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close this bookNeeds and Characteristics of a Sample of Micro and Small Enterprises in Thailand - Working Paper N5 - Micro and Small Enterprise Development and Poverty Alleviation in Thailand - Project ILO/UNDP: THA/99/003 (ILO-ISEP - ILO - UNDP, 1999, 102 p.)
close this folderAnnexes
View the documentAnnex I: Tables 2 - 31
View the documentAnnex II: Figures 1 to 9
View the documentAnnex III: List of enterprises surveyed
View the documentAnnex IV: ILO Recommendation concerning General Conditions to Stimulate Job Creation in Small and Medium-sized Enterprises, 1998 (No. 189)

Annex I: Tables 2 - 31

Table 2. General Information on Entrepreneurs - the Bangkok Survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Number:

17

6

4

18

10

32

55

18

3

1

22

77

Sex:












Female

15

5

3

12

5

20

40

7

-

-

7

47

Male

2

1

1

6

5

12

15

11

3

1

15

30


17

6

4

18

10

32

55

18

3

1

22

77

Age:













20-30

2

1

1

1

-

2

5

2

-

2

7

31-40

6

2

3

12

3

18

26

6

2

1

7

33

41-50

5

-

-

4

3

7

12

5


-

7

19

51-60

2

3

-

1

1

2

7

2

1

-

3

10

>60

2

-

-

-

3

3

5

3

-

-

3

8


17

6

4

18

10

32

55

18

3

1

22

77

Education:



Elementary

13

3

-

6

5

11

27

6

1

-

7

34

High school

3

3

1

5

3

9

15

3

1

-

4

19

Vocational

-

-

-

-

-

-

-

5


-

5

5

University

1

-

3

7

2

12

13

4

1

1

6

19

17

6

4

18

10

32

55

18

3

1

22

77

Table 3. General Information on Type of Business - the Bangkok Survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Manufacturing

17

6

4

-


4

27

18

-

-

18

45

Products:



Food

8

2

1

-


1

11

-

-

-

-

11

Garments/Cloths

3

2

1

-


1

6

4

-

-

4

10

Herbal shampoo and insect repellent

2

1

-

-


-

3

-

-

-

-

3

Flower garlands

2

-

-

-


-

2

-

-

-

-

2

Funeral flowers

2

-

-

-


-

2

-

-

-

-

2

Brassware

-

1

-

-


-

1

-

-

-

-

1

Picture Frames

-

-

2

-


2

2

1

-

-

1

3

Shoes

-

-

-

-


-

-

2

-

-

2

2

Wooden furniture

-

-

-

-


-

-

3

-

-

3

3

Keys

-

-

-

-


-

-

1

-

-

1

1

Shades

-

-

-

-


-

-

1

-

-

1

1

Beds (steel)

-

-

-

-


-

-

1

-

-

1

1

Water ducts

-

-

-

-


-

-

1

-

-

1

1

Screens

-

-

-

-


-

-

1

-

-

1

1

Graphite rods

-

-

-

-


-

-

1

-

-

1

1

Oxygen

-

-

-

-


-

-

1

-

-

1

1

Ovens

-

-

-

-


-

-

11

-

-

1

1

Trading

-

-

-

-

10

10

10

-

-

1


11

Newspapers & books

-

-

-

-

4

4

4

-

-

-


4

Shoes

-

-

-

-

2

2

2

-

-

-


2

Kitchenware

-

-

-

-

1

1

1

-

-

-


1

Tyres

-

-

-

-

1

1

1

-

-

-


1

Fish Tank & Accessories

-

-

-

-

1

1

1

-

-

-


1

Stationery

-

-

-

-

1

1

1

-

-

-


1

Water quality testing equipment

-

-

-

-


-

-

-


1


1

Services

-

-

-

18

-

18

18

-

3

-

3

21

Laundry

-

-

-

4

-

4

4

-

-

-

-

4

Barber

-

-

-

3

-

3

3

-

-

-

-

3

Beauty salon

-

-

-

2

-

2

2

-

-

-

-

2

Flowers

-

-

-

2

-

2

2

-

-

-

-

2

Silk screen

-

-

-

1

-

1

1

-

-

-

-

1

Bicycle repair

-

-

-

1

-

1

1

-

-

-

-

1

Muffler

-

-

-

1

-

1

1

-

1

-

1

2

Driving lessons

-

-

-

1

-

1

1

-

-

-

-

1

Xerox copying

-

-

-

1

-

1

1

-

-

-

-

1

Import/export

-

-

-

1

-

1

1

-

-

-

-

1

Environmental consultant

-

-

-

-

-

-

-

-

1

-

1

1

Computer system analyst

-

-

-

1

-

1

1

-

-

-

-

1

Installing aluminum frames

-

-

-

-

-

-

-

1

-

1

1

Grand total

17

6

4

18

10

32

55

18

3

1

22

77

Table 4. General Information on Number of Workers - the Bangkok Survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


1-5

7

3

4

15

7

26

36

2

-

2

38

6-10

9

1

2

3

5

15

9

2

-

11

26

11-20

-

-

-

1

-

1

1

3

-

1

4

5

21-50

-

1

-

-

-

-

1

4

1


5

6

>50

1

1

-

-

-

-

2

-

-

-

-

2

17

6

4

18

10

32

55

18

3

1

22

77

Table 5. Value of assets and premises ownership of MSEs - the Bangkok survey

Value of assets (Baht)

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


<10,000

2

2

-

1

1

2

6

-

-

-

-

6

10,000-30,000

12

-

-

4

3

7

19

-

-

-

-

19

30,001-50,000

2

1

1

-

1

2

5

1

-

-

1

6

50,001-100,000

1

-

2

4

1

7

8

3

-

-

3

11

100,001-200,000

-

1

1

3

2

6

7

2

-

-

2

9

200,001-500,000

-

1

-

2

1

3

4

1

2

-

3

7

500,001-1,000,000

-

1

-

3

-

3

4

7

-

-

7

11

1,000,001-5,000,000

-

-

-

1

1

2

2

3

-

1

4

6

5,000,001-10,000,000

-

-

-

-

-

-

-

-

-

-

-

-

10,000,001-20,000,000

-

-

-

-

-

-

-

1

-

1

1

>20,000,000

-

-

-

-

-

-

-

1

-

-

1

1

17

6

4

18

10

32

55

18

3

1

22

77

Own premises

.

-

1

3

2

6

6

11

1

1

13

19

Rent premises

-

-

3

15

8

26

26

7

2

-

9

35

-

-

4

18

10

32

32

18

3

1

22

54

Table 6. Commercial registration of MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


No Registration

16

4

2

3

3

8

28

2

-

-

2

30

Registered

1

2

2

15

7

24

27

16

3

1

20

47

17

6

4

18

10

32

55

18

3

1

22

77

To be legal

1

1

2

14

7

23

25

16

3

1

20

45

Forced

-

1

-

1

-

1

2

-

-

-

-

2

1

2

2

15

7

24

27

16

3

1

20

47

Easy

1

1

2

9

6

17

19

7

_

1

8

27

Complicated

-

-

-

4

-

4

4

2

1

-

3

7

Moderate

-

1

-

2

1

3

4

7

2

-

9

13

1

2

2

15

7

24

27

16

3

1

20

47

Table 7. Source of Investment and Years of Establishment of MSEs - the Bangkok Survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Own investment only

