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1st International Small Business Festival Moscow, Russian Federation

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Presentation on theme: "1st International Small Business Festival Moscow, Russian Federation"— Presentation transcript:

1 “ Thailand’s support of small business (SMEs) at the international level”
1st International Small Business Festival Moscow, Russian Federation December 13, 2007 by Dr. Wimonkan Kosumas Director Department of International Cooperation and Policy Support Office of Small and Medium Enterprises Promotion (OSMEP), Thailand

2 Table of Contents I. Background of the Office of SMEs Promotion
II. Overview of Thailand-Russia economic relation and trading volume between the two countries III. Comparative definition of SMEs (based on number of employees) and profile of Thai SMEs IV. Challenges of SMEs moving into oversea markets V. Internationalization of Thai SMEs VI. Government SMEs Supporting Policy VII. OSMEP’s support for SMEs’ Overseas Business Operation VIII. Services and facilities for foreign SMEs IX. Policy measures for upgrading competitiveness of Thai SMEs and SMEs target sector X. Implication on Business Potential XI. Proposed Framework of Thai-Russian SMEs Cooperation

3 Background of the Office of SMEs Promotion
established under the Small and Medium Enterprises Promotion Act 2000 (publicized in the Royal Gazette on Feb. 17, 2000) as a juristic entity and a government office, not an official agency or state enterprise. supervised by the Board of Small and Medium Enterprises Promotion chaired by the permanent secretary of industry. Acts as the country’s central organization in formulating SMEs promotional policies and strategies as well as coordinating governmental and private working systems in achieving strong and sustainable growth of SMEs as the main driving force of the country’s economy. In regard to translate the government’s SMEs promotion policies and plans into concrete actions, the cabinet has approved on May 6, 2003 the Master Plan of Thailand’s SMEs Promotion ( ). Due to the expiration of the 1st Master Plan of SMEs Promotion ( ), OSMEP together with related public and private agencies has formulate the 2nd Master Plan ( ) which is still in due process for approval from the cabinet. The Office of SMEs Promotion or OSMEP was established under the Small and Medium Enterprises Promotion Act 2000 (publicized in the Royal Gazette on Feb. 17, 2000) as a juristic entity and a government office, not an official agency or state enterprise. The Office was supervised by the Board of Small and Medium Enterprises Promotion chaired by the Permanent Secretary of Industry. Its vision is to be the country’s central organization in formulating SMEs promotional policies and strategies as well as coordinating governmental and private working systems in achieving strong and sustainable growth of SMEs as the main driving force of the country’s economy. In regard to translate the government’s SMEs promotion policies and plans into concrete actions, the cabinet has approved on May 6, 2003 the Master Plan of Thailand’s SMEs Promotion ( ). Due to the expiration of the 1st Master Plan of SMEs Promotion ( ), OSMEP together with related public and private agencies has formulate the 2nd Master Plan ( ) which is still in due process for approval from the cabinet.

4 Strategies of SMEs Promotion Plan 2 (2007-2011)
Vision: SMEs to Grow with Sustainability, Strength and Balance Intellectual Infrastructure Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs Strategy 4: Promote the Capability on Value Creation in Services Sector Strategy 5: Promote SMEs in Regional and Local Areas Strategy 2: Upgrade Manufacturing SMEs Network & Alliance Productivity Strategy 3: Increase the efficiency and reduce impediment in trading sectors Strategy 6 : Create business environment and enabling factors แนวคิดพื้นฐานในการกำหนดยุทธศาสตร์ กลยุทธ์ และมาตรการในการส่งเสริม SMEs ไทย ในระยะ 5 ปีข้างหน้า (พ.ศ ) ได้ให้ความสำคัญกับการสร้าง Capacity building ของ ผปก. การสนับสนุนด้านโครงสร้างพื้นฐาน การสร้างเครือข่ายและความเชื่อมโยง และการมุ่งผลิตสินค้า-บริการที่มีมูลค่าสูงและแข่งขันได้ โดยนำปรัชญาเศรษฐกิจพอเพียง และแนวทางหลักที่มุ่งเน้นในเรื่องการเพิ่มประสิทธิภาพ- ผลิตภาพ การสร้างนวัตกรรม ทั้งกระบวนการ-ตัวสินค้า/บริการ การสร้างเครือข่ายการทำงานและการจัดการองค์ความรู้ทั้งระหว่างหน่วยงานรัฐ องค์กรเอกชน และรัฐ-เอกชน เพื่อนำมาเป็นแนวคิดได้ 6 ยุทธศาสตร์ ดังนี้ 1. ยุทธศาสตร์การสร้างและพัฒนาขีดความสามารถ ผปก. เน้น 2. ยุทธศาสตร์การเพิ่มผลิตภาพและขีดความสามารถทางนวัตกรรมของ SMEs ภาคการผลิต 3. ยุทธศาสตร์การเพิ่มประสิทธิภาพและลดผลกระทบในภาคการค้า 4. ยุทธศาสตร์การส่งเสริมขีดความสามารถในการสร้างมูลค่าเพิ่มของภาคบริการ 5. ยุทธศาสตร์การส่งเสริม SMEs ในภูมิภาคและท้องถิ่น 6. ยุทธศาสตร์การพัฒนาปัจจัยเอื้อในการดำเนินธุรกิจ Competitiveness 14

