Venture capital fund for startups in key sectors

08 พฤศจิกายน 2559

Chiang Mai, agriculture & food, health & tourism SMEs all focus of new venture capital funding drive by government.

VENTURE CAPITAL & ENTREPRENEURSHIP

Venture capital fund for startups in key sectors

B60m budget aimed at small businesses
8/11/2016
Lamonphet Apisitniran

A new venture capital fund to support startups and small and medium-sized enterprises (SMEs) is one innovative new idea that the Industry Ministry is considering.

The venture capital fund would help startups and SMEs gain much-needed access to funding and help the Industry Ministry achieve its target of creating 4,000 new startups next year.

This is according to Pasu Loharjun, director-general of the Industry Promotion Department, also chairman of the Electrical and Electronics Institute talking yesterday at a meeting with senior officials chaired by the Industry Minister.

"A startup company... is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service... designed to rapidly develop a scalable business model. Often, startup companies deploy technologies, such as Internet, e-commerce, computers, telecommunications, or robotics" (from Wikipedia here)

FOCUS: CHIANG MAI, AGRICULTURE & FOOD, HEALTH & TOURISM

The government is aiming for SMEs to account for 50% of GDP or 8 trillion baht in 2020, up from the current 42% or 5.6 trillion baht.

The government will speed up measures for SMEs and startups to gain access to financial sources to enable them to set up or expand business, said Industry Minister Atchaka Sibunruang.

The ministry is focusing on three industry areas:

1. Agricultural technology and food technology (food processing, health food and organic food).

2. Health and wellness (medical equipment and products for the elderly) and

3. Service technology (tourism, and design and culture).

The initial focus will be on the North as Chiang Mai has many startups and SMEs with a high potential, according to the minister.

(Source: Wikipedia on Startup companies)

DEVELOPING KEY INDUSTRIES

Eleven independent organisations supervised by the Industry Ministry have been tasked with developing key industries.

They are the Electrical and Electronics Institute, the Thailand Textile Institute, the Thai-German Institute, the National Food Institute, the Thailand Productivity Institute, the Management System Certification Institute (Thailand), the Thailand Automotive Institute, the Institute for Small and Medium Enterprise Development, the Iron and Steel Institute of Thailand, the Plastics Institute of Thailand and the Construction Institute of Thailand.

MEASURES TO HELP STARTUPS & SMES

The government has implemented several measures to help startups and SMEs in a bid to make them a key engine to drive the domestic economy.

The measures include a soft loan scheme and marketing assistance as well as tax incentives.

The new venture capital fund will help startups pass through the toddler stage as well as assist SMEs that have potential but lack the funds to expand.

Despite the many measures targeted at startups and SMEs, the largest group among business operators still needs government support to stay alive during the fragile economic recovery.