1、ASIAN DEVELOPMENT BANKASIAN DEVELOPMENT BANK6 ADB Avenue,Mandaluyong City1550 Metro Manila,Philippineswww.adb.orgADB ECONOMICSWORKING PAPER SERIESNO.715February 2024Factors Affecting Micro,Small,and Medium-Sized Enterprise Development in Developing AsiaFindings from a Probabilistic Principal Compone

2、nt Analysis To identify factors affecting micro,small,and medium-sized enterprise(MSME)development,this paper proposes a probabilistic principal component analysis method that works despite current data limitations.The estimation results suggest that sound MSME credit markets,diversified financing o

3、ptions,support for new businesses and job creation,and active MSME participation in global marketplaces play a critical role in ensuring a smooth business recovery from various crises and shocks affecting developing Asia and the Pacific.About the Asian Development BankADB is committed to achieving a

4、 prosperous,inclusive,resilient,and sustainable Asia and the Pacific,while sustaining its efforts to eradicate extreme poverty.Established in 1966,it is owned by 68 members 49 from the region.Its main instruments for helping its developing member countries are policy dialogue,loans,equity investment

5、s,guarantees,grants,and technical assistance.FACTORS AFFECTING MICRO,SMALL,AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT IN DEVELOPING ASIAFINDINGS FROM A PROBABILISTIC PRINCIPAL COMPONENT ANALYSISShigehiro Shinozaki,Daisuke Miyakawa,and Romeo ArahanASIAN DEVELOPMENT BANKThe ADB Economics Working Paper Se

6、ries presents research in progress to elicit comments and encourage debate on development issues in Asia and the Pacific.The views expressed are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent.ADB Economics