SMEs hold key to Thailand's high-income, digital future

Systemic barriers must be lowered to help small businesses make the most of technology. By Kazunori Fukuda

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Small and medium-sized enterprises (SMEs) play a critical role in shaping Thailand’s economic future.

They make up more than 99% of all businesses in the country and employ the majority of the workforce, making their health and competitiveness not only central to the economy, but also a determinant of Thailand's progress towards its long-term goal of becoming a high-income nation by 2037.

However, with ongoing economic volatility and constantly scaled up expenditure, local companies face persistent obstacles that limit their ability to scale, innovate and compete internationally.

The National Economic and Social Development Council highlighted technological disruption as one of 10 risks that could derail Thailand's progress.

This makes it all the more urgent for companies to accelerate digital transformation. By embracing innovation, building new capabilities and tapping into digital tools, these businesses can strengthen their role as engines of sustainable growth and help secure Thailand’s future in an increasingly competitive global economy.

BARRIERS TO SUCCESS

Access to finance remains one of the most pressing challenges. Many small firms struggle to secure the capital needed to invest in new technology or expand their operations.

Beyond finance, the ability to adopt and integrate digital solutions effectively has become another significant barrier to growth.

While platforms and apps are now more accessible, Thai firms often find themselves constrained by fragmented IT infrastructure, limited budgets and a shortage of skilled workers capable of implementing and maintaining new systems.

The result is many industries in Thailand still operate in highly traditional ways. Across services, agriculture, food processing, construction and manufacturing, a significant share of SMEs still rely on offline methods, including paper-based processes for core operations, even as digital adoption grows.