-

2

3

17

9

29

31

7

1

-

8

39

Loan from government

17

1

-

-

-

-

18

-

-

-

-

18

Loan from cooperatives

-

2

-

-

-

-

2

-

-

-

-

2

Loan from bank

-

1

-

-

1

1

2

11

2

1

14

16

Loan from friends & relatives

-

-

1

1

-

2

2

-

-

-

-

2

Loan from money lender

-

-

-

-

-

-

-

-

-

-

-

17

6

4

18

10

32

55

18

3

1

22

77

Years of establishment

<1 year

13

1

1

6

1

8

22

1

-

-

1

23

1-2 years

3

1

1

-

1

2

6

1

-

-

1

7

3-5 years

-

2

1

6

-

7

9

1

-

-

1

10

5-10 years

1

2

-

3

3

6

9

4

1

1

6

15

>10 years

-

-

1

3

5

9

9

11

2

-

13

22


17

6

4

18

10

32

55

18

3

1

22

77

Table 8. Difficulties in starting-up of MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


No difficulties

9

3

2

7

6

15

27

6

6

33

Difficulties with funding

11

2

1

7

4

12

25

10

2

1

13

38

Difficulties in finding Location

11

3

1

9

4

14

28

5

-

5

33

Difficulties in finding skilled workers

4

1

-

1

-

1

6

4

2

6

12

(More than one factor)

35

9

4

24

14

42

86

25

4

1

30

116

Table 9. The Technology aspect of MSEs - Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Satisfied with present technology

11

4

2

9

7

18

33

10

-

-

10

43

Not satisfied because of:

6

2

2

9

3

14

22

8

3

1

12

34

Old Equipment

5

2

2

4

3!

9

16

6

3

-

9

25

Inadequate Premises

3

1

1

5

2

8

12

2

1

-

3

15

Poor Raw Materials

1

1

1

3

3

7

9

3

1

-

4

13

Lack of Information

2

-

-

2

2

4

6

5

2

1

8

14

11

4

4

14

10

28

43

16

7

1

24

67

Are workers’ skills adequate

Yes

12

1

3

12

9

24

37

9

1

-

10

47

No

5

5

1

6

1

8

18

9

2

1

12

30

17

6

4

18

10

32

55

18

3

1

22

77

Can be improved by better




Equipment

11

4

1

2

2

5

20

6

2

-

8

28

Technology

6

1

1

3

2

6

13

2

2

1

5

18

Premises

16

1

1

5

1

7

24

1

-

-

1

25

Skills Development

8

3

2

9

2

13

24

10

2

1

13

37

Raw Materials

6

-

1

2

3!

6

12

6

1

-

7

19

Product Design

-

1

1

-

-’

1

2

4

-

-

4

6

47

10

7

21

10

38

95

29

7

2

38

133

Table 10. The Marketing aspect of MSEs - the monthly sales - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Sales per month (Baht)


NA

4

1

-

5

1

6

11

2

1

-

3

14

<2,000

2

-

-

-

-

-

2

-

-

-

-

2

2,001-4,000

3

2

-

2

1

3

8

-

-

-

-

8

4,001-8,000

5

2

1

2

2

5

12

-

-

-

-

12

8,001-20,000

2

-

-

5

2

7

9

1

-

-

1

10

20,001-50,000

-

-

1

-

2

3

3

7

1

-

8

11

50,001-100,000

1

-

2

2

2

6

7

4

-

-

4

11

100,000-200,000

-

-

-

-

-

-

-

2

-

-

2

2

200,001-500,000

-

1

-

1

-

1

2

-

-

-

-

2

500,001-1,000,000

-

-

-

-

-

-

-

-

-

1

1

1

1,000,001-2,000,000

-

-

-

-

-

-

-

-

-

-

-

2,000,001-5,000,000

-

-

-

1

-

1

1

1

1

-

2

3

>5,000,000

-

-

-

-

-

-

-

1

-

-

1

1


17

6

4

18

10

32

55

18

3

1

22

77

Table 11. The Marketing aspect of MSEs - the market and adequacy of income - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Market

Nearby only

5

4

2

10

7

19

28

-

-

-

-

28

Nearby and Bangkok

11

2

2

6

3

11

24

15

3

-

18

42

Bangkok and provinces

1

-

-

2

-

2

3

-

-

1

1

4

Thailand and exports

-

-

-

-

-

-

-

3

-

-

3

3

17

6

4

18

10

32

55

18

3

1

22

77

Business income adequate?

Yes

7

3

3

14

7

24

34

10

2

-

12

46

No

10

3

1

4

3

8

21

8

1

1

10

31

17

6

4

18

10

32

55

18

3

1

22

77

Table 12. The Financial aspect of MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Finance received from

-

Bank

-

1

1

2

1

4

5

11

2

1

14

19

Obtaining bank finance easy

-

-

1

2

-

3

3

-

-

-

-

3

Obtaining bank finance complicated

-

-

-

-

1

1

1

-

-

-

-

1

Supplier

-

-

1

2

3

6

6

-

-

-

-

6

Friends & Relatives

-

-

1

3

1

5

5

-

-

-

-

5

Cooperatives

-

-

-

1

-

1

1

-

-

-

-

1

None

17

5

1

11

6

18

40

7

1

-

8

48


17

6

4

19

11

34

57

18

3

1

22

79

Table 13. The legal aspect of MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Legal Constraints on business

-

None

15

6

3

15

9

27

48

18

3

1

22

70

Tax

1

-

1

2

1

4

5

-

-

-

-

5

Food & drugs regulation

1

-

-

-

-

-

1

-

-

-

-

1

Patent law

-

-

-

1

-

1

1

-

-

-

-

1

17

6

4

18

10

32

55

18

3

1

22

77

Regulations helpful to business

-

None

16

6

2

14

7

23

45

17

3

1

21

66

Tax reduction

1

-

2

4

3

9

10

1

-

-

1

11

17

6

4

18

10

32

55

18

3

1

22

77

Table 14. Assistance (BDS) to MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises








DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

All ME

M/f.

Services

Trading

All SE


Assistance Received


None

7

2

1

13

10

24

33

15

3

-

18

51

Skills development

1

1

1

1

-

2

4

1

-

-

1

5

(Supplier)

(Supplier)

-

-

(Fed Thai Ind.)

-

-

Information

2

1

2

4

-

6

9

-

-

1

1

10

(Friend/Customer)

(Assoc./ Supplier)

-

-

(Supplier)

-

-

Fairs occasionally

12

1

-

-

-

-

13

-

-

-

-

13

Marketing & information

-

4

-

-

-

-

4

2

-

-

2

6

(Friend/Customer)

22

9

4

18

10

32

63

18

3

1

22

85

Assistance Desired:
(including financial)













None

4

2

2

10

10

22

28

13

3

-

16

44

Marketing

10

4

2

4

-

6

20

4

-

-

4

24

Financial

8

1

-

1

2

3

12

2

1

-

3

15

Skills development

1

-

-

3

-

3

4

-

-

-

-

4

R&D, product development

1

2

-

-

-

-

3

-

-

1

1

4

Supplier

-

-

-

-

-

-

-

1

-

-

1

1

Information

-

-

-

1

-

1

1

-

-

-

-

1

Premises

1

-

-

-

-

-

1

-

-

-

-

1

25

9

4

19

12

35

69

20

4

1

25

94

Table 15. Associations of MSEs - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


None

-

-

4

17

10

31

31

18

2

1

21

52

Presently member of business association

-

-

-

1

-

1

1

-

1

-

1

2

Member of co-op or women group

17

6

-

-

-

-

23

-

-

-

-

23

17

6

4

18

10

32

55

18

3

1

22

77

Would association be useful?

