Ms. Panita Shinawatra, Deputy Director and Acting Director of the Office of Small and Medium Enterprises Promotion (OSMEP), revealed an overview of the SME situation for 2025 and provided information on emerging and watchlist business groups during the “SME Symposium 2025” academic seminar. The event, themed “Smart Firm Smart Move: Stepping into the Future with Technology, Transforming Thai SMEs into the Digital World,” was held for the fourth consecutive year. This year’s focus is to encourage SMEs to adopt more technology and digital tools to strengthen their competitiveness.
Currently, SMEs remain a key driver of Thailand's economy. In 2024, there were 3,255,957 SME operators, accounting for 99.5% of all operators, an increase of 0.9% from the previous year. Microbusinesses constitute the largest segment, making up 84%, up 0.4%. By sector, most SMEs are in trade, followed by services and manufacturing. SMEs employ 13.4 million people, representing 68.8% of total employment, with services employing the largest share at 44.8%.
OSMEP also reported that SME GDP in the first three quarters of 2025 was 4.8 trillion baht, representing 34.8% of the national GDP, growing 2.4% compared to the same period last year. The services sector contributed the most to SME GDP at 1.9 trillion baht. OSMEP forecasts SME GDP growth of 2.5% for 2025, with projected expansion between 2.0% and 2.8% in 2026, supported by exports, spending stimulus measures, tourism income, and low inflation helping contain costs. Risks include high household debt, influx of foreign goods, and natural disasters.
Regarding international trade in the first 10 months of 2025, SMEs had exports valued at 1,329,783 million baht, accounting for 14.3% of total exports. Key export products include gems and jewelry, machinery, computers and equipment, and electrical appliances and components. The top export market for SMEs is the United States, representing 20.1% of SME export value. Imports by SMEs totaled 1,645,492 million baht, or 17.2% of total imports. Important imports include machinery, computers and equipment, electrical appliances and components, and gems and jewelry. China is the primary source for SME imports, accounting for 46.4% of total SME import value.
Additionally, OSMEP disclosed data on rising and watchlist business groups for 2025, analyzing average gross profit growth and grouping businesses by similar industry activities. Rising business groups, with average gross profit growth over 100%, have grown substantially due to economic factors and changing consumer behavior, including:
Logistics-related businesses have grown due to the expansion of online trade and lifestyle changes that increased demand for transportation services and related support (SME GDP value totaling 160,877 million baht, average gross profit growth +500%).
ARTWORK design, including layout, product, and service design prior to communication or production to meet customer needs (SME GDP value totaling 28,498 million baht, average gross profit growth +430%).
Seafood production: a major manufacturing sector for domestic consumption and export (SME GDP value totaling 25,600 million baht, average gross profit growth +721%).
Metal furniture, shifting to more durable and cost-effective products (SME GDP value totaling 19,034 million baht, average gross profit growth +110%).
Video games and software are also rising sectors, aligned with younger generations’ focus on creativity, entertainment, and sustainable use (SME GDP value totaling 11,015 million baht, average gross profit growth +191%).
Machinery, equipment, and agricultural appliances support adaptation to modern agriculture amid an aging society (SME GDP value totaling 3,018 million baht, average gross profit growth +832%).
Elderly care businesses are growing as Thailand fully enters an aging society (SME GDP value totaling 901 million baht, average gross profit growth +241%).
Conversely, watchlist business groups, with average gross profit declines over 50%, face challenges from intense competition and technological changes. For example, cosmetic sales face stiff competition from both sellers and producers, as consumers increasingly buy directly online from foreign manufacturers and sellers (SME GDP value totaling 22,173 million baht, average gross profit decline -50%).
Used car sales have been impacted by the transition to electric vehicles and new car price adjustments (SME GDP value totaling 13,390 million baht, average gross profit decline -97%).
Rubber products face heavy competition, especially from imports (SME GDP value totaling 10,454 million baht, average gross profit decline -76%).
Student housing has been affected by hybrid learning models and increased demand for more modern, independent accommodations (SME GDP value totaling 1,014 million baht, average gross profit decline -165%).
Amid both domestic and external competition affecting SME survival, SMEs must adjust strategies to increase total factor productivity (TFP). Historically, SME TFP has been declining, with 2024 showing a negative 0.27, indicating Thai SMEs use the same or more capital and labor but produce less output. This is due to economic stagnation, shrinking orders, and difficulties accessing capital for technological upgrades. Businesses that invest or have invested in technology can still improve TFP. Therefore, technology and digitalization are crucial to enhancing SME productivity. Business groups maintaining positive TFP are those employing high skills and advanced technology, such as the non-metallic mineral products group with TFP +17.61% (using high-efficiency machinery) and paper manufacturing. Groups relying on experience rather than heavy technology investment, like arts and entertainment, also sustain positive TFP at +6.83%. This shows that SME opportunities and survival depend not only on funding but on selecting appropriate technology to "upgrade production productivity." Thus, adopting technology or digital tools is not optional but essential for sustainable business competitiveness.
The event also featured a special lecture titled “Driving the Thai Economy in a Transition Era - Opportunities, Challenges, and Survival Strategies for SMEs,” with Dr. Benjarong Suwankiri, Assistant Minister of Finance, presenting development and upgrading strategies for Thai SMEs going forward. A panel discussion shared experiences from entrepreneurs who have applied technology in their businesses under the theme “Smart Firm Smart Move: Stepping into the Future with Technology, Transforming Thai SMEs into the Digital World.” Speakers included Dr. Napath Chatusripitak, founder of the NuaNose inhaler brand, who started using AI to analyze consumer behavior; Mr. Natthawut Chanruang, a new-generation agricultural entrepreneur from JR Farm, who uses technology to improve product quality, reduce labor, and cut costs; Mr. Rangsarn Promprasit, CEO of QQ (Thailand), who developed a technology-based queue management system for Thais; and Mr. Sansin Sripiromrak, founder of DISTAR FRESH Farm, producing food using new closed-system plant production technology controlled by modern technology.
As the agency responsible for promoting and supporting SMEs, OSMEP is ready to drive SME growth through various projects encouraging systematic technology adoption in business operations. For example, SME Academy365 develops digital skills and entrepreneurial knowledge, offering courses from basic to advanced levels, such as proactive marketing via digital media and business management with modern digital tools. For SMEs seeking business transformation, the program provides expert coaches and advisors as partners throughout online marketing, platform communication, strategy development, and big data system enhancement for medium-sized businesses. Additionally, OSMEP supports technology investment through the BDS program, which offers co-payment subsidies covering 50–80% of costs for systems like point-of-sale management, invoicing, and ERP inventory management. Additional benefits include sales boosts through Google Ads and Facebook/IG advertising. Entrepreneurs can access all SME services in one place via the “SME Connext” application by registering with SME One ID.
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