Thailands support of small business (SMEs) at the international level Thailands support of small...
Transcript of Thailands support of small business (SMEs) at the international level Thailands support of small...
“ “ Thailand’s support of small Thailand’s support of small business (SMEs) at the business (SMEs) at the
international level”international level”
1st International Small Business FestivalMoscow, Russian Federation
December 13, 2007
Office of Small and Medium Enterprises Promotion (OSMEP), Thailand
by Dr. Wimonkan Kosumas
DirectorDepartment of International Cooperation and Policy Support
Table of ContentsTable of ContentsI. Background of the Office of SMEs PromotionI. Background of the Office of SMEs PromotionII. Overview of Thailand-Russia economic relation and trading II. Overview of Thailand-Russia economic relation and trading
volume between the two countriesvolume between the two countriesIII. Comparative definition of SMEs (based on numberIII. Comparative definition of SMEs (based on number of employees) and profile of Thai SMEsof employees) and profile of Thai SMEsIV. Challenges of SMEs moving into oversea marketsIV. Challenges of SMEs moving into oversea marketsV. Internationalization of Thai SMEsV. Internationalization of Thai SMEsVI. Government SMEs Supporting PolicyVI. Government SMEs Supporting PolicyVII. OSMEP’s support for SMEs’ Overseas Business VII. OSMEP’s support for SMEs’ Overseas Business OperationOperationVIII. Services and facilities for foreign SMEsVIII. Services and facilities for foreign SMEsIX. Policy measures for upgrading competitiveness of Thai IX. Policy measures for upgrading competitiveness of Thai SMEs and SMEs target sector 2007-2008SMEs and SMEs target sector 2007-2008X. Implication on Business PotentialX. Implication on Business PotentialXI. Proposed Framework of Thai-Russian SMEs CooperationXI. Proposed Framework of Thai-Russian SMEs Cooperation
I.I. Background of the Background of the Office of SMEs PromotionOffice of SMEs Promotion
established under the Small and Medium Enterprises Promotion established under the Small and Medium Enterprises Promotion Act 2000 (publicized in the Royal Gazette on Feb. 17, 2000) as Act 2000 (publicized in the Royal Gazette on Feb. 17, 2000) as a juristic entity and a government office, not an official agency a juristic entity and a government office, not an official agency or state enterprise.or state enterprise.
supervised by the Board of Small and Medium Enterprises supervised by the Board of Small and Medium Enterprises Promotion chaired by the permanent secretary of industry.Promotion chaired by the permanent secretary of industry.
Acts as the country’s central organization in formulating SMEs Acts as the country’s central organization in formulating SMEs promotional policies and strategies as well as coordinating promotional policies and strategies as well as coordinating governmental and private working systems in achieving strong governmental and private working systems in achieving strong and sustainable growth of SMEs as the main driving force of and sustainable growth of SMEs as the main driving force of the country’s economy. the country’s economy.
In regard to translate the government’s SMEs promotion In regard to translate the government’s SMEs promotion policies and plans into concrete actions, the cabinet has policies and plans into concrete actions, the cabinet has approved on May 6, 2003 the approved on May 6, 2003 the Master Plan of Thailand’s Master Plan of Thailand’s SMEs Promotion (2002-2006).SMEs Promotion (2002-2006).
Due to the expiration of the 1Due to the expiration of the 1stst Master Plan of SMEs Promotion Master Plan of SMEs Promotion (2002-2006), OSMEP together with related public and private (2002-2006), OSMEP together with related public and private agencies has formulate the agencies has formulate the 22ndnd Master Plan (2007-2011) Master Plan (2007-2011) which which is still in due process for approval from the cabinet.is still in due process for approval from the cabinet.
Strategies of SMEs Promotion Plan 2 (2007-2011)
Vision: SMEs to Grow with Sustainability, Strengthand Balance
Intellectual Infrastructure
Network& AllianceProductivity
Competitiveness
Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs
Strategy 2: Upgrade Manufacturing SMEs
Strategy 3: Increase the efficiency and reduce impediment in trading sectors
Strategy 4: Promote the Capability on Value Creation in Services Sector
Strategy 5: Promote SMEs in Regional and Local Areas
Strategy 6 : Create business environment and enabling factors
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OSMEP- Formulate Master & Action Plan- Create Mechanism in implementing-Allocate Budget- Monitor and Evaluate
Central
• Sectoral Strategies
• Policy / Action Plan
• Projects under SMEs Promotion Action Plan
OtherPublicSectorAgencies
State Enterprise
Public Org.
