The impact of finance on the performance of Thai manufacturing SMEs
Small and medium-sized enterprises (SMEs) are the lifeblood of the Thai economy, contributing significantly to social and economic development (Brimble et al. 2002). They accounted for 99.2% of business establishments and 79.1% of total employment between 2007 and 2013. SME production also represented 37.5% of gross domestic product (GDP) during the same period (Table 6.1). However, SME contribution to the country's GDP has gradually declined from 38.2% in 2007 to 37.4% in 2013. Thai manufacturing SMEs played a leading role in the economy, accounting for 19.6% of business establishments, 27.1% of total employment, and 11.6% of GDP from 2007 to 2013 (Table 6.1). SMEs also assist large enterprises in regional production networks, since they link all key units of industry and fill gaps in industrial clusters that may not be completed by large enterprises alone (Regnier 2000, Mephokee 2004). As suggested by Tapaneeyangkul (2001), SMEs are key sources of supply of goods, services, information, and knowledge for large enterprises, and play a pivotal role in the production process of export goods.