The Current Success Factors for Small and Medium Enterprises in Thailand - Case Study Example

The survey of most recent studies examines studies useful for our purpose more closely that have taken place over the past three years. Two particular studies, one by Vichitdhanabadee et al. (2009) and the other by Thassanabanjong et al. (2009) are used to provide some demographic details and other features of Thai SMEs and identify specific factors that could lead to their success. Finally, we consider why there is a need for conducting further research into this area. Important seminal works on SMEs include Madsen & Servais (1997), which examined the rise of global SMEs, Tiessen et al. (2001), which examined the new challenges posed by globalization and e-commerce, and Li & Tan (2004), which examined the business growth models of SMEs.

Probably the greatest challenge facing SMEs in general however is that they typically have inadequate access to sources of finance, which puts them at a great disadvantage (Fernandez & Neto, 2005). This single factor came across the most in this literature review. It severely limits their resources and the scope of activities they can engage in and therefore their future prospects. Thassanabanjong et al. (2009) highlighted the additional problem of lack of training in SMEs, as a result of investing little time and money.

This is especially acute in smaller family-owned SMEs (De Lema & Durendez, 2007). The approach to Human Resource Management (HRM) in Eastern SMEs, in general, is usually much more informal than in the West (Forth et al., 2006). Kotey (2005) noted the same for management practices in SMEs in general; that they tend to be “informal, unstructured and seldom focus on strategic planning, procedures and policies.” On the other hand, as Phusavat (2007) showed, it is usually sufficient for SMEs to implement a simple system of management due to their limited financial and other resources.

Size, therefore, is no doubt a factor, as smaller enterprises do not usually need to have cumbersome resources. Li & Tan’s (2004) recognized the difficulty of SMEs in transforming themselves into larger enterprises.