Ministry
Chamber of Comm./FedOf ThaiIndustries/Bankers’Assoc.
Network to Promote Network to Promote SMEsSMEs
-Board of SMEs Promotion
-Executive Board of the Office of
SMEs Promotion
International Governmental & Private Units
• MOU • Action Plan • Coordination
Regional• SMEs Data
• Action Plan
• Registration
• Service Provision
• Service Provider Creation
• SMEs University
Governor
ProvincialChamber of Comm.
LocalAdmin.Agency
LocalMinisterialOffice
ProvincialIndustrialFederation
Academics
• Community/ Local Product
- Implement- Report Operational Result- Identify Problem/Demand
Academic/ExpertiseInstitution
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- Implement- Report Operational Result- Identify Problem/Demand
OSMEP Regional offices
IIII. Overview of Thailand-Russia economic relation. Overview of Thailand-Russia economic relation
Russia and Thailand enjoy a history of more than 50 years of trade Russia and Thailand enjoy a history of more than 50 years of trade and economic relationsand economic relations
Thailand remains the largest trading partner of Russia in Southeast Thailand remains the largest trading partner of Russia in Southeast Asia Asia
First business contacts between Russian trade organizations and First business contacts between Russian trade organizations and Thai companies date back to the end of 40s following the Thai companies date back to the end of 40s following the reinstallation of diplomatic relations between the two countries in reinstallation of diplomatic relations between the two countries in 19411941
In 2005, bilateral trade reached the volume of 2 billion USD after In 2005, bilateral trade reached the volume of 2 billion USD after significant slump in 1997 due to Asian financial crisissignificant slump in 1997 due to Asian financial crisis
According to the Thai custom statistics, trade surplus remains on According to the Thai custom statistics, trade surplus remains on Russian side in 2006 with Russian export at 1.38 billion USD and Russian side in 2006 with Russian export at 1.38 billion USD and Thai import at 0.42 billion USDThai import at 0.42 billion USD
Thai Exports to RussiaThai Exports to Russia
Product Value (million USD)
1. Automobile and auto parts
93.9
2. Canned and processed fruits
32.3
3. Polymer 26.2
4. Electric appliances
25.6
5. Canned and processed seafood
24.0
Total valueTotal value 234.8234.8
Thai Imports from RussiaThai Imports from Russia
Product Value (million USD)
1. Crude oil1. Crude oil 477.6477.6
2. Rolled steel2. Rolled steel 437.4437.4
3. Scrap metal3. Scrap metal 113.1113.1
4. Fertilizers 4. Fertilizers and pesticidesand pesticides
92.792.7
5. Pulp and 5. Pulp and paperpaper
12.412.4
Total valueTotal value 1,195.41,195.4
Source: CIS & Balkan States Center, University of Thai Chamber of Commerce ( period between Jan.-Sept. 2007)
III. Comparative Definition of SMEsIII. Comparative Definition of SMEs
Thailand Russia
Act for the Promotion of Small and Medium Enterprises B.E. 2543 (2000)
Federal Law on State Support of Small Entrepreneurship 1995
businesses has either asset of no more than 200 million baht or no more than 200 employees
self-employed individuals or (ii) legal entities in which:
auhorized capital of public sector bodies, charities or businesses have no more than a 25 per cent of their equity shares, where
the average number of employees does not exceed the following limits according to main sector of activity:
-100 in industry, construction and transport;
- 60 in agriculture, science and research;
- 50 wholesale trading;
- 30 retail trade and domestic services; and
- 50 in other sectors.
Small
Types of business
Employment
Production Not more than 50
Service Not more than 50
Wholesale Not more than 25
Retail Not more than 15
Medium
Types of business
Employment
Production 51-200
Service 51-200
Wholesale 26-50
Retail 16-30
Profile of Thai SMEs
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Number of SMEs, 2006Number of SMEs, 2006
Number of SMEs by Size, 2006
2287057, , enterprises in total
• LEs : 4,292
• MEs : 9,791 • SEs : 2,264,734 •Unidentified : 8,240
Total Number of SMEs 2274525, , enterprises, 99.5 %
Number of SMEs by Sector, 2006
• Most of SMEs are operating in Trade& Repair Sector for 908,846 enterprises 400( . % of Total SMEs)
• Service Sector was the second largest group for 675,622 297( . %)
• Production/Manufacturing Sector was the third for 672,351 296 %)
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Employment in SMEs, 2006Employment in SMEs, 2006 SME Employment by Size, 2006
In 2006, all enterprises in Thailand created 115512, ,72 jobs in total.
