FTI: More than 100,000 SME operators would call it quits

[webfact]

FTI: More than 100,000 SME operators would call it quits



BANGKOK, 29 April 2014, (NNT) - The Federation of Thai Industries (FTI) has predicted that more than 100,000 SME operators will likely quit if the political turmoil continues until the end of the year.

The comment was made by the President of the FTI, Suphan Mongkholsuthee, who advised SME operators to keep in reserve at least 6 months' worth of operating funds in order to carry on their operations and avoid going out of business.

He is nonetheless confident that the political tension would ease after 6 months' time, and confidence indexes of consumers, investors and the tourism sector would quickly rise, as the nation’s economic foundation remains strong.

Meanwhile, the FTI would help the government by asking financial institutions to offer low interest credits as well as to extend debt payment period for SME operators. Mr. Suphan said his agency would also discuss with the Thai Credit Guarantee Corporation regarding providing insurance coverage to SME operators against politically induced violence.

The FTI President also said the government should seek ways to stimulate the local economy in order to revive the SME sector. He also viewed that talks between the Election Commission and the government to set a new date for the national poll was a positive sign, saying that the private sector confidence level would tremendously return, if the talks could go on successfully.


-- NNT 2014-04-29

[Costas2008]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

[borisloosebrain]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.[/quot

Rubbish ! Such an arrogant ignorant comment. Go out and meet some of these folks whom you're happy to dis. I know several decent hardworking Thai families whose business have been very badly affected ...nothing to do with their management skills etc...just due to the total arrogance of protestors of all colors which has guttered their incomes by blocking or driving away traffic and bizness.

[BillyBobThai]

If I had an open ended check book or credit card like Yingluck, I would never consider voluntaryarly leaveing either. A good portion of these SME's voted for the pretty lady and now they have to live with it till the end.

[TimCM]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

Yes, they should follow the lead of the Greeks.

Oh, wait

[gabruce]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

Actually they should be looking at their business and what they need to do differently, while at the same time recognizing that the current political chaos is NOT business as usual. They need to find a way to stay afloat and complaining won't help, neither will ignoring the problem. Most (all?) businesses can improve. (I have good experience screwing up and failing, so this is the voice of experience )

[empireboy]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

I suppose you feel the same way about Greek SME's after the austerity measures?

[wirat69]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.[/quot

Rubbish ! Such an arrogant ignorant comment. Go out and meet some of these folks whom you're happy to dis. I know several decent hardworking Thai families whose business have been very badly affected ...nothing to do with their management skills etc...just due to the total arrogance of protestors of all colors which has guttered their incomes by blocking or driving away traffic and bizness.

Decent hard working Thai families should regularly revise their management skills and operating procedures to ensure minimisation of the risks that affect every business, of which political risk is but one small factor. Sorry, Boris, it is not rubbish at all.

[WoopyDoo]

Pure scaremongering at its best.

I have never heard such claptrap... I have been running SMEs most of my life and there is nothing going on with the protests that can put an SME in dire trouble let alone 100,000 of them.

If your SME is running with margins so thin that they can't soak up small impacts, then look for a different business model is my advice... you shouldn't really be running a business that is so vulnerable to small impacts.

[borisloosebrain]

A lot of small businesses do run on very small margins and they to not have time nor money to study management skills or operating procedures. They often live day to day. Period. And if tens if thousand of protestors prevent them from conducting their business much of which survives on passing traffic it is not their fault at all...it is rubbish to say that it is.

[ggt]

Is there someway...we can blame this on older unhappy foreign gentlemen posters...?

[ClutchClark]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

Actually they should be looking at their business and what they need to do differently, while at the same time recognizing that the current political chaos is NOT business as usual. They need to find a way to stay afloat and complaining won't help, neither will ignoring the problem. Most (all?) businesses can improve. (I have good experience screwing up and failing, so this is the voice of experience )

I read the article but i can't find where "they" are complaining or ignoring any problem.

They have identified a problem and are taking steps to weather the storm.

Why are you lecturing them as if they have done wrong?

[ClutchClark]

A lot of small businesses do run on very small margins and they to not have time nor money to study management skills or operating procedures. They often live day to day. Period. And if tens if thousand of protestors prevent them from conducting their business much of which survives on passing traffic it is not their fault at all...it is rubbish to say that it is.

Exactly.

I spoke with my gf's brother, who is the manager of a 250 room hotel.

They just gave bonuses to staff and the amounts were 30% of last year.