5 Network to Promote SMEs
International Governmental & Private Units MOU Action Plan Coordination Board of SMEs Promotion Executive Board of the Office of SMEs Promotion Regional Central SMEs Data Governor Ministry Sectoral Strategies Action Plan Local Ministerial Office State Enterprise Registration Other Public Sector Agencies OSMEP Formulate Master & Action Plan Create Mechanism in implementing Allocate Budget Monitor and Evaluate Service Provision Academics Policy / Action Plan Local Admin. Agency Public Org. Service Provider Creation When regards the mechanism from the ankle of implementing network, this slide shows that OSMEP is the focal agency reporting to the Board of SMEs Promotion which is chaired by the Prime Minister. OSMEP coordinates the 3 sub-networks. The first network is at the global level comprising of international governmental and private agencies whose work is to propel the MOU and action plans to take place and to coordinate SMEs cross-country cooperation. The other two networks are at the central levels comprising of numerous ministries, local ministerial offices, state enterprises, public sector agencies and organizations, local administration units, and involving parties from the circles of academics, experts and private sector. They are at the implement level and perform in line with the national policies and measures. And they report their operational results, as well as identify problem and demand reflected from the SMEs. Academic/ Expertise Institution SMEs University Provincial Industrial Federation Projects under SMEs Promotion Action Plan Chamber of Comm./Fed Of Thai Industries/ Bankers’ Assoc. Community/ Local Product Provincial Chamber of Comm. Network to Promote SMEs OSMEP Regional offices - Implement Report Operational Result Identify Problem/Demand - Implement Report Operational Result Identify Problem/Demand 22

6 II. Overview of Thailand-Russia economic relation
Russia and Thailand enjoy a history of more than 50 years of trade and economic relations Thailand remains the largest trading partner of Russia in Southeast Asia First business contacts between Russian trade organizations and Thai companies date back to the end of 40s following the reinstallation of diplomatic relations between the two countries in 1941 In 2005, bilateral trade reached the volume of 2 billion USD after significant slump in 1997 due to Asian financial crisis According to the Thai custom statistics, trade surplus remains on Russian side in 2006 with Russian export at 1.38 billion USD and Thai import at 0.42 billion USD

7 Thai Imports from Russia
Thai Exports to Russia Thai Imports from Russia Product Value (million USD) 1. Automobile and auto parts 93.9 2. Canned and processed fruits 32.3 3. Polymer 26.2 4. Electric appliances 25.6 5. Canned and processed seafood 24.0 Total value 234.8 Product Value (million USD) 1. Crude oil 477.6 2. Rolled steel 437.4 3. Scrap metal 113.1 4. Fertilizers and pesticides 92.7 5. Pulp and paper 12.4 Total value 1,195.4 Source: CIS & Balkan States Center, University of Thai Chamber of Commerce ( period between Jan.-Sept. 2007)