- LEs accounted for 26879, ,38 jobs
- MEs accounted for 13383, , 98 jobs
- SEs accounted for 75249, , 36 jobs
- Totally, SMEs created 8863, ,334 jobs or 767 %.
SME Employment by Sector, 2006
Between 2004-2006, employment in SMEs increased continuingly, especially in Service Sector, which the employment grew 10.8% in 2006.
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SMEs Economic ContributionSMEs Economic Contribution
• In 2006, overall GDP accounted for 7.81 million baht of which 10.7% came from Agriculture Sector and 89.3% came from Non-agriculture Sector.
• SMEs GDP accounted for 3.04 million baht or 38.9% of overall GDP
• Between 2003-2006, SMEs GDP share was in steady line (approx. 39.0% of national GDP), while SME GDP growth rated at a range of 4.1-4.8 % (y-o-y)
Structure of SME GDP in 2006
• Service Sector was the highest with 32.2% share
• Manufacturing Sector was the second highest with 30.3%
• Trade and maintenance Sector was the third highest with 29.2%
Between 2002-2006
• SMEs in Service Sector had been regarded as most important economic engines in creating GDP with 32.2-34.2% share, followed by SMEs in Trade and maintenance Sector with 29.2-31.2%, and SMEs in Manufacturing Sector came third with 26.9-30.3% share
SMEs Economic Contribution (Cont’d)SMEs Economic Contribution (Cont’d)
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Role of SMEs in International TradeRole of SMEs in International Trade
2004 /25472004 /2547 2005 / 25482005 / 2548 2006 / 25492006 / 2549
SME EXPORT SME EXPORT toto T TOTALOTAL Export Export (% share) (% share) 302. %302. % 297. %297. % 291. %291. %
SME IMPORT SME IMPORT toto T TOTAL OTAL IMPORTIMPORT (% (% share)share)
329. %329. % 324. %324. % 327. %327. %
SMESME EXPORT EXPORT toto SME SME GDP GDP (% share)(% share) 451. %451. % 467. %467. % 473. %473. %
TOTAL EXPORT TOTAL EXPORT toto TOTAL TOTAL GDPGDP (% share) (% share) 596. %596. % 625. %625. % 633. %633. %
In 2006, SME export accounted for 1.45 Mil.THB or 29.1% of total export
In 2006, SME import accounted for 1.60 Mil.THB or 32.7% of total import
Thus, SME Trade Balance still deficit with amount of 0.15 Mil.THB
The ratio of SME Export to SME GDP accounted for 473. %indicated that SMEs relied on domestic market rather than international market
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• SME export classified by level of factor intensities shows that Primary products was the highest with 32.1% share, followed by Labour Intensive products came second with 19.2%, Third and Fourth was High Skill and Medium Skill products with 12.0%
• SME import classified by level of factor intensities shows that High Skill products was the highest, followed by Primary products
Role of SMEs in International Trade (Cont’d)
SMEs Promotion Plan (Year 2007 – 2008)
