Bangkok Post, Thailand, Guest Column.

Byline: Thavee Thaveesangsakulthai

Aug. 5--STEPS FOR SMES TO SOURCE FINANCING: It is widely known that small- and medium-sized enterprises (SMEs) were the growth engines for many developed countries. Similarly, the Thai government has recently created policies to assist and develop Thai SMEs with the aim of building another driving force for the economy.

The SME Bank and other institutions were established to assist SMEs in accessing sources of funds, prepare a business plan, and provide advice on operational issues.

Some of these SMEs with growth potential are expanding their markets and operations, and it is likely that the increasing demand for their products or services will strain their resources -- people, production capacity and cash. To sustain and enhance this growth, they need to pursue new ideas, market opportunities and value-creating projects and/or products, but they rarely have the means to do so while continuing to meet current demand.

These SMEs need to seek external financing, but attracting capital and selecting and managing financing options while keeping control of the financing process is complex and time-consuming for the following reasons:

--The business cannot be put on hold;

--The market would not fund mediocrity;