Yes

13

3

2

6

1

9

25

-

-

-

-

25

No

1

1

1

6

4

11

13

16

2

1

19

32

Don’t know

3

2

1

6

5

12

17

2

1

-

3

20

17

6

4

18

10

32

55

18

3

1

22

77

What kind of association?

Larger cooperatives

8

3

-

1

1

2

13

-

-

-

-

13

Association of same business

5

-

2

5

-

7

12

-

-

-

-

12

(More than single counting)

13

3

2

6

1

9

25

-

-

-

-

25

Table 16. On entrepreneurship and business prospect - the Bangkok survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

UCDO(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Will quit if can get steady job?

Yes

5

-

-

3

5

8

13

1

1

-

2

15

No

12

6

4

15

5

24

42

17

2

1

20

62

17

6

4

18

10

32

55

18

3

1

22

77

Will advice others for?

Yes

12

6

3

16

5

24

42

16

1

1

18

60

No

5

-

1

2

5

8

13

2

2

4

17

17

6

4

18

10

32

55

18

3

1

22

77

Business potential:

Questionable

2

2

-

-

2

2

6

1

1

-

2

8

Struggling

7

2

-

6

5

11

20

4

1

-

5

25

Sustainable

5

2

3

9

3

15

22

6

-

-

6

28

Good potential

3

-

1

3

-

4

7

7

1

1

9

16

17

6

4

18

10

32

55

18

3

1

22

77

Table 17. General information on entrepreneurs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Number:

1

6

2

2

3

7

14

11

2

-

13

27

Sex:

Female

1

6

1

2

-

3

10

5

-

-

5

15

Male

-

-

1

-

3

4

4

6

2

-

8

12

Total

1

6

2

2

3

7

14

11

2

-

13

27

Age:

20-30

-

-

1

-

-

1

1

1

-

-

1

2

31-40

1

2

1

1

1

3

6

6

1

-

7

13

41-50

-

.1

-

1

2

3

6

2

1

-

3

9

51-60

-

1

-

-

-

-

1

2

-

-

2

3

>60

-

-

-

-

-

-

-

-

-

-

-

-

Total

1

6

2

2

3

7

14

11

2

-

13

27

Education:

Elementary

1

3

1

-

-

1

5

3

-

-

3

8

High School

-

1

1

-

2

3

4

4

1

-

5

9

Vocational

-

2

-

2

-

2

4

2

1

-

3

7

University

-

-

-

-

1

1

1

2

-

-

2

3

Total

1

6

2

2

3

7

14

11

2

-

13

27

Table 18. General information on type of business - Phetchaburi

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Manufacturing

1

6

2

-

-

2

9

11

11

20

Food

1

3

-

-

-

-

4

3

-

-

3

7

Garments/cloths

-

2

-

-

-

-

2

-

-

-

-

2

Funeral flower

-

1

-

-

-

-

1

-

-

-

-

1

Palmwood ware

-

-

1

-

-

-

-

-

-

-

-

Sticker

-

-

1

-

-

-

-

-

-

-

-

Metal works

-

-

-

-

-

-

-

2

-

-

-

Truck/trailer body

-

-

-

-

-

-

-

2

-

-

-

Wooden door/window panel

-

-

-

-

-

-

-

3

-

-

-

Plastic shipping tray

-

-

-

-

-

-

-

1

-

-

-

Trading

-

-

-

-

3

3

3

-

-

-

-

3

Tire

-

-

-

-

1

1

1

-

-

-

-

1

Car audio

-

-

-

-

1

1

1

-

-

-

-

1

Alternator

-

-

-

-

1

1

1

-

-

-

-

1

Services

-

-

-

2

-

2

2

-

2

-

2

4

Laundry

-

-

-

1

-

1

1

-

-

-

-

1

Beautician school

-

-

-

1

-

1

1

-

-

-

-

1

Body shop

-

-

-

-

-

-

-

-

1

-

1

1

Tractor repair

-

-

-

-

-

-

-

-

1

-

1

1

1

6

2

2

3

7

14

11

2

13

27

Table 19. General information on number of workers Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Number of workers

1-5

-

4

1

2

3

6

10

-

-

-

-

10

6-10

1

1

1

-

-

1

3

4

-

-

4

7

11-20

-

-

-

-

-

-

-

2

2

-

4

4

21-50

-

1

-

-

-

-

1

3

-

-

3

4

>50

-

-

-

-

-

-

-

2

-

-

2

2

Total

1

6

2

2

3

7

14

11

2

-

13

27

Table 20. Value of assets and premises ownership of MSEs Phetchaburi

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Asset valve

< 10,000

-

-

-

-

-

-

-

-

-

-

-

-

10,000-30,000

-

3

-

-

-

-

3

1

-

-

1

4

30,001-50,000

1

1

-

-

-

-

2

-

-

-

-

2

50,001-100,000

-

-

-

1

1

2

2

1

-

-

1

3

100,001-200,000

-

1

2

-

-

2

3

-

-

-

-

3

200,001-500,000

-

1

-

-

-

-

1

3

-

-

3

4

500,001-1,000,000

-

-

-

-

1

1

1

-

-

-

-

1

1,000,001-5,000,000

-

-

-

1

1

2

2

2

1

-

3

5

5,000,001-10,000,000

-

-

-

-

-

-

-

2

1

-

3

3

10,000,001-20,000,000

-

-

-

-

-

-

-

1

-

-

1

1

>20,000,000

-

-

-

-

-

-

-

1

-

-

1

1

1

6

2

2

3

7

14

11

2

-

13

27

Own premises

-

-

1

1

2

3

4

10

1

-

11

15

Rent premises

-

-

1

1

8

-

10

1

1

-

2

12

-

-

2

2

10

3

14

11

2

-

13

27

Table 21. Commercial registration of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Registration status

No Registration

1

4

2

2

-

4

9

-

-

-

-

9

Registered

-

2

-

-

3

3

5

11

2

-

13

18

1

6

2

2

3

7

14

11

2

-

13

27

Reason for registering

To be legal

-

2

-

-

3

3

5

11

2

-

13

18

Forced

-

-

-

-

-

-

-

-

-

-

-

-

2

-

-

3

3

5

11

2

-

13

18

Ease of registration

Easy

-

2

-

-

-

-

2

6

2

-

8

10

Complicated

-

-

-

-

-

-

-

1

-

-

1

1

Moderate

-

-

-

-

3

3

3

4

-

-

4

7

-

2

-

-

3

3

5

11

2

-

13

18

Table 22. Source of investment and years of establishment of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Own investment only

-

-

2

1

1

4

4

6

1

-

7

11

Loan from government

1

6

-

-

-

-

7

-

-

-

-

7

Loan from cooperatives

-

-

-

-

-

-

-

-

-

-

-

-

Loan from bank

-

-

-

1

2

3

3

5

1

-

6

9

Loan from friends & relatives

-

-

-

-

-

-

-

-

-

-

-

-

Loan from money lender

-

-

-

-

-

-

-

-

-

-

-

-

1

6

2

2

3

7

14

11

2

-

13

27

Years of establishment

<1 year

-

-

-

-

-

-

-

1

-

-

1

1

1-2 years

1

-

-

-

-

-

1

-

-

-

-

1

3-5 years

-

3

1

2

1

4

7

1

1

-

2

9

5-10 years

-

2

-

-

-

-

2

3

1

-

4

6

>10 years

-

1

1

-

2

3

4

6

-

-

6

10

1

6

2

2

3

7

14

11

2

-

13

27

Table 23. Difficulties in starting-up of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