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GoalsGoals
1. To increase the contribution of SMEs to GDP to reach 5% of the national GDP per year.
2. To increase the number of new entrepreneurs by 50,000 per year
3. To increase SMEs Total Factor Productivity of 3% per year
4. To increase SMEs export value to no less than 6% per annum
5. To create product brand with a minimum of 100 per year
6. To commercialize SMEs innovation with a minimum of 100 per year
IV. Challenges of SMEs moving into IV. Challenges of SMEs moving into oversea marketsoversea markets
Human ResourceHuman Resource Infrastructure and Business Infrastructure and Business EnvironmentEnvironment
Commercial and Commercial and administrative practiceadministrative practice
Employing top Employing top quality managers quality managers & engineers& engineers
Human Human resource resource managementmanagement
High wagesHigh wages
DifficultyDifficulty in procuring raw in procuring raw materialsmaterials
Insufficient infrastructureInsufficient infrastructure
Inefficient legal systemInefficient legal system
Uncertainties surrounding regulation enforcement by local government Difficulty in payment collections Foreign exchange risk Draining technology/ know-how Violation of intellectual property rights
STRENGTHSSTRENGTHS
High flexibility and adaptabilityHigh flexibility and adaptability High utilization of local/ domestic High utilization of local/ domestic
resources&knowledgeresources&knowledge Well performed in skill-based sectors: Well performed in skill-based sectors:
food; fashion products; tourism and food; fashion products; tourism and related products&servicesrelated products&services
Easy business access and quick consumer Easy business access and quick consumer approachapproach
Eligible in producing products which are Eligible in producing products which are various in design and qualityvarious in design and quality
THREATSTHREATSOPPORTUNITIESOPPORTUNITIES
Trends of new business approaches favor SMEsTrends of new business approaches favor SMEs Easy for starting ups and allow workforce and Easy for starting ups and allow workforce and
new entrepreneurs to accumulate skillsnew entrepreneurs to accumulate skills Allow for business alliance with LEs and MNCsAllow for business alliance with LEs and MNCs Potential for the creation of new genre of Potential for the creation of new genre of
entrepreneursentrepreneurs SMEs promotion is national agenda with high SMEs promotion is national agenda with high
level of significantlevel of significant
WEAKNESSESWEAKNESSES
Losing competitiveness in labor-intensive & Losing competitiveness in labor-intensive & resource-based sectorresource-based sector
Weak production structure; Poor management; Weak production structure; Poor management; Incapable in marketing; Lack of product Incapable in marketing; Lack of product development; Employing low quality development; Employing low quality workforces; Using out of date technology’workforces; Using out of date technology’
Limitation in applying good governance: Limitation in applying good governance: accounting system; consumer&environmental accounting system; consumer&environmental responsibilityresponsibility
Limitation in access appropriate fundLimitation in access appropriate fund Lack of integrating and networking systemLack of integrating and networking system
Pressure from Globalization:Pressure from Globalization: - Economic integration between countries- Economic integration between countries - FTA on Goods/Services/ Investment - FTA on Goods/Services/ Investment - New form of NTBs- New form of NTBs SMEs promotion system is still fragmented both SMEs promotion system is still fragmented both
in policy formulation and implementationin policy formulation and implementation High competition results in Nutcracker situationHigh competition results in Nutcracker situation Obstacles from public administrationObstacles from public administration
V. Internationalization of Thai SMEsV. Internationalization of Thai SMEs
Problems
• Entrepreneurs fails to reap sufficient benefits from bilateral and multilateral trade agreement with other economies
• National income generation policy still focus only on increasing the number of exports and FDI inflows while neglecting the importance of FDI Outflow
• In 2007, Institute for Management Development (IMD) has ranked Thailand’s competitiveness at 33 which fall from 29 in 2006 due to low FDI Outflow
• Business restructuring from a manufacturing base country to an investor country is necessary in order for Thailand to still maintain its comparative advantage in the global market
initiated by Department of Export Promotioninitiated by Department of Export Promotion Objectives:Objectives:
