Thailand – Pacific Island Countries
Forum (TPIF)
Dr. Wimonkan
Kosumas
August 9, 2014
The Sukosol,
SMEs
Constitution of enterprises by size
0.1 %
Corporate and multinatio
0.9 %
Large enterprises
5 - 10 %
20 %
65 - 75 %
Medium enterprises
Small enterprises
Micro enterprises
Source: IFC, 2009.
Note: Percentage represent the number of companies.
SMEs of SMEs by market and
Typology
technology
Export
Cottage
Enterprises
Export –
oriented
Enterprises
Low
Tech
High
Tech
Domestic
Market –
oriented
Enterprises
Supporting
Enterprises
Domestic / Local
Market
Source: Uchikawa and Keola, 2009.
SMEs
Simplified SME life cycle
Profit
Grow to large firm
Maturity
Growth
Start-up
Pick-up
Loss
Decline
Exit
Years
Note: The arrows indicate that different types of support are needed at the differe
SMEs
Why SMEs are important?
SMEs are “Backbone” of the
economy.
 Create jobs and employment
 Supplier of large firm
 Diversify economy
 Income distribution
 Providing low-price products for the
underprivileged
 Innovation
Entrepreneurial activity in selected AsiaPacific countries
Nascent
entrepreneursh
ip rate
New business
ownership
rate
Early-stage
entrepreneurial
activity (TEA)
Bangladesh
7.1
7.1
12.8
Iran (Islamic Republic
10.8
3.9
14.5
Pakistan
7.5
1.7
9.1
9
4.8
13.4
China
10.1
14.2
24.0
Malaysia
2.5
2.5
4.9
Russian Federation
2.4
2.3
4.6
Thailand
Turkey
8.3
6.3
12.2
6.0
19.5
11.9
Factor - driven
economies
Average (unweighted)
Efficiency – driven
economies
Entrepreneurial activity in selected AsiaPacific countries (Cont.)
Nascent
entrepreneursh
ip rate
New business
ownership
rate
Early-stage
entrepreneurial
activity (TEA)
Australia
6.0
4.7
10.5
Japan
3.3
2.0
5.2
Republic of Korea
2.9
5.1
7.8
Singapore
3.8
2.8
6.6
Taiwan Province of
3.6
4.4
7.9
4.0
3.0
6.9
Innovation - driven
economies
Average (unweighted)
Source: GEM, 2012.
SMEs
How SME fits into global supply chains:
Original equipment
manufacturer
(large firm, perhaps
TNC)
First tier Supplier
(large firm, perhaps
TNC)
Second tier
Supplier
(large firm)
Second tier
Supplier
(SME)
Third tier
Supplier
(SME)
Third tier
Supplier
(SME)
Source: UNIDO, 2001.
Fourth tier
Supplier
First tier
Supplier
(large firm)
Third tier
Supplier
(large firm)
Fourth tier
Supplier
SMEs and The Changing
Changing
World Factors
SMEs and The Changing
SMEs Issue:
World
Type of SME internationalization
Internationalize
d firms
Foreign suppliers
Foreign
Joint-Research
Joint-Marketing
FDI
Export
Born
Joint-Venture
Born Global
Consultancy
Lab + Testing
Legal Firms
Software
SMEs
Internationalization
Structure
Website / E-mail
International
Customer
Relations
Technology
Transfer
International
Association
Membership
Consultancy
International
Business Culture
Foreign
Partners
SME
Internationalization
Technology
Reverse
Engineering
Investment
Joint Venture
Foreign Direct Investment
Trade
Fair
Participation
Export
Market
Oversea
Sale
Representative
Office
Overall image of SMEs
Internationalization
Number of Activities
Difficulty of Activities
Type A
Domestic SMEs
Type B
Go-global SMEs
Foreigner Business Partners
- Joint Venture
- Import Technologies
- Employ Foreign Experts and/or
Workers
International / Regional Supply Chain
management
- Sourcing raw materials from local resources
- Produce goods / services to be used as
parts / components in oversea parent
company
Comply to International
Standards and Practices
Investment
Abroad
Learning and
Understanding
International
Business Culture
International Standard
Management
Number of SMEs
Overseas
Representative
Office
Export
Number of SMEs
SMEs in Global
Source: EIU Study 2012
SMEs in Global
SME Accelerates Promotion Plan for Value Chain
Processed Food
Ready to eat
Agriculture
Electronics
Oil
Vegetable Oil
Raw Materials
Part & Component Production
Assembly
Reverse Engineering
Raw Materials
Vegetable oils
Oil for secondary industry
Health Care
Halal Tourism / Performing Arts
Environmental Tour
Tourist Guide / Sevounir / Restaurant
Hospital / Clinic
/ Medical Tourism / Medical Hub
Herb / Spa
Raw Material / Plastic
Medical Devices
New Synthetic Material / Nano-polymer
Packaging Industry
Chemical
[Plastic]
Innovative R&D
- High Technology Gadget
- High Technology Equipment
Cosmetics /
Pharmaceuticals
Tour Package / Rental Services
