State urged to establish SMEs council
text size

State urged to establish SMEs council

The government is being urged to set up a small and medium-sized enterprises (SMEs) council to protect, strengthen and upgrade Thailand's small-scale businesses, notably mom and pop shops which are scattered nationwide.

Worawoot Ounjai, former president of the Thai Retailers Association, said although SMEs that engage in a variety of industries, such as retail, trade, manufacturing or services, are members of the Federation of Thai Industries (FTI) and the Thai Chamber of Commerce, they seldom get the chance to voice their specific concerns.

"Thai SMEs and micro-SMEs are being plagued with problems not only relating to capital but also their capability to upgrade," said Mr Worawoot. "With the establishment of an SME council, SMEs will be able to vent their concerns directly and their specific needs to the government."

SMEs are a fragile segment as firms have been ravaged by the pandemic.

The rising credit risk of SMEs makes it more difficult for these businesses to obtain loans.

SMEs contribute enormously to GDP as they account for 32-35%.

Thailand has around 3 million SMEs and startups, including community enterprises. Tourism SMEs make up half of all SMEs nationwide.

According to Mr Worawoot, small-scale retailers, in particular, need to accelerate upgrading and strengthening their businesses to keep abreast of changing consumer behaviour caused by the pandemic.

Deputy Commerce Minister Weerasak Wangsuphakijkosol said the Business Development Department under the ministry has initiated a scheme to upgrade small retailers to cope with changing consumer lifestyles by providing specialists to offer in-depth advice to increase their competitiveness.

The specialists would also help to upgrade quality standards among these small-scale retailers and provide them with information about marketing strategies, business management, decoration, sanitary requirements and food safety.

There are 400,000 small retail shops in Thailand.

As part of its efforts to help local small-scale retailers deal with the pandemic's impact, the Commerce Ministry in March of last year began offering applications that let customers buy goods online and enjoy delivery services from smart traditional retail shops.

The new online platform for traditional small retail shops is on the ministry's website, while the Digital Government Development Agency has a chatbot line (@dgachatbot). Customers in Bangkok can buy online and receive deliveries from 136 smart traditional retail shops.

Commerce Minister Jurin Laksanawisit said earlier the virus had changed consumer behaviour and reduced supplies of consumer goods. The new platform will help consumers search for traditional retail shops locally that provide delivery services. The ministry hopes the platform and delivery will include 20,000 shops nationwide this year.

Do you like the content of this article?
COMMENT