1.1. To encourage oversea business expansion as To encourage oversea business expansion as mechanism for value additionmechanism for value addition
2.2. To meet the challenge of liberalization and the To meet the challenge of liberalization and the disintegration of preferential treatment such as disintegration of preferential treatment such as quota and GSP (Generalized System of quota and GSP (Generalized System of Preferences)Preferences)
3.3. To maintain comparative advantage by relocating to To maintain comparative advantage by relocating to other countries which has lower cost of labor, other countries which has lower cost of labor, technology, and raw materialtechnology, and raw material
4.4. To increase the competitiveness of export in the To increase the competitiveness of export in the long runlong run
Internationalization ProjectInternationalization Project
Offers 2 types of oversea business supports which Offers 2 types of oversea business supports which include:include:
A) Manufacturing dimension:A) Manufacturing dimension:
- sourcing- sourcing
- subcontracting- subcontracting
- Green Field Investment- Green Field Investment
B) Non-Manufacturing dimensionB) Non-Manufacturing dimension
- Sales Representatives- Sales Representatives
- Franchising- Franchising
- Licensing- Licensing
Internationalization Project (con’t)Internationalization Project (con’t)
VI. Government SMEs Supporting VI. Government SMEs Supporting Policy Policy
Government has proposed SMEs supporting policy to the national legislative assembly on Nov. 3, 2006 as follows:
Development of intellectual infrastructure for SMEs
Collaboration between public and private sector
Development of Development of Intellectual Intellectual
InfrastructureInfrastructure
Collaboration between Collaboration between public and private sectorpublic and private sector
Create linkages between Create linkages between academic institutions and academic institutions and industrial sectorsindustrial sectors
Personnel development in Personnel development in science and technologyscience and technology
Increase multi-level research Increase multi-level research supporting channels with supporting channels with emphasis on collaboration emphasis on collaboration between users and between users and researchers; motivate researchers; motivate innovation development of innovation development of the private sectorthe private sector
Delegate the public sector as Delegate the public sector as SMEs coordinating body in SMEs coordinating body in building economic building economic infrastructureinfrastructure
Provide financial tools which Provide financial tools which support SMEs innovation support SMEs innovation creationcreation
Provide support for the Provide support for the commercialization of SMEs commercialization of SMEs innovationinnovation
i.e. FTI and OSMEPi.e. FTI and OSMEP
Skills EnhancingSkills Enhancing Industrial Standard Upgrading Industrial Standard Upgrading Establishment of SMEs Establishment of SMEs
Incubation CenterIncubation Center
Competitiveness Competitiveness ImprovementImprovement
Business MatchingBusiness Matching Machinery FundMachinery Fund Logistics NetworkingLogistics Networking Development of Provincial Development of Provincial
and Regional Industry by and Regional Industry by sectorssectors
AdministrationAdministrationBudget: 800 million baht
VII. OSMEP’s Support for SMEs VII. OSMEP’s Support for SMEs Overseas Business OperationOverseas Business Operation
A)A) International SMEs cooperationInternational SMEs cooperation
B)B) Overseas Thai SMEs Agency cooperationOverseas Thai SMEs Agency cooperation
C)C) Internationalization ProgramInternationalization Program
Samples of InternationalSamples of InternationalCooperation on SMEs PromotionCooperation on SMEs Promotion
Thai – MalaysiaThai – Malaysia Thai – FranceThai – France Thai – ItalyThai – Italy Thai – JapanThai – Japan
I.I. Information exchange of SMEs development policiesInformation exchange of SMEs development policies
II.II. Establishment of Malaysia-Thailand SME Business Establishment of Malaysia-Thailand SME Business PortalPortal
III.III. Establishment of Joint investment and trade missionEstablishment of Joint investment and trade mission
IV.IV. Establishment of training program for entrepreneurs in Establishment of training program for entrepreneurs in food processing and automotive sectorsfood processing and automotive sectors
V.V. Organizing exhibition and business matching activitiesOrganizing exhibition and business matching activities
Framework of Thai-Malaysia Framework of Thai-Malaysia Cooperation on SMEs PromotionCooperation on SMEs Promotion
I.I. Establish SMEs help desk at OSMEP to assist Establish SMEs help desk at OSMEP to assist Italian SMEs doing business in ThailandItalian SMEs doing business in Thailand
