The current government has realized the importance of the startup industry and have made it one of the three “S” that the government wanted to further support including Startup, SME (small and medium enterprise), and Social enterprise.
This led to the attempt to get rid of the old mechanisms and the move towards a new model that allow the private sector to become more involve in state’s stimulation decisions. The supportive measures include:
Regulations and Law
- Looking to amend the corporate law to allow a single individual to register as corporate entity to support entrepreneur.
- Preparing to amend the Board of Investment (BOI)’s regulations to allow a single individual with potential idea in the targeted industries to gain BOI privileges. Current regulation only allows targeted firms that already have machinery.
- The Business Security Act will be changed from having a requirement for various guarantees and mortgages to just only having an idea is already enough for a business security.
- There might be some tax incentives or some guarantees to encourage investors.
- The creation of an ecosystem that will foster sources of supports and funding including incubator, venture capital, and crowdfunding.
- Encourage startup to enter the system in order to become a transparent corporate with standard that will attract investors.
- The setting up of the National Start Center by the Ministry of Finance to compiled all the startups, venture capitals and incubators under one roof.
- Help develop tools and exit channels via stock markets as one of the means for operators and investors to seek for value added and allow for a greater capital circulation and investments. This will also allow for a continuation in term of the creation of new businesses in Thailand.
- “At the end of the road we would still have to find something to further support them which is not necessary the market for alternative investment only as there could also be another platform for startup only,” said Deputy Commerce Minister Suvit Maesincee.
- Amending and eliminating exiting Master of Business Administration (MBA) curriculums to new ones that are more responsive to the startup world.
- Old MBA curriculums = Only see the big picture first and everything has to be perfect
- Startup curriculums = Start right away though trials and fails and then pick yourself up when you fall.
Summary of measures to support startup
- The state support the involvement of the private sector
- Changes in the working models to respond to the startup group
- Unlock limitations in the past where idea can now become funds and guarantees
- Creating an ecosystem which is suitable for startup business
- The amendment of the Business Security Act
- Changes in the education system to welcome the startup race
“The old state mechanism is “father knows best”. We did not create the spirit and soul of operator. We did not support real entrepreneur spirit. They have to learn how to get up when they fall instead of being carried all the time. We have to change the thinking process and the working process because startup is a completely different model.” “Startup is whole different paradigm from SME. It is a new generation that is not afraid to try. They do not fold their legs and wait to be helped and eve though most of them do not have funding but they have idea, they dare, and they want changes to happened,” explanation by Dr Suvit.