Ma ke capi aliza ion -0.30
Malaysia MSME expo s -0.65 Vie Nam Nonpe o ming NBFI loans -0.62 Thailand MSME impo s -0.33
Singapo e MSME ou pu -0.66 Lao PDR NBFI loans ou s anding -0.65 B unei Da ussalam MSME ou pu -0.38
Malaysia NBFI loans ou s anding -0.74 Vie Nam Ma ke capi aliza ion -0.69 Philippines MSME loans ou s anding -0.38
Vie Nam Nonpe o ming bank loans -0.80 Vie Nam Bank loans ou s anding -0.70 Thailand MSME loans ou s anding -0.44
Myanma Bank loans ou s anding -0.83 Indonesia Bank loans ou s anding -0.72 Malaysia MSME expo s -0.45
Thailand MSME impo s -0.85 Thailand Nonpe o ming MSME loans -0.78 Singapo e Nonpe o ming MSME loans -0.50
Thailand MSME expo s -0.88 Singapo e Numbe o MSMEs -0.79 Myanma Numbe o MSMEs -0.57
Malaysia Nonpe o ming MSME loans -0.88 Indonesia MSME loans ou s anding -0.80 Thailand Numbe o employees -0.59
Malaysia Nonpe o ming bank loans -0.90 Cambodia Ma ke capi aliza ion -0.80 Indonesia MSME expo s -0.74
B unei Da ussalam Nonpe o ming bank loans -0.91 Thailand Nonpe o ming bank loans -0.84 Lao PDR Nonpe o ming bank loans -0.80
35
Table A3.3:
Sou h Asia
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable PC1 Coun y Va iable PC2 Coun y Va iable PC3
India Numbe o employees 0.95 Nepal Numbe o MSMEs 0.90 Pakis an NBFI loans ou s anding 0.80
S i Lanka NBFI loans ou s anding 0.90 Bangladesh MSME loans ou s anding 0.79 Pakis an MSME loans ou s anding 0.66
Pakis an Ma ke capi aliza ion 0.74 India Nonpe o ming bank loans 0.78 Bangladesh NBFI loans ou s anding 0.53
S i Lanka Ma ke capi aliza ion 0.68 Bangladesh MSME ou pu 0.75 India Nonpe o ming MSME loans 0.50
India Numbe o MSMEs 0.66 Pakis an Bank loans ou s anding 0.74 India NBFI loans ou s anding 0.50
Pakis an MSME ou pu 0.64 S i Lanka Bank loans ou s anding 0.66 Pakis an Bank loans ou s anding 0.49
Bangladesh Ma ke capi aliza ion 0.63 Nepal Numbe o employees 0.65 Pakis an Ma ke capi aliza ion 0.48
S i Lanka Bank loans ou s anding 0.50 Bangladesh Bank loans ou s anding 0.65 Bangladesh Nonpe o ming bank loans 0.44
Pakis an Nonpe o ming bank loans 0.49 India Bank loans ou s anding 0.63 India Nonpe o ming NBFI loans 0.37
Nepal Numbe o employees 0.46 S i Lanka Nonpe o ming NBFI loans 0.63 India Ma ke capi aliza ion 0.29
India Bank loans ou s anding 0.32 Pakis an MSME ou pu 0.61 India Nonpe o ming bank loans 0.27
India Nonpe o ming bank loans 0.32 Nepal Bank loans ou s anding 0.60 India Numbe o MSMEs 0.26
Pakis an Bank loans ou s anding 0.16 Pakis an NBFI loans ou s anding 0.49 India MSME ou pu 0.25