No difficulties

-

2

1

1

-

2

4

2

1

-

3

7

Difficulties with funding

1

2

-

-

1

1

4

3

1

1

5

9

Difficulties in finding location

-

-

-

-

-

-

-

2

-

-

2

2

Difficulties in finding market

-

2

1

-

2

3

5

-

-

-

-

5

Difficulties in finding skilled workers

-

1

-

1

1

2

3

5

-

-

5

8

(More than single counting)

-

7

2

2

4

8

15

12

2

1

15

31

Table 24. Technology aspect of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Satisfied with present technology

-

5

-

2

3

5

10

7

2

-

9

19

Not satisfied because of:

1

1

2

-

-

2

4

4

-

-

4

8

Old equipment

1

1

2

-

-

2

4

2

-

-

2

6

Inadequate premises

-

-

-

-

-

-

-

-

-

-

-

-

Poor raw materials

-

-

-

-

-

-

-

1

-

-

1

1

Lack of information

-

-

-

-

-

-

-

1

-

-

1

1

1

1

2

-

-

2

4

4

-

-

4

8

Are workers skills adequate

Yes

1

5

2

2

2

6

12

10

2

-

12

24

No

-

1

-

-

1

1

2

1

-

-

1

3

Total

1

6

2

2

3

7

14

11

2

-

13

27

Can be improved by better

Equipment

1

1

1

-

-

1

3

-

-

-

-

3

Technology

-

-

-

-

-

-

-

-

-

-

-

-

Premises

-

-

-

-

-

-

-

-

-

-

-

-

Skills development

-

-

-

-

-

-

-

-

-

-

-

-

Raw materials

-

-

-

-

-

-

-

-

-

-

-

-

Product design

-

-

-

-

-

-

-

-

-

-

-

-


1

1

1

-

-

1

3

-

-

-

-

3

Table 25. The Marketing aspect of MSEs - the monthly sales - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total


Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Sales per month (Baht)

NA

-

-

1

1

2

4

4

8

1

-

9

13

<2,000

-

-

-

-

-

-

-

-

-

-

-

-

2,001-4,000

1

1

-

-

-

-

2

-

-

-

-

2

4,001-8,000

-

-

-

1

-

1

1

-

-

-

-

1

8,001-20,000

-

3

-

-

-

-

3

-

-

-

-

3

20,001-50,000

-

1

-

-

-

-

1

-

1

-

1

2

50,001-100,000

-

1

-

-

1

1

2

2

-

-

2

4

100,000-200,000

-

-

-

-

-

-

-

-

-

-

-

-

200,001-500,000

-

-

1

-

-

1

1

1

-

-

1

2

500,001-1,000,000

-

-

-

-

-

-

-

-

-

-

-

-

1,000,001-2,000,000

-

-

-

-

-

-

-

-

-

-

-

-

2,000,001-5,000,000

-

-

-

-

-

-

-

-

-

-

-

-

>5,000,000

-

-

-

-

-

-

-

-

-

-

-

-

1

6

2

2

3

7

14

11

2

-

13

27

Table 26. The marketing aspect of MSEs, the market and adequacy of income - the Phetchaburi survey

Issues

Microenterprises

Small Enterprise

Total

Supported Microenterprises

Independent Microenterprises

All ME



DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME

M/f.

Services

Trading

All SE


Market

Nearby only

1

3

1

2

3

6

10

5

-

-

5

15

Nearby and Bangkok

-

2

-

-

-

-

2

4

2

-

6

8

Bangkok and provinces

-

-

-

-

-

-

-

-

-

-

-

-

Thailand and exports

-

1

1

-

-

1

2

2

-

-

2

4


1

6

2

2

3

7

14

11

2

-

13

27

Business income adequate?

Yes

1

5

2

1

2

5

11

10

2

-

12

23

No

-

1

-

1

1

2

3

1

-

-

1

4

1

6

2

2

3

7

14

11

2

-

13

27

Table 27. The Financial Aspect of MSEs - the Phetchaburi Survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Financial Received from


Bank

-

-

-

1

3

4

4

10

1

-

11

15

Easy

-

-

-

-

3

3

3

-

-

-

-

3

Complicated

-

-

-

-

-

-

-

-

-

-

-

-

Supplier

-

-

-

-

-

-

-

-

-

-

-

-

Friends & Relatives

-

-

-

-

-

-

-

-

-

-

-

-

Cooperatives

-

2

1

-

-

1

3

-

-

-

-

3

None

1

4

1

1

-

2

7

1

1

-

2

9

Total

1

6

2

2

3

7

14

11

2

-

13

27

Table 28. The legal aspect of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Legal constraints to business

-

None

1

5

2

2

3

7

13

5

2

-

7

20

Tax

-

1

-

-

-

-

1

3

-

-

3

4

Labor law

-

-

-

-

-

-

-

2

-

-

2

2

Land use law

-

-

-

-

-

-

-

1

-

-

-

Others

-

-

-

-

-

-

-

2

-

-

2

2

Total

1

6

2

2

3

7

14

13

2

-

14

28

Regulations helpful to business

-

None

1

6

2

2

3

7

14

11

1

-

12

26

Tax reduction

-

-

-

-

-

-

-

-

1

-

1

1

Total

1

6

2

2

3

7

14

11

2

-

13

27

Table 29. Assistance (BDS) to MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE














-

Assistance Received

-

None

1

3

-

2

2

4

8

9

-

-

9

17

Skills development

1

1

1

-

-

1

3

2

2

-

4

7

(Supplier)

-

-

(FTI, TPI)

(Supplier)

-

-

Information

-

1

-

-

1

1

2

-

-

-

-

2

(Friend/Customer)

(Supplier)

-

-

-

Fairs occasionally

1

1

-

-

-

-

2

-

-

-

-

2

Marketing & information

1

2

-

-

-

-

3

-

-

-

-

3

4

8

1

2

3

6

18

11

2

-

13

31

Assistance Desired:
(including financial)













None

-

2

2

2

3

7

9

10

2

-

12

21

Marketing

1

2

-

-

-

-

3

1

-

-

1

4

Financial

-

-

-

-

-

-

-

-

-

-

-

-

Skills Development

-

-

-

-

-

-

-

-

-

-

-

-

R&D, Product Development

-

2

-

-

-

-

2

-

-

-

-

2

Supplier

-

-

-

-

-

-

-

-

-

-

-

-

Information

-

-

-

-

-

-

-

-

-

-

-

-

Premises

1

-

-

-

-

-

1

-

-

-

-

1

Total

2

6

2

2

3

7

15

11

2

-

13

28













Table 30. The issues of associations of MSEs - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


None

-

3

2

2

2

6

9

6

1

-

7

16

Presently Member of Business Association

-

-

-

-

1

1

1

5

1

-

6

7

(Prov. CoC)

(Prov. CoC, FTI, TPI)

Member of co-op or women group

1

3

-

-

-

-

4

-

-

-

-

4

Total

1

6

2

2

3

7

14

11

2

-

13

27

Would association be useful?

Yes

-

-

-

-

1

1

1

3

1

-

4

5

No

-

-

2

-

-

2

2

2

1

-

3

5

Don’t know

1

6

-

2

2

4

11

6

-

-

6

17

Total

1

6

2

2

3

7

14

11

2

-

13

27

What kind of Association?

Larger cooperatives

-

-

-

-

-

-

-

-

-

-

-

Association of Same business

-

-

-

-

1

1

1

3

1

-

4

5

(More than single counting)

-

-

-

-

1

1

1

3

1

-

4

5

Table 31. On Entrepreneurship and business prospect - the Phetchaburi survey

Issues

Microenterprises

Small Enterprises

Total

Supported Microenterprises

Independent Microenterprises

All ME




DPW(M/f.)

DIP(M/f.)

M/f.

