Small and medium-sized enterprises (SMEs) play an important role in Thailand’s economy. Understanding SME types is beneficial for entrepreneurs, investors, and those interested in starting a business. This information can be used to choose a business model that aligns with objectives, plan operations, and increase access to funding or support programs.

In this article, we explain SMEs, including the types of SMEs in Thailand, the importance of SMEs to the Thai economy, and available funding sources and support organizations. We also introduce payment solutions suitable for different business sizes so entrepreneurs can apply this knowledge to business operations, manage payments, and facilitate business expansion.

What’s in this article?

• What are small and medium-sized enterprises (SMEs)?
  
• Types of SMEs in Thailand
  
• The importance of SMEs to the Thai economy
  
• Funding sources and support organizations for SMEs
  
• Payment solutions for SMEs
  
• How Stripe Payments can help
  

What are small and medium-sized enterprises (SMEs)?

SMEs are small to medium-sized businesses that are operated by individual entrepreneurs. They have independent management and are not part of larger corporate groups. SMEs typically have moderate income and assets and a small number of employees. They operate with a limited amount of investment.

Types of SMEs in Thailand

In 2000, the Small and Medium Enterprises Promotion Act, B.E. 2543 divided Thai SMEs into three categories. The categories are based on workforce size, revenue, and business type, such as manufacturing, wholesale, retail, or service:

• Micro SMEs: This is the smallest business type. They are often family owned or sole proprietorships with no more than five employees. Examples include online retail stores, freelance services, cafes, laundromats, beauty salons, and appliance repair shops.
  
• Small SMEs: These are usually operated by sole owners or a few partners, with simple management and no more than 30–50 employees. Examples of businesses include large restaurants, beauty clinics, dental clinics, import-export businesses for niche products, and small factories producing items such as jewelry, clothing, spa products, or ceramics.
  
• Medium SMEs: This is usually an incorporated business with a structured organization and management processes according to standards. They employ no more than 100–200 people. Examples of medium-sized businesses include furniture manufacturers, printing and packaging entrepreneurs, software businesses, digital marketing companies, and food processing or ready-to-eat food factories.
  

The importance of SMEs to the Thai economy

Thai SMEs are important to the overall economy. They account for more than 99% of all enterprises in the country and employ over 70% of the total workforce. SMEs generate economic value equivalent to about 35%–40% of Thailand’s gross domestic product (GDP).

The growth of the SME sector directly affects job creation and economic stability. Having a large number of SMEs spread across all regions of the country also helps distribute income and development to the local level. Therefore, the success of SMEs is a key mechanism for overall economic development and for reducing inequality of resources that are often concentrated in major cities.

Funding sources and support organizations for SMEs

Currently, both the government and private sector have funding sources and support organizations for entrepreneurs, investors, and those interested in starting an SME in Thailand.

Funding sources for SMEs

• Personal assets and partners
  Entrepreneurs can use personal funds or raise capital from partners and investors. These include private equity or venture capital (VC) companies that focus on investing in businesses with high growth potential. This can help reduce SME debt burdens in exchange for shares of the company.
  
• Low-interest loans
  Low-interest loans for SMEs have interest rates lower than standard market loans to help improve business liquidity. They also have flexible conditions, such as not requiring collateral and offering extended repayment terms and grace periods.
  
• Microfinance loans
  Loans for people with low or irregular income—such as vendors, online shop owners, or freelancers—have a maximum loan amount of up to ฿100,000 per person. No collateral is required, but the interest rate is higher than regular loans.
  
• Online loans
  Entrepreneurs can apply for a loan through an application or website run by a financial institution licensed by the Ministry of Finance. These loans include those that use online sales for credit assessment and peer-to-peer (P2P) lending. It is also possible for SMEs and investors to borrow from each other through online platforms, without going through financial institutions.
  
• Other loans
  Thai financial institutions offer a variety of business loans for SMEs, such as working capital loans, business expansion loans, and factoring loans, among others.
  
• Financial support and grants
  Financial aid includes funds provided by the government or various organizations to entrepreneurs without the need for repayment. This can support SMEs in various areas, such as market expansion, technology development, research and development (R&D), and financial support during economic crises.
  

Fundraising and crowdfunding

For SMEs with high growth potential, raising capital through crowdfunding is an attractive option and can be divided into several types:

• Donation-based crowdfunding
  Sponsors provide money without expecting returns. This type is pure funding from donations for volunteer projects and corporate social responsibility (CSR), not direct business expansion for profit.
  
• Reward crowdfunding
  Supporters receive rewards—such as early product gifts, souvenirs, or special privileges—in exchange for nonequity or nondebt financial contributions.
  
• Equity-based crowdfunding
  This type involves raising funds by issuing bonds or promissory notes with repayment plus interest. Supporters receive rights to shares or profits in return. This is suitable for SMEs with high growth potential that need a large amount of capital.
  
• Debt-based crowdfunding
  Sponsors receive shares, portions of business revenue, or partial ownership rights. This is suitable for SMEs that need short-term working capital. The principle is similar to borrowing money, but the difference is that the loan comes from many people instead of a bank.
  

