Strategic Development for Enhancing SMEs through Financial Institutional Mechanisms

Abstract

This study focuses on developing strategies to strengthen small and medium-sized enterprises (SMEs) through the mechanisms of the financial institution system. SMEs are considered a crucial driver of the economy; however, they face challenges related to funding, access to credit, and risk management. Therefore, this research aims to analyze the role of financial institutions in supporting SMEs and to develop appropriate strategies. Using a mixed methodology approach, the study includes in-depth interviews with 25 SMEs and financial institution representatives, as well as the distribution of 400 questionnaires. The research findings indicate that 43% of SMEs experience liquidity issues, with an average debt burden reaching 3.86, which severely impacts their business operations.

The study also recommends restructuring the Thai Credit Guarantee Corporation (TCG) to act as a credit mediator. Furthermore, it emphasizes the need to develop training programs on loan acquisition and financial management, as well as utilizing digital technology and AI in the loan approval process to enhance access to funding.

The results underscore the importance of collaboration between the government and financial institutions in creating a Credit Mediator Center to empower SMEs by providing information and guidance on loan applications, thereby enabling entrepreneurs to operate sustainably in the future.