More SMEs going under the radar | Bangkok Post: business

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More SMEs going under the radar

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The minimum wage of 300 baht a day is taking its toll on small and medium-sized enterprises (SMEs), leading several to close and start doing business without registering with the Commerce Ministry, according to a university study. 

''This is because a large number of SMEs are unable to compete, and if they are not in the system they can lower their costs by avoiding taxes and money sent to the social security fund,'' said Kiatanan Luankaew, director of the Dhurakij Pundit University (DPU) Research Center.

According to Mr Kiatanan, once business operators report a closure (to authorities), they generally opt to purchase condominiums or other types of buildings and set up a new firm without registration. Most of these businesses have no more than five or six employees.

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