II.II. Information exchange of cluster development in Information exchange of cluster development in ItalyItaly
III.III. Promote the export of Thai organic products to ItalyPromote the export of Thai organic products to ItalyIV.IV. Collaborate on fashion design, jewelry (possibility Collaborate on fashion design, jewelry (possibility
of establishing co-brand), and export of furniture of establishing co-brand), and export of furniture V.V. Organize workshop on alternative energy and Organize workshop on alternative energy and
environment protectionenvironment protectionVI.VI. Sponsorship from Fierra Milano for ISBC 2007Sponsorship from Fierra Milano for ISBC 2007
Framework of Thai-Italy Cooperation Framework of Thai-Italy Cooperation on SMEs Promotionon SMEs Promotion
I.I. Development of Joint ClusterDevelopment of Joint ClusterII.II. Entrepreneurial registrationEntrepreneurial registrationIII.III. Advisory Support for DesignAdvisory Support for DesignIV.IV. Advisory Support for BrandingAdvisory Support for BrandingV.V. Experience sharing on Technical Institution for Experience sharing on Technical Institution for
SMEsSMEsVI.VI. SME NetworkingSME NetworkingVII.VII. SME Working Group Meeting (at least once a year)SME Working Group Meeting (at least once a year)
Framework of Thai-France Cooperation Framework of Thai-France Cooperation
on SMEs Promotionon SMEs Promotion
I.I. Knowledge and experience sharing on the Knowledge and experience sharing on the establishment of SMEs Universityestablishment of SMEs University
II.II. Collaboration on the establishment of Business Collaboration on the establishment of Business Development Service CenterDevelopment Service Center
III.III. Development of business diagnosis or ShindanDevelopment of business diagnosis or ShindanIV.IV. Exchange of SMEs expertiseExchange of SMEs expertiseV.V. Development of financial institution’s risk evaluation Development of financial institution’s risk evaluation
of SMEsof SMEs
Framework of Thai-Japan Cooperation Framework of Thai-Japan Cooperation on SMEs Promotionon SMEs Promotion
B) Overseas Thai agency SMEs cooperationB) Overseas Thai agency SMEs cooperation
Inform the National SMEs Promotional and Operational
Plan to be as a guideline for allocate budgeting for SMEs
promotion through strategic fund
Exchange of Business Data & Information Knowledge &
Know-how Linkage
Provision of in-depth information of trading partners
(economic, social and political) for facilitating the
investment decision of Thai SMEs entrepreneur
Coordination on MOU and Action Plan on SMEs Promotion
Support both in-bound and out-bound SME promotional
activities
C)C) InternationalizationInternationalization ProgramProgram
subsidies to SMEs entrepreneurs subsidies to SMEs entrepreneurs (not exceeding 50% of expense and (not exceeding 50% of expense and the maximum amount not the maximum amount not exceeding $7,000) for exceeding $7,000) for international expansion through international expansion through international exhibition, business international exhibition, business matching, market survey or other matching, market survey or other export promotion activitiesexport promotion activities
VIII. Services and facilities for foreign SMEsServices and facilities for foreign SMEs
BUSINESS MATCHINGBUSINESS MATCHING
Increase trade opportunity, match world’s demand with Thai’s supply
Market Intelligence
• Demand•Standard / Specification
•Taste•Trade regulation
•Etc.
SMEs
•Product scope•Community Products
•Quality AssuringBy “Q-mark”
FTI members Target market
Channel
Matching Activities
• SMEs Shop Channel• SMEs Trade Promotion
•Thai confectionary• Business Trip
• Exhibition• Product catalog
• E-commerceObjectives
Market Exploration % Sales Growth / Minimize Defects
Develop to be regular customers 33
1. Upper Northern Provinces griculture, handicraft agriculture, fashion, textile, tourism, ICT.
2. Lower Northern Provinces Rice, sugarcane, sugar, livestock (pigs), agricultural; process, logistics and services.
7. Lower 7. Lower Northeastern Northeastern ProvincesProvincesTextile, silk, pork Textile, silk, pork process, tourism, process, tourism, automobile, rice. automobile, rice.
3. Upper Central ProvincesFlowers, garden trees, molds, poultry, partridges, automobile and assemblies, rice, beef cattle, construction and decoration materials, furniture and aquatic animal process.
6. Upper Northeastern ProvincesTourism, border trade, blue-dyed cotton, ecological tourism, jasmine rice, logistics, bio plastic.
4. Lower Central Provinces
Quality pigs, organic rice,
processed shrimps, tourism,
canned pineapples.
5. Southern Provincestourism,hotel,rubber
8. Eastern ProvincesTourism, processed seafood, jewelry and ornaments, fresh and processed fruits, automobile and assemblies, bio plastic.
