August 2, 2018
The terms entrepreneur and entrepreneurship in Thailand were introduced at roughly the same time as when the GEM research project first took place in the country in 2002. It changed the way in which people viewed small business owners and as a result politicians started targeting entrepreneurship as an important topic to support SME and economic development. GEM was instrumental in providing the necessary facts and figures for the Thai entrepreneurial activities such as their attitudes, activities and aspirations.
With the continuous exposure of GEM information that has been published in the media and discussed in forums, GEM has become a valuable and highly accepted source of information for many stakeholders in Thailand. Knowledge has been exchanged between GEM, government agencies, business associations, universities and national and international organizations.
GEM findings have been used to suggest policies for SMEs, to create training programs on gaps found in the expert survey and to empower women entrepreneurs across the ASEAN region to benefit from the ASEAN Economic Community (AEC).
However, as in many other countries it is difficult to show a direct correlation and link between GEM and government policy decision making.
Stakeholders who use GEM
Different stakeholders in Thailand refer to GEM data to suggest policies, conduct research and to draw conclusions on the entrepreneurial landscape in Thailand. Examples of this are:
1. Office for Small and Medium Enterprises Promotion (OSMEP)
In its “Thailand’s SME White Paper 2015”, the government agency OSMEP (Office for Small and Medium Sized Enterprise Promotion) has one full chapter (Chapter 10) on GEM findings and also refers to GEM as a source of information in its foreword. The chapter “A Comparative Study for Development (Global Entrepreneurship Monitor: GEM)” utilizes both APS and NES data collected in 2014. This study was conducted with the objective of studying the status and evaluating the degree of Thailand’s entrepreneurship, attitudes, attentiveness and participation of population in terms of entrepreneurial activities, classified by group and region. In addition, the purpose was to study the supportive surrounding factors of the growth of entrepreneurs, guidelines for defining policy and measures supporting the development of an entrepreneurial society, and the creation of a new generation of quality entrepreneurs.
The study includes a comparative study of entrepreneurial activity in Thailand versus other countries (Philippines, Vietnam, Malaysia, Indonesia, China, Singapore, South Korea, Taiwan, Poland, Germany, the United Kingdom and the United States), women entrepreneurship and Thailand, a comparative study between TEA and established business owners, differences between business operations of small and medium enterprises in Thailand, the capacity of the entrepreneurial society in Thailand, obstacles affecting the development of entrepreneurship in Thailand, suggestions and promoting measures to strengthen the entrepreneurship society of Thailand in the future.
OSMEP also provides a link on its website to GEM as one of its international agencies, alongside other reputable organisations.
In a 2005 OSMEP White Paper, Chapter 8 - “The Strengthening of Entrepreneurial Society: Status and Guidelines” - refers to GEM Thailand's APS and NES data from 2002 and 2005, the first two years GEM was conducted in Thailand.
2. Asian-Pacific Economic Cooperation (APEC)
In its introduction to the Thai economy, the Asia-Pacific Economic Cooperation (APEC) refers to the 2013 GEM Thailand Report. It notes: “According to a 2013 Global Entrepreneurship Monitor (GEM) report, representation of male and female entrepreneurs at all stages of business activity is roughly equal: intending to start a business, starting and sustaining the business, and becoming an established owner and creator of jobs. Women-owned enterprises in Thailand are typically small, and rely on a variety of funding sources to become established, chiefly funds from their own savings and from family and friends. The GEM reports that more than 70 percent of Thai women-owned businesses operate as microenterprises.”
3. The United Nations ESCAP (Economic and Social Commission for Asia and the Pacific)
United Nations ESCAP published a report on women's entrepreneurship in 2017, based on data extracted from the Global Entrepreneurship Monitor (GEM) Surveys for 2013/2014 and 2014/2015 for the six ASEAN countries Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietmam. The primary source of data for this report is GEM, particularly the GEM ASEAN Regional Entrepreneurship Reports for 2014/2015 and 2015/2016, and the GEM Adult Population Survey of Thailand and other ASEAN countries 2013 and 2014.
The report was specifically based on GEM data because the GEM Research Project.
4. United Nations Conference on Trade and Development (UNTAD)
UNCTAD refer to GEM data in their 2015 publication “Science, Technology & Innovation Policy Review Thailand”.
5. UNESCO-APEID EE-NET for entrepreneurial education
GEM Thailand is part of the regional Entrepreneurship Education Network Asia-Pacific and contributes its annual findings to promote policies for entrepreneurship education, usually at the annual meetings of the EE-Net.