8 III. Comparative Definition of SMEs
Thailand Russia Act for the Promotion of Small and Medium Enterprises B.E (2000) Federal Law on State Support of Small Entrepreneurship 1995 businesses has either asset of no more than 200 million baht or no more than 200 employees self-employed individuals or (ii) legal entities in which: auhorized capital of public sector bodies, charities or businesses have no more than a 25 per cent of their equity shares, where the average number of employees does not exceed the following limits according to main sector of activity: -100 in industry, construction and transport; - 60 in agriculture, science and research; - 50 wholesale trading; - 30 retail trade and domestic services; and - 50 in other sectors. Small Types of business Employment Production Not more than 50 Service Wholesale Not more than 25 Retail Not more than 15 Medium Types of business Employment Production 51-200 Service Wholesale 26-50 Retail 16-30

9 Profile of Thai SMEs

10 Number of SMEs, 2006 Number of SMEs by Size, 2006
2,287,057 enterprises in total LEs : ,292 MEs : ,791 SEs : ,264,734 Unidentified : 8,240 Total Number of SMEs 2,274,525 enterprises, 99.5 % Number of SMEs by Sector, 2006 Most of SMEs are operating in Trade& Repair Sector for 908,846 enterprises (40.0 % of Total SMEs) Service Sector was the second largest group for 675,622 (29.7%) Production/Manufacturing Sector was the third for 672,351 (29.6%) 10 10

11 Employment in SMEs, 2006 SME Employment by Size, 2006
In 2006, all enterprises in Thailand created 11,551,272 jobs in total. - LEs accounted for 2,687,938 jobs - MEs accounted for 1,338,398 jobs - SEs accounted for 7,524,936 jobs - Totally, SMEs created 8,863,334 jobs or 76.7%. SME Employment by Sector, 2006 Between , employment in SMEs increased continuingly, especially in Service Sector, which the employment grew 10.8% in 2006. 11 11

12 SMEs Economic Contribution
In 2006, overall GDP accounted for 7.81 million baht of which 10.7% came from Agriculture Sector and 89.3% came from Non-agriculture Sector. SMEs GDP accounted for 3.04 million baht or 38.9% of overall GDP Between , SMEs GDP share was in steady line (approx. 39.0% of national GDP), while SME GDP growth rated at a range of % (y-o-y) 12 12

13 SMEs Economic Contribution (Cont’d)
Structure of SME GDP in 2006 Service Sector was the highest with 32.2% share Manufacturing Sector was the second highest with 30.3% Trade and maintenance Sector was the third highest with 29.2% Between SMEs in Service Sector had been regarded as most important economic engines in creating GDP with % share, followed by SMEs in Trade and maintenance Sector with %, and SMEs in Manufacturing Sector came third with % share 13

14 Role of SMEs in International Trade
In 2006, SME export accounted for Mil.THB or 29.1% of total export In 2006, SME import accounted for 1.60 Mil.THB or 32.7% of total import Thus, SME Trade Balance still deficit with amount of 0.15 Mil.THB The ratio of SME Export to SME GDP accounted for 47.3% indicated that SMEs relied on domestic market rather than international market 2004 /2547 2005 / 2548 2006 / 2549 SME EXPORT to TOTAL Export (% share) 30.2% 29.7% 29.1% SME IMPORT to TOTAL IMPORT (% share) 32.9% 32.4% 32.7% SME EXPORT to SME GDP (% share) 45.1% 46.7% 47.3% TOTAL EXPORT to TOTAL GDP (% share) 59.6% 62.5% 63.3% 14 14

15 Role of SMEs in International Trade (Cont’d)
SME export classified by level of factor intensities shows that Primary products was the highest with 32.1% share, followed by Labour Intensive products came second with 19.2%, Third and Fourth was High Skill and Medium Skill products with 12.0% SME import classified by level of factor intensities shows that High Skill products was the highest, followed by Primary products 15 15

16 SMEs Promotion Plan (Year 2007 – 2008)
Goals To increase the contribution of SMEs to GDP to reach 5% of the national GDP per year. To increase the number of new entrepreneurs by 50,000 per year To increase SMEs Total Factor Productivity of 3% per year To increase SMEs export value to no less than 6% per annum To create product brand with a minimum of 100 per year 6. To commercialize SMEs innovation with a minimum of 100 per year The goals of SMEs Promotion Plan (Year ) include: To increase the contribution of SMEs to GDP to reach 5% of the national GDP per year. To increase the number of new entrepreneurs by 50,000 per year 3. To increase SMEs Total Factor Productivity of 3% per year 4. To increase SMEs export value to no less than 6% per annum 5. To create product brand with a minimum of 100 per year 6. To commercialize SMEs innovation with a minimum of 100 per year 16

