Tough times remain for SMEs

By The Nation

Thai small and medium-sized enterprises (SMEs) are bracing for continued low returns in the second half, with political instability, oil prices, inflation, competition and consumers' behaviour as the major risks.

Phak Thongsom, deputy director of the Office of Small and Medium Enterprise Promotion, said in a statement that from a survey of 4,200 SMEs nationwide, the respondents see lower threats from the baht which is quite stable. However, higher oil prices and inflation could hurt their ability to finance interest payments as well as their price competitiveness. They also feared that political conflicts could dampen investment confidence.

They also showed concerns over the changing consumer behaviours which could lead to business shutdowns.

"During January-July, at least 6,500 SMEs, established as companies and limited partnerships, have been shut down. Meanwhile, over 35,000 SMEs in the forms of general partnerships and groups of investors have been out of business. Over 65 per cent are in provinces," Phak said.

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Tough times remain for SMEs

Thai small and medium-sized enterprises (SMEs) are bracing for continued low returns in the second half, with political instability, oil prices, inflation, competition and consumers' behaviour as the major risks.

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