Tourist and
Related
Industry
Organic Products
Green and Clean Processed Food
Certified and Standard Guaranteed Products
Access to Information and Advisory Services
SME
Service
Center Network
for
SMEs
(Thailand)
Naresuan University
• Service Center for Lower Northern
Part and Central Part
Khon Kaen University
• Service Center for Middle NorthEastern Part and Gateway to GMS
Khon Kaen University,
Nong Khai Province Campus
Nakorn Panom University
Ubon Ratchathani University
Ubon Ratchathani University,
Mukdahan Province Campus
Surin Rajabhat University
Nakhon Sri Thammarat
Rajabhat University
• Service Center for Upper NorthEastern Part and Gateway to GMS
• Service Center for Middle NorthEastern Part and Gateway to Lao
PDR., Upper Vietnam and Lower
China
• Service Center for Middle NorthEastern Part and Gateway to Lower
Vietnam
• Service Center for Middle NorthEastern Part and Gateway to Middle
Vietnam
• Service Center for Lower NorthEastern Part and Gateway to
Cambodia
• Service Center for Lower NorthEastern Part
Burapa University
• Service Center for Industries and
Exportation
Kanjanaburi Rajabhat University
• Service Center and Gateway to
Myanmar
Prince of Songkhla University
• Service Center for Southern Part and
Gateway to Malaysia
Access to Information and Advisory Services
for
SMEs
Diagram
on how data and information be transferred and collected
Trade and Investment Information
SME
Service Center A
SME
Service Center B
SME
Service Center C
SME
OSMEP
Service Center D
SME
SME
SME Needs
Access to Information and Advisory
Services
SME Service Center Network
(Thailand)
Example center in network:
Khon Kaen University has joined into the
considered as the first service center in our system. Not
science park, which provide:
• Workshop
• Advisory services
• Lab testing
• Technologies and tools for incubating and
but also well-known as a business information
of Thailand and for the neighbor ASEAN member states
region; GMS
Access to Information and Advisory
Services
SME Service Center Network
(Thailand)
Example: Khon Kaen University Potential:
•
Khon Kaen University Science Park offers businesses’ technology leverage in
One-Stop Service
The specialist consultant services; seeking technology from domestic and
business negotiations, R&D searching service, and establishing a linkage to other
loans, the business incubation, intellectual property services, venture capital
consulting services and data of research and development, Including, integrate
and Technology and the university/academia.
•
Business incubation services
Provide services to support individuals from start-up to SME size by promote
adoption in products and services to enhance production in the supply chain and
confident Increasing and trust in the businesses. Service Details are as follows.
- Find information and business networking
- Business consulting services
- Training to enhance skills for entrepreneurs
- Export promotion
- Promotion and marketing support services
Access to Information and Advisory
Services
SME Service Center Network
(Thailand)
Example: Khon Kaen University Potential:
•
Service in intellectual property protection.
Provide intellectual property service (IP Service) for various types of
technology (Technology Licensing) to lead to private sector investment.
•
financial support
Provide expert advice and financial benefit information of credit and low
&D
•
Metrological service coordination between public and private
Be a coordination center of metrology between public and private sectors by
metrology operations. Moreover, there is cooperation with National Institute of
for instrumentation in various fields and development services in other related
in the Northeastern.
•
Expertise services
Provide a expertise in the business incubation and research in various subject
steadily business growth.
•
Laboratory Service Center
Provide a service examination, calibration, training, and advice in various
•
Service in research and development partnership/ research and development
Be a partnership between public, private, and universities in research and
conducts research and development needs of the private sector.
Online Information
and Database
Testing Labs
Business Consulting
Seminar & Workshop