Plus they have been receiving more days off.

This has been going on since atleast november.

Each of these people, in turn, will have less money to spend in the local economy and so on and so on...

[potters]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

Actually they should be looking at their business and what they need to do differently, while at the same time recognizing that the current political chaos is NOT business as usual. They need to find a way to stay afloat and complaining won't help, neither will ignoring the problem. Most (all?) businesses can improve. (I have good experience screwing up and failing, so this is the voice of experience )

I read the article but i can't find where "they" are complaining or ignoring any problem.

They have identified a problem and are taking steps to weather the storm.

Why are you lecturing them as if they have done wrong?

Its because they have nothing else better to do then sit on here and preach how right they are.

Found Costas comment funny actually coming from someone whose country

is broke and bailed out by the EU.

[bigbamboo]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

I think you're blaming the wrong people here.

It's the country's management who should be taking along hard look at how they operate and by that I don't just mean the government. If they don't we won't just have failed SMEs, we'll have a failed state.

And only one institution can keep order then.

[noitom]

The article doesn't state, but presumably the reason for their quitting would be lack of sales. So we need the press to start getting the facts straight here. It is a lack of sales not political turmoil. If sales were good, would they still be threatening to quit because of political turmoil? We need the press to start drawing the distinction that sales are down and this probably is attributable to demonstrations and blocking roads inhibiting people from reliably getting to work to sell and manufacture.

So if it is business issues like lower sales and employees not able to get to work, the press should start clarifying this and not just throwing the reason for quitting of 100,000 SMEs because of 'political turmoil." The Thai press has a responsibility to get the issues correct and not create and engender uncertainty as to politics as the sole reason without clarifying the economics.

Secondly, we can fairly assume that a large number of SMEs will fail every year from lack of financing, poor business operations, and faulty business premise anyway, so why is the Thai press sensationalizing that this large number, 100,000 SMEs, is all of a sudden using political turmoil as the excuse for their failure?

[northernjohn]

A lot of small businesses do run on very small margins and they to not have time nor money to study management skills or operating procedures. They often live day to day. Period. And if tens if thousand of protestors prevent them from conducting their business much of which survives on passing traffic it is not their fault at all...it is rubbish to say that it is.

Exactly.

I spoke with my gf's brother, who is the manager of a 250 room hotel.

They just gave bonuses to staff and the amounts were 30% of last year.

Plus they have been receiving more days off.

This has been going on since atleast november.

Each of these people, in turn, will have less money to spend in the local economy and so on and so on...

When my wife's daughter and her family first moved here to Chiang Mai the son in law had to take a job in a hotel for 200 baht a day until he could get one in his field . Which he did eventually. I believe the article could be better explained. Is it all SME's in Thailand or just the ones in and near the protest areas? Those I understand being hurt.

[northernjohn]

The article doesn't state, but presumably the reason for their quitting would be lack of sales. So we need the press to start getting the facts straight here. It is a lack of sales not political turmoil. If sales were good, would they still be threatening to quit because of political turmoil? We need the press to start drawing the distinction that sales are down and this probably is attributable to demonstrations and blocking roads inhibiting people from reliably getting to work to sell and manufacture.

So if it is business issues like lower sales and employees not able to get to work, the press should start clarifying this and not just throwing the reason for quitting of 100,000 SMEs because of 'political turmoil." The Thai press has a responsibility to get the issues correct and not create and engender uncertainty as to politics as the sole reason without clarifying the economics.

Secondly, we can fairly assume that a large number of SMEs will fail every year from lack of financing, poor business operations, and faulty business premise anyway, so why is the Thai press sensationalizing that this large number, 100,000 SMEs, is all of a sudden using political turmoil as the excuse for their failure?

You are entirely correct about many of the SME's going out of business every year. Does the 100,000 include them.

All so the press and many of the different organizations have a habit of taking not too good and making it really bad.

for sure those in the area of the demonstrations can be in big trouble and there is no way they can get out of it as long as the protesters are there.

[Eloelo]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.[/quot

Rubbish ! Such an arrogant ignorant comment. Go out and meet some of these folks whom you're happy to dis. I know several decent hardworking Thai families whose business have been very badly affected ...nothing to do with their management skills etc...just due to the total arrogance of protestors of all colors which has guttered their incomes by blocking or driving away traffic and bizness.

