Is Thailand Entrepreneur Friendly?

[socentre]

Just out of curiousity, how "entrepreneur friendly" is Thailand?

Are there any local Thai entreprenuers out there who aspire to create the next Sony or Gap?

How difficult is it for Thai entrepreneurs to obtain business seed financing (either through loan or venture capital)?

[Indo-Siam]

Thailand is literally crawling with entrepreneurs - individuals tht seek to make their own way in the world,instead of being employees. Almost everywhere,under and overhang thatw ill keep them dry in the rain, you will find shoe repairmen, seamstresses, key-makers, noodle stand operators, etc. Walk arounf MBK, or Panthip Plaza, or Pratunam - and particularly Chatuchak market - and you see hundreds and hundreds of entrepreneurs. Most are sole proprietors - officially,or just by default. I this regard, the government is very friendly - no over-regulation of entrepreneurs.

You are not really asking about entrepreneurship - you are asking about whether Thailand is a good place for an entrepreneur to have breakout success, propelling them into becoming world brands. In this regard, I'd have to say no. Msot of the big success stories are really families,and in almost all cases, the fortunes were initially made through government connections, and then leveraged into successful, stand-alone businesses. The classic example is Shin Corporation (and corporate family), woned by the present Prime Minister. To leran about that history, read the new "Thaksin: The Business of Politics in Thailand" by Pasuk Phongpaichit and Chris Baker.

One problem is that Thais have few home-grown role models for significant world brand creation. Whereas in some places, a growing entrepreneur might dream of following in the footsteps of a home-town role model, in Thailand - that role model will either be a government politician,or someone who made their fortune courtesy of friends in government. So - success in Thailand has historically come from relationship with government, not excellence of product or service.

The only world brands I can think of that originated from Thailand are:

Krating Daeng (Red Bull) - (depended on an Austrian entrepreneur's assistance)

Carry-Boy

Black Canyon Coffee

Ultraman character (arguable)

Hom Mali rice (more of a government marketing creation)

Cheers!

Steve

Indo-Siam

[socentre]

Thanks for the reply,

I definately agree with you regarding the lack of business role models. Growing up as a Thai-American, I had zero Thai role models to follow.

[meadish_sweetball]

Thailand is literally crawling with entrepreneurs - individuals tht seek to make their own way in the world,instead of being employees.  Almost everywhere,under and overhang thatw ill keep them dry in the rain, you will find shoe repairmen, seamstresses, key-makers, noodle stand operators, etc.  Walk arounf MBK, or Panthip Plaza, or Pratunam - and particularly Chatuchak market - and you see hundreds and hundreds of entrepreneurs.  Most are sole proprietors - officially,or just by default.  I this regard, the government is very friendly - no over-regulation of entrepreneurs.

You are not really asking about entrepreneurship - you are asking about whether Thailand is a good place for an entrepreneur to have breakout success, propelling them into becoming world brands. In this regard, I'd have to say no.  Msot of the big success stories are really families,and in almost all cases, the fortunes were initially made through government connections, and then leveraged into successful, stand-alone businesses.  The classic example is Shin Corporation (and corporate family), woned by the present Prime Minister.  To leran about that history, read the new "Thaksin:  The Business of Politics in Thailand" by Pasuk Phongpaichit and Chris Baker.

One problem is that  Thais have few home-grown role models for significant world brand creation.  Whereas in some places, a growing entrepreneur might dream of following in the footsteps of a home-town role model, in Thailand - that role model will either be a government politician,or someone who made their fortune courtesy of friends in government.  So - success in Thailand has historically come from relationship with government, not excellence of product or service.

The only world brands I can think of that originated from Thailand are:

Krating Daeng (Red Bull) - (depended on an Austrian entrepreneur's assistance)

Carry-Boy

Black Canyon Coffee

Ultraman character (arguable)

Hom Mali rice (more of a government marketing creation)

Cheers!

Steve

Indo-Siam

Nice post Steve and correct analysis as far as I know as well. I had no idea Black Canyon is internationally known. In what countries are they established?

[Indo-Siam]

As per: http://blackcanyoncoffee.com/html/branches.html, they are evidently also in Malaysia, Indonesia, and Singapore.

Not exactly overrunning the world, but its a start!

Cheers!

Steve

Indo-Siam

[meadish_sweetball]

As per: http://blackcanyoncoffee.com/html/branches.html, they are evidently also in Malaysia, Indonesia, and Singapore.

Not exactly overrunning the world, but its a start!

Cheers!

Steve

Indo-Siam

Thank you for the link!

Good on them! Their coffee drinks with alcohol go down a treat, as do some of their cross-over dishes too. (e.g. salmon kee mao, spaghetti green curry).

[udon]

It's those sole proprietors I have the highest respect for in Thailand.

Especially my local noodle lady and her staff in Pahon Yothin soi 32/1 and all the others like her.

I just wish we could start a noodle cart or similar, here in Oz, but we are so over-regulated, it would never be allowed!

[usabkk]

wow I never knew that BCC was thai owned. I always thought that it was american. They pix red american idian, mexican and american/alcholic kofy. Why do they do that? is becuase they think that thier business wont succeed with a thai style becuase thai style isnt popularly know?