Services

Trading

All Ind. ME


M/f.

Services

Trading

All SE


Will quit if can get steady job?

Yes

-

1

-

1

-

1

2

-

-

-

-

2

No

1

5

2

1

3

6

12

11

2

-

13

25

Total

1

6

2

2

3

7

14

11

2

-

13

27

Will advise others to go into business?

Yes

1

5

2

1

3

6

12

11

2

-

13

25

No

-

1

-

1

-

1

2

-

-

-

-

2

1

6

2

2

3

7

14

11

2

-

13

27

Business potential:

Questionable

-

-

-

1

-

1

1

-

-

-

-

1

Struggling

1

2

-

1

-

1

4

6

-

-

6

10

Sustainable

-

3

1

-

3

4

7

4

-

-

4

11

Good potential

-

1

1

-

-

1

2

1

2

-

3

5

Total

1

6

2

2

3

7

14

11

2

-

13

27

Annex II: Figures 1 to 9


Figure 1. Gender in MSEs - Bangkok survey


Figure 2. Gender in MSEs - Petchaburi survey


Figure 3. Education level of entrepreneurs - Bangkok survey


Figure 4. Education level of entrepreneurs - Petchaburi survey


Figure 5. Age of entrepreneurs - Bangkok survey


Figure 6. Age of entrepreneurs - Petchaburi survey


Figure 7. Sales versus Assets


Figure 8. Sales versus Workers


Figure 9. Assets versus Workers

Annex III: List of enterprises surveyed

No.

Q.No.

name

company

Product

Bus. Type

Sponsor

Size

Province

1

1

Tawin Tammada

readymade clothes

Garments

Manufacturing

DPW

micro

BKK

2

6

Buopai

funeral flower

Funeral Flower

Manufacturing

DPW

micro

BKK

3

9

Chanchai Promnat

chumchon pahon 46

Rug

Manufacturing

DPW

micro

BKK

4

24

Janya Tongpang

Garment

Manufacturing

DPW

micro

BKK

5

25

Somyong

samakkee thai cheuy thai

Snack(peanuts)

Manufacturing

DPW

micro

BKK

6

31

Somchai
Sengswang

banana cake

Banana Cake

Manufacturing

DPW

micro

BKK

7

32

Kanya Ponluey

dokmai chumchonbangbao

Flower Garland

Manufacturing

DPW

micro

BKK

8

33

Somkuan
Tawinpong

dokmaisod

Flower Garland

Manufacturing

DPW

micro

BKK

9

35

Mali Samartkul

thaisweet

Thai Sweet

Manufacturing

DPW

micro

BKK

10

36

Jitchamnong

chilipaste

Chilipaste

Manufacturing

DPW

micro

BKK

11

42

Puangpen
Tanomwong

thaisweet

Thai Sweet

Manufacturing

DPW

micro

BKK

12

48

Porntip

samunprai rajburana

Herbal Shampoo

Manufacturing

DPW

micro

BKK

13

49

Lek

kaehatonburee

Processed Pork

Manufacturing

DPW

micro

BKK

14

50

Saiyud Srisombat

funeral flower

Funeral Flower

Manufacturing

DPW

micro

BKK

15

54

Chalong
Sukontasap

thaisweet

Thai Sweet

Manufacturing

DPW

micro

BKK

16

56

Nantiya

maeban bangpanieng

Dried Shrimp

Manufacturing

DPW

micro

BKK

17

58

Udom

chomchonwatboapan

Herbal Shampoo

Manufacturing

DPW

micro

BKk

18

5

sermkit bakery

Bakery

Manufacturing

Own

micro

BKK

19

7

Chaniwan

rosemary

Dress Maker

Manufacturing

Own

micro

BKK

20

46

Purita Wiriyanakin

miss crosstich

Picture Frame

Manufacturing

Own

micro

BKK

21

20

Manoch

so

Picture Frame

Manufacturing

Relatives

micro

BKK

22

2

Pracha Nawanil

rice coop

Garments

Manufacturing

UCDO

micro

BKK

23

3

Chawala
Bunyaratapan

satri payathai

Processed Pork

Manufacturing

UCDO

micro

BKK

24

8

Busakorn lamyai

woven handbag

Woven Handbag

Manufacturing

UCDO

micro

BKK

25

11

Somkid
Duangngen

chumchonkrungthep coop

Brass/Garment

Manufacturing

UCDO

micro

BKK

26

34

Fatima

sweet

Snack

Manufacturing

UCDO

micro

BKK

27

51

Pranee

chumchonsuanruen

Fragrance Candle

Manufacturing

UCDO

micro

BKK

28

17

cristina

Beauty Salon

Service

Friends

micro

BKK

29

4

Jurairat

aw salon

Hair Salon

Service

Own

micro

BKK

30

12

Dang Malin

chandang laundry

Laundry

Service

Own

micro

BKK

31

14

Nongnuch
Boonyarat

moonlight art

Silk Screen

Service

Own

micro

BKK

32

16

s. baber

Barber

Service

Own

micro

BKK

33

21

Wanna

fewna

Flowers Arrangement

Service

Own

micro

BKK

34

27

Vipa Saesim

madee

Barber

Service

Own

micro

BKK

35

28

anupong panit

Motorcycle Repair

Service

Own

micro

BKK

36

29

weerakityon

Exhaust Pipe

Service

Own

micro

BKK

37

30

jaew

Beauty Salon

Service

Own

micro

BKK

38

37

pairoj laundry

Laundry

Service

Own

micro

BKK

39

38

laundry

Laundry

Service

Own

micro

BKK

40

40

darycare laundry

Laundry

Service

Own

micro

BKK

41

41

Puangkaew
Sawsawang

driving school

Driving School

Service

Own

micro

BKK

42

43

swang

Copying Service

Service

Own

micro

BKK

43

47

Kanoknit Lakdee

kanoknit

Flowers Arrangement

Service

Own

micro

BKK

44

55

Opas

accendtrade

Processed Wood

Service

Own

micro

BKK

45

107

Surapon
Pitaklimsakul

pink technology

Computer Service

Service

Own

Micro

BKK

46

23

tekheng

Books

Trading

Bank

micro

BKK

47

10

Noi saesim

newspaper

Newspaper

Trading

Own

micro

BKK

48

13

311

Books

Trading

Own

micro

BKK

49

15

Utai
Techataweechai

chaichareon

Kitchenware

Trading

Own

micro

BKK

50

18

karnjana

newyarnyon

Tire

Trading

Own

micro

BKK

51

19

srinuan

Student Shoes

Trading

Own

micro

BKK

52

22

Paisan

tantaweesit

Fish Tank & Accessories

Trading

Own

micro

BKK

53

26

Sompob

Books

Trading

Own

micro

Bkk

54

39

micky shop

Stationary

Trading

Own

micro

BKK

55

44

Viset

sriwattana

Shoes/Handbag

Trading

Own

micro

BKK

56

45

Somboon

poonsiri

Wooden

Manufacturing

Bank

sme

BKK

Stationery/Gift

57

57

Tongkam
Boonyawetshwi

diamon hair studio

Wedding Dress, Gown

Manufacturing

Bank

sme

BKK

58

63

Panida

fenida

Garments

Manufacturing

Bank

sme

BKK

59

64

Somlim Senghu

patanakarnkon

Water Duct

Manufacturing

Bank

sme

BKK

60

66

Vichai Vilailak

vichaiwit

Screen

Manufacturing

Bank

sme

BKK

61

68

thaicarbon and graphite

Graphite Rods

Manufacturing

Bank

sme

BKK

62

69

Nipon

c.k. wood

Door Frame

Manufacturing

Bank

sme

BKK

Chuswatchai


63

73

Somjai

maitreejit

Oxygen

Manufacturing

Bank

sme

BKK

64

74

Atikarn
Sookprasert

h.b.d. machine tool

Baking Ovens

Manufacturing

Bank

sme

BKK

65

60

usahakampollert

Keys

Manufacturing

Own

sme

BKK

66

61

Pisanmetee

Shades

Manufacturing

Own

sme

BKK

67

62

sappradit

Beds

Manufacturing

Own

sme

BKK

68

65

Choosak
Chinwong

waist band

Waist Band

Manufacturing

Own

sme

BKK

69

67

Aniruth Pumee

sandals

Sandals

Manufacturing

Own

sme

BKK

70

70

saw nite

Shoes

Manufacturing

Own

sme

BKK

71

75

Pranom Sasakul

dollar furniture

Furniture

Manufacturing

Own

sme

BKK

72

76

Vijit
Tangsatjavitoon

art gallery & frame

Frames

Manufacturing

Own

sme

BKK

73

77

Yupa

f.b.I.

