Digital Restrictions Strangle Small Business in Myanmar

Cascading Digital Restrictions

The progression of digital restrictions has created compounding challenges for Myanmar’s small business owners:

  • Intermittent internet shutdowns disrupt basic operations
  • Throttled internet speeds make online transactions difficult
  • Social media blocks cut off primary marketing channels
  • VPN restrictions remove workarounds that businesses relied upon

Facebook: The Lost Marketplace

In Myanmar, Facebook had served as more than just a social network – it was the primary e-commerce platform for thousands of small businesses. The platform’s blocking has effectively eliminated the main marketplace where entrepreneurs like Seng connected with customers.

Adapting to Survive

In Myanmar’s northern Kachin state, Seng, a young entrepreneur, had long faced challenges in running her online clothing business due to inconsistent internet access. Since the military coup in 2021, internet shutdowns and government-imposed bandwidth restrictions had become the norm, severely disrupting day-to-day life and business activities for many residents in the region. However, Seng managed to adapt, working around these barriers and continuing to sell her clothing online through social media platforms such as Facebook, which had become a lifeline for small businesses across the country.

But the situation took a sharp turn for the worse when the military junta started blocking social media platforms, including Facebook, in an effort to stifle dissent and limit access to information. For Seng, this was a major blow—Facebook had been her primary channel for reaching customers, showcasing new products, and managing orders. Yet even then, many business owners, including Seng, found ways to circumvent these restrictions by using virtual private networks (VPNs). VPNs allowed them to bypass the government’s blocks and continue running their businesses online, albeit with delays and added difficulties.

The final and most devastating blow came with the junta’s recent decision to ban the use of VPNs. This new restriction, aimed at tightening the regime’s control over online activity, had an immediate and crippling effect on Seng’s business. Without access to VPNs, she could no longer reach her customer base or update her online storefront, and communication with suppliers became nearly impossible. “The VPN ban cut off my last connection to the outside world,” Seng explained, lamenting the loss of her livelihood.

For small business owners like Seng, the ban on VPNs represents more than just an inconvenience—it is a direct threat to their survival. VPNs were one of the few remaining tools that allowed them to keep their businesses afloat amid widespread government censorship and internet restrictions. With these critical tools now out of reach, many entrepreneurs in Myanmar are facing economic devastation, as they are unable to sell their products, process transactions, or maintain their customer relationships online.

Beyond the economic impact, the ban on VPNs also raises serious concerns about digital rights and freedom of expression. Internet shutdowns, platform blocks, and now VPN restrictions have all been used as part of a broader effort by Myanmar’s military to suppress opposition and control the flow of information. As access to reliable internet becomes increasingly scarce, not only are businesses suffering, but the general population is being cut off from the global digital economy and essential services, exacerbating the already severe isolation caused by the political situation.

Myanmar’s experience highlights a grim reality for many countries where governments use digital restrictions as a tool of control. For entrepreneurs like Seng, who once relied on the internet to grow and sustain their businesses, these restrictions have drastically altered the way they operate, forcing them to navigate a web of barriers that threaten their very existence. The situation serves as a stark reminder of the power dynamics at play in the digital age, where access to the internet can determine economic opportunity, freedom of expression, and even survival.

As international pressure mounts for the restoration of democracy in Myanmar, many hope that digital freedoms, too, will be reinstated. For now, however, small business owners like Seng are left struggling, unsure of when—or if—they will regain the tools necessary to revive their businesses.

Adapting to Survive

Small business owners are working to adjust to the rapidly evolving digital environment. Faced with new challenges such as internet restrictions, changing customer behaviors, and increased reliance on online platforms, they are finding innovative ways to continue operations. From shifting to alternative e-commerce platforms to adopting new digital tools for remote work and communication, these businesses are exploring various strategies to stay competitive and connected in a constantly changing digital landscape.

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AGL Staff Writer

AGL’s dedicated Staff Writers are experts in the digital ecosystem, focusing on developments across broadband, infrastructure, federal programs, technology, AI, and machine learning. They provide in-depth analysis and timely coverage on topics impacting connectivity and innovation, especially in underserved areas. With a commitment to factual reporting and clarity, AGL Staff Writers offer readers valuable insights on industry trends, policy changes, and technological advancements that shape the future of telecommunications and digital equity. Their work is essential for professionals seeking to understand the evolving landscape of broadband and technology in the U.S. and beyond.

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