Strategic policy framework for strengthening the potential of small and medium enterprises toward ASEAN Economic Community

Abstract

This dissertation aimed to 1) analyze the environment of Thailand’s Small and Medium Enterprises (SMEs) promotion policy in the past and the present SMEs promotion plans in order to learn about its environment, 2) evaluate the outcomes of the SMEs promotion policy in the past and the present Thai SMEs promotion plans in order to know the policy outcomes and its relationship with the key stakeholders’ roles in the public and the private sectors, 3) analyze and evaluate the potential of Thai SMEs in competing in the ASEAN Economic Community (AEC), and 4) propose a strategic policy framework for strengthening the potential of SMEs toward the AEC, and the latest accurate in-depth information that will benefit both the public and the private sectors responsible for promoting and formulating the strategic policy to support Thai SMEs. In the research, the environment of the policy was analyzed by applying the Kaplan and Norton’s Balanced Scorecard Perspectives and the SWOT analysis. The policy was evaluated by using the North American Stakeholder Model, and the SMEs’ potential was analyzed and evaluated by using the Malcolm Baldrige National Quality Award (MBNQA), food manufacturing standards, and food safety. The data for this qualitative research were collected from related documents, in-depth interviews, and focus group. The data accuracy was checked by using the triangulation method which allowed related individuals to verify the truthfulness. The in-depth interview was conducted with the key informants in the public sector, i.e., the top and middle administrators from the Office of SMEs Promotion, the Ministry of Industry, the Ministry of Commerce, the SME Bank, and the EXIM Bank, and those in the private sector, i.e., entrepreneurs in food SMEs industry who received SMEs National Awards. The participants of the focus group were general SMEs entrepreneurs. The policy evaluation showed that the public sector recognized the importance of the need for SMEs development and promotion; however, the manufacturing sector was the only focus. The SMEs promotion policy could not be accomplished due to the limited budget, lack of promotion direction, and unsystematic coordination and cooperation. The potential analysis confirmed that the private sector has played an important role in propelling the economy. In general SMEs have encountered the problems of the lack of 1) in-depth marketing information, 2) technology development, innovation, and research to add value to food industry, 3) development and understanding of continued networking, and 4) realization and recognition of good governance in business. Therefore, both the public and the private sectors need to coordinate in manufacturing based on the following 6 success factors: 1) Management quality 2) International standards 3) Safety 4) Value added 5) Marketing, and 6) Collaborative network. These factors will enable SMEs to adapt themselves for survival, continuous growth, and sustainability. The following policy recommendations were made: 1) the government needs to develop the national database of SMEs, 2) the coordinating office for SMEs needs to be founded in order to enhance the policy networking collaboration, 3) the administrators and officers responsible for SMEs must work honestly and earnestly, and should be knowledgeable and understanding about SMEs, 4) the government must have a clear policy and promote SMEs continuously, and 5) the public and the private sectors in charge of developing SMEs must constantly receive adequate resources that correspond with the SMEs promotion plan and necessary information via Information and Communication Technology (ICT), electronic media, telecommunication, and innovation.