Wedding Dress

Manufacturing

Own

sme

BKK

74

52

Mana Aswangkul

cms. Engineering

Environ. Consulting

Service

Bank

sme

BKK

75

71

Pichet

m.f.

Aluminium Frames

Service

Own

sme

BKK

76

72

Worawit

s. somchareun

Mufflers

Service

Own

sme

BKK

Chansinapa

77

53

watertest

Water Test Equipment

Trading

Bank

sme

BKK

78

88

Nongnuch
Chomying

nongmakok creditcoop

Funeral Flower

Manufacturing

DIP/Coop

micro

Petchaburi

79

101

Titinan Pukaew

stri hoobkrapong coop

Woven hat & bag

Manufacturing

DIP/Coop

micro

Petchaburi

80

90

Sopin Plubpiboon

lemongrass juice

Lemongrass Juice

Manufacturing

DPW

micro

Petchaburi

81

91

Chutima Mutakarn

thai sweet

Thai sweet

Manufacturing

DIP

micro

Petchaburi

82

96

Rampuei

stri oamsup donsai

Ready to wear

Manufacturing

DIP

micro

Petchaburi

83

82

Samruey Pahuphan

thai sweet(banana)

Thai sweet(banana)

Manufacturing

DIP

micro

Petchaburi

84

83

Suwannee Suksaiam

maeban lahanyai

Chilipaste

Manufacturing

DIP

micro

Petchaburi

85

98

Chairat

sticker

Sticker

Manufacturing

Own

micro

Petchaburi

86

106

Anong Onying

palm wood crafts

Hardwood ware

Manufacturing

Own

micro

Petchaburi

87

103

Nong Butjinda

nong laundry

Laundry

Service

Own

Micro

Petchaburi

88

105

Vijit Rakkasikorn

vijitbeauty salon

Beautilian

Service

Own

micro

Petchaburi

89

99

Somwang

petchburee audio

Car audio service

Trade

Own

micro

Petchaburi

90

100

Prasert

battery

Alternator

Trade

Own

micro

Petchaburi

91

102

Vichai
Suppamitsatien

tyre

Tyres

Trade

Own

micro

Petchaburi

92

79

Ket Vongpanit

petchnavarat

Thai snack

Manufacturing

Own

sme

Petchaburi

93

80

Aree Suwanrak

Areerat electric

Metal working

Manufacturing

Own

sme

Petchaburi

94

81

Saisamorn
Howtawanit

sutatphan

Metal working

Manufacturing

Own

sme

Petchaburi

95

84

Sith

paiboon petchburee

Truck/Trailer Body

Manufacturing

Own

sme

Petchaburi

96

86

Pensiri

thai niyom

Door/Window Panel

Manufacturing

Own

sme

Petchaburi

97

87

Surachai

kaw. karnchang

Door/Window Panel

Manufacturing

Own

sme

Petchaburi

98

89

Prapas Jaijaruen

kaysinee

Truck/Trailer Body

Manufacturing

Own

sme

Petchaburi

99

92

Suwat Pawasutipisit

senmee petchburee

Noodles

Manufacturing

Own

sme

Petchaburi

100

94

Taweekiat
Tuamsak

donsaikamai

Door/Window Panel

Manufacturing

Own

sme

Petchaburi

101

97

Prateep

p&r plaspack

Plastic Shipping Tray

Manufacturing

Own

sme

Petchaburi

102

104

Aree Poonsub

maelamied mawkaeng

Thai Sweet

Manufacturing

Own

sme

Petchaburi

103

85

Samreung
Krungsrimuang

tayang kawponsee

Body Shop

Service

Own

sme

Petchaburi

104

95

Manas Poonma

manas tractor

Tractor Repair

Service

Own

sme

Petchaburi

Annex IV: ILO Recommendation concerning General Conditions to Stimulate Job Creation in Small and Medium-sized Enterprises, 1998 (No. 189)

PREAMBLE

The General Conference of the International Labour Organization,

Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its Eighty-sixth Session on 2 June 1998, and

Recognizing the need for the pursuit of the economic, social, and spiritual well-being and development of individuals, families, communities and nations,

Aware of the importance of job creation in small and medium-sized enterprises,

Recalling the resolution concerning the promotion of small and medium-sized enterprises adopted by the International Labour Conference at its 72nd Session, 1986, as well as the Conclusions set out in the resolution concerning employment policies in a global context, adopted by the Conference at its 83rd Session, 1996,

Noting that small and medium-sized enterprises, as a critical factor in economic growth and development, are increasingly responsible for the creation of the majority of jobs throughout the world, and can help create an environment for innovation and entrepreneurship,

Understanding the special value of productive, sustainable and quality jobs,

Recognizing that small and medium-sized enterprises provide the potential for women and other traditionally disadvantaged groups to gain access under better conditions to productive, sustainable and quality employment opportunities,

Convinced that promoting respect for the Forced Labour Convention, 1930, the Freedom of Association and Protection of the Right to Organise Convention, 1948, the Right to Organise and Collective Bargaining Convention, 1949, the Equal Remuneration Convention, 1951, the Abolition of Forced Labour Convention, 1957, and the Discrimination (Employment and Occupation) Convention, 1958, will enhance the creation of quality employment in small and medium-sized enterprises and in particular that promoting respect for the Minimum Age Convention and Recommendation, 1973, will help Members in their efforts to eliminate child labour,

Also convinced that the adoption of new provisions on job creation in small and medium-sized enterprises, to be taken into account together with:

(a) the relevant provisions of other international labour Conventions and Recommendations as appropriate, such as the Employment Policy Convention and Recommendation, 1964, and the Employment Policy (Supplementary Provisions) Recommendation, 1984, the Co-operatives (Developing Countries) Recommendation, 1966, the Human Resources Development Convention and Recommendation, 1975, and the Occupational Safety and Health Convention and Recommendation, 1981; and

(b) other proven ILO initiatives promoting the role of small and medium-sized enterprises in sustainable job creation and encouraging adequate and common application of social protection, including Start and Improve Your Business and other programmes as well as the work of the International Training Centre of the ILO in training and skills enhancement, will provide valuable guidance for Members in the design and implementation of policies on job creation in small and medium-sized enterprises,

Having decided upon the adoption of certain proposals with regard to general conditions to stimulate job creation in small and medium-sized enterprises, which is the fourth item on the agenda of the session, and

Having determined that these proposals shall take the form of a Recommendation;

adopts, this seventeenth day of June of the year one thousand nine hundred and ninety-eight, the following Recommendation which may be cited as the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998.

