Slow economic recovery, new players top SME concerns

[rooster59]

Slow economic recovery, new players top SME concerns

By SUCHEERA PINIJPARAKARN
THE NATION

 

THE SUBDUED domestic economic recovery and intense competition due to the arrival of new players were the most worrying issues for SMEs surveyed in the final quarter of last year, according to the latest TMB-SME Sentiment Index. The index is based on a survey carried out during the quarter among 1,318 small and medium-sized enterprises on their confidence both currently and for the next three mon

 

The subdued economic recovery and intense competition from new competitors that have strong liquidity were the most worrying factors for 66.2 per cent of the SMEs polled, up from 50.8 per cent when the previous survey was conducted in the third quarter. 

 

The percentage – the highest since TMB has been surveying SMEs about their business sentiment – is mostly due to the concerns of SMEs in the central and northeastern provinces, Benjarong Suwankiri, head economist at TMB Analytics, the research unit of TMB Bank, said yesterday.

 

Full story: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30305648

 

 

-- © Copyright The Nation 2017-02-04

[Cake Monster]

Competition is healthy, so the is the arrival of new SME, s with strong liquidity ( as long as its not all borrowed money ).

 

[Srikcir]

there is something fundamentally flawed with Thai SME's to meet competition from "new players" when they have been receiving massive support. Look at 2016:

- Government soft loans to help SME's

- government’s Innovation Coupon Project created to spur small and medium enterprises (SMEs) to utilize innovations in their development

- government's One Tambon One SME program

- government's Village Fund program for SME's

- Department of Industrial Works programs to assist SME factories.

- SME's allowed to restructure their debt in accordance with the 2016 Bankruptcy Act.

- SME Promotion Committee to lend up to one million baht from the SME Recovery Fund to each eligible operator

- Export-Import Bank of Thailand considers increasing financial assistance for SMEs such as by raising their loan limits and credit guarantees

 

It may be in part due to a failure of the government to sustain a meaningful economic recovery. Being buried 6 feet under is not much different than being 3 feet under. Dead is dead.