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Thailand – Pacific Island Countries Forum (TPIF)

Thailand – Pacific Island Countries Forum (TPIF). Dr. Wimonkan Kosumas August 9, 2014 The Sukosol , Bangkok, Thailand. SMEs. Constitution of enterprises by size. 0.1 %. Corporate and multinationals. 0.9 %. Large enterprises. 5 - 10 %. Medium enterprises. 20 %. Small enterprises.

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Thailand – Pacific Island Countries Forum (TPIF)

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  1. Thailand – Pacific Island Countries Forum (TPIF) Dr. WimonkanKosumas August 9, 2014 The Sukosol, Bangkok, Thailand

  2. SMEs Constitution of enterprises by size 0.1 % Corporate and multinationals 0.9 % Large enterprises 5 - 10 % Medium enterprises 20 % Small enterprises 65 - 75 % Micro enterprises Source: IFC, 2009. Note: Percentage represent the number of companies.

  3. SMEs Typology of SMEs by market and 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.

  4. SMEs Simplified SME life cycle Profit Grow to large firm Maturity Decline Growth Exit Start-up Years Pick-up Loss Note: The arrows indicate that different types of support are needed at the different life stages.

  5. 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

  6. Entrepreneurial activity in selected Asia-Pacific countries

  7. Entrepreneurial activity in selected Asia-Pacific countries (Cont.) Source: GEM, 2012.

  8. SMEs How SME fits into global supply chains: Original equipment manufacturer (large firm, perhaps TNC) First tier Supplier (large firm, perhaps TNC) First tier Supplier (large firm) Second tier Supplier (large firm) Second tier Supplier (SME) Third tier Supplier (SME) Third tier Supplier (SME) Third tier Supplier (large firm) Fourth tier Supplier (SME) Fourth tier Supplier (SME) Source: UNIDO, 2001.

  9. SMEs and The Changing World Changing Factors

  10. SMEs and The Changing World SMEs Issue:

  11. Type of SME internationalization

  12. SMEs Internationalization Structure International Association Membership Website / E-mail International Customer Relations Consultancy International Business Culture Foreign Partners Trade Fair Participation SME Internationalization Technology Transfer Reverse Engineering Export Market Technology Oversea Sale Representative Office Investment Joint Venture Foreign Direct Investment

  13. 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 Overseas Representative Office International Standard Management Export Number of SMEs Number of SMEs

  14. SMEs in Global Source: EIU Study 2012

  15. SMEs in Global

  16. SME Accelerates Promotion Plan for Value Chain Organic Products Green and Clean Processed Food Certified and Standard Guaranteed Products Processed Food Ready to eat Innovative R&D - High Technology Gadget - High Technology Equipment Raw Materials Agriculture Reverse Engineering Part & Component Production Assembly Cosmetics / Pharmaceuticals Electronics Oil for secondary industry Raw Materials Vegetable oils Oil Vegetable Oil Halal Tourism / Performing Arts Environmental Tour Tour Package / Rental Services Tourist Guide/ Sevounir / Restaurant Tourist and Related Industry Medical Devices Hospital / Clinic / Medical Tourism / Medical Hub Herb / Spa New Synthetic Material / Nano-polymer Health Care Packaging Industry Raw Material / Plastic Chemical [Plastic]

  17. SME Service Center Network (Thailand) • Service Center for Lower Northern • Part and Central Part Naresuan University • Service Center for Middle North- • Eastern Part and Gateway to GMS KhonKaen University • Service Center for Upper North- • Eastern Part and Gateway to GMS KhonKaen University, NongKhai Province Campus • Service Center for Middle North- • Eastern Part and Gateway to Lao • PDR., Upper Vietnam and Lower • China Access to Information and Advisory Services for SMEs NakornPanom University • Service Center for Middle North- • Eastern Part and Gateway to Lower • Vietnam UbonRatchathani University • Service Center for Middle North- • Eastern Part and Gateway to Middle • Vietnam UbonRatchathani University, Mukdahan Province Campus SurinRajabhat University • Service Center for Lower North- • Eastern Part and Gateway to • Cambodia Nakhon Sri ThammaratRajabhat University • Service Center for Lower North- • Eastern Part • Service Center for Industries and • Exportation Burapa University • Service Center and Gateway to • Myanmar KanjanaburiRajabhat University • Service Center for Southern Part and • Gateway to Malaysia Prince of Songkhla University

  18. 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 OSMEP SME Service Center C SME Service Center D SME SME SME Needs

  19. Access to Information and Advisory Services SME Service Center Network (Thailand) • Example center in network: • KhonKaen University has joined into the network since 2010, it had been considered as the first service center in our system. Not only the university has the science park, which provide: • Workshop • Advisory services • Lab testing • Technologies and tools for incubating and supporting SMEs, • but also well-known as a business information hub in the northeast region of Thailand and for the neighbor ASEAN member states in the Great Mekong Sub-region; GMS

  20. Access to Information and Advisory Services SME Service Center Network (Thailand) Example: KhonKaen University Potential: • KhonKaen University Science Park offers businesses’ technology leverage in One-Stop Service The specialist consultant services; seeking technology from domestic and foreign, matching technology and business negotiations, R&D searching service, and establishing a linkage to other related services such as low interest loans, the business incubation, intellectual property services, venture capital matching, etc. SPKKU provides technology consulting services and data of research and development, Including, integrate innovations of Both the Ministry of Science and Technology and the university/academia. • Business incubation services Provide services to support individuals from start-up to SME size by promote the innovation and technology adoption in products and services to enhance production in the supply chain and develop products or processes with 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

  21. Access to Information and Advisory Services SME Service Center Network (Thailand) Example: KhonKaen University Potential: • Service in intellectual property protection. Provide intellectual property service (IP Service) for various types of intellectual property protection and licensing of technology (Technology Licensing) to lead to private sector investment. • financial support Provide expert advice and financial benefit information of credit and low interest loans to SME in order to invest in R & D • Metrological service coordination between public and private Be a coordination center of metrology between public and private sectors by organizing training and seminars on metrology operations. Moreover, there is cooperation with National Institute of Metrology to support the calibration services for instrumentation in various fields and development services in other related areas in order to serve the needs of industries in the Northeastern. • Expertise services Provide a expertise in the business incubation and research in various subject areas to support and encourage a steadily business growth. • Laboratory Service Center Provide a service examination, calibration, training, and advice in various fields with experienced scientists. • Service in research and development partnership/ research and development Be a partnership between public, private, and universities in research and serve government agencies that conducts research and development needs of the private sector.

  22. Online Information and Database Testing Labs Seminar & Workshop Business Consulting

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