Pundits see SMEs facing tough times

Challenges mount as pressure increases

- SOMRUEDI BANCHONGDUANG

Small and medium-sized enterprises (SMEs) are expected to face increased challenges due to renegotiations concerning the US's reciprocal tariffs, potentially resulting in further closures, according to two research houses.

Kasikorn Research Center (K-Research) revealed that SMEs continue to grapple with losses and shutdowns, driven by weak domestic demand and a surge in imports.

Between 2021 and 2024, closures of small enterprises, with registered capital of less than 100 million baht, increased by an average of 7% a year. The number of business closures rose from 19,237 in 2021 to 21,764 in 2022, 23,280 in 2023 and to 23,551 in 2024, according to K-Research.

During 2020-23, about 106,595 enterprises, or around 26% of all small-sized businesses, reported consecutive losses.