Findings of Main Obstacles Facing Thai SMEs Towards Business Growth Sustainability

Authors

  • Sumontha Tonvongval Assumption University
  • Chamaiporn Tantivong Ramkhamhaeng University

Keywords:

Thai SMEs, growth, performance, entrepreneurial competencies, sustainability.

Abstract

This paper aims to provide insight information into main competencies thirty-four local Small and Medium-sized Enterprises (SMEs) are lacking in order to achieve their business performance and sustained healthy economic growth.  The data was obtained from Researchers' five day-planned productivity improvement to individual firms during the year 2017 to 2019  in Nakornpathom, Ratchaburi, Rayong, Samutprakan, and  Samutsakorn provinces, and Bangkok.  The information reveals that eighteen (18) or 52.94% of both small and medium enterprises have low entrepreneurial skills (the inability to identify and define a viable market niche, recognizing, envisaging, and formulating strategies for taking advantage of opportunities).   This study also summarizes the lack of main management skills or competencies of the SMEs based on the study of Mitchelmore & Rowley (2009).   The impact of these skills led to Thai SMEs' inability to: smoothly and continuously produce and deliver quality products to customers, keep costs down and compete, and attract and retain talent.   Further studies should delve into specific entrepreneurial skills of SMEs owner/managers, which significantly impact firm performance and sustained growth.  Consequently, current Thailand's SME promotion policies could be reviewed in order to differentiate existing promotional programs based on the quality of SMEs for their sustained development and effective utilization of SME's budgets.

References

References

Abdullahi, M.S., Abubakar, A., Aliyu, R. L., & Umar, M.B., (2015). Empirical review on the determinants influencing firm performance in developing countries. International Journal of Scientific and Research Publications, Volume 5(6)

Adeyamo, S. A., (2009), Understanding and acquisition of entrepreneurial skills: A pedagogical re-orientation for classroom teacher in science education. Journal of Turkish Science Education, 6(3), pp.57-65.

Agbim, K. C., (2013), The Relative contribution of management skills to entrepreneurial success: A survey of Small and Medium Enterprises (SMEs) in the trade sector. IOSR Journal of Business and Management, Volume 7, Issue 1, pp.8-16. Retrieved February 3, 2020, from www.iosrjournals.org.

Agbim, K. C., & Oriarewo, G. O. (2012), Spirituality as correlate of entrepreneurship development, Journal of Research in National Development, 10(3), pp.115-126.

Akande, O.O., (2011). Accounting skills as a performance factor for small businesses in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(5), pp. 372-378.

Akinruwa, T.E.,Awolusi, O.D., & Ibojo, B.O. (2013), Determinants of small and medium enterprises (SMEs) performance in Ekiti State, Nigeria: A business survey Approach. European Journal of Humanities and Social Sciences. Vol. 27(1).

Al-Madhoun, M.I., & Analoui, F. (2003), Managerial skills and SMEs’ development in Palestine. Career Development International, 8(7), pp.367-379.

Asare, J., (2017), Approach to assess and select small and medium enterprises (SMEs) for incubation on the base of Angel Model – a case on developing economics and ENGINE program. British Journal of Economics, Management & Trade, Vol 7 (3), pp. 1-28.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17 (1), pp 99-120.

Boyatzis, R. E., (1982), The Competent Manager: A model for effective performance, Wiley. New York. NY.

Chandler, G. N., & Jansen, E. (1992). The founder’s self-assessed competence and venture performance. Journal of Business Venturing, 7(3), pp.223-236.

Chuta, E. (2012). Nigeria lacks the right environment for SMEs take-off. Thisday Newspaper.

Cromie, S. (1991), Report of the Committee of Inquiry on Small Firms, chaired by J. E. Bolton, Cmnd. 4811. HMSO, London.

European Commission, (2013), “Entrepreneurship 2020 Action Plan”, Brussels.

Grant, R. M. (1991), The Resource-based theory of competitive advantage: implication for strategy formulation. California Management Review, 38(3), pp.114-135.

Issahaku, A., Kpahambang, M.A., Jatual, W.I., and Issahaku, I. (2017), To start or grow: the Survival Dilemma of Small and Medium Scale Enterprises in Ghana. Africa Development and Resources Research Institute (ADRRI) Journal, Vol.26. No 3(4), pp.11-12.

Jones, G.R., & George, J.M. (2008). Contemporary Management. New York, McGraw Hill.

Katz, R. L., (1955). Skills of an effective administrator. Harvard Business Review, 33(1), pp.33-42.

Kinyua, A.N. (2014). Factors affecting the performance of small and medium enterprises in the Jua Kali Sector in Nakuru Town, Kenya. IOSR Journal of Business and management (IOSR-JBM), Vol.16 (1). Pp.80-93.