17 IV. Challenges of SMEs moving into oversea markets
Human Resource Infrastructure and Business Environment Commercial and administrative practice Employing top quality managers & engineers Human resource management High wages Difficulty in procuring raw materials Insufficient infrastructure Inefficient legal system Uncertainties surrounding regulation enforcement by local government Difficulty in payment collections Foreign exchange risk Draining technology/ know-how Violation of intellectual property rights

18 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
High flexibility and adaptability High utilization of local/ domestic resources&knowledge Well performed in skill-based sectors: food; fashion products; tourism and related products&services Easy business access and quick consumer approach Eligible in producing products which are various in design and quality Losing competitiveness in labor-intensive & resource-based sector Weak production structure; Poor management; Incapable in marketing; Lack of product development; Employing low quality workforces; Using out of date technology’ Limitation in applying good governance: accounting system; consumer&environmental responsibility Limitation in access appropriate fund Lack of integrating and networking system OPPORTUNITIES THREATS Trends of new business approaches favor SMEs Easy for starting ups and allow workforce and new entrepreneurs to accumulate skills Allow for business alliance with LEs and MNCs Potential for the creation of new genre of entrepreneurs SMEs promotion is national agenda with high level of significant Pressure from Globalization: - Economic integration between countries - FTA on Goods/Services/ Investment - New form of NTBs SMEs promotion system is still fragmented both in policy formulation and implementation High competition results in Nutcracker situation Obstacles from public administration

19 V. Internationalization of Thai SMEs
Problems Entrepreneurs fails to reap sufficient benefits from bilateral and multilateral trade agreement with other economies National income generation policy still focus only on increasing the number of exports and FDI inflows while neglecting the importance of FDI Outflow In 2007, Institute for Management Development (IMD) has ranked Thailand’s competitiveness at 33 which fall from 29 in 2006 due to low FDI Outflow Business restructuring from a manufacturing base country to an investor country is necessary in order for Thailand to still maintain its comparative advantage in the global market

20 Internationalization Project
initiated by Department of Export Promotion Objectives: To encourage oversea business expansion as mechanism for value addition To meet the challenge of liberalization and the disintegration of preferential treatment such as quota and GSP (Generalized System of Preferences) To maintain comparative advantage by relocating to other countries which has lower cost of labor, technology, and raw material To increase the competitiveness of export in the long run

21 Internationalization Project (con’t)
Offers 2 types of oversea business supports which include: A) Manufacturing dimension: - sourcing - subcontracting - Green Field Investment B) Non-Manufacturing dimension - Sales Representatives - Franchising - Licensing

22 VI. Government SMEs Supporting Policy
Government has proposed SMEs supporting policy to the national legislative assembly on Nov. 3, 2006 as follows: Development of intellectual infrastructure for SMEs On Nov. 3, 2006, the government has proposed SMEs supporting policy to the national legislative assembly as follows: 1. Development of intellectual infrastructure for SMEs so as to expedite intellectual society and support sustainable economy and development. In addition, innovation creation between public and private sectors has also been promoted through the collaboration between the Ministry of Industry and the Ministry of Science and Technology. 2. Government acts as an alliance between public and private sector in enhancing skills and improving competitiveness of SMEs through various projects such as business matching, incubation center, machinery replacement fund, etc. Collaboration between public and private sector

23 Development of Intellectual Infrastructure
Collaboration between public and private sector Create linkages between academic institutions and industrial sectors Personnel development in science and technology Increase multi-level research supporting channels with emphasis on collaboration between users and researchers; motivate innovation development of the private sector Delegate the public sector as SMEs coordinating body in building economic infrastructure Provide financial tools which support SMEs innovation creation Provide support for the commercialization of SMEs innovation i.e. FTI and OSMEP Skills Enhancing Industrial Standard Upgrading Establishment of SMEs Incubation Center Competitiveness Improvement Business Matching Machinery Fund Logistics Networking Development of Provincial and Regional Industry by sectors Administration Here’s the detail of government SMEs Supporting policies given the budget of 800 million baht or 22 million US$. The example of the collaboration between public and private sector is the Federation of Thai Industries and OSMEP which focuses on enhancing skills and improving competitiveness of SMEs. Budget: 800 million baht

