2013 gem thailand report
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GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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Foreword
The 2013 edition of the annual Global Entrepreneurship Monitor (GEM) Thailand
Report finds its completion with perfect timing. The business community, academics
and policy makers agree that entrepreneurs of all kinds and the new ventures they
establish increasingly play a critical role in the development and well-being of their
societies. Most importantly, as we move toward the imminent implementation of the
ASEAN Economic Community in 2015, we have witnessed the emergence of a
landscape that will offer numerous opportunities for those who are able to effectively
utilize their entrepreneurial skills and knowhow.
As such, for the first time since the GEM project started 15 years ago, this year’s GEM
Thailand Report delivers a broad comparison of Thailand to the ASEAN countries
Indonesia, Malaysia, Philippines, Singapore and Vietnam as to the East Asian
Countries China, Japan, S. Korea and Taiwan. Bangkok University is honored to be
Thailand’s official representative and repeated contributor to GEM initiated worldwide
collaborative study on entrepreneurial activity, particularly during this challenging and
unpredictable period in history.
With the scope, reach and influence of the global GEM project continuing to grow over
the last 15 years, the project in Thailand has also embodied and demonstrated many of
the same entrepreneurial characteristics and qualities that it measures, tracks and
reports on across a broad range of people and societies. The GEM report contains
valuable data that is intended for the better-informed decision making of government
officials, policymakers, and business-people. Entrepreneurial business owner-
managers are recognized as the critical factor in the path to our successful future. Their
ability to think and to act, in addition complemented with an entrepreneurial spirit,
drives opportunities and fuels growth.
The GEM Thailand Report 2013 delivers insight to factors influencing
entrepreneurship, to links between entrepreneurship and national or regional
economic performance, and the effects on economic growth at different stages of
economic development. The GEM Thailand Report 2013 proudly stands as our
country’s contribution to the international research consortium and is distributed as
free information for social knowledge and benefit worldwide.
Somkid Jatusripitak, Ph.D.
Chairman, Board of Trustees
Bangkok University
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Foreword
“Entrepreneurs are like artists
who dream, create and inspire.
And they begin with a blank canvas.
Their art is our future.”
This statement of the GEM Team South Africa captures the spirit of our
entrepreneurship education at Bangkok University, where we combine the
importance of education with creativity and entrepreneurial thinking without which
neither opportunities nor growths can be permanently maintained.
Bangkok University and Global Entrepreneurship Monitor (GEM) Thailand have
worked together to bring mutual benefits to academia, businesses and policy makers.
A new finding enters into this year’s GEM Report: Entrepreneurs in Thailand and
around the globe experience a higher degree of subjective well-being than
individuals who are not involved in entrepreneurial activities.
In the third year at Bangkok University, the GEM Thailand Report for 2013 brings out a
special edition showing entrepreneurial trends in Thailand over the last three years and
comparing the entrepreneurial landscapes of several ASEAN and East Asian countries,
brought together with creativity and entrepreneurial spirit by our faculty and many
others involved in this project. Interesting topics to trigger your imagination and
creativity are, among other things, entrepreneurial activities and aspirations, education
and entrepreneurship, innovation and technology, opportunity versus necessity driven
entrepreneurial activities, and –as the special topic of the year 2013 - entrepreneurship
and well-being.
Although the GEM Thailand Report 2013 is primarily about Thailand, it covers a
regional Asian perspective and gives the opportunity to use the GEM data beyond
Thailand across the globe. The insights gained from this project can surely fill our blank
canvas and spark our dreams, creativity, and inspirations.
Mathana Santiwat, Ph.D.
President
Bangkok University
Acknowledgements
The 2013 GEM Thailand Report again would not have been possible
without the kind support and contribution of several individuals and
authorities. The GEM Thailand team would therefore like to thank those
whose participation has made this report possible.
The GEM national team of Thailand is especially grateful to Dr. Pichit Akrathit, Director
of GEM, Thailand, for his relentless productive support throughout the GEM project in
which he has been involved since its beginning in 2011. His guidance, supervision and
dedication in several aspects are priceless. Furthermore, the GEM team is much
obliged to the kind cooperation of Dr. Wutnipong Warakraisawad, Director of
Administration at School of Entrepreneurship and Management (SEM), Bangkok
University. He helped the GEM team with all administrative work and supported the
collaboration with other units in Bangkok University. We really admire his generosity
and calmness. Special thanks go to several supporters from the School of
Entrepreneurship and Management: to Sahattaya Choochatpong, who helped during the
interview process in the National Expert Survey 2013, and to Dr. Suchart Tripopsakul for
his help in analyzing the data. The team would also like to express their gratitude to
Bangkok University for the financial support and all staff for their kind assistance,
especially the International Affairs Office.
Our survey would be incomplete without the contribution of the national experts.
Sincere thanks are given to all of them for the time they dedicated to share their
viewpoints, experiences and practical stories. The Global Entrepreneurship Monitor
Thailand team also would like to thank the individuals in Thailand who took the time to
answer the APS survey questions. Special thanks go also to the Global
Entrepreneurship Research Association (GERA) for their professional cooperation and
to the GEM data team for their support throughout the processes.
The GEM national team of Thailand hopes that this report will be a helpful source of
information for both entrepreneurs and Thai authorities. We are glad if we can deliver
informative insights for policy makers and if our data supports them in formulating
policies related to entrepreneurial activities.
The Global Entrepreneurship Monitor Thailand Team
Bangkok University School of Entrepreneurship and Management
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Contents
Summary ......................................................................................................................................................... 1
1. Introduction and Background ............................................................................................................... 2
2. Entrepreneurial Activities ...................................................................................................................... 4
2.1. A Profile of Entrepreneurial Activities in Thailand .......................................................................... 4
2.2. Business Discontinuance ................................................................................................................... 7
2.3. Necessity- and Opportunity-Driven Entrepreneurship ................................................................... 9
2.4. Sector Participation ........................................................................................................................... 12
2.5. Age Distribution ................................................................................................................................. 14
2.6. Gender Differences ........................................................................................................................... 16
2.7. Educational Profile ............................................................................................................................ 20
3. Entrepreneurial Perceptions and Societal Attitudes ..................................................................................... 25
3.1. National Societal Attitudes ............................................................................................................... 25
3.2. Perceived Opportunities and Capabilities ..................................................................................... 27
3.3. Fear of Failure ................................................................................................................................... 31
4. International Orientation, Innovation and Well-being ................................................................................ 33
4.1. International Orientation and Market Expansion .......................................................................... 33
4.2. Innovation and Technology ............................................................................................................. 37
4.3. Entrepreneurship and Well-being ................................................................................................... 41
5. Insights from National Experts: Assessment of Entrepreneurship Conditions in Thailand
......................................................................................................................................................................... 45
5.1. Entrepreneurial Framework in Thailand ........................................................................................ 45
5.2. Thailand’s Constraining Factors ..................................................................................................... 50
5.3. Recommendations for Thailand ...................................................................................................... 51
6. Conclusions and Implications ............................................................................................................ 53
References.................................................................................................................................................... 55
Appendix ....................................................................................................................................................... 56
Appendix 1: Tables and Figures of GEM Data ..................................................................................... 56
Appendix 2: Definitions of Main Measures ........................................................................................... 60
List of Tables
Table 1: Stratification of the 2013 Thailand APS Sample ......................................................................................... 3 Table 2: Total Entrepreneurial Activity (TEA) and Established Business Ownership (EST) in Thailand, by
Region, 2013 .................................................................................................................................................... 5
Table 3: Gender Distribution of TEA and Opportunity vs. Necessity in Thailand by Region, 2013 .................... 9 Table 4: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA and EST, and of the Male
and the Female TEA and EST, 2013 .......................................................................................................... 20
Table 5: Societal Attitudes and Perceptions in ASEAN 6 + East Asian Countries, 2013 ................................... 25
Table 6: Proportion of Firms with International Customers in ASEAN 6 + East Asian Countries, 2013 .......... 34
Table 7: The GEM Entrepreneurial Framework Conditions (EFCs) ...................................................................... 45
Table 8: Entrepreneurship Framework Conditions Main Indicators in ASEAN 6 + East Asian Countries, 2013
.......................................................................................................................................................................... 46
List of Figures
Figure 1: Prevalence Rates of Activity at Different Stages of the Entrepreneurial Process in Percent, 2011-
2013 ................................................................................................................................................................. 4
Figure 2: TEA and EST Rates in ASEAN 6 + 4 Asian countries, 2013 .................................................................. 5
Figure 3: Entrepreneurial Activity in Thailand, 2011 - 2013 ..................................................................................... 6 Figure 4: Business Discontinuance in ASEAN 6 + 4 Asian Countries (Exited a Business in Past Year,
Business did not Continue), in Percent, 2013 ............................................................................................ 7
Figure 5: Reasons for Business Discontinuance in ASEAN 6 + 4 Asian countries, 2013 ................................... 8
Figure 6: Main Reasons for Business Discontinuance in Thailand by Gender, 2013........................................... 8
Figure 7: Opportunity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013 ................................ 10