Krieger, A., Block, J., & Stuetzer, M. (2018). Skill variety in entrepreneurship: A literature review and research directions. International Review of Entrepreneur ship, 16(1), page 29-62.

Mahoney, J. (1995), The Management of resources and the resource of management. Journal of Business Research, 33, pp. 91-101.

Mata, B.A.K., & Aliyu, M.S. (2014). The relationship between some determinants of SMEs performance in Nigeria: A qualitative Approach. European Journal of Business and Management, Vol. 6(2), pp.107-114.

Mahmood, R.,& Hanafi, N. (2013). Entrepreneurial orientation and business performance of woman-owned small and medium enterprises in Malaysia. Competitive advantage as a mediator. International Journal of Business and Social Science, 4(1) pp.82-90.

Mitchelmore, S., & Rowley, J. (2009), Entrepreneurial competencies: a literature review and development agenda. International Journal of Entrepreneurial Behavior & Research. Vol.16, No.2. 2010. pp. 92-111.

Mohammed, U.D., & Obeleagu-Nzelibe, C.G. (2014). Entrepreneurial skills and profitability of small and medium enterprises (SMEs). Resource Acquisition Strategies for new ventures in Nigeria. Proceedings of 25th International Business Research Conference 13-14 January, 2014. Cape Town, South Africa.

Muzenda, A.A. (2014). Conceptual model of the determinants of performance of tourism sector small and medium enterprises (SMEs). International Journal of Business and Management Inventions. ISSN (online): 2319-8028.

Osathanunkul, R. (2010), Perceived problems and SMEs performance: A comparative perspective of SMEs in Thailand and China. Faculty of Economics, Chiang Mai University. pp. 57.

Olowu, M.D., & Aliyu, I. (2015), Impact of Managerial skills on small scale businesses performance and growth in Nigeria. European Journal of Business and Management. ISSN 2222-1905. Vol.7, No.5.

Osborne, R. L. (1993), “Why entrepreneurs fail: how to avoid the traps”, Management Decision, Vol. 31, No. 1. pp. 18-21.

OSMEP (Office of Small and Medium Enterprises Promotion). Annual Report 2018. Retrieved January 18, 201, from https://www.sme.go.th/th/download.php?modulekey=31

OSMEP. (2019).The White Paper on SMEs in Thailand in 2019. Bangkok. Retrieved February 1, 2020, from http://110.164.87.21/cgi-bin/koha/opac-detail.pl?biblionumber=51145

Peng, B., Mole, K., & Roper, S. (2019). Skills, management practices and productivity in SMEs. Enterprise Research Centre, ECR Research paper 75. pp.1-37.

Rahman, S., Mokhtar, S. B., Yassin, R. M., & Hamzah, M.I. (2011). Generic skills among technical students in Malaysia. Procedia Social and Behavioral Sciences, 15, pp.3713-2717.

Sidek, S. & Mohamad, M. R. (2014), Managerial competencies and small business growth: Empirical evidence from microfinance participants. International Journal of Management Studies, Vo. 21, No.1,

pp. 39-59. Retrieved February 10, 2020, from http://www.ijms.uum.edu.my/index.php/previous-issues/158-international-journal-of-management-studies-ijms-vol-21-no-1-june-2014

Smallbone, D., (1991). Success and failure in new business start-ups. International Small Business Journal, Vo. 8. No. 2. pp. 18-21.

Smith, B., & Morse, E. (2005). Entrepreneurial competencies: Literature review and best practices. Small Business Policy Branch, Industry Canada, Ottawa.

Srinuan, C. (2014). Demand for internet access and user of Small and Medium Enterprises (SMEs) in Thailand, 25th European Regional Conference of the International Telecommunications Society (ITS), Brussels, Belgium, pp.3-5.

Turner, M., Sermcheep, S., Anantasirijkiat S., and Srisangnam. P. (2016). Small and medium-sized enterprise in Thailand: government policy and economic development. Asia Pacific Journal of Public Administration. Vol.38, No. 4, pp. 250-269.

Watson, K., Scott, H., and Wilson, N. (1998). Small business start-ups: success factors and support implications. International Journal of entrepreneurial Behavior & Research. Vol. 4, No. 3. pp. 217-238.

Zahra, A., Imanip, N.F., Narges, I. (2014). Exploring the rold of managerial skills of entrepreneurship in business success. International Journal of Management Sciences, Vol. 4, No. 1, pp 42-52.

Downloads

Published

2020-07-16

How to Cite

Tonvongval, S., & Tantivong, C. (2020). Findings of Main Obstacles Facing Thai SMEs Towards Business Growth Sustainability. ABAC ODI JOURNAL Vision. Action. Outcome, 7(2), 111-128. Retrieved from http://www.assumptionjournal.au.edu/index.php/odijournal/article/view/4593