Small and Medium Enterprises in Distress : Thailand, the East Asian Crisis and Beyond

This title was first published in 2000: Since 1998, there have been many diagnoses, studies and theories attempting to explain the East Asian economic crisis and the impact on major economic and financial sectors. This text aims to fill a gap in the literature by examining the effects on small and medium-sized enterprises. From early 1998, unemployment figures in the region rose rapidly although large enterprises were not as yet engaged in corporate restructuring. Registered small and medium-sized enterprises (SMEs) and microenterprises were a major source of this unemployment, especially among unskilled and seasonal workers. This volume covers the debate in five ways. An introductory chapter presents an overview of the SME international experience both in OECD and developing economies. Part I looks at the economic and social contribution of SMEs in Thailand before and after the 1997-1998 crisis and Part II reviews government policy and SME promotion initiatives. Part III explores the assumption that local SMEs linked to large firms have been more resilient, while the concluding chapter suggests a range of policies which have been derived from experiences in places other than Thailand. Cover -- Title Page -- Copyright Page -- Table of Contents -- List of Tables -- Preface -- Acknowledgements -- List of Abbreviations -- INTRODUCTORY CHAPTER: DEVELOPMENT OF SMEs IN INTERNATIONAL THEORY AND PRACTICE -- SMEs through the Crisis in Thailand: A Brief Overview (1997-1999) -- Classical and More Recent Paradigms of SME Development in Developing Countries and Emerging Economies -- East Asian SMEs in Distress: The Coverage of the Debate and its Relevance for Thailand -- PART I SMALL ENTERPRISE DEVELOPMENT IN THAILAND AND THE IMPACT OF THE EAST ASIAN CRISIS -- CHAPTER 1: THAILAND, AN ENVIRONMENT CONDUCIVE TO ENTREPRENEURSHIP? -- Economic History and Profile of Local Entrepreneurship -- Small Entrepreneurship and Development of SMEs -- The Contribution of Thai SMEs before the East Asian Crisis -- CHAPTER 2: ABSENCE OF SME LEGISLATION AND LOOSE CLASSIFICATION OF SMEs -- Lack of SME Legal Definition until 2000 -- Towards a National Definition under the New SME Bill -- Registration and Taxation of SMEs: Red Tape and Malpractices -- Drafting an SME Master Plan (1999-2004) without Proper Data -- Exploring Alternative Sources of Information -- CHAPTER 3: THE EFFECTS OF THE EAST ASIAN CRISIS ON THAI SMEs (1997-1999) -- Collapse of Demand Preceding Credit Crunch -- Domestic Demand in Disarray -- SMEs Facing Credit and other Financial Difficulties -- SMEs Coping with Supply Constraints and Rising Input Costs -- SMEs in Distress: A Comparison with Large Enterprises (LEs) -- CHAPTER 4: SMEs FACING SURVIVAL AND COMPETITION CHALLENGES -- The Need to Create an SME Vulnerability/Resilience Index -- Competitiveness Recovery of the Thai Economy and the Possible Contribution of Thai SMEs -- PART II STRUCTURAL ADJUSTMENT UNDER THE INTERNATIONAL MONETARY FUND AND SME GOVERNMENT POLICY