THE STRATEGIC ACCESS TO THE CAPITAL FOR SMALL AND MEDIUM ENTERPRISES IN BANGKOK

Abstract

The objectives of the research were 1) to study the key factors to access the financing of SMEs entrepreneurs 2) to study the government’s SMEs policy to support the financing of SMEs entrepreneurs and 3) to develop the strategies of accessing the financing of SMEs entrepreneurs. The scope of the research was limited to SMEs entrepreneurs in Bangkok area. In terms of population and samples, there were the key informants conducted in the qualitative research for in-depth interviews including 1) SMEs entrepreneurs 2) loan and credit executives of the commercial banks and 3) the specialists and the scholars, with a total of 9 persons. The quantitative research was derived from Stratified Random Sampling and a sample size of 400 people, who were from the 3 sampling groups of small, medium and large entrepreneurs. The methodology used was mixed method research techniques by combining the qualitative research that was a key involvement and supplementing with quantitative research in order to analyze all the problems and obstacles, including the strategies to access the financing for SME entrepreneurs. The researcher found and recommended the 3 aspects of finding that SMEs had to improve the management within organization intensively, including their finance and accounting system. Those entrepreneurs would have to start dealing with financial institutions to create their reliability in the future and to organize financial disciplines for preventing the misuse of financing or funding in running their business. In other words, commercial banks should improve loan and credit process faster and respond to government schemes to subsidize SMEs entrepreneurs, arrange the financial and accounting training for having a correct understanding and being able to have easier access to financing. In relation to government sector, there were government agencies such as SMEs Bank that directly provides financing or funding to SMEs entrepreneurs. However, most small sized entrepreneurs did not receive the financing from the bank; in practice, the bank would consider financing to SMEs that were already strong. The reason for this would be caused by the bank executives’ fear of bad debt and being blamed. Therefore, SMEs Bank mostly supported the medium and large sized entrepreneurs.