Regional business systems and private sector development in Southeast Asia

This contribution applies the 'comparative business system approach' to three sub-national settings in Southeast Asia in order to unravel patterns of private sector development. In each setting, the behaviour of small and medium enterprises is shaped by a distinct business system. The nature and functioning of regional business systems in Malaysia seems to be influenced by national institutions, in Thailand and the Philippines by regional factors and the insertion in (global) value chains. Furthermore, the findings indicate that the enabling or disabling nature of these institutions have a significant impact on inclusiveness. Finally, we use these findings to propose four refinements for policies that are aimed at stimulating inclusive private sector development.