9. Border Southern ProvincesGoat, rubber, Abalone mushroom, herbal vegetables, fruits.
Specific SMEs Categorizedbased on the Area
(Cluster Development)
Product Cluster in Thailand
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Venture Capital Fund Venture Capital Fund (VCF)(VCF)
- Provide equity financing Provide equity financing to targeted SMEsto targeted SMEs
- In charge of shareholdersIn charge of shareholders
- Support for enhancing Support for enhancing
SMEs strengthenSMEs strengthen
Venture Capital Fund in Venture Capital Fund in ThailandThailand
A) Venture Capital Fund for A) Venture Capital Fund for Enhancing CompetitivenessEnhancing Competitiveness of of Thai BusinessThai Business
B) SMEs Venture Capital FundB) SMEs Venture Capital Fund
C) Innovation Development C) Innovation Development Venture Capital FundVenture Capital Fund
Media to access recent SMEs Media to access recent SMEs movementmovement
SMEs Today magazineSMEs Today magazine SMEs Shop ChannelSMEs Shop Channel (UBC Channel)(UBC Channel) SMEs Chee Chong Rouy TV ProgramSMEs Chee Chong Rouy TV Program
(Channel 11)(Channel 11)
IX. Policy measures for upgrading IX. Policy measures for upgrading competitiveness of Thai SMEscompetitiveness of Thai SMEs
A) Promotion of SMEs network through the A) Promotion of SMEs network through the development of clusterdevelopment of cluster
B) Employment of standards (especially on agricultural B) Employment of standards (especially on agricultural
products)products)
C) Capacity building through training, mentoring, C) Capacity building through training, mentoring, provision of consultancy service, e-projects and provision of consultancy service, e-projects and SME universitySME university
D) Creation of business opportunity through domestic D) Creation of business opportunity through domestic and international business matching activitiesand international business matching activities
SMEs Target Sector 2007-2008
11. Indigenous - Light industry : textile,
Leather, gems/jewelry,Printing matter, packaging
- Engineering and electronics: metallurgy, machinery, mould,
electrical appliances, automotive parts
- Natural resources: food, medicine, herbs, wooden furniture,
rubber products, ceramics, gifts, souvenirs, household
decoratives 12. New wave
- Animation, multimedia, computer games
- Alternative Energy and energy saving
21. Retail 22. Wholesale
23 Trading firm
41. Manufacturing, Trading and service 42. Community products
31. Tourism industry: hotel, restaurant, souvenir shop tourism, spa, conference holding related-business (MICE)
32 Other services : information Technology, software (digital content), business consulting, health and beauty, construction design, logistics, education,entertainment
1. Manufacturing 2. Trading 3. Service
4. Regional and local
511010Link
X. Implications on Business PotentialX. Implications on Business Potential
Geographic complementaritiesGeographic complementarities
- Russia: as gateway to the Commonwealth Independent - Russia: as gateway to the Commonwealth Independent StatesStates
-Thailand: as a gateway to Southeast Asia and southern -Thailand: as a gateway to Southeast Asia and southern ChinaChina
■ ■ Russia’s abundant source of raw materialRussia’s abundant source of raw material
- Thailand can import from Russia or penetrate the Russian - Thailand can import from Russia or penetrate the Russian market by direct investment in Russia (in forestry, jewelry, furniture market by direct investment in Russia (in forestry, jewelry, furniture and paper industry) and export to third countriesand paper industry) and export to third countries
■ ■ Rapid infrastructure development and expansion of service sector Rapid infrastructure development and expansion of service sector in Russia:in Russia:
- vast potential for Thai business which include spa and - vast potential for Thai business which include spa and beauty , interior design, restaurant, and hotelbeauty , interior design, restaurant, and hotel
XI. Proposed Framework of XI. Proposed Framework of Thai-Russian SMEs Thai-Russian SMEs
CooperationCooperation Expansion of business matching to increase joint investmentExpansion of business matching to increase joint investment Joint cooperation between private sectors, particularly chambers of Joint cooperation between private sectors, particularly chambers of
commerce, in the following sectors:commerce, in the following sectors:
● ● energy sectorenergy sector
● ● metal industrymetal industry
● ● natural rubber manufacturenatural rubber manufacture
● ● jewelry industryjewelry industry
● ● tourismtourism
■ ■ Exchange of SMEs development policy through seminar/s Exchange of SMEs development policy through seminar/s conferences, study-visit, and trainingconferences, study-visit, and training
■ ■ Establishment of Russian-Thai Business Council (under ongoing Establishment of Russian-Thai Business Council (under ongoing process)process)
■ ■ Establishment of SMEs exhibition or pavilion to expand business Establishment of SMEs exhibition or pavilion to expand business partnershippartnership
THANK YOU FOR YOUR KIND ATTENTION
SAWASDEE KA!