Figure 8: Necessity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013 .................................... 10
Figure 9: Gender Distribution of TEA in Thailand, in Percent, 2011 - 2013 ......................................................... 11 Figure 10: Gender Distribution of Opportunity-driven TEA versus Necessity-driven TEA in Thailand, in
Percent, 2011 - 2013 ................................................................................................................................... 11
Figure 11: Percentage of Sector Structure of Total Early-Stage Entrepreneurial Activity (TEA) and
Established Business Activity (EST) in Thailand, 2013 .......................................................................... 12 Figure 12: Sector Participation, Percentage of Respondents within TEA in ASEAN 6 + East Asian Countries,
2013 ............................................................................................................................................................... 13 Figure 13: Sector Participation, Percentage of Respondents within EST in ASEAN 6 + East Asian Countries,
2013 ............................................................................................................................................................... 13
Figure 14: Age Distribution for TEA and EST by Age Groups in Thailand, 2013 ................................................ 14
Figure 15: Age Distribution for TEA in ASEAN 6 + East Asian Countries, 2013 ................................................. 15
Figure 16: Age Distribution for EST in ASEAN 6 + East Asian Countries, 2013 ................................................. 15 Figure 17: Gender Distribution of Early-stage Entrepreneurs (TEA) by Geographic Regions (unweighted
average), 2013 ............................................................................................................................................. 16 Figure 18: Gender Distribution of Early-stage Entrepreneurs (TEA) in ASEAN 6 + East Asian Countries,
2013 ............................................................................................................................................................... 17
Figure 19: Gender Distribution of Early-stage Entrepreneurs (TEA) in Thailand, 2011 - 2013 ......................... 17
Figure 20: Gender Distribution of Established Business Owners (EST) in Thailand, 2011 - 2013 .................. 18
Figure 21: Gender Distribution of Early-Stage Entrepreneurs (TEA) in Thailand, by regions, 2013 ................ 18
Figure 22: Gender Distribution of Established Businesses (EST) in Thailand, by regions, 2013 ..................... 18
Figure 23: Percentage of male population involved in TEA, by Region, 2011 - 2013 ........................................ 19
Figure 24: Percentage of female population involved in TEA, by Region, 2011 - 2013 ..................................... 19
Figure 25: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA, 2011 - 2013 ...................... 21
Figure 26: Educational Profile of the Entrepreneurs in Thailand, Involved in EST, 2011 - 2013 ...................... 22
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Figure 27: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in TEA, 2011 -
2013 .............................................................................................................................................................. 22 Figure 28: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in EST, 2011 -
2013 .............................................................................................................................................................. 23 Figure 29: Educational Profile of the Entrepreneurs TEA and EST in ASEAN 6 + East Asian Countries, 2013
...................................................................................................................................................................... 24
Figure 30: Societal Attitudes and Perceptions in Thailand, 2011 - 2013 .............................................................. 26
Figure 31: Perceived Opportunities and Perceived Capabilities / Skills to Start a Business, ASEAN 6 + East
Asian Countries, 2013 ............................................................................................................................... 27
Figure 32: Perceived Opportunities to Start a Business, by Gender and Region in Thailand, 2012 ................ 28
Figure 33: Perceived Capabilities / Skills to Start a Business, by Gender and Region in Thailand, 2012 ...... 28
Figure 34: Perceived Opportunities and Capabilities to Start a Business, by Gender, 2011 - 2013 ................ 29
Figure 35: Entrepreneurial Intentions in ASEAN 6 + East Asian Countries, 2013 .............................................. 29
Figure 36: Entrepreneurial Intentions in ASEAN 3 + East Asian Countries 2011 – 2013 .................................. 30
Figure 37: Attitudes Towards Failure Worldwide, by Economic Development, 2013 ......................................... 31
Figure 38: Attitude Towards Failure in Percent, in ASEAN 6 + East Asian Countries, 2013 ............................ 31
Figure 39: Attitude Towards Failure in Percent, by Gender and Region in Thailand, 2013 .............................. 32
Figure 40: Attitude Towards Failure, by Gender in Thailand, 2011 - 2013 .......................................................... 32
Figure 41: Comparison of International Orientation of Start-ups, TEA and EST in Thailand, 2013 ................. 33 Figure 42: Proportion of firms with International and Domestic Customers in ASEAN 6 + East Asian
Countries, 2012 .......................................................................................................................................... 34
Figure 43: International Orientation by Number of Employees, TEA 2013 .......................................................... 35
Figure 44: International Orientation by Number of Employees, EST, 2013 ......................................................... 35
Figure 45: Market Expansion Plans of TEA and EST, by Region in Thailand 2013 ........................................... 36
Figure 46: Innovativeness of Products for Customers in Thailand, 2013 ............................................................. 37
Figure 47: Innovative Orientation (New Products) of TEA in ASEAN 6 + East Asian Countries, 2013 ........... 38
Figure 48: Innovative Orientation (New Markets) of TEA in ASEAN 6 + East Asian Countries, 2013 ............. 38
Figure 49: Technology-orientation of TEA and EST in Thailand, 2013 ................................................................ 39
Figure 50: Businesses in Medium or High Technology Sectors in ASEAN 6 + East Asian Countries, 2013.. 39
Figure 51: Innovativeness in Products and Services for TEA in Thailand, 2011 - 2013 .................................... 40
Figure 52: Subjective Well-Being SWB, by Phase of Entrepreneurship in Thailand, 2013 ............................... 41
Figure 53: Subjective Well-Being SWB, by Phase of Entrepreneurship in ASEAN 6 + East Asian Countries,
2013 .............................................................................................................................................................. 42
Figure 54: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013 ... 43 Figure 55: Subjective Well-Being SWB by Entrepreneurship Motivation in ASEAN 6 + East Asian Countries,
2013 .............................................................................................................................................................. 43
Figure 56: Subjective Well-Being SWB by Gender in ASEAN 6 + East Asian Countries, 2013 ....................... 44
Figure 57: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013 ... 44
Figure 58: Entrepreneurship Public Institutional Profile in ASEAN, 2013 (1/2) ................................................... 47
Figure 59: Entrepreneurship Market – Social Institutional Profile in ASEAN, 2013 (2/2) ................................... 47 Figure 60: Most Positive National Sub-Conditions (Scores above 4) Influencing Entrepreneurial Activity in
Thailand, 2013 ............................................................................................................................................ 48 Figure 61: Most Negative National Conditions (Scores below 2) Influencing Entrepreneurial Activity in
Thailand, 2013 ............................................................................................................................................ 49
Figure 62: Trend 2011 - 2013: Increase of Financial Constraints, from NES Data in Thailand, 2013 ............. 50
Figure 63: Factors Constraining Entrepreneurship, from NES Data in Thailand, 2013 ..................................... 50
Figure 63: Factors Recommended for Entrepreneurship, from NES Data in Thailand, 2013 ........................... 51
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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Summary
The GEM Thailand Report | 2013 provides detailed information on the entrepreneurial
spirit and the latest trends in entrepreneurial activities in Thailand.
In anticipation of the ASEAN Economic Community (AEC) and the increasing importance of
the greater Asian economy for Thailand, Thailand’s entrepreneurs are placed into the
context of the five ASEAN countries Indonesia, Malaysia, Philippines, Singapore, and
Vietnam, in contrast with the four East Asian countries China, Japan, S. Korea and
Taiwan. We believe that this report will be informative for policy makers as well as for
the business and academic communities.
The 2013 GEM Thailand Report describes the Thai entrepreneurial profile and discusses various aspects of
entrepreneurial activities. Entrepreneurship plays a significant role in driving the overall economic health of a
country, independent of the stage of economic development. Monitoring levels of entrepreneurial activity is
therefore critical for countries striving for sustainable growth and prosperity. In many aspects GEM research
illustrates that entrepreneurship in Thailand continues the trends noted in 2011 and 2012, some more
positive than others. This report outlines changes in frequency and nature of Thailand’s entrepreneurship,
and highlights some trends through the years 2011 to 2013.
Key Highlights 2013:
Thailand has overall high entrepreneurship rates. A total of 46.3% of the population were engaged in
entrepreneurial activities: 18.3% of the adult population (age 18-64) in early-stage entrepreneurship
(TEA)1 , and 28% were established business owners (p.4).
Female participation in entrepreneurial activities is declining for the third year in a row.
Nevertheless, gender equality in entrepreneurship rates is still prevalent in Thailand with 9.2 women
starting and running businesses versus 10 men. Similar rates can only be found in 6 countries around
the globe (p. 16).
TEA entrepreneurs are increasingly better educated than established business owners with one third of
them holding a bachelor degree as their highest educational degree (p. 20).
Over the last three years, opportunity-perception among the Thai population increased (p 27).
Established business owners in Thailand show the highest percentage of businesses in the extractive
sector with 23.5%, compared to the other Asian countries, (p. 12).
Three special topics are covered in chapter 4 of the 2013 GEM Thailand Report:
International Orientation and Market Expansion, Innovation and Technology, and Entrepreneurship
and Well-being (p. 33).
The customer base of Thailand’s businesses is mainly within the country (p. 34); especially early-stage
entrepreneurs show a low orientation for international and for new markets (p. 35).
Thailand’s established business owners experience higher well-being than the rest of the population
(p. 41).
Increasingly constraining is the lack of “financial support” for entrepreneurs as are supportive
government policies and the appropriate educational system to enhance capacity for entrepreneurship
in Thailand (p. 50).
1 Total early-stage entrepreneurial activity
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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1. Introduction and Background
Thailand consistently exhibits one of the highest entrepreneurship activity rates in the
world. Its established business ownership rate is the second highest in global comparison.
In 2013, 46.3% of the adult population in Thailand were involved in entrepreneurial
activities, 18.3% were starting or running new businesses, and 28% were established
business owners. In addition, one third of the adult population in Thailand is thinking
about starting a new business within the next three years.
Entrepreneurship provides job options for those who see opportunities and those who need a source of income.
Entrepreneurs have impact on the economy as current and future employers, and as suppliers, customers, and
service providers for other businesses, creating value and employment beyond their own enterprises. The
Global Entrepreneurship Monitor (GEM) measures these entrepreneurial activities in a global context; defining
entrepreneurship as “any attempt at new business or new venture creation, such as self-employment, a new
business organization, or the expansion of an existing business, by an individual, a team of individuals, or an
established business” (Bosma, Wennekers, & Amorós, 2012).
