Bangkok: The Thai economy is currently facing a fragile state with numerous hurdles including weak purchasing power, household debt issues, rising energy costs, and increased living expenses. These factors have placed significant strain on small and medium-sized enterprises (SMEs), particularly smaller and micro-enterprises, which are struggling with liquidity and access to funding.

According to Thai News Agency, the CEO Vision Plus program's "Analyzing the Global Economy" segment invites viewers to examine the situation of Thai SMEs through insights from Dr. Napapong Teerawor, President of the Thai SME Federation. Dr. Teerawor highlights the risks confronting entrepreneurs and suggests approaches that could help small businesses adapt and persevere.

SMEs are grappling with tight liquidity as weak consumer purchasing power, exacerbated by crises such as household debt and rising living costs, affects their operations. Despite governmental assistance measures, many SMEs find themselves in constrained liquidity conditions.

Access to credit remains a persistent issue for SMEs, with small businesses facing greater difficulties in securing loans from financial institutions. This challenge is rooted in the higher risk profile of smaller businesses, creating tension between their financial needs and banks' lending criteria.

Micro-enterprises, particularly those with annual sales not exceeding approximately 1.8 million baht, find credit access especially challenging. As businesses scale up, their capacity to secure loans improves, highlighting a disparity in financial support based on business size.

Recently, the Bank of Thailand and other agencies have introduced measures to address debt issues and increase credit access, although their effectiveness in aiding small businesses remains to be seen.

Additionally, smaller manufacturers face pressure from cheaper imported products, both through e-commerce channels and direct market competition. Despite improvements in export figures, small businesses competing on cost struggle against low-priced imports, risking closure if they cannot adapt.

Thailand's GDP growth is heavily reliant on external factors, with current figures indicating a need for government intervention. The outlook for the latter half of the year suggests potential improvement, contingent on effective economic stimulus measures, geopolitical stability, and stable energy prices.

Dr. Napapong proposes five strategies for the government to support SMEs: enhancing access to funding, creating new markets in secondary cities, alleviating debt burdens, supporting upskilling in AI and technology, and ensuring fair competition. These measures aim to provide SMEs with the flexibility to adapt and compete in a challenging economic landscape.

The survival of Thai SMEs is contingent on both entrepreneurial adaptation and a supportive government framework that ensures competitive equality and resource accessibility.