Thailand Shifts SME Support Strategy to Boost Economic Growth
Thailand's OSMEP is shifting SME support from a one-size-fits-all approach to personalized strategies based on business size and industry, aiming to boost exports and help small businesses compete on quality rather than price.
The Office of Small and Medium Enterprises Promotion (OSMEP) has announced a shift in its SME development strategy, moving away from a uniform approach to one tailored by business size, industry, and lifecycle stage. Acting Director Panita Shinawatra explained that the new model uses deep data insights to align support with entrepreneurs' specific needs and potential, rather than applying identical measures to all business groups.
Data for 2025 shows SMEs generated 6.6 trillion baht in economic value, accounting for 34.83% of national GDP—nearly unchanged from 34.86% in 2024. However, this figure masks stronger underlying growth, as some SMEs that expand beyond the threshold and graduate to large-business status drop out of SME GDP calculations. When growth-stage enterprises are included, the SME share rises to 36.86% in 2025 and 37.37% in 2024, reflecting more robust expansion than headline numbers suggest. In the first six months of 2025, SME exports reached 894.4 billion baht, up 27.8% year-on-year.
Shinawatra emphasized that amid slower overall Thai economic growth, SMEs are a critical engine and must shift from price-based competition to competition on quality, design, standards, brands, and intellectual property. OSMEP will pursue three priorities going forward: use of data insights, coordination across agencies, and measurement based on real outcomes—tracking whether SMEs achieve higher income, productivity, market access, and genuine growth. The goal is to equip Thai SMEs to compete globally and drive national economic momentum.