Support organizations for SMEs

The Office of SMEs Promotion (OSMEP)

OSMEP is a hub that promotes Thai SMEs and helps them access support from government and private sectors. The organization also helps SMEs access funding and provides advice about which projects are suitable for businesses. There are training programs and knowledge-sharing opportunities in organizational development, business, marketing, technology, digital transformation, productivity enhancement, and more.

SME Development Bank of Thailand (SME D Bank)

SME D Bank provides comprehensive financial services that cover enterprises in manufacturing, services, and wholesale-retail sectors. The bank provides assistance with the following:

• Finances: The bank provides SME loans for the establishment, operation, expansion, or improvement of businesses, in accordance with the Development Bank of Thailand Act B.E. 2545 (2002). It can also assist with debt restructuring and allow deferral of principal payments.
  
• Business management: The bank provides consulting services in accounting, finance, taxation, marketing, manufacturing, technology, and innovation.
  
• Digital tools: There are digital platforms for entrepreneurs, such as Business Health Check, e-learning, and Market Matching, among others.
  

Thai SME Fund

The Thai SME fund supports local and small-scale SMEs with the following:

• Low-interest loans: These can help increase liquidity or expand the business with low interest rates, such as 1% during the promotion period.
  
• Access to funding sources: The fund expands channels for SMEs to access funding more easily, such as by adjusting criteria and making it easier to apply for loans online.
  
• Enhancements to business potential: The fund supports the enhancement of business capabilities, such as investing in machinery, improving production systems, raising business standards, and helping SMEs increase their exports.
  
• Emergency assistance: The fund assists SMEs affected during financial crises by allowing them to defer debt payments and providing specific programs to support businesses with financial burdens.
  

Department of Business Development (DBD)

The DBD can help with business registration and help SMEs grow and develop in line with the digital era and increasing competition. The DBD provides training and information on digital marketing, brand modernization, and point-of-sale (POS) systems. It can also help connect SMEs to ecommerce platforms and expand business opportunities to international markets.

National Innovation Agency (NIA)

The NIA supports SMEs with overall improvements, including the following:

• Market expansion and network building: The agency helps connect SMEs with various networks, both domestic and international. This can help expand business opportunities, including entering foreign markets and expanding into regional markets.
  
• Intellectual property (IP) development: SMEs can participate in IP programs. The NIA—in collaboration with the World Intellectual Property Organization (WIPO)—provides free consultations on effectively managing IP.
  
• Promotion of national connections: The NIA plays a key role in creating a system connecting startups with the public and private sectors. 
  

Institute for the Development of SMEs (ISMED)

ISMED helps promote and develop the capabilities of SMEs for stable and sustainable growth. They offer the following services:

• Consulting and training: ISMED provides consulting on business improvement, marketing, and investment and conducts training in various formats to help businesses survive and grow.
  
• Research and data collection: The organization researches SMEs and gathers useful information to share with entrepreneurs that can be used to develop their businesses.
  
• Network creation: ISMED helps connect businesses and foster collaboration within the private sector to provide mutual assistance and support.
  
• Promotion of creative improvements: The organization encourages entrepreneurs to improve by using creativity and new technologies in their business operations.
  
• Certification of professional standards: ISMED certifies standards and develops the professional skills of personnel who provide services to SME entrepreneurs. This includes business consultants, coaches, and evaluators. They are certified by ISMED as having the knowledge and skills that meet professional criteria.
  

Thai Credit Guarantee Corporation (TCG)

The TCG is a state organization that helps SMEs access funding by acting as a loan guarantor to reduce collateral requirements. This can increase the confidence of financial institutions in providing loans.

Industry-specific organizations

Joining organizations in specific industries is highly beneficial for SMEs. For example, the Thailand Textile Institute helps promote the textile and garment industry, while the National Food Institute supports the food and food processing industry with market expansion and value creation.

Payment solutions for SMEs

It is important to choose a payment solution that aligns with the needs of an SME according to its size. This can enhance operational efficiency, reduce management costs, minimize redundant work, and increase customer satisfaction.

SMEs in Thailand often have different payment system needs depending on their sizes and types:

• Micro SMEs: Micro businesses often need a payment system that is easy to use and quick to install and start using without much technical knowledge. It should also be low cost to help reduce the burden for businesses in the early stages.
  
• Small SMEs: Small businesses need a payment system that supports multiple channels, making it convenient for diverse customers and enabling organized transaction management.
  
• Medium SMEs: Businesses of this size should look for solutions that can integrate with accounting or enterprise resource planning (ERP) systems. This can provide comprehensive management of automatic financial transaction recording, electronic invoicing, taxes, and revenue.
  

Stripe offers financial solutions that cater to the needs and operations of various types of Thai SMEs. This includes solutions for small businesses, focusing on easy-to-implement and fast payment methods. This also includes solutions for medium-sized businesses that require accuracy and comprehensive systems. These solutions can help Thai SMEs receive payments and steadily grow.

Stripe Checkout and Stripe Payment Links can help small businesses start accepting payments via credit and debit cards, PromptPay, and digital wallets within minutes. Entrepreneurs of medium-sized businesses can use the Stripe API to easily connect with accounting or ERP systems. They can also use the Stripe Dashboard to monitor real-time transactions. These solutions can help support quick and convenient e-invoice issuance and help Thai SMEs more effectively expand their businesses to international markets.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods and Link, a wallet built by Stripe.
  
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• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments or get started today.