The government has set aside an annual budget of 1.25 billion baht in 2019 to develop and increase the efficiency of small and medium-sized enterprises (SMEs) and startups, says the Office of Small and Medium Enterprises Promotion (Osmep).
The office received 1.23 billion baht in 2018, meaning this year's budget is a 1.2% increase, said Osmep director-general Suwanchai Lohawattanakul.
"We aim to inject these funds into our support programmes for SMEs and startups, helping their businesses and enabling access to the government's financial tools," he said.
Mr Suwanchai said the office has improved its organisational structure to facilitate SMEs and startups easily.
It is focusing on SME development in the Northeast, covering many sectors such as fabrics, agriculture, food and packaging.
"The office aims to give SMEs and startups in the Northeast plenty of opportunities to increase value-added products, while we will provide e-marketplaces to engage overseas buyers," he said.
Some 200 million baht of the 2019 budget is slated for 10,000 SMEs under the SME Regular Level programme.
This programme started in 2016 with 30,000 SMEs joining as of 2018.
Mr Suwanchai said the office aims to develop Isan woven fabric to reach the global market because the trend for ethnic garments in international fashion shows is becoming more popular.
Local woven fabric makers in the Northeast have a lot of expertise in this sector.
"The office forecasts Thai fabric makers can be competitive at the global level," he said.
In addition, the office has teamed up with Ubon Ratchathani University to develop and support local fabric makers to improve their product quality through new innovations, technology and know-how.
Osmep expects new SME measures will boost the country's economy to reach 1 trillion baht in circulation, a 5% rise.
Thailand has roughly 3 million SMEs and startups, including community enterprises.
Of those, 700,000 registered SMEs are under the corporate tax system, while 2.3 million SMEs are micro-size companies.
"Some 300,000-400,000 SMEs under the country's tax system are now healthy and strong enough to run their businesses by themselves," said Mr Suwanchai.
"The government has tried to encourage SMEs and startups to adopt the single account scheme and the office is providing training programmes for SME accountants and accounting service providers, so they can improve and better understand this scheme."