Decent hard working Thai families should regularly revise their management skills and operating procedures to ensure minimisation of the risks that affect every business, of which political risk is but one small factor. Sorry, Boris, it is not rubbish at all.

I think a lot of the SME have reviewed their operating procedures and management skills and have decided to call it quits, because the chaos and political unrest is affecting there business. there is only so much risk assessment that can be done! not blaming any party but it is taking its toll. obviously!

[JRSoul]

"The FTI President also said the government should seek ways to stimulate the local economy........."

Perhaps someone should explain the concept of a caretaker government to him.

[toybits]

Take a bow Mr. Suthep! Well Done! Well Done Indeed!!

[robblok]

Take a bow Mr. Suthep! Well Done! Well Done Indeed!!

I guess you forgot that without pushing an amnesty through for Taksin this all would not have happened. That is the start of the protests the catalyst. So guess what its your favorite party led by a convicted criminal who started it all. Reforms now before we get into the same problems again.

[siampolee]

The current protests have absolutely nothing or at the most possibly some 1% impact that has resulted in the fragile economic state of these 100,000 S.M. E.s.

Under capitalization, little or no forward planning as to the market along with a reluctance of banks to actually assist the small business owners and inept management will and does account for a large number of these problems.

The problems one encounters in chasing slow nay reluctant paying customers also compounds this issue.

My wife has a number of small business interests and believe you me she spends the greater majority of her time putting the elbow on those who owe her for company services and products,

The whole business ethos is exactly the same in business here as it is socially.'' I'm a big person you are small you will wait till I feel like paying you if ever do pay you. Complain and you will lose all your customers.

Until such time as the basic fundamentals of business ethics prevail this situation will continue.

[winstonc]

Take a bow Mr. Suthep! Well Done! Well Done Indeed!!

you and your mates on here were saying that theres only a hundred old ladies protesting how can that impact on the 100.000 smes that are all next to the huuuuge protest site..

[winstonc]

The current protests have absolutely nothing or at the most possibly some 1% impact that has resulted in the fragile economic state of these 100,000 S.M. E.s.

Under capitalization, little or no forward planning as to the market along with a reluctance of banks to actually assist the small business owners and inept management will and does account for a large number of these problems.

The problems one encounters in chasing slow nay reluctant paying customers also compounds this issue.

My wife has a number of small business interests and believe you me she spends the greater majority of her time putting the elbow on those who owe her for company services and products,

The whole business ethos is exactly the same in business here as it is socially.'' I'm a big person you are small you will wait till I feel like paying you if ever do pay you. Complain and you will lose all your customers.

Until such time as the basic fundamentals of business ethics prevail this situation will continue.

i say again accountability and responsibilty are 2 words very unfamiliar in this country...in absolutley every job and and walk of life...they just dont get it..

[belg]

instead of 6 - 10 staff in a small restaurant, where most of the time is spend talking to each other or using smartphone, they could be more efficient and fire 75% of those and not allow phone at work ... mega cost saving... the service would be about... the same anyway

[american12bthai]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.[/quot

Rubbish ! Such an arrogant ignorant comment. Go out and meet some of these folks whom you're happy to dis. I know several decent hardworking Thai families whose business have been very badly affected ...nothing to do with their management skills etc...just due to the total arrogance of protestors of all colors which has guttered their incomes by blocking or driving away traffic and bizness.

strange how these businesses near protest seem to be doing quite well when it comes to food and accessories. buddhism, teaches to adapt and change always. thais love to keep all their eggs in one basket. i wish i was that simple.

[Cricketnut]

Small and Medium Enterprises (SME) in Thailand, should revise their management skills and operating procedures, instead of blaming the political situation.

Always, someone else to blame, in Thailand, for your own faults.

I believe its called having a BCP, business continuity plan. Seems to be beyond the grip of some....

Sent from my i-mobile i-STYLE 8.2 using Thaivisa Connect Thailand mobile app

[rubl]

The FTI didn't give details on why precisely 100,000 might cal it quits.

- lack of local orders

- lack of foreign orders

- increased competion from other countries

- other

- effect of protests on operations

[tomross46]

Many SME are affected by the increase in the cost of electricity, minimal wage, and LPG. In Lamphun There were many SME in the manufacturing of ceramic wear. Many of these manufacturers have had to close, because of the cost of manufacturing. There are companies especially OTOP, SME that are not able to continue. Many have said that it is because of poor management, but when you have a commodity that the sales price is controlled my the market, and the market is flooded by cheap products from China, the local SME can not survive.