24 VII. OSMEP’s Support for SMEs Overseas Business Operation
International SMEs cooperation Overseas Thai SMEs Agency cooperation Internationalization Program

25 Samples of International Cooperation on SMEs Promotion
Thai – Malaysia Thai – France Thai – Italy Thai – Japan

26 Framework of Thai-Malaysia Cooperation on SMEs Promotion
Information exchange of SMEs development policies Establishment of Malaysia-Thailand SME Business Portal Establishment of Joint investment and trade mission Establishment of training program for entrepreneurs in food processing and automotive sectors Organizing exhibition and business matching activities

27 Framework of Thai-Italy Cooperation on SMEs Promotion
Establish SMEs help desk at OSMEP to assist Italian SMEs doing business in Thailand Information exchange of cluster development in Italy Promote the export of Thai organic products to Italy Collaborate on fashion design, jewelry (possibility of establishing co-brand), and export of furniture Organize workshop on alternative energy and environment protection Sponsorship from Fierra Milano for ISBC 2007

28 Framework of Thai-France Cooperation on SMEs Promotion
Development of Joint Cluster Entrepreneurial registration Advisory Support for Design Advisory Support for Branding Experience sharing on Technical Institution for SMEs SME Networking SME Working Group Meeting (at least once a year)

29 Framework of Thai-Japan Cooperation on SMEs Promotion
Knowledge and experience sharing on the establishment of SMEs University Collaboration on the establishment of Business Development Service Center Development of business diagnosis or Shindan Exchange of SMEs expertise Development of financial institution’s risk evaluation of SMEs

30 B) Overseas Thai agency SMEs cooperation
Inform the National SMEs Promotional and Operational Plan to be as a guideline for allocate budgeting for SMEs promotion through strategic fund Exchange of Business Data & Information Knowledge & Know-how Linkage Provision of in-depth information of trading partners (economic, social and political) for facilitating the investment decision of Thai SMEs entrepreneur Coordination on MOU and Action Plan on SMEs Promotion Support both in-bound and out-bound SME promotional activities

31 C) Internationalization Program
subsidies to SMEs entrepreneurs (not exceeding 50% of expense and the maximum amount not exceeding $7,000) for international expansion through international exhibition, business matching, market survey or other export promotion activities

32 VIII. Services and facilities for foreign SMEs

33 BUSINESS MATCHING SMEs Market Intelligence
Increase trade opportunity, match world’s demand with Thai’s supply FTI members Target market SMEs Product scope Community Products Quality Assuring By “Q-mark” Market Intelligence Demand Standard / Specification Taste Trade regulation Etc. Channel Matching Activities SMEs Shop Channel SMEs Trade Promotion Thai confectionary Business Trip Exhibition Product catalog E-commerce Objectives % Sales Growth / Minimize Defects Develop to be regular customers Market Exploration 33

34 Product Cluster in Thailand
As for SMEs regional promotion, the Office of SMEs Promotion has formulated action plan for SMEs regional promotion by employing the concept of cluster development divided according to group of provinces and defined target cluster in each area. For example, the cluster of the upper northeastern provinces include tourism, border trade, blue-dyed cotton while the cluster for the upper northern provinces consist of handicraft, fashion, tourism, processed agriculture and ceramics 34

35 Venture Capital Fund (VCF)
Provide equity financing to targeted SMEs In charge of shareholders Support for enhancing SMEs strengthen

36 Venture Capital Fund in Thailand
A) Venture Capital Fund for Enhancing Competitiveness of Thai Business B) SMEs Venture Capital Fund C) Innovation Development Venture Capital Fund

37 Media to access recent SMEs movement
SMEs Today magazine SMEs Shop Channel (UBC Channel) SMEs Chee Chong Rouy TV Program (Channel 11)