Nepal Numbe o MSMEs 0.13 India MSME expo s 0.45 S i Lanka NBFI loans ou s anding 0.13
Pakis an NBFI loans ou s anding 0.13 Bangladesh NBFI loans ou s anding 0.44 India MSME loans ou s anding 0.12
Pakis an Nonpe o ming MSME loans 0.07 Nepal Ma ke capi aliza ion 0.36 India Numbe o employees 0.06
S i Lanka Nonpe o ming NBFI loans -0.16 S i Lanka NBFI loans ou s anding 0.28 Pakis an Nonpe o ming MSME loans 0.03
Nepal Ma ke capi aliza ion -0.17 India Numbe o MSMEs 0.27 Nepal Ma ke capi aliza ion -0.02
Bangladesh MSME loans ou s anding -0.18 India Numbe o employees 0.10 Bangladesh MSME loans ou s anding -0.04
Bangladesh Nonpe o ming bank loans -0.23 India Ma ke capi aliza ion 0.05 Bangladesh Bank loans ou s anding -0.17
Nepal Bank loans ou s anding -0.28 Bangladesh Ma ke capi aliza ion 0.05 Pakis an Nonpe o ming bank loans -0.17
S i Lanka Nonpe o ming bank loans -0.39 S i Lanka Nonpe o ming bank loans 0.05 Nepal Numbe o employees -0.21
Pakis an Nonpe o ming NBFI loans -0.39 Bangladesh Nonpe o ming bank loans -0.07 S i Lanka Bank loans ou s anding -0.21
Pakis an MSME loans ou s anding -0.45 India Nonpe o ming MSME loans -0.08 Pakis an MSME ou pu -0.25
Bangladesh MSME ou pu -0.55 Bangladesh Nonpe o ming NBFI loans -0.11 Bangladesh MSME ou pu -0.26
Bangladesh Bank loans ou s anding -0.60 India MSME loans ou s anding -0.14 S i Lanka Ma ke capi aliza ion -0.27
Bangladesh NBFI loans ou s anding -0.65 India Nonpe o ming NBFI loans -0.20 Nepal Numbe o MSMEs -0.29
India MSME expo s -0.66 Pakis an Ma ke capi aliza ion -0.23 Bangladesh Nonpe o ming NBFI loans -0.29
India Ma ke capi aliza ion -0.66 India MSME ou pu -0.25 Pakis an Nonpe o ming NBFI loans -0.33
India NBFI loans ou s anding -0.70 India NBFI loans ou s anding -0.32 Bangladesh Ma ke capi aliza ion -0.37
India MSME ou pu -0.71 S i Lanka Ma ke capi aliza ion -0.50 India MSME expo s -0.40
Bangladesh Nonpe o ming NBFI loans -0.82 Pakis an MSME loans ou s anding -0.53 S i Lanka Nonpe o ming NBFI loans -0.53
India Nonpe o ming MSME loans -0.84 Pakis an Nonpe o ming NBFI loans -0.73 India Bank loans ou s anding -0.61
India Nonpe o ming NBFI loans -0.86 Pakis an Nonpe o ming bank loans -0.83 Nepal Bank loans ou s anding -0.65
India MSME loans ou s anding -0.97 Pakis an Nonpe o ming MSME loans -0.98 S i Lanka Nonpe o ming bank loans -0.66
36
Table A3.4:
Cen al and Wes
Asia
MSME = mic o, small, and medium-sized en e p ise; NBFI = nonbank inance ins i u ion.
Sou ce: Au ho s’ calcula ion based on ADB Asia Small and Medium-Sized En e p ise Moni o 2023 da abase.
