Why Women Entrepreneurs Are Key for Thailand's Future Growth

If you walk over any street market in Bangkok, Chiang Mai or any other Thai city, chances are you will buy from a female seller. In many restaurants, shops, and hotels, you will get serviced by women. And if you open a bank account, the teller will most likely be a woman as well.

In Thailand, women are well represented in all aspects of business, including both business owners as well as corporate careers. Women run 40% of all small and medium-sized enterprises. According to Grant Thornton, 33% of top management roles in Thai companies are held by women. That's more than double the global average of 15%.

There are mainly two reasons: Firstly, family businesses are often run by women, a structure that is part of the Thai culture. Secondly, Thailand ranks first for women enrolment in higher education. The combination of opportunity and education gives Thai women a strong position in the local business environment. 

Women-owned SMEs have less access to financing

Although Thailand's economy has seen steady growth rates over the past 30 years, it has slowed down significantly. One growth driver which the government could boost relatively quickly is women empowerment, to tap into the pool of talented and motivated women. 

A key challenge, especially for Thailand's female entrepreneurs, is access to financing. The financing gap for women-owned SMEs (WSMEs) is about US$ 25 billion. Compared to other emerging markets, Thai WSMEs lack access to bank loans for working capital and investment financing. WSMEs also face higher collateral requirements and loan rejection rates.

The Thai government has acknowledged the need to prioritize the financial inclusion of SMEs strategically and has set up a range of targeted programs. However, there are only very few such programs targeting specifically women entrepreneurs. Considering the enormous cultural and economic potential of WSMEs in Thailand, there is a pressing need for such programs and an excellent opportunity to drive Thailand's future economic growth. 

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