38 IX. Policy measures for upgrading competitiveness of Thai SMEs
A) Promotion of SMEs network through the development of cluster B) Employment of standards (especially on agricultural products) C) Capacity building through training, mentoring, provision of consultancy service, e-projects and SME university D) Creation of business opportunity through domestic and international business matching activities

39 SMEs Target Sector 2007-2008 51 Link ภาคการผลิต
1. Manufacturing 2. Trading 3. Service 2.1 Retail 2.2 Wholesale 2.3 Trading firm 1.1 Indigenous - Light industry : textile, Leather, gems/jewelry, Printing matter, packaging - Engineering and electronics: metallurgy, machinery, mould, electrical appliances, automotive parts - Natural resources: food, medicine, herbs, wooden furniture, rubber products, ceramics, gifts, souvenirs, household decoratives 1.2 New wave - Animation, multimedia, computer games - Alternative Energy and energy saving 3.1 Tourism industry: hotel, restaurant, souvenir shop tourism, spa, conference holding related-business (MICE) 3.2 Other services : information Technology, software (digital content), business consulting, health and beauty, construction design, logistics, education, entertainment 4. Regional and local ภาคการผลิต กลุ่มอุตสาหกรรมดั้งเดิม (Indigenous) ได้แก่ กลุ่มอุตสาหกรรมเบา (สิ่งทอและเครื่องนุ่งห่ม รองเท้า อัญมณีและเครื่องประดับ สิ่งพิมพ์ และบรรจุภัณฑ์พลาสติก) กลุ่มอุตสาหกรรมวิศวการ (เหล็กและโลหะประดิษฐ์ เครื่องจักรกล แม่พิมพ์ เครื่องใช้ไฟฟ้าและอิเล็กทรอนิกส์ และยานยนต์และชิ้นส่วน) และกลุ่มอุตสาหกรรมที่ใช้ทรัพยากร (อาหาร ยาและสมุนไพร เฟอร์นิเจอร์ไม้ ผลิตภัณฑ์ยาง และผลิตภัณฑ์เซรามิกส์) กลุ่มอุตสาหกรรมใหม่ ( New Wave) ได้แก่ พลังงานทดแทน และผลิตภัณฑ์ที่เข้าสู่ระดับที่สูงขึ้นของห่วงโซ่คุณค่า (Value Chain) ในกลุ่มอุตสาหกรรมดั้งเดิม ภาคการค้า ภาคค้าส่ง – ค้าปลีก (รวมทั้งระบบการค้า) แฟรนไชส์ ภาคบริการ กลุ่มบริการเป้าหมายในการส่งเสริม มีทั้งบริการภาคธุรกิจและบริการผู้บริโภคโดยตรง แบ่งเป็น 2 กลุ่มหลัก ได้แก่ การบริการท่องเที่ยวและธุรกิจต่อเนื่อง และกลุ่มบริการอื่นๆ ประกอบด้วย (1) สารสนเทศและซอฟต์แวร์ (2) บริการที่ปรึกษาและสนับสนุนธุรกิจ (3) บริการสุขภาพและความงาม (4) บริการออกแบบ-การก่อสร้าง (5) บริการโลจิสติกส์ (6) ธุรกิจบันเทิง และ (7) บริการการศึกษา 4.1 Manufacturing, Trading and service 4.2 Community products Link 51 10 39 39

40 X. Implications on Business Potential
Geographic complementarities - Russia: as gateway to the Commonwealth Independent States -Thailand: as a gateway to Southeast Asia and southern China ■ Russia’s abundant source of raw material - Thailand can import from Russia or penetrate the Russian market by direct investment in Russia (in forestry, jewelry, furniture and paper industry) and export to third countries ■ Rapid infrastructure development and expansion of service sector in Russia: - vast potential for Thai business which include spa and beauty , interior design, restaurant, and hotel

41 XI. Proposed Framework of Thai-Russian SMEs Cooperation
Expansion of business matching to increase joint investment Joint cooperation between private sectors, particularly chambers of commerce, in the following sectors: ● energy sector ● metal industry ● natural rubber manufacture ● jewelry industry ● tourism ■ Exchange of SMEs development policy through seminar/s conferences, study-visit, and training ■ Establishment of Russian-Thai Business Council (under ongoing process) ■ Establishment of SMEs exhibition or pavilion to expand business partnership