Coun y Va iable PC1 Coun y Va iable PC2 Coun y Va iable PC3
Ky gyz Republic Bank loans ou s anding 0.95 Aze baijan Nonpe o ming bank loans 0.81 Ky gyz Republic NBFI loans ou s anding 0.66
Ky gyz Republic MSME loans ou s anding 0.95 Uzbekis an Numbe o employees 0.80 Ky gyz Republic MSME impo s 0.57
A menia Bank loans ou s anding 0.94 Tajikis an MSME ou pu 0.76 Kazakhs an MSME ou pu 0.56
Geo gia Numbe o MSMEs 0.93 Uzbekis an MSME ou pu 0.70 Geo gia MSME impo s 0.50
Geo gia Bank loans ou s anding 0.93 Tajikis an Nonpe o ming NBFI loans 0.67 Aze baijan MSME ou pu 0.45
Ky gyz Republic Numbe o MSMEs 0.92 Tajikis an Nonpe o ming MSME loans 0.63 Geo gia MSME ou pu 0.44
Kazakhs an Numbe o MSMEs 0.89 Geo gia Numbe o employees 0.59 Ky gyz Republic MSME ou pu 0.43
Aze baijan Numbe o employees 0.88 Tajikis an Nonpe o ming bank loans 0.58 Ky gyz Republic MSME expo s 0.38
A menia NBFI loans ou s anding 0.86 Tajikis an Numbe o employees 0.57 Kazakhs an Nonpe o ming bank loans 0.37
Kazakhs an Numbe o employees 0.85 Geo gia MSME ou pu 0.56 Geo gia MSME expo s 0.36
Uzbekis an MSME impo s 0.81 Uzbekis an MSME expo s 0.51 Geo gia Ma ke capi aliza ion 0.33
A menia Nonpe o ming bank loans 0.74 Aze baijan Bank loans ou s anding 0.39 Aze baijan Nonpe o ming bank loans 0.28
Geo gia Numbe o employees 0.71 Ky gyz Republic MSME impo s 0.37 A menia Bank loans ou s anding 0.25
Ky gyz Republic MSME ou pu 0.70 Tajikis an Bank loans ou s anding 0.33 A menia NBFI loans ou s anding 0.23
Uzbekis an Numbe o MSMEs 0.67 A menia Nonpe o ming bank loans 0.29 Aze baijan Bank loans ou s anding 0.19
Geo gia NBFI loans ou s anding 0.67 Aze baijan NBFI loans ou s anding 0.27 Kazakhs an Bank loans ou s anding 0.19
Kazakhs an NBFI loans ou s anding 0.66 Geo gia NBFI loans ou s anding 0.26 Uzbekis an MSME impo s 0.18
Aze baijan MSME ou pu 0.65 Geo gia Ma ke capi aliza ion 0.26 Uzbekis an MSME expo s 0.17
A menia Ma ke capi aliza ion 0.61 Tajikis an MSME loans ou s anding 0.21 Uzbekis an Numbe o MSMEs 0.15
Ky gyz Republic Ma ke capi aliza ion 0.60 Kazakhs an Nonpe o ming bank loans 0.12 Ky gyz Republic Nonpe o ming bank loans 0.14
Uzbekis an Numbe o employees 0.56 Geo gia Numbe o MSMEs 0.11 A menia MSME ou pu 0.13
Geo gia MSME ou pu 0.56 Ky gyz Republic MSME loans ou s anding 0.09 Geo gia Numbe o employees 0.12
Kazakhs an MSME ou pu 0.50 Kazakhs an Numbe o employees 0.08 Tajikis an MSME loans ou s anding 0.12
Aze baijan Numbe o MSMEs 0.45 Ky gyz Republic MSME ou pu 0.07 Kazakhs an NBFI loans ou s anding 0.12
Tajikis an MSME ou pu 0.45 Kazakhs an Numbe o MSMEs 0.05 Geo gia Bank loans ou s anding 0.10
Ky gyz Republic Nonpe o ming bank loans 0.42 Ky gyz Republic NBFI loans ou s anding 0.03 Ky gyz Republic Ma ke capi aliza ion 0.09
Uzbekis an MSME expo s 0.39 Aze baijan Numbe o employees 0.02 Tajikis an MSME ou pu 0.07
Ky gyz Republic Numbe o employees 0.26 Ky gyz Republic Bank loans ou s anding 0.01 Uzbekis an MSME ou pu 0.06
Geo gia Nonpe o ming bank loans 0.25 A menia NBFI loans ou s anding -0.04 Aze baijan NBFI loans ou s anding 0.05
Geo gia Nonpe o ming MSME loans 0.21 Kazakhs an Bank loans ou s anding -0.06 Ky gyz Republic Numbe o MSMEs 0.03
Tajikis an Nonpe o ming NBFI loans 0.16 Tajikis an Numbe o MSMEs -0.07 Geo gia Nonpe o ming bank loans 0.03