www.sme.go.th
Appendices: Other OSMEP’s project for SMEs development
SMEs UniversitySMEs University
SME University is consisting of:1. E-SMEs University2. Practical Curriculums through the
University and College in Thailand
SME University is consisting of:1. E-SMEs University2. Practical Curriculums through the
University and College in Thailand77
E-SMEs UniversityE-SMEs UniversityVarious Subject- E SME
University1. Entrepreneurships
concept for strat-up SMEs
2. Introduction for Marketing
3. Introduction for SMEs Financial
4 . SMEs Management for sustainable
5. Business Creativity & Innovation for SMEs
6. ICT & E-commerce for SMEs
7. Production Management & Service Businesses for SMEs
8. Business Strategy & Trend / Opportunity for SMEs
9. Advance Marketing for SMEs
10. Accounting and Financial Management for SMEs
11. Corporate Governance12. Business Plan
Various Subject- E SME University
1. Entrepreneurships concept for strat-up SMEs
2. Introduction for Marketing
3. Introduction for SMEs Financial
4 . SMEs Management for sustainable
5. Business Creativity & Innovation for SMEs
6. ICT & E-commerce for SMEs
7. Production Management & Service Businesses for SMEs
8. Business Strategy & Trend / Opportunity for SMEs
9. Advance Marketing for SMEs
10. Accounting and Financial Management for SMEs
11. Corporate Governance12. Business Plan
OSMEPOSMEP Assumption U.Assumption U.
88
Financial Management
General Managem
entSale &
Marketing ManagementManufacturin
g Management
- Considering a start up company- Real case study
- According to local smart businesses- Practical & OJT
- Time & Situation
- Law & Regulation
InnovationManagement
New Technology
Venture
SME UNIVERSITY
SMEs University Curriculum Model
9
Major 70: Practice 30Major 70: Practice 30
C) OSMEP E-Projects / SME@ClickC) OSMEP E-Projects / SME@Click
Business
Startup
Business
Startup
BusinessImproveme
nt
BusinessImproveme
nt
BusinessExpansionBusiness
ExpansionBusiness MaturityBusiness Maturity
Virtual Virtual CoachCoach
E MentorE Mentor DigitalDigitalUniversitUniversit
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E Biz NetE Biz Net E MarketE MarketPlacePlace
E E InnovationInnovation
Business Business Setup Setup
Coaching &Coaching &Franchise Franchise SimulationSimulation
E- Mentoring E- Mentoring & Consulting& Consulting
E-Self E-Self Learning Learning
ToolsTools
E-Marketing E-Marketing Information Information
Service Service
Online Online CatalogCatalogServiceService
R&D R&D Information Information
and and SME-SME-
Researcher Researcher MatchingMatching
1111
Virtual CoachSME@Click Main Page
Digital University
Virtual Coach E BizNet E InnoMarket
OSMEP e-Projects / SME@ClickOSMEP e-Projects / SME@Click
1212
Warning System for Investment and SMEs CornersWarning System for Investment and SMEs Corners
1. Type of SMEs
2. Characteristics of Sector
3. Assets per Sector
4. Liabilities per Sector
5. Revenues per Sector
6. Total Sales per Sector
1. Type of SMEs
2. Characteristics of Sector
3. Assets per Sector
4. Liabilities per Sector
5. Revenues per Sector
6. Total Sales per Sector
7. ROI per Sector
8. Economic Value Added per Sector
9. Financial Ratio per Sector
10.Export and Import per Sector
11.Employment Rates per Sector
12.No. of SMEs per Sector
7. ROI per Sector
8. Economic Value Added per Sector
9. Financial Ratio per Sector
10.Export and Import per Sector
11.Employment Rates per Sector
12.No. of SMEs per Sector
1313
Warning System for Investment and SMEs CornersWarning System for Investment and SMEs Corners
SMEs Supply and Value ChainSMEs Supply and Value Chain SMEs Export and Import PositioningSMEs Export and Import Positioning
SMEs Financial Situation PositioningSMEs Financial Situation Positioning SMEs Financial Health PositioningSMEs Financial Health Positioning 1414
Warning System for Investment and SMEs CornersWarning System for Investment and SMEs Corners
Payab University Siam University
Rangsit University Christian University
and 4 more each year1515
SMEs Tool Kit SMEs Tool Kit
Business Manual for start-up SMEs Marketing/ Sales/ Accounting/ HR/ Production/
Services/ ICT/ Sufficiency Economy including Good Governance
Practical Guideline for SMEs and able to apply for own business which makes SMEs confident to
run business.Interactive E-Book & Lesson Learn from selected
SMEs entrepreneurs
Business Manual for start-up SMEs Marketing/ Sales/ Accounting/ HR/ Production/
Services/ ICT/ Sufficiency Economy including Good Governance
Practical Guideline for SMEs and able to apply for own business which makes SMEs confident to
run business.Interactive E-Book & Lesson Learn from selected
SMEs entrepreneurs 1616