In 2013, the Global Entrepreneurship Monitor (GEM) conducted its 15th annual survey of entrepreneurship
around the world. GEM is the largest international research project that analyzes the propensity of the adult
population of a country to participate in entrepreneurial activities and the conditions that enhance these
entrepreneurship initiatives (Amorós & Bosma, 2014). The project aims to (1) measure differences in the level
of entrepreneurial activity between countries, (2) determine how entrepreneurial activities influence economic
growth, (3) uncover factors supporting and/or hindering entrepreneurial activity, and (4) suggest policies that
may enhance entrepreneurship in general.
The Global Entrepreneurship Monitor (GEM) research program was collaboratively founded in 1997 at
Babson College in the United States and London Business School in the United Kingdom. The first study in
1999 covered 10 countries; in its 15th year in 2013, approximately 197,000 individuals across 70 economies
participated in the GEM study, representing all regions of the world and a broad range of economic
developmental levels. The samples in the GEM 2013 study represent an estimated 75% of the world’s
population and 90% of the world’s GDP.
The data is based on two main data sources, namely, the Adult
Population Survey (APS) and the National Expert Survey (NES).
The 2013 representative sample for Thailand totalled 2,372
adults for the APS and 36 samples for the NES. The GEM
research methodology is standardized and, prior to each
year’s survey, approved by the Global Entrepreneurship
Research Association (GERA). Therefore, the research results can
be compared across the participating countries. With the
information from the APS and NES, policy recommendations
with regard to promoting entrepreneurship and its growth
strategies are formulated for each individual country (Chapter
5 and Chapter 6).
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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APS (Adult Population Survey)
The Thai APS is conducted by interviewing representative sample adults of 18-64 years of age. The APS
results represent the attitudes of non-entrepreneurs and individual entrepreneurs and their activities
nationwide. The APS samples were randomly selected across all regions in the country: Greater Bangkok
(including Bangkok itself, Nonthaburi, Samutprakarn and Patumthani), North, Northeast, East, Central and
South. The stratification of the 2013 Thailand APS sample, both rural and urban areas, is illustrated in Table
1. The national team conducted the APS survey by telephone (fixed line) interviews in urban and by face-to-
face interviews in rural areas. The regional sampling frame is proportional to the actual population in both
urban and rural areas. The survey results from the APS are covered in the Chapters 2 to 4.
NES (National Expert Survey)
The Thai NES samples comprised 36 experts from different age groups and from different entrepreneurial
framework condition categories (EFCs). Out of these 36 experts, a minimum of 25 % were entrepreneurs or
business owners. The NES is carried out via in-depth interviews with experts on nine EFCs. This qualitative
information is based upon the experts’ informed judgment on the following conditions: entrepreneurial finance,
government policies, government programs, entrepreneurship education, R&D transfer, commercial
infrastructure, market entry regulations, physical infrastructure, and cultural and social norms, which can
influence the overall climate for entrepreneurship in an economy. Its results help to identify fostering and
constraining factors in relation to the development of entrepreneurship in the respective countries. The
survey results from the NES are covered in Chapter 5.
Beyond activities and aspirations of entrepreneurs and reasons for getting started, the 2013 results illustrate the
colorful diverse nature of entrepreneurship in Thailand. Since the upcoming ASEAN Economic Community
(AEC) will increase both interregional opportunities and competition, this report exposes Thailand in
comparison to other countries in ASEAN: Indonesia, Malaysia, the Philippines, Singapore and Vietnam and to
four more Asian countries: China, Japan, South Korea and Taiwan, all located in East Asia. In addition, it
displays certain trends in Thai entrepreneurship over the last three years 2011 to 2013.
In 2013, the GERA selected Entrepreneurship and Well-Being as a special topic of
the year for the GEM study (Chapter 4).
Table 1: Stratification of the 2013 Thailand APS Sample
Area Urban Rural Total Respondents
Greater Bangkok (Bangkok, Nonthaburi, Samutprakarn, Patumthani) 504 - 504
North 266 127 393
Northeast 495 232 727
Central* 317 151 468
South 190 90 280
Total 1,772 600 2,372
*Note: Central covers the areas in the west, the east and the central part of Thailand excluding Greater Bangkok.
Source: GEM 2013 Thailand Adult Population Survey
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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2. Entrepreneurial Activities 2.1. A Profile of Entrepreneurial Activities in Thailand The entrepreneurship phases in GEM are viewed as a process starting with (1) potential entrepreneurs
mainly led by their beliefs, attitudes and intentions to start a business, over (2) nascent entrepreneurs who
are just starting up, (3) young entrepreneurs running new (less than 3.5 year old) firms and (4) business
owners of established enterprises (older than 3.5 years). The GEM study assesses this process at the different
points in the enterprise’s life cycle. The main measure of GEM is the Total Entrepreneurial Activity (TEA)
rate. It consists of individuals aged 18-64 years who are nascent or young entrepreneurs –just started up or
run a business not older than 42 months.
Figure 1: Prevalence Rates of Activity at Different Stages of the Entrepreneurial Process in Percent, 2011-2013
Source: GEM 2013 Thailand Adult Population Survey.
The data in Figure 1 shows the prevalence rates of entrepreneurial activities at the different entrepreneurial
stages for the years 2011 – 2013 in percent. The GEM 2013 Thailand APS report shows a gradual decrease of early-
stage entrepreneurial activity from 19.5% (2011) over 18.9% (2012) to 18.3% in 2013. Compared to the previous year,
young businesses less than 3.5 years old decreased by 8% to 10.4% in 2013. The rate of nascent entrepreneurs even
showed a steeper decline to 7.9%, a drop of 9.2%.
The impact of the global financial crisis on entrepreneurship rates can be seen for those entrepreneurs with
businesses older than three months but less than three and a half years (young entrepreneurs) who dropped
significantly from 18.5% before the crisis in 2007 to 12.2% in 2011 and further to 10.4% in 2013. In contrast, the
prevalence rate of established business owners, which had increased considerably in the last 8 years from 14.1% in
2005 to 30.1% in 2011, proves to be rather stable on a high level with 28.0% in 2013. Figure 2 outlines Thailand’s
TEA and established business ownerships rates in comparison with the ASEAN 6 (Indonesia, Malaysia, Philippines,
Singapore, Thailand and Vietnam) and the four East Asian countries China, Japan, South Korea and Taiwan. To
simplify matters, South Korea will be named Korea in the process of this report. For details on specific countries, see
Appendix 1, Table 2.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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Figure 2: TEA and EST Rates in ASEAN 6 + 4 Asian countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Indonesia shows the highest TEA rate and a slightly lower, although nevertheless very high established
business ownership rate. For the Philippines a high discrepancy can be seen between TEA entrepreneurs and
established business owners, which suggests that many businesses do not enter the phase of becoming
established businesses. This is also mirrored in the very high business discontinuance rate of more than 9%
in the Philippines (see Chapter 2.2). Thailand’s established business rate of 28% is the second highest in a
global comparison. Only Uganda has more established business owners (36.1%).
As Table 2 shows, Thailand’s North ranks first in terms of TEA rate and the Northeast ranks first in terms of
established business ownership (EST). Three major shifts can be seen compared to the previous year:
(1) In Greater Bangkok, the TEA rate dropped by 30.1% from 12.7 % in 2012 to 8.8% in 2013; (2) in the North, the
formerly highest established business ownership rate of the five regions (38.2%) dropped by 22.7% to 29.5%,
which is still above the average of the country; and (3) in the South, the established business ownership rate
dropped 21.6% from 35.6% in 2012 to 27.9% in 2013. Overall and as in previous years, the Greater Bangkok area is
limping behind in entrepreneurship rates, regardless of the entrepreneurial stage.
Table 2: Total Entrepreneurial Activity (TEA) and Established Business Ownership (EST) in Thailand, by
Region, 2013
Area TEA Rate*
2013 (2012) EST Rate*
2013 (2012)
Greater Bangkok (Bangkok, Nonthaburi, Samutprakarn, Patumthani)
8.8 (12.7) 16.7 (16.5)
North 25.4 (18.5) 29.5 (38.2)
Northeast 19.5 (24.7) 29.9 (31.7)
Central 13.9 (14.4) 28.9 (24.8)
South 16.8 (16.4) 27.9 (35.6)
Total Average 18.3 (18.9) 28.0 (29.7)
Note: * Weighting factor is applied in calculation.
Source: GEM 2013 Thailand Adult Population Survey.
25.5
6.6
18.5
10.7
15.4 18.3
14.0
3.7
6.9 8.2
21.2
6.0 6.6 4.2
16.4
28.0
11.0
5.7
9.0 8.3
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
Early-stage entrepreneurial activity (TEA) Established business ownership rate (EST)
In %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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Trends in Thailand 2011 – 2013:
Both early-stage entrepreneurial activities as the established business ownership rates slightly dropped from
the year 2011 to 2013. Main contributors to this trend were women entrepreneurs. Female TEA dropped from
20% in 2011 t0 16.3% in 2013, whereas male TEA slightly increased. The decline of female established
business owners is 9.5% from 29.3% (2011) t0 26.5% (2013), whereas male established entrepreneurs just
decline slightly from 30.9% in 2011 to 29.6% on 2013. This trend is also mirrored in the business
discontinuance rate which increased in 2013 (Chapter 2.2). For more details on the gender differences in the
different business phases see Chapter 2.6.
Figure 3: Entrepreneurial Activity in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
19.5
30.1
18.9
29.7
18.3
28.0
Early-stage entrepreneurial activity (TEA) Established business ownership rate (EST)
2011 2012 2013in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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2.2. Business Discontinuance
With businesses being newly started, naturally others close. Some individuals who sell or close their business
might also re-enter into entrepreneurial activities. Discontinuance of businesses may be considered part of the
entrepreneurial dynamics alongside total early-stage entrepreneurial activities and established businesses.
Generally, the rate of business discontinuance declines as economic development increases. Factor-driven
economies experience the highest rates of business discontinuance with an average of 12.6%. Efficiency-driven
(average 4.2%) and further innovation-driven economies (average 2.8%) show lower rates of discontinuance.