I. DEFINITION, PURPOSE AND SCOPE

1. Members should, in consultation with the most representative organizations of employers and workers, define small and medium-sized enterprises by reference to such criteria as may be considered appropriate, taking account of national social and economic conditions, it being understood that this flexibility should not preclude Members from arriving at commonly agreed definitions for data collection and analysis purposes.

2. Members should adopt measures which are appropriate to national conditions and consistent with national practice in order to recognize and to promote the fundamental role that small and medium-sized enterprises can play as regards:

(a) the promotion of full, productive and freely chosen employment;

(b) greater access to income-earning opportunities and wealth creation leading to productive and sustainable employment;

(c) sustainable economic growth and the ability to react with flexibility to changes;

(d) increased economic participation of disadvantaged and marginalized groups in society;

(e) increased domestic savings and investment;

(f) training and development of human resources;

(g) balanced regional and local development;

(h) provision of goods and services which are better adapted to local market needs;

(i) access to improved quality of work and working conditions which may contribute to a better quality of life, as well as allow large numbers of people to have access to social protection;

(j) stimulating innovation, entrepreneurship, technology development and research;

(k) access to domestic and international markets; and

(l) the promotion of good relations between employers and workers.

3. In order to promote the fundamental role of small and medium-sized enterprises referred to in Paragraph 2, Members should adopt appropriate measures and enforcement mechanisms to safeguard the interests of workers in such enterprises by providing them with the basic protection available under other relevant instruments.

4. The provisions of this Recommendation apply to all branches of economic activity and all types of small and medium-sized enterprises, irrespective of the form of ownership (for example, private and public companies, cooperatives, partnerships, family enterprises, and sole proprietorships).

II. POLICY AND LEGAL FRAMEWORK

5. In order to create an environment conducive to the growth and development of small and medium-sized enterprises, Members should:

(a) adopt and pursue appropriate fiscal, monetary and employment policies to promote an optimal economic environment (as regards, in particular, inflation, interest and exchange rates, taxation, employment and social stability);

(b) establish and apply appropriate legal provisions as regards, in particular, property rights, including intellectual property, location of establishments, enforcement of contracts, fair competition as well as adequate social and labour legislation;

(c) improve the attractiveness of entrepreneurship by avoiding policy and legal measures which disadvantage those who wish to become entrepreneurs.

6. The measures referred to in Paragraph 5 should be complemented by policies for the promotion of efficient and competitive small and medium-sized enterprises able to provide productive and sustainable employment under adequate social conditions. To this end, Members should consider policies that:

(1) create conditions which:

(a) provide for all enterprises, whatever their size or type:

(i) equal opportunity as regards, in particular, access to credit, foreign exchange and imported inputs; and

(ii) fair taxation;

(b) ensure the non-discriminatory application of labour legislation, in order to raise the quality of employment in small and medium-sized enterprises;

(c) promote observance by small and medium-sized enterprises of international labour standards related to child labour;

(2) remove constraints to the development and growth of small and medium-sized enterprises, arising in particular from:

(a) difficulties of access to credit and capital markets;

(b) low levels of technical and managerial skills;

(c) inadequate information;

(d) low levels of productivity and quality;

(e) insufficient access to markets;

(f) difficulties of access to new technologies;

(g) lack of transport and communications infrastructure;

(h) inappropriate, inadequate or overly burdensome registration, licensing, reporting and other administrative requirements, including those which are disincentives to the hiring of personnel, without prejudicing the level of conditions of employment, the effectiveness of labour inspection or the system of supervision of working conditions and related issues;

(i) insufficient support for research and development;

(j) difficulties in access to public and private procurement opportunities.

(3) include specific measures and incentives aimed at assisting and upgrading the informal sector to become part of the organized sector.

7. With a view to the formulation of such policies Members should, where appropriate:

(1) collect national data on the small and medium-sized enterprise sector, covering inter alia quantitative and qualitative aspects of employment, while ensuring that this does not result in undue administrative burdens for small and medium-sized enterprises;

(2) undertake a comprehensive review of the impact of existing policies and regulations on small and medium-sized enterprises, with particular attention to the impact of structural adjustment programmes on job creation;

(3) review labour and social legislation, in consultation with the most representative organizations of employers and workers, to determine whether:

(a) such legislation meets the needs of small and medium-sized enterprises, while ensuring adequate protection and working conditions for their workers;

(b) there is a need for supplementary measures as regards social protection, such as voluntary schemes, cooperative initiatives and others;

(c) such social protection extends to workers in small and medium-sized enterprises and there are adequate provisions to ensure compliance with social security regulations in areas such as medical care, sickness, unemployment, old-age, employment injury, family, maternity, invalidity and survivors’ benefits.

8. In times of economic difficulties, governments should seek to provide strong and effective assistance to small and medium-sized enterprises and their workers.

9. In formulating these policies, Members:

(1) may consult, in addition to the most representative organizations of employers and workers, other concerned and competent parties as they deem appropriate;

(2) should take into account other policies in such areas as fiscal and monetary matters, trade and industry, employment, labour, social protection, gender equality, occupational safety and health and capacity-building through education and training;

(3) should establish mechanisms to review these policies, in consultation with the most representative organizations of employers and workers, and to update them.

III. DEVELOPMENT OF AN ENTERPRISE CULTURE

10. Members should adopt measures, drawn up in consultation with the most representative organizations of employers and workers to create and strengthen an enterprise culture which favours initiatives, enterprise creation, productivity, environmental consciousness, quality, good labour and industrial relations, and adequate social practices which are equitable. To this end, Members should consider:

(1) pursuing the development of entrepreneurial attitudes, through the system and programmes of education, entrepreneurship and training linked to job needs and the attainment of economic growth and development, with particular emphasis being given to the importance of good labour relations and the multiple vocational and managerial skills needed by small and medium-sized enterprises;

(2) seeking, through appropriate means, to encourage a more positive attitude towards risk-taking and business failure by recognizing their value as a learning experience while at the same time recognizing their impact on both entrepreneurs and workers;

(3) encouraging a process of lifelong learning for all categories of workers and entrepreneurs;

(4) designing and implementing, with full involvement of the organizations of employers and workers concerned, awareness campaigns to promote:

(a) respect for the rule of law and workers’ rights, better working conditions, higher productivity and improved quality of goods and services;

(b) entrepreneurial role models and award schemes, taking due account of the specific needs of women, and of disadvantaged and marginalized groups.

IV. DEVELOPMENT OF AN EFFECTIVE SERVICE INFRASTRUCTURE

11. In order to enhance the growth, job-creation potential and competitiveness of small and medium-sized enterprises, consideration should be given to the availability and accessibility of a range of direct and indirect support services for them and their workers, to include:

(a) business pre-start-up, start-up and development assistance;

(b) business plan development and follow-up;

(c) business incubators;

(d) information services, including advice on government policies;

(e) consultancy and research services;

(f) managerial and vocational skills enhancement;

(g) promotion and development of enterprise-based training;

(h) support for training in occupational safety and health;

(i) assistance in upgrading the literacy, numeracy, computer competencies and basic education levels of managers and employees;

(j) access to energy, telecommunications and physical infrastructure such as water, electricity, premises, transportation and roads, provided directly or through private sector intermediaries;

(k) assistance in understanding and applying labour legislation, including provisions on workers’ rights, as well as in human resources development and the promotion of gender equality;

(l) legal, accounting and financial services;

(m) support for innovation and modernization;

(n) advice regarding technology;

(o) advice on the effective application of information and communication technologies to the business process;

(p) access to capital markets, credit and loan guarantees;

(q) advice in finance, credit and debt management;

(r) export promotion and trade opportunities in national and international markets;

(s) market research and marketing assistance;

(t) assistance in product design, development and presentation;

(u) quality management, including quality testing and measurement;

(v) packaging services;

(w) environmental management services.

