Thailand's Small Firms Catch Up on Larger Rivals through Improved Efficiency.

Byline: Darana Chudasri

Dec. 6--Small and medium-sized enterprises have been making noticeable gains over the past two years, according to a recent survey by the Thailand Development Research Institute (TDRI).

The survey showed several key differences between small companies employing fewer than 10 staff and larger companies, said TDRI president Chalongphob Sussangkarn.

For example, the number of hours worked at SMEs in the first quarter of this year increased by 6-7 percent from the first quarter of 2000, while the figure for the second quarter was up by 11 percent and the third-quarter figure was 12-13 percent higher than two years earlier.

"There is an interesting difference between the hours worked at SMEs between 2000 and 1999, when growth was negative, and the hours worked at large corporations whose growth was positive. This might be partly due to the restructuring initiated by the government," Dr Chalongphob said at a recent seminar on SME prospects, organised by Bangkok Bank.

He said the growth of SMEs would slightly outpace that of the country's gross domestic product next year, even in the worst-case scenario of a protracted US-Iraq conflict affecting the world economy.

Kosit Panpiemras, Bangkok Bank's executive chairman, said bank surveys showed that successful SMEs had three elements in common: a focus on core strengths, good corporate governance and a clear business plan.