Thailand
Thailand: Policy to extend helping hand to ‘micro-SMEs’ mulled
The government is considering a new policy to lend support to “micro-SMEs” — businesses that are smaller than small and medium-sized enterprises (SMEs) — to help strengthen the Thai economy, says Industry Minister Uttama Savanayana.
Deputy Prime Minister Somkid Jatusripitak will chair a meeting tomorrow to brainstorm with other senior officials from the Office of Small and Medium Enterprises Promotion and the Industry Ministry to seek new measures to support micro-SMEs, Mr Uttama said.
“Micro-SMEs constitute a group that has been overlooked for such a long time,” he said. “That’s why we are trying to lend a helping hand to them, as we recognise those small businesses as a foundation of the Thai economy that should be supported.”
Micro-SMEs were initially defined as small businesses, or family businesses, that have fewer than five employees and do not register as companies.
Mr Uttama said that by supporting such enterprises, the government would eventually help bolster the overall economy.
He said that since micro-SMEs are very small, it is hard for them to secure financial support from local banks or other financial institutions, which normally require assets to be put down as collateral before lending loans.
Mr Uttama said the government would start lending support to micro-SMEs in eight provinces, mostly major cities with busier economic activity, before expanding aid to other ones.
The eight provinces are Chiang Mai, Phitsanulok, Nakhon Pathom, Chon Buri, Ubon Ratchathani, Udon Thani, Krabi and Songkhla.
At first, the government plans to draw money from existing SME-supporting funds, expecting to get 3.8 billion baht that would be made available to help micro-SMEs.
The exact measures for allocating those funds should be figured out by the meeting on May 5, Mr Uttama said.
Apart from financial aid, Mr Uttama said the government also plans to lend marketing strategy support to help micro-SMEs penetrate new markets and cut costs.
“Assistance in marketing will help strengthen micro-SMEs’ competitiveness in the long-term,” he said. “Ultimately, they will be able to develop themselves further to match the concept of Thailand 4.0, which needs more small but powerful companies that rely on new innovation.”
According to the Industry Ministry, the state aims to lend support to 3,000 companies this year after helping 10,000 last year.
Source: http://www.bangkokpost.com/business/news/1243182/policy-to-extend-helping-hand-to-micro-smes-mulled