Study: Small firms must focus on profit

Krungthai Compass suggests improving profit margins should be the top priority for small and medium-sized enterprises (SMEs) to address persistent liquidity shortages and high debt burdens.

- SOMRUEDI BANCHONGDUANG

The research centre under Krungthai Bank noted the profitability of local SMEs has deteriorated over the past 15 years, based on its study covering 2010-2024. In particular, when SMEs are hit by economic shocks, vulnerabilities tend to accumulate.

Many Thai SMEs have yet to fully recover in the post-pandemic period, even in high-potential sectors such as tourism and electronics.

Over the past 15 years, SMEs have generally faced three key challenges: low profit margins, liquidity shortages and high debt levels.