Thailand’s business discontinuance rate in the past year was 3.7%, up from 2.7% in 2012. Of those, 73% exited
their business, and the business itself did not continue. The highest number of business exits took place in
Greater Bangkok (4.2%), and the least exited businesses were in the South (0.7%). GEM distinguishes
businesses that were sold or exited and ceased to exist versus those that were sold or exited but continued by
someone else. Compared to the other ASEAN and East Asian countries, the discontinuance rate where the
business ceased to exist is comparatively high: in the past 12 months 2.3% of the Thai adult population have
sold, shut down, discontinued or quit a business they owned and managed and the business was not continued
by someone else (Figure 4).
Figure 4: Business Discontinuance in ASEAN 6 + 4 Asian Countries (Exited a Business in Past Year,
Business did not Continue), in Percent, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Figure 5 shows the reasons, why entrepreneurs discontinued their businesses in ASEAN and East Asia. The
2013 GEM Global Report lists “problems of obtaining finance” and a “not profitable business” as the main
reasons for a business to exit across most countries. This is also true for Thai businesses: 21.9% (2012: 19.7%)
state a not profitable business and 20.4% (2012: 19.7%) affirm problems receiving finance, together
accounting for 42.3% of the reasons. As in the previous years, a high number of entrepreneurs (34.7%) claimed
having personal reasons for exiting, not only in Thailand, but also in Vietnam (35.3%) and Taiwan (39.1%). Personal
or voluntary reasons for discontinuance might be prevalent especially in female entrepreneurs, often depending
upon their education (Minniti & Naudé, 2010). In Thailand, the 2013 GEM survey results show, that 74%
more female than male entrepreneurs exited their businesses. Often less educated women entrepreneurs
tend to start businesses in times of restricted labor markets and weak economies, returning to the corporate
sector when they perceive improved macroeconomic conditions. An “opportunity to sell their business” which
is a reason for up to 13.8% of the discontinuing businesses in Malaysia, was not an option for Thai business
owners (0 %).
1.9 1.2
9.4
1.9 2.5 2.3 2.0
1.2 1.8 1.9
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
8
Figure 5: Reasons for Business Discontinuance in ASEAN 6 + 4 Asian countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
The main reasons stated by men and women in Thailand on “why they discontinued their businesses” were the same
two years ago (2011): besides “personal reasons” the two main reasons to an equal proportion were “problems getting
finance” and “the business was not profitable”; this started to shift in 2012 and the gap intensified in 2013. Figure 6
shows the main reasons for business discontinuance in Thailand in 2013 by gender: Twice as many women or 26.8%
of the female entrepreneurs ended their businesses due to unprofitability (versus 13.3% of the men), and 3.5 times
more or 33.3% of the male entrepreneurs exited due to not getting finance (versus 8.9% of the women).
Figure 6: Main Reasons for Business Discontinuance in Thailand by Gender, 2013
Main reasons for male entrepreneurs Main reasons for female entrepreneurs
Source: GEM 2013 Thailand Adult Population Survey.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Ind
on
esi
a
Mal
aysi
a
Ph
ilip
pin
es
Sin
gap
ore
Vie
tnam
Thai
lan
d
Ch
ina
Jap
an
Ko
rea
Taiw
an
ASEAN 6 East Asian Countries
Opportunity to sell Business not profitable Problems getting finance
Another job or business opportunity Exit planned in advance Retirement
Personal Reasons
Personal reasons,
23.3
An incident,
13.3
The business was not
profitable, 13.3
Problems getting finance,
33.3
various other
reasons, 16.7
Personal reasons,
41.1
An incident, 7.1
The business was not
profitable, 26.8
Problems getting
finance, 8.9
various other
reasons, 16.1
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
9
2.3. Necessity- and Opportunity-Driven Entrepreneurship
Different people may have different motivations to enter into entrepreneurial activity. For example, in some
cases, the motivation to start a business may be based on necessity, if there are no better alternatives for
work or other income sources. Others may be motivated to start a business by seizing an opportunity; motifs
can be to reach higher income, to work with greater flexibility and independence. GEM identifies early-stage
entrepreneurs according to their original motivation to start as opportunity-driven or necessity-driven. Most
early-stage entrepreneurs can be classified into either of these two groups. The motivation why individuals
start entrepreneurial activities has impact on the quality of the pursued business. GEM research consistently
showed, that opportunity-driven businesses contribute more to an economy than those started out of
necessity. Opportunity-based entrepreneurship reflects a voluntary career choice and is seen as a dynamic
entrepreneurial activity. On average, opportunity-driven entrepreneurs are also better educated and hire
more employees during the first years of their firm’s life than necessity-driven entrepreneurs (Reynolds,
Camp, Bygrave, Autio, & Hay, 2002).
The 2013 APS Thailand survey reveals that for the Thai total
entrepreneurial early-stage activity (18.3% of the adult population),
more men and women started their businesses opportunity-driven
than necessity-driven. 83% of male TEA (2012: 88%) and 74% of
female TEA (2012: 78%) were opportunity-driven, whereas 14% of
the men (2012: 12%) and 24% of the women (2012: 22%) started
necessity-driven.
A view at the regions in Thailand (Table 3) shows that opportunity
perception is highest in the North for men (92.8%), but for women, the
surprisingly highest is in Greater Bangkok (88.9%), followed by the
North (87.4%). On the other hand, necessity-driven start-ups differ
greatly throughout the regions: for male TEA between 5.8% in the North
and more than four times higher in the Central region (26.9%). Female
necessity-driven TEA shows an even greater spread ranging from 5.5% in
Greater Bangkok up to 33.3% in the Northeast. Also the results for the South
display a large amount of necessity-driven female TEA with 30.5%. This
might be explained by the prevalence of a variety in working opportunities
in Greater Bangkok.
Table 3: Gender Distribution of TEA and Opportunity vs. Necessity in Thailand by Region, 2013
Area
Opportunity-driven early
stage entrepreneurial
activity (% of adult population)
Necessity-driven early
stage entrepreneurial
activity (% of adult population)
Male TEA Opportunity (%of TEA males)
Female TEA Opportunity
(%of TEA females
Male TEA Necessity
(%of TEA males)
Female TEA Necessity
(%of TEA females)
Greater Bangkok (Bangkok, Nonthaburi,
Samutprakarn, Patumthani)
7.6 0.8 84.8 88.9 12.4 5.5
North 22.8 2.3 92.8 87.4 5.8 13.0
Northeast 14.0 4.8 78.9 65.2 15.0 33.3
Central 10.5 3.0 72.4 78.4 26.9 15.7
South 12.9 3.2 87.7 65.2 8.2 30.5
Thailand (average)
13.3 3.0 83.0 74.0 14.0 24.0
Source: GEM 2013 Thailand Adult Population Survey.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
10
The country comparison of ASEAN 6 and East Asian countries shows that opportunity perception in ASEAN
countries is on average higher than in the East Asian countries with the exception of the Philippines who have the
lowest opportunity-driven TEA rates in the Asian region, both for male and female TEA (Figure 7). In terms of
female opportunity perception, the ASEAN region is on par with the developed economies, where in general three
out of four or more women entrepreneurs account for opportunity-driven TEA (Kelley, Brush, Greene, & Litovsky,
2013).
Figure 7: Opportunity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
In most countries, necessity-driven TEA is higher for women than for their male counterparts. The highest rate in the
Asian region exists in the Philippines, where nearly half of the female business owners start out of necessity (Figure
8). In comparison, Thailand experiences one of the lowest rates of necessity-driven TEA, both for men and women.
Singapore has the least necessity-driven TEA for men (9%) and for women (8%), followed by Malaysia. The East
Asian countries experience considerably higher rates of necessity-driven TEA than Thailand.
Figure 8: Necessity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
76 78
60
89 83
75 70
73
60
72 73
87
52
91
74 75
58 63 63
71
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
male TEA opportunity (% of TEA males ) female TEA opportunity (% of TEA females )
24 22
40
9
14
25 28
20
37
28 27
13
48
8
24 25
41
34 34
29
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
male TEA necessity (% of TEA males ) female TEA necessity (% of TEA females )
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
11
Trends in Thailand 2011 – 2013:
Figure 9 displays that male TEA proves to be stable from 2011 to 2013, whereas female TEA rates dropped from a
previously high rate of 20% of the adult population in 2011, which was even higher than the male TEA rate of 17.2%
in 2011, to 16.3% in 2013 (-18.5%).
Figure 9: Gender Distribution of TEA in Thailand, in Percent, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
The general decline in female TEA rates can partly be explained by a drop in opportunity perception in the last years.
Figure 10 shows, that in 2011, 14.5% of women were starting because they perceived opportunities, whereas in 2013,
only 12.2% of the female population was opportunity-driven (-15.8%). On the other hand, necessity-driven TEA also
declined, both for men and women. As in most countries across the globe, opportunity motivation is generally more
predominant in all regions (Amorós & Bosma, 2014).
Figure 10: Gender Distribution of Opportunity-driven TEA versus Necessity-driven TEA in Thailand, in
Percent, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
17.2 20
16.5 19.7
17.3 16.3
TEA male TEA female
2011 2012 2013
13.2 14.5
3.1 4.5
14.5 15
1.9 4.3
14.4 12.2
2.3 3.7
TEA male TEA female TEA male TEA female
opportunity-driven necessity-driven
2011 2012 2013
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
12
2.4. Sector Participation
Thailand’s industry sector participation of TEA and EST is displayed in Figure 11. It clearly indicates that
consumer-oriented businesses such as retail trade, hotels and restaurants are the majority sectors for both TEA
(61%) and EST (52%). It is noticeable that Agriculture, Forestry and Fishing accounts for 8% of the young
businesses and is nearly a quarter (22%) of all established businesses, for both entrepreneurship phases the
second largest sector. Manufacturing is the third largest business sector for start-ups (7%), whereas Wholesale
Trade is No. 3 for established business owners with 7%. It can also be seen that more businesses are being started
in the three sectors Information and Communication (4%), Financial Intermediation and Real Estate Activities
(3%) and Personal / Consumer Service Activities (2%) than in established business owners (1% each). This might
be because those business fields can easily be entered, and they might also be growing markets. However, their
failure rates might also be higher, accounting for the difference between TEA and EST. Since Thailand is on the
road from an efficiency-driven country to an innovation-driven country, where knowledge and innovation –
often in services, finance, and technology sectors – are increasingly important, these sectors might be a sign
of increased innovation-driven features in Thailand’s businesses. Future GEM research will show if this trend
persists and if the TEA entrepreneurs will enter the established business phase.
