Development of Export-Driven Thai SMEs : learning the success from Taiwan

Abstract

This study focused on how Taiwan's SMEs had developed its industry and so successfully and what was behind on these factors. Taiwan's SMEs success factors were hypothesis for investigation the potential of Thai SMEs by comparative decription and using Strength Weakness Opportunity Threat (SWOT) analysis. After review of relate literature, it idenified that there were many factors of Taiwan's SMEs success. Many of these factors could be distinguished to be three main groups that were political factor or history factor, economic factor, and social factor. From study, Thailand almost has every factor of Taiwan. When the potential of Thai SMEs was investigated by using each of Taiwan's factors, the result of comparative descriptions and SWOT analysis showed that Thailand also has many factors in weaknesses and some thratsmore than Taiwan and there are strengths and opportunities factors less than taiwan. So we can conclude that Thai SMEs are not enough potential when compare to Taiwan. However Thai SMEs could be prosperous to develop economy in the future because Thailand has some strong points such as support fund from foreign countries. The Prime Minister of Thailand is a strong leadership, Thai's government has a lot of designated the strategies of investment categories for promotions, good incentive environment and policy. The government has many tools to encourage and strengthen export industries. Moreover, Thailand is a potential country in term of highway; airport; and deep seaport to support economic growth. Futthermore, the government has measurement of well train for labor by public and private institutions that provide more knowledge of management, production, technology and investment to SMEs both of labors and business owner in several training programs. Although Thailand has got weaknesses and threats in some factors but there are other are other way to alleviate weakness point and strengthen for Thai SMEs. Otherwise Thailand is hopeful from the government's future plan on its vision for 2012. Because there are a new growing consciousness to increase Research and Development in Science and Technology as a dynamic efforts of specialized government agencies and R&D investment will be increase. This trend should benefit to SMEs. The trend in policy formulation was imposed by Thai's government, which affect to SMEs in year ahead. Thenumber for governemnt officers will decrease but more efficient government staff to encourage SMEs. There will be a storng trend towards the establishment of strategic alliances by government in different countries. This strategic would facilitate to SMEs's production within the agreeing countries. In the part of Thailand's education, it is always improved. On educational opportunities, the government is undertaking a comprehensive reform of educational system with the objectives of improving the quality of learning. Moreover, Thai government has been trying hard to help SMEs. to be more professional and strong enough to solve their problems. Young entrepreneurs will be able to have a chance because they will have very good foundation to be developed to be a business owner with the program project of "One-Tambon-One-Product" which is strted from family industry and enhance to be small and medium enterprises and grow to be large enterprises in the end. So Thai industries especially Thai SMEs could be maintain competitiveness under the strength and opportunity to reach their full potential and become success in the international arena as Taiwan