Tajikis an Nonpe o ming bank loans 0.13 Ky gyz Republic Numbe o MSMEs -0.10 Geo gia Numbe o MSMEs 0.02
Tajikis an Numbe o employees 0.11 Ky gyz Republic MSME expo s -0.11 Geo gia MSME loans ou s anding 0.01
Uzbekis an Bank loans ou s anding 0.10 Kazakhs an MSME ou pu -0.13 Ky gyz Republic MSME loans ou s anding 0.01
Ky gyz Republic MSME expo s 0.07 A menia Bank loans ou s anding -0.13 Uzbekis an Nonpe o ming bank loans -0.01
Uzbekis an NBFI loans ou s anding 0.01 Geo gia Nonpe o ming bank loans -0.16 Uzbekis an Numbe o employees -0.01
Tajikis an Nonpe o ming MSME loans 0.01 A menia Numbe o employees -0.20 Uzbekis an Ma ke capi aliza ion -0.02
Uzbekis an Nonpe o ming NBFI loans 0.00 Uzbekis an MSME impo s -0.24 Ky gyz Republic Bank loans ou s anding -0.05
Ky gyz Republic MSME impo s -0.09 Geo gia Bank loans ou s anding -0.25 Geo gia NBFI loans ou s anding -0.07
Uzbekis an Ma ke capi aliza ion -0.18 Tajikis an NBFI loans ou s anding -0.28 Kazakhs an Numbe o employees -0.12
Uzbekis an MSME ou pu -0.25 Kazakhs an MSME loans ou s anding -0.31 Aze baijan Numbe o MSMEs -0.13
Uzbekis an Nonpe o ming bank loans -0.25 A menia Ma ke capi aliza ion -0.33 Uzbekis an Bank loans ou s anding -0.14
Aze baijan Nonpe o ming bank loans -0.38 Kazakhs an NBFI loans ou s anding -0.37 Kazakhs an Numbe o MSMEs -0.16
A menia Numbe o MSMEs -0.47 Aze baijan MSME ou pu -0.42 Ky gyz Republic Numbe o employees -0.17
Tajikis an NBFI loans ou s anding -0.52 A menia MSME ou pu -0.43 Geo gia Nonpe o ming MSME loans -0.17
Geo gia Ma ke capi aliza ion -0.56 Geo gia MSME impo s -0.45 A menia Ma ke capi aliza ion -0.20
Geo gia MSME expo s -0.59 A menia Numbe o MSMEs -0.52 Tajikis an Numbe o employees -0.22
Geo gia MSME impo s -0.59 Geo gia MSME loans ou s anding -0.54 Uzbekis an NBFI loans ou s anding -0.23
Tajikis an Numbe o MSMEs -0.66 Ky gyz Republic Ma ke capi aliza ion -0.57 Kazakhs an MSME loans ou s anding -0.26
Tajikis an Bank loans ou s anding -0.67 Ky gyz Republic Nonpe o ming bank loans -0.63 A menia Nonpe o ming bank loans -0.28
Ky gyz Republic NBFI loans ou s anding -0.68 Uzbekis an Numbe o MSMEs -0.64 Aze baijan Numbe o employees -0.32
Geo gia MSME loans ou s anding -0.69 Ky gyz Republic Numbe o employees -0.65 Uzbekis an Nonpe o ming NBFI loans -0.36
A menia MSME ou pu -0.76 Geo gia MSME expo s -0.69 Tajikis an Nonpe o ming NBFI loans -0.47
Kazakhs an MSME loans ou s anding -0.79 Aze baijan Numbe o MSMEs -0.72 A menia Numbe o employees -0.49
A menia Numbe o employees -0.81 Uzbekis an Nonpe o ming bank loans -0.80 Tajikis an Bank loans ou s anding -0.54
Aze baijan Bank loans ou s anding -0.81 Geo gia Nonpe o ming MSME loans -0.83 A menia Numbe o MSMEs -0.56
Tajikis an MSME loans ou s anding -0.85 Uzbekis an Nonpe o ming NBFI loans -0.84 Tajikis an Nonpe o ming MSME loans -0.57
Kazakhs an Nonpe o ming bank loans -0.88 Uzbekis an Ma ke capi aliza ion -0.88 Tajikis an Numbe o MSMEs -0.70
Aze baijan NBFI loans ou s anding -0.94 Uzbekis an NBFI loans ou s anding -0.94 Tajikis an NBFI loans ou s anding -0.70
Kazakhs an Bank loans ou s anding -0.96 Uzbekis an Bank loans ou s anding -0.97 Tajikis an Nonpe o ming bank loans -0.77