Figure 11: Percentage of Sector Structure of Total Early-Stage Entrepreneurial Activity (TEA) and Established Business Activity (EST) in Thailand, 2013
Agriculture, Forestry, Fishing Mining, Construction Manufacturing Utilization, Transport, Storage Wholesale Trade Retail Trade, Hotels & Restaurants Information and Communication Financial Intermediation, Real Estate Activities Professional Services Government, Health, Education, Social Services Personal/Consumer Service Activities
Source: GEM 2013 Thailand Adult Population Survey.
In general, most Thai entrepreneurs continue to be engaged in operating small scale and small scope new
businesses. Examples are retailing, food services, laundry services, and accommodation renting.
GEM summarizes the sectors into four main sectors: extractive sector (agriculture, forestry, fishing, and all
mining), transformative sector (construction, manufacturing, transportation, communication, utilities, and
wholesale), business services (finance, insurance, real estate, all business services), and consumer services
(retail, motor vehicles, lodging, restaurants, personal services, health, education and social services,
recreational services). This report uses the four main sectors for the geographic comparison of Thailand
within ASEAN and East Asian countries.
8% 1%
7%
3%
5%
61%
4%
3% 1%
5%
2% TEA
22%
3%
5%
2% 7% 52%
1% 1% 1%
5%
1% EST
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
13
Figure 12 and Figure 13 show the sector participation in the geographic region of ASEAN 6 and East Asian
countries for respondents within TEA and within EST, respectively. Thailand shows the second highest
percentage of participation in the extractive sector for TEA (8.7%) after Malaysia (13.5%) and the highest for
EST (23.5%). On the other hand, participation in the business oriented services is comparatively low in
Thailand with 7.7% for TEA and 3.3% for EST.
Figure 12: Sector Participation, Percentage of Respondents within TEA in ASEAN 6 + East Asian Countries, 2013
Figure 13: Sector Participation, Percentage of Respondents within EST in ASEAN 6 + East Asian Countries,
2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
3.8 13.5
4.1 0.9 4.3 8.7 1.7 1.2 2.3 1.3
11.5
15.7
10.3 11.1
15.0 15.2
11.2 16.5
31.2
17.8
3.6
8.1
5.3
25.3 7.2 7.7
10.2
23.5
19.5
16.3
81.1
62.7
80.3
62.7 73.5
68.4 76.9
58.8 47.0
64.6
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
Extractive sector Transforming sector Business oriented services Consumer oriented services
4.0 11.9 8.2
0.0 4.6
23.5
2.3 3.1 4.9 1.2
11.7
19.0
11.9 16.4
12.5
16.4
14.4
39.5 37.1
30.3 3.9
6.1
1.8
30.8
6.1
3.3
4.1
23.8 17.4
15.0
80.4
63.0
78.1
52.8
76.8
56.8
79.2
33.6 40.6
53.5
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
Extractive sector Transforming sector Business oriented services Consumer oriented services
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
14
2.5. Age Distribution
Figure 12 shows the relative proportions of entrepreneurial activities among different age groups in Thailand.
Young businesses, being in business for less than 42 months (TEA), have their highest ratio in the age group of 25-
34 and their next highest in the age group of 35-44 years. These findings do not differ from previous years in
Thailand and are prevalent in most economies in the GEM survey. Established business owners, running
businesses older than 42 months (EST), have the highest ratio in the age group of 35-44 years (35.4%). On
average they have become younger than in the previous years, where the majority were in the age range of
45-54 years (2011:32.1% / 2012: 32.4%). The high ratio of established business owners aged 35-44 might be
due to previously high TEA rates in the age group of 25-34 and in general low discontinuance rates. In the age
group of 18-24, already 3.3% account for established business owners. This is slightly lower than in the previous
year (4.3%). Entrepreneurship rates decline significantly after the age of 54, both for TEA as for
established business owners. The majority of entrepreneurial activities in the Thai adult population takes
place between 25 and 54 years of age with a peak of 63.7% (2012: 58.5%) being engaged in entrepreneurship
when they are between 35 and 44 years old.
Figure 14: Age Distribution for TEA and EST by Age Groups in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
The comparison across ASEAN and East Asia shows that there is a similar age distribution for TEA for the
ASEAN countries as well as for China and Taiwan, with peaks of early-stage entrepreneurial activity in the age of
25 to 44 years (Figure 15). By contrast, both Japanese and Korean early-stage entrepreneurs are on average older,
showing the highest percentages of TEA in the age group of 35 to 44, followed by a high percentage in the age
group of 45 to 54. Korea’s early-stage entrepreneurs are on average the oldest in this comparison, with 66.5%
being between 35 and 54 years compared to the youngest in Vietnam with 56.3% being between 18 and 34 years.
Japan has the highest percentage (16.7%) of start-ups and young businesses where the owner is 55 years or older.
A larger age distribution is seen in the age groups prevalent for established business owners (Figure 16). The three
East Asian countries Japan, Korea and Taiwan show an extremely high proportion of established business owners
in the age between 45 and 64 with Korea having the oldest established business owners (77.7%), followed by
Japan (74.5%) and Taiwan (60.2%). Of the ASEAN countries, this age group is highest for Singapore (58.8%).
Both Singapore and Japan have no established business owners in the age group of 18 to 24 (0%), and Taiwan has
only 0.6% compared to Thailand, where 3.3% of the established business owners are between 18 and 24 years
young.
11.1
31.3 28.3
19.7
9.6
3.3
17.5
35.4
30.3
13.5
18-24 25-34 35-44 45-54 55-64
TEA EST
age
in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
15
Figure 15: Age Distribution for TEA in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Figure 16: Age Distribution for EST in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
0
5
10
15
20
25
30
35
40
45
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
TEA age distribution
TEA 18-24 TEA 25-34 TEA 35-44 TEA 45-54 TEA 55-64
%
0
5
10
15
20
25
30
35
40
45
50
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
EST age distribution
EST 18-24 EST 25-34 EST 35-44 EST 45-54 EST 55-64
%
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
16
2.6. Gender Differences
One of Thailand’s outstanding features in regards to entrepreneurship is an equal proportion of female and male
entrepreneurs at all stages of business activity, from intending to start a business over starting up, sustaining it
and finally becoming an established business owner. Only six countries in the world show similar rates of male
and female entrepreneurship, three of them are in ASEAN: Indonesia, the Philippines, and Thailand. “In most
economies around the world, there are fewer women than men starting and running new businesses, but there are
even fewer running mature ones” (Kelley et al., 2013). Figure 17 shows the proportion of male to female early-
stage entrepreneurs by geographic regions with only the Sub-Saharan Africa region showing a similar ratio as
Thailand. In this region, the other three countries with entrepreneurial gender equality in TEA are Nigeria,
Zambia and Botswana.
Figure 17: Gender Distribution of Early-stage Entrepreneurs (TEA) by Geographic Regions (unweighted average), 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
The Asia-Pacific & South Asia region showed a
14% TEA rates for the male population and an
11% rate for females. Broken down into the
ASEAN 6 and the 4 East Asian countries, there
are a total of three countries with a similar
ratio of female to male TEA: Indonesia,
Philippines, and Thailand with Indonesia
showing the highest TEA rates, both for men
and women (Figure 18). Female TEA in
Thailand was 17.3% of the female adult
population, and 18.0% of the male adult
population was involved in TEA.
On the other hand, the high level of female entrepreneurship rates in Thailand is accompanied by the fact
that more than 70% of Thai women entrepreneurs operate as micro business owners. Positively seen, it
shows the level and the ability of Thai women for self-employment; and negatively, it does not add to job
creation for others in Thailand. In addition, Thailand and the Asian region also experience clear gender
differences in necessity- and opportunity-driven TEA (Chapter 2.3).
22
13
27
14
10 9
13
18.0
15
6
26
11
6 6
9
17.3
Latin America& Caribbean
Middle East &North Africa
Sub-SaharanAfrica
Asia Pacific &South Asia
Europe -EU28
Europe - NonEU28
NorthAmerica
Thailand
% of male population involved in TEA % of female population involved in TEA
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
17
Figure 18: Gender Distribution of Early-stage Entrepreneurs (TEA) in ASEAN 6 + East Asian Countries,
2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Trends in Thailand 2011 – 2013:
In 2012, Thailand showed the highest rate of female entrepreneurs in the global comparison in GEM, with 12
women starting and running businesses versus 10 men. While the ratio of female to male entrepreneurs
decreased to 0.92 in 2013, Thailand is still one of six countries with a nearly even proportion of man and
women entrepreneurs. The decrease of female entrepreneurs can both be seen in TEA as in established
business owners. In the three consecutive years 2011 – 2013, the TEA rates of male entrepreneurs remained
stable, whereas female TEA rates decreased considerably by 18.5% from 20% in 2011 to 16.3% in 2013, below
the male TEA rate. (Figure 19)
Figure 19: Gender Distribution of Early-stage Entrepreneurs (TEA) in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
Figure 20 shows, that the percentage of female established business owners decreased by 10% from 29.5% of
the female population in 2012 to 26.5% in 2013. In the same year, the discontinuance rate of female
entrepreneurs, where the businesses were not continued, nearly doubled from 1.8% in 2012 t0 3.4% in 2013.