6. APO Asian Productivity Organisation
The index developed by GEM to measure entrepreneurial activities was endorsed to be used in the “Report on Entrepreneurship Initiatives in APO Countries” (2016 Japan).
7. OECD (Organisation for Economic Cooperation and Development)
GEM data is referred to in the book “OECD Studies on SMEs and Entrepreneurship Thailand: Key Issues and Policies”.
8. Joint Foreign Chamber of Commerce THAILAND (JFCCT)
The Joint Foreign Chambers of Commerce Thailand will follow the Global Entrepreneurship Monitor guidelines, as stated in Agenda Item IV “SME committee focus for 2017 SME Policy recommendations for 2017”.
There is a correlation between GEM and current and recent discussions and activities showing evidence that the government has been trying to increase innovative entrepreneurship which is in line with GEM Thailand findings and recommendations.
Where are articles published?
GEM Thailand work and results are often featured both in the Thai and English national newspapers. Some examples are:
Entrepreneurship programs in Thailand
There are a number of entrepreneurial programs in Thailand. The National Development Policy papers 9 and 10 specifically implement policies which target to foster entrepreneurship in combination with innovation.
The King Prajadhipok’s Institute (King Prapokklao Institute ), a department under the House of Representatives Secretariat with its “New Leader in Democracy Program”, is just one example for a program that aims to implement innovation/entrepreneurship policy and initiatives.
Government loan guarantees for entrepreneurs and start-ups are available through the Thai Credit Guarantee Corporation and most banks have their own specific entrepreneurship funding and training programs. Bangkok Bank is more focused on family businesses, providing training workshops for successors through CEDI, Creative Entrepreneurship Development Institute at Bangkok University with their FEF Future Entrepreneurs Forum. Kasikorn Bank targets SMEs, and Siam Commercial Bank SCB provides bi-annual training through the YEP Young Entrepreneur Program and the IEP Intelligent Entrepreneur Program. The IEP aims to hone business management and problem solving skills for SME owners above the age of 35 while helping nurture a self-sustaining SME business network. Similarly, the Young Entrepreneur Program YEP aims to promote management skills and encourage budding entrepreneurs to participate in and eventually take over the reins of their family businesses (https://scbsme.scb.co.th/iepyep)
Government agencies such as the National Innovation Agency (NIA) and the NSTDA (National Science & Technology Development Agency) target the digital economy and innovative start-ups. NIA together with UNCTAD/WTO’s International Trade Center also started to focus on innovation for agricultural entrepreneurs to help bring local organic products to international markets through an initiative entitled “Strengthening the Export Capacity of Thailand’s Organic Agriculture”, as organic agriculture offers high potential especially when it comes to exports. NIA’s efforts have proven successful and helped to create a significant collaborative network among private sectors, researchers, and organic producers. The network has led to the development of over twenty organicrelated innovation projects under NIA’s technical and financial support schemes. In parallel, NIA also works with the Thai Organic Trade Association (TOTA) to promote and encourage organic business development in Thailand. NIA has set a target to support at least fifty more entrepreneurs in the next few years and help them to eventually produce and improve their organic products for exports.
The ICT Ministry of Thailand, now Ministry of Digital Economy and Society (MDES), set up a 20 billion THB (570 million USD) startup fund for startups. 10 billion THB (285 million USD) are set up as the Digital Economy Fund by the Ministry of ICT specifically for tech startups and the other 10 billion THB fund are set up by the Ministry of Finance for a broader group of startups in healthcare, finance, agriculture, tourism and digital technology. After the launch of the Digital Economy Fund in 2016, 40 universities across Thailand signed a Memorandum of Understanding with the Ministry to found tech start-up clubs in their universities to foster tech start-ups among their students, supported by these government funds. Several universities indeed offer entrepreneurship programs and provide incubators and incubation programs. However, one year after signing the MoU, many of these universities are still in their infant shoes in getting the tech start-ups set up and running. Government initiatives and programs cannot implement their programs on the ground, they can only provide the beneficial ecosystem in or the landscape of a country. It is up to other stakeholders involved, in this case universities and their professors, lecturers and incubators to act and execute upon the provided government programs, to be more entrepreneurial themselves and take matters into their hands to create the much demanded innovative digital Thailand.
This report first appeared in the publication The Influence of GEM on Policy 2017/18. Access at this link.
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