Factores internos y externos de las empresas en tailandia

MASTER´S THESIS

Internal and External factors hampering SME growth
-A qualitative case study of SMEs in Thailand-

Authors: Elin Grimsholm and Leon Poblete Subject: Master Thesis in Business Administration 15 ECTS Program: Master in International Management Gotland University Spring semester 2010 Supervisor: Professor Per Lind

Abstract
Small and medium-sized enterprises (SMEs) inThailand are very important to economic growth and considerably essential to generate employment as in many other developing countries. SMEs account for 99.5% of the overall enterprises in Thailand while their contribution to the overall employment account for around 76% of all jobs. However, SMEs growth rate is still at a low level. Hence, this is qualitative study of the external and internal factorshampering the growth of SMEs in Thailand. Regarding external factors, there are a number of obstacles constraining their growth such as access to finance, competition, corruption, barriers to trade and macroeconomic factors as amongst some of the most significant issues. In terms of internal factors, there are also important constrains hindering their growth, for instance, poor managementcompetences, lack of skilled labour, deficiencies in marketing strategies, little efforts on R&D, lack of new technology and low awareness concerning CSR are identified as some of the most important obstacles.

Grimsholm, E. and Poblete, L.

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Summary
Background problem: Small and medium-sized enterprises (SMEs) are important to economic growth and significantly essential to generateemployment. Therefore, the future of the Thai economy depends to a great degree on the success of SMEs as in many other developing countries. Thai SMEs are facing a series of external and internal factors that have significant adverse effects on their growth and additionally there are challenges for them to make a greater contribution to the economy. Purpose: The purpose of this thesis is to explicitlyresearch and consider aspects that are hampering the growth of SMEs in Thailand. The issue is researched from two different perspectives; external and internal factors that have an impact on the growth of SMEs. Limitations: The thesis is limited to SMEs in Thailand and the three companies selected for the research are the results of contacts. Institutions interviewed have been selected to obtain adeeper and broader understanding for the problem area in Thailand. Method: In this thesis both primary and secondary data are collected. The secondary data used has been critically evaluated and has been collected from relevant literature, databases and internet sources. The primary data is collected by semi-structured qualitative interviews with managers of SMEs in Bangkok as well asrepresentatives from different institutions cooperating with SMEs in Thailand. Findings: The research reveals that that there are a number of significant factors hampering Thai SMEs to grow. The major obstacles are attributed to lack of access to finance, competition, barriers to trade, management competence, lack of skilled labour, low investment in R&D and new technology.

Keywords: SMEs, Thailand,external, internal, obstacles, growth.

Grimsholm, E. and Poblete, L.

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Acknowledgements
This Master of Science thesis is the result of a fruitful collaboration of all the people whom have kindly contributed with an enormous commitment and enthusiasm in our research. We wish to express our sincere gratitude to our supervisor Professor Per Lind for sharing his great knowledge, pricelessinput and constant help during our research. His guidance and suggestions have made us reflect upon our work throughout the entire learning process. We specially want to express thankfulness to all the respondents from the companies in Thailand for their great support, time and willingness to provide essential information that has been crucial for our thesis. Furthermore, we want to thank all the...