In the same time period, the discontinuance rate of male entrepreneurs increased only slightly from 1.2%
(2012) to 1.6% (2013).
26.0
7.6
19.1
13.2
16.8 18.0
15.8
4.8
9.7 11.1
25.1
5.5
18.0
8.2
14.0
17.3
12.2
2.7 3.9
5.3
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
% of male population involved in TEA % of female population involved in TEA
17.2 20
16.5
19.7 17.3 16.3
% of male population involved in TEA % of female population involved in TEA
male TEA female TEA
2011
2011 2011
2012 2012
in %%11
2011 2013 2013
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
18
Figure 20: Gender Distribution of Established Business Owners (EST) in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
Regional Gender Differences in Thailand
Thailand’s regions differ in women participation in entrepreneurial activities, both in TEA and EST. The
Northeast of Thailand reports that more women than men in both stages are involved in entrepreneurship
(Figures 21 and 22). The Northeast also shows the highest level of female established business owners
(30.0%) in all five regions. The highest rate of early-stage entrepreneurship among all areas is prevalent in
the North with 23.1% of the female population and 27.7% of the male population. There is a different pattern
for established businesses: the highest percentages for men and women are found in the North (male: 32.5%;
female 26.6%), followed by the South for men (30.7%) and by the Central region for women (28.0%).
Figure 21: Gender Distribution of Early-Stage Entrepreneurs (TEA) in Thailand, by regions, 2013
Figure 22: Gender Distribution of Established Businesses (EST) in Thailand, by regions, 2013
Source: GEM 2013 Thailand Adult Population Survey.
30.9
29.3 29.9
29.5 29.6
26.5
% of male population involved in EST % of female population involved in EST
male EST female EST
2011 2012 2012 2011 2013 2013
in %
10.5
27.7
18.0
14.5 17.1
7.2
23.1 21.0
13.4
16.4
GreaterBangkok
North Northeast Central South
% of male population involved in TEA
% of female population involved in TEA
17.7
32.5 29.8 29.8 30.7
15.8
26.6
30 28.0
25.0
GreaterBangkok
North Northeast Central South
% of male population involved in EST
% of female population involved in EST
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
19
Trends in Thailand 2011 – 2013:
A continuing trend is the decline in female entrepreneurship in Thailand, both for established as for early-
stage business owners. Where in 2012 still 12 women could be found to run a business compared to 10 men,
the survey of 2013 reveals that only 9.2 women versus 10 men start and run a business. Especially female
TEA has considerably decreased from 2011 to 2013 with the exception of the North of Thailand, where it
increased consistently every year from 17.5% in 2011 to 18.7% in 2012 and further to 23.1% in 2013, a total of
+32% (Figures 23 and 24). All other regions in Thailand show somewhat sharp declines in female TEA,
especially for Bangkok (-50%) and the North (-23.4%) in the previous year.
In two of the five regions, male TEA increased from 2011 to 2013 with the highest increase (+44.3%) in the
North to a three-year high of 27.7% in 2013. After an initial increase, the Northeast is back to 18.0% male
TEA rates in 2013, slightly above the rate of 2011. Bangkok and Central show a decrease of 5.4% and 10.5%
respectively. After a sharp decline in male TEA from 2011 to 2012 (-50.8%) in the South, the region seems to
recover and male TEA now accounts for 17.1% (+36.8% from 2012 to 2013), yet still lower than in 2011 when
the South had the highest male TEA rate of all regions with 25.4%.
Figure 23: Percentage of male population involved in TEA, by Region, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
Figure 24: Percentage of female population involved in TEA, by Region, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
11.1
19.2 17.4
16.2
25.4
10.7
18.3
21.8
14.7 12.5
10.5
27.7
18.0
14.5 17.1
Greater Bangkok North Northeast Central South
2011 2012 2013
12.3
17.5
24.6
20.8
23.8
14.4
18.7
27.4
14.1
20.1
7.2
23.1 21.0
13.4
16.4
Greater Bangkok North Northeast Central South
2011 2012 2013
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
20
2.7. Educational Profile
The general educational profile of the Thai adult population, both entrepreneurs and non-entrepreneurs,
stemming from the 2013 GEM survey results, shows two peaks: 20.8% of the Thai population have finished
high school (21.5% of male and 20.2% of female adult population) and 29.3% hold a bachelor degree (31.0%
of male / 27.7% of female adult population). The third largest group with 16.2% of the adult population still
states elementary school as their highest level of education with more women (19.6%) than men (12.7%).
The effect of higher education on early-entrepreneurial activity is not certain. The possibilities of better
employment opportunities that might be available in the market for those with higher education could even
deter them from entrepreneurship; however, those with higher education might have additional
knowledge, better experience, and better networks which could support their way into entrepreneurship.
Looking at entrepreneurs only, the educational profile of entrepreneurs in Thailand (Table 4) shows a similar
pattern for men and women with a slightly higher percentage of men having vocational training and more
women having elementary school as their highest educational level. There is a difference for TEA and for
established business owners. TEA entrepreneurs, regardless of gender, possess a higher educational level
than established business owners. The percentage of bachelor degree holders is 35.5% for TEA versus 23.6%
for EST. One third of the female TEA entrepreneurs rely on the educational background from a bachelor
degree (33.5%), as do an even higher proportion of male TEA entrepreneurs with 37.5%. A high school degree
is the second choice both for male (21.5%) as for female TEA (21.1%).
There is a gender difference for established business owners with the majority of women relying on
elementary school as their highest degree (27.1%), whereas the majority of men rely on a bachelor degree
(28.1%).
Table 4: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA and EST, and of the Male
and the Female TEA and EST, 2013
% of TEA
% of EST
entrepreneurs
(male and female)
male entrepreneurs
female entrepreneurs
entrepreneurs (male and
female)
male entrepreneurs
female entrepreneurs
Lower elementary school
1.8 1.0 2.6
1.6 1.5 1.7
Elementary school
13.7 8.5 19.1
23.4 20.1 27.1
Secondary school
9.1 7.5 10.8
12.6 11.1 14.2
High school 21.3 21.5 21.1
20.7 19.1 22.4
Vocational school (Por Wor Chor)
4.3 7.0 1.5
8.0 9.3 6.6
Higher vocational school (Por Wor Sor / Por Wor Tor)
11.5 13.5 9.3
7.8 8.6 6.9
Bachelor degree 35.5 37.5 33.5
23.6 28.1 18.8
Master degree 2.8 3.5 2.1
2.1 1.9 2.3
Doctoral degree 0.0 0.0 0.0
0.2 0.3 0.0
Total 100.0 100.0 100.0
100.0 100.0 100.0
Source: GEM 2013 Thailand Adult Population Survey
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
21
Trends in Thailand 2011 – 2013:
Figure 25 shows that the percentage of early-stage entrepreneurs who hold a bachelor degree has increased
considerably by 29.6% since 2011. In 2013 more than one third of the young business owners (35.5%) had a
bachelor degree, followed by high school degree (21.6%). On the other hand, an elementary school degree
was less prevalent, down 40% from 23.1% (2011) to 13.7% (2013).
Figure 25: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
An entrepreneur sharing her experience with Master students in Entrepreneurship at BUSEM
0.0
23.1
9.7
16.1
5.6
12.1
27.4
5.6
0.3 0.4
20.4
15.9 18.7
7.2 10.4
25.2
1.7 0.2 1.8
13.7
9.1
21.3
4.3
11.4
35.5
2.8 0.0
Lowerelementary
school
Elementaryschool
Secondaryschool
High school Vocationalschool (PorWor Chor)
Diploma,Higher
vocationalschool (Por
Wor Sor / PorWor Tor)
Bachelordegree
Master degree Doctoraldegree
2011 2012 2013
% of Thai entrepreneurs
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
22
A similar shift can be seen for established business owners, where entrepreneurs with an elementary school
degree as their highest educational level decreased even further (-41.9%) from 40.3 in 2011 to 23.4% in 2013,
although still accounting for nearly a quarter of all businesses. Again there was a huge increase of 80.2% for
entrepreneurs with a bachelor degree from 13.1% (2011) to 23.6%, likewise accounting for a quarter of all
businesses (Figure 26).
Figure 26: Educational Profile of the Entrepreneurs in Thailand, Involved in EST, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand Adult Population Survey.
Regarding the two main changes over the 3 years from a gender perspective (Figure 27), male early-stage
entrepreneurs with an elementary school degree more than halved to 8.5% in 2013, whereas female early-
stage entrepreneurs saw a reduction of 29.3% from 27% in 2011 to 19.1% in 2011, still accounting for a fifth of
all enterprises. 50% more male TEA entrepreneurs (37.5%) held a bachelor degree in 2013, and female TEA
entrepreneurs increased 13.9% to 33.5% in 2013.
Figure 27: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in TEA, 2011 -
2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
Male established business owners with elementary school degrees decreased by 40.7%, which was less
intense than the decrease for early-stage male entrepreneurs. However, established women entrepreneurs
with elementary school degrees decreased by 41.8%, a steeper decline than their early-stage counterparts
experienced. Nearly half of all female established business owners (46.6%) left school with an elementary
0.0
40.3
12.8
18.1
5.1 8.2
13.1
2.4 0.0
2.2
34.2
14.5 14.5
5.9 6.7
19.8
2.0 0.1 1.6
23.4
12.6
20.7
8.0 7.8
23.6
2.1 0.2
Lowerelementary
school
Elementaryschool
Secondaryschool
High school Vocationalschool (PorWor Chor)
Diploma,Higher
vocationalschool (Por
Wor Sor / PorWor Tor)
Bachelordegree
Master degree Doctoraldegree
2011 2012 2013
18.5
25.0 27.0 29.4
13.7
26.9 25.5 23.9
8.5
37.5
19.1
33.5
Elementary school Bachelor degree Elementary school Bachelor degree
TEA male TEA female
2011 2012 2013
in %
in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
23
school degree in 2011. This figure is down to a quarter (27.1%) in 2013. Male established business owners
with a bachelor degree more than doubled (+116.2%), whereas the number of female established business
owner with a bachelor degree grew slower (+41.4%) during the last three years (Figure 28).
