Entrepreneur Index claims Thailand remains buoyant
A recent survey conducted by the Entrepreneurs’ Oragnisation (EO) for what it calls its Global Entrepreneur Indicator saw its Thailand respondents unanimously buoyant about the current and future strength of business in the kingdom.
The Thai entrepreneurs were able to be so optimistic with regard to the short and even the longer term future of doing business in the country because their access to capital had either increased or, at the very worst, remained the same in the first six months of 2012.
In fact, the positive outlook for entrepreneurial business across the 2,200 subjects who were quizzed for this survey was 90 percent positive. Of the Thais surveyed, around 78 percent suggested they were willing to start or engage in a new enterprise during 2012.
The president of the Thailand chapter of EO, Jakkrit Sirikkantraporn, claimed the positive results from his members reflected their ‘resilience’. He noted how Thailand’s economy has been growing despite the GFC and the Eurozone Monetary Crisis and their ongoing effects and the slowing of Thai exports.
As noted elsewhere, domestic consumption is very strong and demand and investment have helped fuel the internal economic combustion engine, thereby cushioning Thailand from the worst influences of the outside world.
Local entrepreneurs clearly think this situation is going to be sustainable for some time to come. According to the survey, 60 percent of interviewees said they had seen growth in net profit in the first six months of this year and expected to do even better in the second half.
Half of the respondents suggested they would be taking on more employees in coming months.
In almost all categories, the Thailand chapter members were usually quite significantly above the overall average for the survey.
The Entrepreneurs’ Organisation is a non-profit body formerly known and the Young Entrepreneurs’ Organisation. It was created in 1987 and originally its members had to be aged 40 or younger.
The Global Entrepreneur Indicator was only introduced in 2010. In order to participate, every respondent has to be the founder of a business with at least US$1 million (31 million baht) in annual revenues.
In the most recent survey the average number of employees at the respondents company was 192 and the average annual revenue was US$18.3 million (approximately 567 million baht).
Considering the above averages it is perhaps intriguing to note the buoyancy of the Thai entrepreneurs given the myriad of doomsayers decrying the rise in the minimum daily wage during the same period.
It may well be that most of the EO members are businesspeople who hire staff at top wage rates in the knowledge that by engaging the best they can must surely lead to greater long-term profitability.