# Problems

**CRAFT-I** acknowledges that there are many MSMEs out there in Cambodia who have high potential in producing creative objects, but there are obstacles along the way which decelerates their work process and discourage them. Those issues include:

* **Funding**:&#x20;

Funding issues remain a critical barrier for Cambodian MSMEs. Many MSMEs, despite possessing strong ideas and drive to succeed, require capital to launch their businesses. This funding gap makes them struggle to turn their ideas into reality.&#x20;

* **Sale Channels:**
  1. **Limited Marketing Promotion:** MSMEs struggle to build brand recognition, miss trending opportunities, and lack engaging content or digital presence. This translates to a smaller online audience, hinders crisis management, and makes it difficult to establish trust with potential customers.
  2. &#x20;**Competition and Market:** In crowded markets, it can be difficult for MSMEs to make their products visually distinct and grab customer attention, especially when competing with larger companies with professional displays. When MSMEs have competition with big companies, the market size will be small and difficult. For SMEs selling through physical stores, securing prime display locations within stores or markets can be challenging.

The challenges faced by MSMEs in Cambodia limit the growth of the creative economy in a number of ways. First, they prevent many talented individuals from starting or growing their businesses. Second, they make it difficult for MSMEs to reach a wider audience and generate more revenue. This can lead to a loss of jobs and income.


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