Figure 28: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in EST, 2011 -
2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
Since educational achievements can be linked to different types of businesses, especially regarding innovative
types of entrepreneurial activity (Koellinger, 2008), the improvements in higher educational degrees from 2011 to
2013 nurture hope that innovativeness in general might increase. Innovation (Chapter 4) is regarded as one of the
weak points in Thai entrepreneurs. An overall better educational background of both start-ups and young as well
as established business owners can help to improve the overall quality of the businesses in Thailand. Also, results
from the National Expert Survey 2013 (Chapter 5) revealed a lack of entrepreneurial education and a lack of
Research & Development transfer to entrepreneurial activities.
33.9
13.0
46.6
13.3
27.6 22.1
40.4
17.7 20.1
28.1 27.1
18.8
Elementary school Bachelor degree Elementary school Bachelor degree
EST male EST female
2011 2012 2013
in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
24
In comparison to the ASEAN 6 and the East Asian countries (Figure 29), Thailand shows high prevalence rates in
nearly all educational categories. This is mainly due to the high overall entrepreneurship rates in Thailand. A similar
effect can also be seen for Indonesia and Vietnam; however the rate of higher educational degrees in these countries is
scarce. “Some secondary degrees” are degrees up to elementary school. Established business owners in Thailand
show the highest peak for “secondary degree” (28.1%), which includes high school and vocational school (Por
Wor Chor). “Post secondary degrees” include bachelor degrees and higher vocational school (Por Wor Sor/Por
Wor Tor), whereas “graduate degrees” include master and doctoral degrees. The comparison of the
educational levels between countries is difficult because it does not take in to account the quality of the education.
Also, as pointed out in the National Expert Survey, the educational degree also does not inform if the degree
itself provided the urgently needed skills and capabilities for perusing entrepreneurial activities.
Figure 29: Educational Profile of the Entrepreneurs TEA and EST in ASEAN 6 + East Asian Countries,
2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
TEA some secondary degree TEA secondary degree TEA post-secundary degree TEA graduate experience
EST some secondary degree EST secondary degree EST post-secundary degree EST graduate experience
% % of population aged 18-64, involved in either TEA or EST, classified by education
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
25
3. Entrepreneurial Perceptions and Societal Attitudes
Beliefs about the attractiveness of being an entrepreneur differ for individuals and across countries. Is starting a
business seen as an attractive career choice or is it not? Does the society favour entrepreneurship when it comes to
status and respect, and is there positive media coverage for entrepreneurs and their activities? The assessment of
those national attitudes and perceptions delivers insight into individuals’ intention to enter entrepreneurship.
Positive or negative perceptions about entrepreneurship as well as benefits from entrepreneurship
strongly influence entrepreneurship rates.
Besides questions regarding societal attitudes, the GEM Adult Population Survey also investigates individual
self-perceptions. Are they aware of good opportunities for starting a business? Do they believe in their own
skills and do they perceive to have the experience for starting-up? Do they fear to fail and would this deter
them from exploiting perceived entrepreneurial opportunities?
3.1. National Societal Attitudes
It is not only economic and geographic factors that influence societal attitudes, but also individuals’ cultural and social
backgrounds. Table 5 displays great differences in the societal attitudes across ASEAN and East Asia. In Thailand, most
people (79.5%) prefer an equal standard of living, which includes factors such as income, quality and availability
of employment, quality and affordability of housing, amongst others. This is in sharp contrast to other countries such as
Malaysia, where only 35.4% have this preference. Three quarters of the Thai population believe that entrepreneurship is
a good career choice. Across the countries this attitude is highest in the Philippines (84.9%) and lowest in Japan, where
the majority of the population does not believe that entrepreneurship is a good career choice (31.4%). Most cultures
(except Malaysia) agree that entrepreneurs enjoy a high status and respect in their respective country. Media attention
for entrepreneurship, which indicates high visibility and attractiveness of entrepreneurship, is considered positive in
Thailand (77.2%), ranging from 62.2% in Malaysia to 87.1% in Taiwan across ASEAN and East Asia.
Table 5: Societal Attitudes and Perceptions in ASEAN 6 + East Asian Countries, 2013
Country People prefer an equal standard of
living
Entrepreneurship as a good career
choice
High status to successful
entrepreneurs
Media attention for entrepreneurship
ASE
AN
6
Indonesia 63.5 70.8 79.8 75.3
Malaysia 35.4 41.8 45.0 62.2
Philippines 64.0 84.9 79.3 86.8
Singapore 60.1 50.9 59.4 75.3
Thailand 79.5 74.5 74.8 77.2
Vietnam 50.1 63.4 81.5 80.5
East
Asi
an
Co
un
trie
s China 39.2 69.6 73.5 71.3
Japan 43.3 31.3 52.8 57.6
Korea 71.4 51.3 67.8 67.6
Taiwan * 73.0 64.5 87.1
* Note: This question was optional and therefore not included by Taiwan
Source: GEM 2013 Thailand and Global Adult Population Survey.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
26
Trends in Thailand 2011 – 2013:
Figure 29 shows that overall the societal attitudes and perceptions of the adult population (aged 18 to 64) in
Thailand towards entrepreneurship were declining from 2011 to 2013. With the exception of “entrepreneurship as
a good career choice” the decline is accelerating in the last year: 11.6% less people prefer an equal standard of
living in 2013 compared to 2011, when nearly 90% of the adult population in Thailand preferred to have the same
standard of living. Media attention for entrepreneurship was 8.1% less likely to be noticed compared to 2011.
However, the high status that is perceived for successful entrepreneurs, only declined by 5.3% and
entrepreneurship as a good career choice is rather stable over the three years (-3.2%). Compared on a global scale,
Thailand’s national societal attitudes and perceptions are relatively high. The average perception in efficiency-
driven countries is 67.8% for “entrepreneurship as a good career choice”, 67% for “high status to successful
entrepreneurs”, and 61.4% for media attention for entrepreneurship”. A detailed comparison to specific countries
can be found in Appendix 1, Table 1 (Entrepreneurial Attitudes and Perceptions in the GEM Economies in 2013,
by Economic Development)
Figure 30: Societal Attitudes and Perceptions in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
89.9 85.1
79.5
77
75.7 74.5
79 79.1
74.8
84 84.1
77.2
70
75
80
85
90
95
100
2011 2012 2013
People prefer an equal standard of living Entrepreneurship as a good career choice
High status to successful entrepreneurs Media attention for entrepreneurship
% % of adult population in Thailand
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
27
3.2. Perceived Opportunities and Capabilities
Opportunity-perception is an important trigger in venture
creation and relates positively to the uptake of
entrepreneurial activity. It reflects the percentage of
individuals who believe that there are opportunities to start
a business in the area where they live. In addition,
perceived capabilities reflect the individuals who believe
that they have the necessary skills, knowledge and
experience to start a new venture. 45.3% among the Thai
APS sample perceive opportunities to start-up and a similar
amount of Thais (44.4%) also perceive to have the
capability to do so (Figure 31). Opportunity perception is
relatively high in Thailand compared to ASEAN and East
Asian countries; with the Philippines leading the ranking
(47.9%), followed by Indonesia (46.7%) and Thailand
(45.3%). Similarly, Thailand showed the fourth highest
number in regards to perceived capabilities to start-up
(44.4%), just after are perceived by the Philippines with
68.4%, Indonesia with 62.0% and Vietnam with 48.7%.
Japan has the lowest rate of opportunity perception with
only 7.7%. This is by far the lowest number, not only in
comparison to other ASEAN and East Asian countries, but
also on a global scale. Same accounts for the perception of
their capabilities, ranking last on a global scale with 12.9%.
Contradicting previous findings, that the perceived capability to have the necessary skills to start a business is
generally higher in developing countries than in highly developed countries (Xavier, Kelley, Kew, Herrington, &
Vorderwülbecke, 2013), this is not true in a regional comparison across ASEAN and East Asia. Singapore,
Japan, and Korea, who are all innovation-driven countries, have a comparatively lower perception of their own
capabilities.
Figure 31: Perceived Opportunities and Perceived Capabilities / Skills to Start a Business, ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
46.7
40.7
47.9
22.2
45.3
36.8 33.1
7.7 12.7
42.0
62.0
28.0
68.4
24.8
44.4 48.7
36.3
12.9
28.1 27.2
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
perceived opportunities perceived capabilities
in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
28
The perception of seeing opportunities is similar for male and female respondents and differs only slightly
across the five regions. A majority of 54% of men and 47.9% of women in Central see more opportunities,
whereas Greater Bangkok and the North see less (Figure 32). Women in the North have the lowest
opportunity perception with 33.5%.
Figure 32: Perceived Opportunities to Start a Business, by Gender and Region in Thailand, 2012
Source: GEM 2013 Thailand Adult Population Survey.
On average, women have lower perceptions of their entrepreneurial capabilities than men (Kelley et al., 2013) with
Thailand being no exception (Figure 33). It is only in the South where slightly more women believe to have the
capabilities to start up, although the level itself is the lowest of all regions with 30.7% of men and 31.7% of women
believing in their own capabilities.
Figure 33: Perceived Capabilities / Skills to Start a Business, by Gender and Region in Thailand, 2012
Source: GEM 2013 Thailand Adult Population Survey.
