Transcript Slide 1
Thailand – Pacific Island Countries Forum (TPIF) Dr. Wimonkan Kosumas August 9, 2014 The Sukosol, SMEs Constitution of enterprises by size 0.1 % Corporate and multinatio 0.9 % Large enterprises 5 - 10 % 20 % 65 - 75 % Medium enterprises Small enterprises Micro enterprises Source: IFC, 2009. Note: Percentage represent the number of companies. 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. SMEs Simplified SME life cycle Profit Grow to large firm Maturity Growth Start-up Pick-up Loss Decline Exit Years Note: The arrows indicate that different types of support are needed at the differe 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 Entrepreneurial activity in selected AsiaPacific countries Nascent entrepreneurshi p rate New business ownership rate Early-stage entrepreneurial activity (TEA) 7.1 7.1 12.8 10.8 3.9 14.5 7.5 1.7 9.1 9 4.8 13.4 China 10.1 14.2 24.0 Malaysia 2.5 2.5 4.9 Russian Federation 2.4 2.3 4.6 Thailand 8.3 12.2 19.5 Factor - driven economies Bangladesh Iran (Islamic Republic of) Pakistan Average (unweighted) Efficiency – driven economies Entrepreneurial activity in selected Asia-Pacific countries (Cont.) Nascent entrepreneurshi p rate New business ownership rate Early-stage entrepreneurial activity (TEA) Australia 6.0 4.7 10.5 Japan 3.3 2.0 5.2 Republic of Korea 2.9 5.1 7.8 Singapore 3.8 2.8 6.6 3.6 4.4 7.9 4.0 3.0 6.9 Innovation - driven economies Taiwan Province of China Source: GEM, 2012. Average (unweighted) 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) Source: UNIDO, 2001. Fourth tier Supplier Third tier Supplier (large firm) Fourth tier Supplier SMEs and The Changing World Factors Changing SMEs and The Changing World SMEs Issue: Type of SME internationalization Internationalized firms Foreign suppliers Foreign subsidiaries Joint-Research Joint-Marketing FDI Export Born Joint-Venture Born Global Consultancy Services Lab + Testing Legal Firms Software SMEs Internationalization Structure Website / E-mail International Customer Relations Technology Transfer International Association Membership Consultancy International Business Culture Foreign Partners SME Internationalization Technology Reverse Engineering Investment Joint Venture Foreign Direct Investment Trade Fair Participation Export Market Oversea Sale Representative Office 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 International Standard Management Number of SMEs Overseas Representative Office Export Number of SMEs SMEs in Global Source: EIU Study 2012 SMEs in Global SME Accelerates Promotion Plan for Value Chain Organic Products Processed Food Ready to eat Raw Materials Agriculture Electroni cs Part & Component ProductionReverse Engineering Assembly Raw Materials Vegetable oils Oil for secondary industry Oil Vegetable Oil Tour Package / Rental Services Tourist Guide / Sevounir / Tourist Restaurant and Hospital / Clinic Related / Medical Tourism / Medical Industry Herb / Spa Hub Health Care Packaging Industry Chemica l [Plastic] Raw Material / Plastic Green and Clean Processed Fo Certified and Standard Guarant Innovative R&D - High Technology Gadget - High Technology Equipment Cosmetics / Pharmaceutic als Halal Tourism / Performing Arts Environmental Tour Medical Devices New Synthetic Material / Nano- Access to Information and Advisory Services for SME Service Center Network SMEs (Thailand) Naresuan University • Service Center for Lower Northern Part and Central Part Khon Kaen University • Service Center for Middle NorthEastern Part and Gateway to GMS Khon Kaen University, Nong Khai Province Campus Nakorn Panom University Ubon Ratchathani University Ubon Ratchathani University, Mukdahan Province Campus Surin Rajabhat University Nakhon Sri Thammarat Rajabhat University • Service Center for Upper NorthEastern Part and Gateway to GMS • Service Center for Middle NorthEastern Part and Gateway to Lao PDR., Upper Vietnam and Lower China • Service Center for Middle NorthEastern Part and Gateway to Lower Vietnam • Service Center for Middle NorthEastern Part and Gateway to Middle Vietnam • Service Center for Lower NorthEastern Part and Gateway to Cambodia • Service Center for Lower NorthEastern Part Burapa University • Service Center for Industries and Exportation Kanjanaburi Rajabhat University • Service Center and Gateway to Myanmar Prince of Songkhla University • Service Center for Southern Part and Gateway to Malaysia 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 SME Service Center C SME OSMEP Service Center D SME SME SME Needs Access to Information and Advisory Services SME Service Center Network (Thailand) Example center in network: Khon Kaen 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 Access to Information and Advisory Services SME Service Center Network (Thailand) Example: Khon Kaen University Potential: • Khon Kaen University Science Park offers businesses’ technology leverage in OneStop 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 Access to Information and Advisory Services SME Service Center Network (Thailand) Example: Khon Kaen 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. Online Information and Database Testing Labs Business Consulting Seminar & Workshop