[Sumitr Man]

The only world brands I can think of that originated from Thailand are:

Krating Daeng (Red Bull) - (depended on an Austrian entrepreneur's assistance)

Carry-Boy

Black Canyon Coffee

Ultraman character (arguable)

Hom Mali rice (more of a government marketing creation)

Steve - Good summary, as usual. I would have been inclined to add:

* S&P (which, as I understand it, is becoming fairly well known in the US);

* Singha;

* Thai Inter

* Plan Toys (makers of the wooden toys and who are probably the only Thai brand that is better known outside Thailand than in it!)

in this brand (rather than company) grouping.

Actually your post made me try to think of branded spa and clothes manufacturers who may be known internationally. Either I've been here too long, or there isn't one. In particular, the spa is really bugging me. Seems strange that as a generic business it can be so well known, without any particular players.

SM

[OldAsiaHand]

I would have put Jim Thompson at the top of the list. Although it's majority owned by white folks, they're second and third generation Thai-born and the company is Thai through and through. They have both retailing and wholesaling operations worldwide. They're quite significant in Japan and the US.

Jim Thompson is one of the few Thai success stories overseas. Companies that are actually owned by ethnic Thias have an almost comically unfortunate history of failure and blundering when they venture outside of the protective walls of Mother Siam. So they very seldom do.

[socentre]

Companies that are actually owned by ethnic Thias have an almost comically unfortunate history of failure and blundering when they venture outside of the protective walls of Mother Siam. So they very seldom do.

Do any Thai businesses come to mind? Why do you think these businesses fail?

[rstrauss]

Do any Thai businesses come to mind?  Why do you think these businesses fail?

<{POST_SNAPBACK}>

Are you kidding? To have a successful business in Thailand doesn't mean hard work and good service, but monopoly and extortion. Just watch any hardworking foreigner achieving some success that cuts into the income of some locals and you will see the mafia show up. Example: Shark disco in Phuket.

[sting01]

Do any Thai businesses come to mind?  Why do you think these businesses fail?

<{POST_SNAPBACK}>

Are you kidding? To have a successful business in Thailand doesn't mean hard work and good service, but monopoly and extortion. Just watch any hardworking foreigner achieving some success that cuts into the income of some locals and you will see the mafia show up. Example: Shark disco in Phuket.

<{POST_SNAPBACK}>

I love this reply, sound like real world ...

In fact to summarise, if entrpreneur = investisseur then you are the most welcome to nvest your money in any kind of thai venture, as long as you accept to put your money and not be able to follow what happend after (except if you are US citizen).

if entrpreneur = starting a business (any kind, any size) as the root of the word mean, then .... well, I don't need to be banned today , but ... I am affraid , if I refer to the western standart, Thailand is NOT friendly for entrepreneur. If you are succesful, you can not move out the money, you can have only 49% of the capital (not for US citisens as stated ... but human race is not locatd only in USA it is not?), and I don't speak about Mafia, that don't exist anymore since Khun PM have won the war against Iraq oooooooops against Mafia.

To be honest, if you open a very SME (but I mean it .... very SME) doing business with farang only , well you can have a normal life as some of us, ... try to be middle sized and you will have problem without end:

VAT never paid bakc or 10 years after (in thai it mean never).

kickedout by the landlord because your business is successfull, then he need it for himself.

Tea money for several governemental agencies (no sir it's not corruption, it's just to help to the prosperity of the nation).

Problem with the tahi national if they discover you are succesfull (how dare are you to earn money and not them, who care if you work 15 hours a day)

Cheers

[sting01]

Just to precise :

yes I live in thailand

yes I run my own business in thailand (and it's ABSOLUTELY legal business)

Yes I do have a thai business partner (due the law) that have taken in 1 year vacation in phuket 3 times at that as soon as some big customers (I have the luck to work for a world leader in IT) have paid. reason : my business partner was so stress that it was necessary to have a rest.... Reason of the stress????? Stress about?

Yes, mostly corruption is not around, but there is something else that exist : we are only farang, and we are tolerate in LOS only to improve the wealth of the kingdom ... I am unsure how to understand it, but I know that I should/must over pay everything only because I have white skin.

No I am not bitter, I did choose to come here, and to live here ... it's my own choice, I have here other advantages that I can not have in my own country : as everything is cheap in thailand, I can get a lot of work that I can never have if I was in europe. That allow me to do, and earn money with what I know and love. But , seriously, if I was looking to just earn money (entrprneur) I should never come here but rather take a look to Malaysia (the girls are hot there also and not so expensive lol) or to silly'pore (educated there not like in ..., modern, good internet connection, and there is no "hidden fees" mean Tea money).

Well, there is one criteria also :

how many singaporean or malysian people are asking UK embassy for a visa? Thailand see daily the best of the thai citizen going abroad .... any reasons to that? Why those who can be the backbone of the nation prefer to be exprat in western countries? Wonder why.

Cheers

[britainmal]

Thailand is very Entrepreneur friendly, but you have to have Thai Blood or have somebody with Thai Blood to be majority owner except Americans.(even they have restrictions too) Don't forget foreigners can't own land and are restricted to certain jobs and functions.