42 THANK YOU FOR YOUR KIND ATTENTION
SAWASDEE KA!

43 Appendices: Other OSMEP’s project for SMEs development

44 SMEs University SME University is consisting of: E-SMEs University
Practical Curriculums through the University and College in Thailand 7

45 E-SMEs University OSMEP Assumption U. 8
Various Subject- E SME University Entrepreneurships concept for strat-up SMEs Introduction for Marketing Introduction for SMEs Financial SMEs Management for sustainable Business Creativity & Innovation for SMEs ICT & E-commerce for SMEs Production Management & Service Businesses for SMEs Business Strategy & Trend / Opportunity for SMEs Advance Marketing for SMEs Accounting and Financial Management for SMEs Corporate Governance Business Plan In the year 2007, OSMEP has develop KM Pilot project through E- SMEs University by alliance with Assumption University. We provide certificate learning system through 12 various subjects E-SMEs University such as: Entrepreneurships concept for start-up SMEs Introduction for Marketing Introduction for SMEs Financial SMEs Management for sustainable Business Creativity & Innovation for SMEs ICT & E-commerce for SMEs Production Management & Service Businesses for SMEs Business Strategy & Trend / Opportunity for SMEs Advance Marketing for SMEs Accounting and Financial Management for SMEs Corporate Governance Business Plan Within 4 months, there are 1,500 audiences to attend this courses and the curriculum meet their requirement, therefore, they requested for certificate to endorse the education. 8 45

46 SMEs University Curriculum Model
SME UNIVERSITY SMEs University Curriculum Model Major 70: Practice 30 Financial Management General Management Sale & Marketing Management Core Course Practice Courses Elective Course Manufacturing Management Innovation Management This is an example for SMEs University curriculum model. In the year 2007, OSMEP has alliances with Bangkok University, Rachamonkhala University, The SMEs development Institute, Songkhla University, Thammasat University to offer the course for the graduate sector in Master degree for Entertainment business and business plan competition contest for undergraduate and Vocational School tailor made curriculum. The course for graduate school will be the major course 70% and practice course for 30%. Because of SMEs lack of Business skill, the core course consists of 6 modules which are Financial Management, General Management, Sales & Marketing Management, Manufacturing Management, Innovation Management and New Technology Venture. All these focus on considering a start-up company and study from the real case and situation at that moment. The practice course focus on experiences learning from the local smart businesses and on –the- job training. The Elective course focus on the external factors that impacts SMEs at that moment, for example, new law or new regulation. In this case, it might be JTEPA, WTO, EGATT. New Technology Venture - According to local smart businesses - Practical & OJT - Considering a start up company - Real case study - Time & Situation - Law & Regulation 9 46

47 C) OSMEP E-Projects / SME@Click
Business Startup Business Improvement Business Expansion Business Maturity Virtual Coach E Mentor Digital University E Biz Net E Market Place E Innovation Business Setup Coaching & Franchise Simulation E- Mentoring & Consulting E-Self Learning Tools E-Marketing Information Service Online Catalog Service R&D Information and SME-Researcher Matching The OSMEP eProject is the tools to store and distribute knowledge and information to all stage of SMEs range from Business Startup, improving, expanding and at last mature by leverage technology and innovation. The OSMEP’s e-Project consist of 7 systems which are 1- VirtualCoach – The VirtualCoach is a knowledge distribution tool to setup a business. SMEs can use this system to get the information and the process to setup a business or document and forms required. Moreover, this system contain “Self Assessment Tools” which let the SMEs fill in the the recommendation on the type of business including franchising suit for them based on their profile which is evaluated by the system. 2. eMentor – Once the SMEs faces the problems, they can leave the question into the web board or chat room and get the solutions from OSMEPs mentor and consultant. Additionally, in 2008, OSMEP will start “National Consultancy System” for SMEs to search, compare and select the professional consultants who registered with OSMEP as eMentor to meet their requirement. 3. Digital University – Which is the archive of Information and knowledge for SMEs in digital contents form such as Video, Graphics, etc. Also, this system has SCORM based eLearning System which has short courses which will useful for self learning, for example, Business Writing, Business English, etc. 4. eBizNet – eBizNet is the system that collect and provide “International Market Information” for SMEs who want to exports. There are 30 Millions Registered Business Information such as Name, Address, Line Of Business, Employee for more than 200 Countries - 7 Continent for SMEs to search for the prospect of business partner. 5. eMarketPlace – OSMEP has created a tool for SMEs who want to post their business detail in the Cyberspace, both for Domestic and International market. 6. eInnomarket. –eInnomarket is this system to collect research papers and works from universities and Ministry of Science and Technology. SMEs who seeking for technology can use this system as the source of knowledge and the channel for technology matching with the researcher by using OSMEP help. 7. SME Portal. – All above system including OSMEP information and works is distribute to SMEs and all organization via SMEs Portal. – SME Portal (www.sme.go.th) 11 47 47

