Director Chitraporn Tejajan said that several negative factors, including the economic slowdown, political uncertainty and rising oil prices and interest rates, had caused the business sector to be more conservative.

SMEs employ 180,000 people around the country, compared with 300,000 in 2005, according to the office.

Chitraporn said many businesses had cut their costs by getting rid of workers. However, this could be an opportunity to encourage unemployed workers to become entrepreneurs.

"The office is confident that this year it will create 50,000 entrepreneurs to meet the government's target," said Chitraporn.

 She said the office would also ask the government for Bt5 billion this year to promote SMEs.

 As a way of helping start-up companies to stand on their own two feet, Chitraporn said the office, in cooperation with Mahidol University, will conduct a survey this year on the pros and cons affecting the growth of SMEs. It will add to a survey conduced in 2005.

According to the 2005 poll, 1.8 million people started new businesses. The figure is higher than in other countries, but Thailand has had a large support network for start-up businesses. Most of these companies sell their products and services domestically.

Chitraporn said the office had extracted useful information from the survey as a guide to helping SMEs.

The office is preparing a second master plan for its board.

Watcharapong Thongrung

The Nation