12. As far as possible, the support services referred to in Paragraph 11 should be designed and provided to ensure optimum relevance and efficiency through such means as:

(a) adapting the services and their delivery to the specific needs of small and medium-sized enterprises, taking into account prevailing economic, social and cultural conditions, as well as differences in terms of size, sector and stage of development;

(b) ensuring active involvement of small and medium-sized enterprises and the most representative organizations of employers and workers in the determination of the services to be offered;

(c) involving the public and private sector in the delivery of such services through, for example, organizations of employers and workers, semi-public organizations, private consultants, technology parks, business incubators and small and medium-sized enterprises themselves;

(d) decentralizing the delivery of services, thereby bringing them as physically close to small and medium-sized enterprises as possible;

(e) promoting easy access to an integrated range of effective services through “single window” arrangements or referral services;

(f) aiming towards self-sustainability for service providers through a reasonable degree of cost recovery from small and medium-sized enterprises and other sources, in such a manner as to avoid distorting the markets for such services and to enhance the employment creation potential of small and medium-sized enterprises;

(g) ensuring professionalism and accountability in the management of service delivery; (h) establishing mechanisms for continuous monitoring, evaluation and updating of services.

13. Services should be designed to include productivity-enhancing and other approaches which promote efficiency and help small and medium-sized enterprises to sustain competitiveness in domestic and international markets, while at the same time improving labour practices and working conditions.

14. Members should facilitate access of small and medium-sized enterprises to finance and credit under satisfactory conditions. In this connection:

(1) credit and other financial services should as far as possible be provided on commercial terms to ensure their sustainability, except in the case of particularly vulnerable groups of entrepreneurs;

(2) supplementary measures should be taken to simplify administrative procedures, reduce transaction costs and overcome problems related to inadequate collateral by, for example, the creation of non-governmental financial retail agencies and development finance institutions addressing poverty alleviation;

(3) small and medium-sized enterprises may be encouraged to organize in mutual guarantee associations;

(4) the creation of venture capital and other organizations, specializing in assistance to innovative small and medium-sized enterprises, should be encouraged.

15. Members should consider appropriate policies to improve all aspects of employment in small and medium-sized enterprises by ensuring the non-discriminatory application of protective labour and social legislation.

16. Members should, in addition:

(1) facilitate, where appropriate, the development of organizations and institutions which can effectively support the growth and competitiveness of small and medium-sized enterprises. In this regard, consultation with the most representative organizations of employers and workers should be considered;

(2) consider adequate measures to promote cooperative linkages between small and medium-sized enterprises and larger enterprises. In this connection, measures should be taken to safeguard the legitimate interests of the small and medium-sized enterprises concerned and of their workers;

(3) consider measures to promote linkages between small and medium-sized enterprises to encourage the exchange of experience as well the sharing of resources and risks. In this connection, small and medium-sized enterprises might be encouraged to form structures such as consortia, networks and production and service cooperatives, taking into account the importance of the role of organizations of employers and workers;

(4) consider specific measures and incentives for persons aspiring to become entrepreneurs among selected categories of the population, such as women, long-term unemployed, persons affected by structural adjustment or restrictive and discriminatory practices, disabled persons, demobilized military personnel, young persons including graduates, older workers, ethnic minorities and indigenous and tribal peoples. The detailed identification of these categories should be carried out taking into account national socio-economic priorities and circumstances;

(5) consider special measures to improve communication and relations between government agencies and small and medium-sized enterprises as well as the most representative organizations of such enterprises, in order to improve the effectiveness of government policies aimed at job creation;

(6) encourage support for female entrepreneurship, recognizing the growing importance of women in the economy, through measures designed specifically for women who are or wish to become entrepreneurs.

V. ROLES OF ORGANIZATIONS OF EMPLOYERS AND WORKERS

17. Organizations of employers or workers should consider contributing to the development of small and medium-sized enterprises in the following ways:

(a) articulating to governments the concerns of small and medium-sized enterprises or their workers, as appropriate;

(b) providing direct support services in such areas as training, consultancy, easier access to credit, marketing, advice on industrial relations and promoting linkages with larger enterprises;

(c) cooperating with national, regional and local institutions as well as with intergovernmental regional organizations which provide support to small and medium-sized enterprises in such areas as training, consultancy, business start-up and quality control;

(d) participating in councils, task forces and other bodies at national, regional and local levels established to deal with important economic and social issues, including policies and programmes, affecting small and medium-sized enterprises;

(e) promoting and taking part in the development of economically beneficial and socially progressive restructuring (by such means as retraining and promotion of self-employment) with appropriate social safety nets;

(f) participating in the promotion of exchange of experience and establishment of linkages between small and medium-sized enterprises;

(g) participating in the monitoring and analysis of social and labour-market issues affecting small and medium-sized enterprises, concerning such matters as terms of employment, working conditions, social protection and vocational training, and promoting corrective action as appropriate;

(h) participating in activities to raise quality and productivity, as well as to promote ethical standards, gender equality and non-discrimination;

(i) preparing studies on small and medium-sized enterprises, collecting statistical and other types of information relevant to the sector, including statistics desegregated by gender and age, and sharing this information, as well as lessons of best practice, with other national and international organizations of employers and workers;

(j) providing services and advice on workers’ rights, labour legislation and social protection for workers in small and medium-sized enterprises.

18. Small and medium-sized enterprises and their workers should be encouraged to be adequately represented, in full respect for freedom of association. In this connection, organizations of employers and workers should consider widening their membership base to include small and medium-sized enterprises.

VI. INTERNATIONAL COOPERATION

19. Appropriate international cooperation should be encouraged in the following areas:

(a) establishment of common approaches to the collection of comparable data, to support policy-making;

(b) exchange of information, desegregated by gender, age and other relevant variables, on best practices in terms of policies and programmes to create jobs and to raise the quality of employment in small and medium-sized enterprises;

(c) creation of linkages between national and international bodies and institutions that are involved in the development of small and medium-sized enterprises, including organizations of employers and workers, in order to facilitate:

(i) exchange of staff, experiences and ideas;

(ii) exchange of training materials, training methodologies and reference materials;

(iii) compilation of research findings and other quantitative and qualitative data, desegregated by gender and age, on small and medium-sized enterprises and their development;

(iv) establishment of international partnerships and alliances of small and medium-sized enterprises, subcontracting arrangements and other commercial linkages;

(v) development of new mechanisms, utilizing modern information technology, for the exchange of information among governments, employers’ organizations and workers’ organizations on experience gained with regard to the promotion of small and medium-sized enterprises;

(d) international meetings and discussion groups on approaches to job creation through the development of small and medium-sized enterprises, including support for female entrepreneurship. Similar approaches for job creation and entrepreneurship will be helpful for disadvantaged and marginalized groups;

(e) systematic research in a variety of contexts and countries into key success factors for promoting small and medium-sized enterprises which are both efficient and capable of creating jobs providing good working conditions and adequate social protection;

(f) promotion of access by small and medium-sized enterprises and their workers to national and international databases on such subjects as employment opportunities, market information, laws and regulations, technology and product standards.

20. Members should promote the contents of this Recommendation with other international bodies. Members should also be open to cooperation with those bodies, where appropriate, when evaluating and implementing the provisions of this Recommendation, and take into consideration the prominent role played by the ILO in the promotion of job creation in small and medium-sized enterprises.