48 OSMEP e-Projects / SME@Click
Main Page Digital University Virtual Coach This is the sample of systems in eProject. Currently we have around 60,000 visitors each months. 12 Virtual Coach E BizNet E InnoMarket

49 Warning System for Investment and SMEs Corners
Type of SMEs Characteristics of Sector Assets per Sector Liabilities per Sector Revenues per Sector Total Sales per Sector ROI per Sector Economic Value Added per Sector Financial Ratio per Sector Export and Import per Sector Employment Rates per Sector No. of SMEs per Sector Warning System at OSMEP is divided into 2 systems; there are Early Warning System and Warning System for Investment. The early warning system or EWS is a system that forecast the Sectoral SME over next year. On the other than the warning system for investment or WSI is a system that will support SME in terms of sectoral data include number of SMEs, Characterisitcs of Sectoral SMEs, Liabilities – Assets – Revenues – Profits of Sectoral SMEs, Return on Investment and Financial Ratio Analysis of Sectoral SMEs. Additionally, both of WSI and EWS are also providing a Sectoral SME Positioning for Export and Import. 13 49

50 Warning System for Investment and SMEs Corners
SMEs Supply and Value Chain SMEs Export and Import Positioning This slide shows an example of OSMEP’s WSI and EWS, which possibly see from www. sme.go.th/ Warning System. In addition, the example shows SMEs Supply and Value Chain, Export and Import Positioning, Financial Index, and Financial Health Positioning for all 61 Sectors of SMEs. Importantly, the WSI and EWS is also online both internet and intranet to SME Corner at Thai university. SMEs Financial Situation Positioning SMEs Financial Health Positioning 14 50

51 Warning System for Investment and SMEs Corners
The SME Corner is a SMEs Information Centre, which provide an necessary data support such as Warning System Data, Warning Indicators, Sectoral Report, Warning Journals and Articles. And, it established at 4 Universities in Bangkok and Chiang Mai over the last year, and from now we plan to open four more corners each year. According to the SME Corner project, there are approximately 1,500 users through the library and 10,000 users through the EWS and WSI online on the internet. Significantly students, academic peoples and entrepreneurs can access SME information from SME corner, which strengthen their immunity and knowledge management. Payab University Siam University Rangsit University Christian University and 4 more each year 15 51

52 SMEs Tool Kit 16 Business Manual for start-up SMEs
Marketing/ Sales/ Accounting/ HR/ Production/ Services/ ICT/ Sufficiency Economy including Good Governance Practical Guideline for SMEs and able to apply for own business which makes SMEs confident to run business. Interactive E-Book & Lesson Learn from selected SMEs entrepreneurs Ladies and Gentlemen, SMEs tool kit is only in Thai language with CD Rom that can search all subject contents by the computer both internet and intranet respectively. The SMEs Tool kits comprise of Business Manual for start-up SMEs Marketing/ Sales/ Accounting/ HR/ Production/ Services/ ICT/ Sufficiency Economy including Good Governance Practical Guideline for SMEs and able to apply for own business which makes SMEs confident to run business. Interactive E-Book & Lesson Learn from selected SMEs entrepreneurs. Now, I would like demonstrate the SMEs tool kits by inviting our Chairman to launch and show the audiences. 16 52


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