40.3 44.9
49.3 54
45.3 40.5
33.5
44.7 47.9 47.8
0
10
20
30
40
50
60
Greater Bangkok North Northeast Central South
perceived opportunities (male) perceived opportunities (female)
51.5 49.7 51.2 52.6
30.7
39.8
47.7 42.8
39.3
31.7
0
10
20
30
40
50
60
Greater Bangkok North Northeast Central South
perceived capabilities (male) perceived capabilities (female)
%
%
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
29
Trends in Thailand 2011 – 2013:
The last three years increasingly seem to stimulate individual attitudes towards entrepreneurship. Opportunity
perception increased 18% for men to 48.8% and 15.3% for women to 42.9% (Figure 34). The perception of their
capabilities increased for women from 35.9% to 41.0% (+14.2%) versus a smaller increase of 3.4% for men. These
figures might reflect the change in education as described in Chapter 2.7 where a larger amount especially of female
entrepreneurs have a higher level of education than they had three years ago. Better educated and talented
individuals will not be afraid to put their skills to work and start new ventures, create new ideas, products and
services. Interestingly, perceived opportunities and capabilities by females increased strongly from the year 2011 to
2012 and dropped slightly to a lower level in 2013. This tendency might be one stepping stone that has led to lower
female start-up rates in 2013 than in previous years.
Figure 34: Perceived Opportunities and Capabilities to Start a Business, by Gender, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
The intention to start a business in the non-entrepreneurial Thai population has grown to 23.5% after hitting a
low in the previous year (19.0%). Nearly a quarter of the Thai population consider starting a business within
the next three years. In ASEAN 6, the population in the Philippines, Indonesia and Vietnam shows the
highest intentions to start-up (Figure 35). However, these numbers need to be leveraged with the high
discontinuance rate of nearly 10% in the Philippines (Chapter 2.2), and the overall lower TEA and EST rates,
especially in Vietnam and the Philippines (Chapter 2.1). The link between an intention to start a business in
the next three years and an actual start-up effort to do so remains questionable.
Figure 35: Entrepreneurial Intentions in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
40.0
44.4 47.2 47.2
48.1 48.8
37.2
43.7 42.9
35.9
42.4 41.0
2011 2012 2013
male perceived opportunities male perceived capabilities
female perceived opportunities female perceived capabilities
in %
39.7
13.3
45
20.3 23.5
28.8
16.6
7.1 13.6
29.1
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
In %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
30
Trends in Asia 2011 – 2013:
Entrepreneurial intentions reflect the entrepreneurial tendencies in a country, the acceptance of entrepreneurship as
a potential career and the population’s overall entrepreneurial spirit. A three year comparison can only be conducted
for the 3 ASEAN countries Malaysia, Singapore and Thailand, because the Philippines, Vietnam and Indonesia did
not participate in previous GEM surveys. All countries with the exception of China show an increase in
entrepreneurial intentions from 2011 to 2013. Similar to Thailand, most countries experienced an increase from 2012
to in 2013 (Figure 36). China is the only country in the region which experiences a tremendously large drop of
-61.2% in entrepreneurial intentions from the comparatively high level of 42.8% in 2011 to a rather normal
level of 16.6% in 2013. The two countries with the highest increase are Singapore (+73.5%) and Japan
(+86.8%), although the increase in Japan occurred on the lowest level of all Asian countries. For a detailed
overview on all countries regarding perceived opportunities, perceived capabilities and entrepreneurial
intentions see Appendix 1, Table 1.
Figure 36: Entrepreneurial Intentions in ASEAN 3 + East Asian Countries 2011 – 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
8.7 11.7
26.5
42.8
3.8
15.7
28.2
13.3 16.1
19 20.4
2.5
13
25.5
13.3
20.3
23.5
16.6
7.1
13.6
29.1
Malaysia Singapore Thailand China Japan Korea Taiwan
ASEAN 3 East Asian Countries
2011 2012 2013
in %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
31
3.3. Fear of Failure
In many economies high fear of failure rates exist concurrent with low opportunity perception. Therefore, fear
of failure is seen as a constraining factor for venture creation. In the last years, Thailand showed extremely high
fear of failure rates compared to other countries.
In 2013, Thailand’s fear to failure rate is the fifth highest on a global scale. 49.3% of those Thai adults who see
opportunities also fear to fail. Although decreasing over the years, this percentage draws Thailand on one level
with Greece. Figure 37 shows that a higher fear of failure rate is only prevalent in Angola (63.7%), Vietnam
(56.7%), Israel (51.8%) and in Japan (49.4%). For the details on all countries see Appendix 1, Table 1.
Figure 37: Attitudes Towards Failure Worldwide, by Economic Development, 2013
Source: GEM 2013 Global Adult Population Survey.
Kelley et al (2013) found that women generally have higher fear of failure rates than men. As Figure 38 shows,
this is also true for all ASEAN countries and Taiwan, whereas China, Japan and Korea show slightly lower rates
for women than for men.
Figure 38: Attitude Towards Failure in Percent, in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Alg
eria
An
gola
Bo
tsw
ana
Gh
ana
Ind
ia
Iran
Lib
ya
Mal
awi
Nig
eria
Phi
lipp
ines
Uga
nd
a
Vie
tnam
Zam
bia
Arg
enti
na
Bo
snia
Bra
zil
Ch
ile
Ch
ina
Co
lom
bia
Cro
atia
Ecu
ado
r
Esto
nia
Gu
atem
ala
Hu
nga
ry
Ind
on
esia
Jam
aica
Latv
ia
Lith
uan
ia
Mac
edo
nia
Mal
aysi
a
Mex
ico
Pan
ama
Per
u
Po
lan
d
Ro
man
ia
Ru
ssia
Slo
vaki
a
Sou
th A
fric
a
Suri
nam
e
Thai
lan
d
Uru
guay
Bel
giu
m
Can
ada
Cze
ch R
epu
blic
Fin
lan
d
Fran
ce
Ger
man
y
Gre
ece
Irel
and
Isra
el
Ital
y
Jap
an
Ko
rea
Luxe
mb
ou
rg
Net
her
lan
ds
No
rway
Po
rtu
gal
Pue
rto
Ric
o
Sin
gap
ore
Slo
ven
ia
Spai
n
Swed
en
Swit
zerl
and
Taiw
an
Trin
idad
& T
ob
ago
Un
ited
Kin
gdo
m
USA
factor-driven economies efficiency-driven economies innovation-driven economies
Fear of failure rate, assessed for those seeing opportunities %
39.0 30.2
40.0 36.7
51.1 54.3
36.9
47.5 44.0 37.5
43.6 34.4
38.5 42.9
58.4 66.5
34.9
47.3
34.1
45.0
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
male female
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
32
With the exception of the North, women in Thailand experienced higher fear of failure than men across the
country. The highest fear rates for women were found in the Northeast (68.3%) and in Bangkok (61.9%),
whereas men showed the highest rates in the North (56.5%) and the Northeast (55.7%). Especially in Southern
Thailand and in Bangkok, women experienced a considerably higher fear of failure rate than their male
counterparts, although the rates in the South were lower than in the other regions (Figure 39).
Figure 39: Attitude Towards Failure in Percent, by Gender and Region in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
Trends in Thailand 2011 – 2013:
Regardless of opportunity perception, 60.9% of the Thai population reported a fear of failure, the second
highest rate recorded across the globe in 2011. In total, this rate dropped 10% by 2013 to 54.8%. The attitude
towards failure differs greatly by gender. Women experienced considerably higher fear of failure rates than
men. For men the fear to fail dropped 12.3% and for women only 7.6% in the three years. 9.1% more women
than men stated the fear to fail in 2011 with the gender gap widening over the three years to 15.6%. However,
the tendency for a decreasing fear of failure rate for both genders, although with a different speed, is a positive
sign regarding the potential to increase the numbers of new venture creation.
Figure 40: Attitude Towards Failure, by Gender in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
47.3 56.5 55.7 54.4
30
61.9
47.7
68.3 58.6
43.6
Greater Bangkok North Northeast Central South
fear of failure (male) fear of failure (female)
60.9
55.8
54.8
58.2
50.8
50.8
63.5 60.4
58.7
50.0
55.0
60.0
65.0
2011 2012 2013
fear of failure average fear of failure male fear of failure female
%
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
33
4. International Orientation, Innovation and Well-being
4.1. International Orientation and Market Expansion
International Orientation
The majority of Thai entrepreneurs are doing business within the local Thai market. 93% say that their
customers do not stem from outside the country. Only a small percentage of entrepreneurs (5.3%) state to
have up to 25% of international customers with early-stage businesses being more international than
established businesses. From the early-stage entrepreneurs, 7.2% have a weak international orientation with
1% to 24% of their customers coming from outside Thailand. Only 1.8% of TEA entrepreneurs have a strong
international orientation with more than 25% of their customers come from abroad. Established business
owners in general tend to be even less international: Only 3.7% have more than 10% of their customers from
outside Thailand and 1.2% more than 25%.
Figure 41 displays that start-ups in Thailand show slightly more internationalisation than the average TEA
entrepreneur, whereas the degree of being international is lower for established business owners.
Figure 41: Comparison of International Orientation of Start-ups, TEA and EST in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
Comparing the ASEAN 6 countries, only Indonesia is less internationally oriented with nearly all businesses
operating within the country (Figure 42). In countries like Malaysia, Philippines or Vietnam, a quarter of all
entrepreneurs have a weak international orientation versus 5.3% in Thailand. The East Asian countries show
higher internationalization than the ASEAN countries with the exceptions of China (17.4% strong
international orientation) and Singapore, which certainly is the huge exception within the ASEAN countries
in terms of international orientation.
91.9 92.9
93.6
6 5.3
5.1
2.1 1.5 0.8
0.4 0.5
86%
88%
90%
92%
94%
96%
98%
100%
Start-ups TEA EST
no customers outside country 1-25% of customers outside country
25-75% of customers outside country 75-100% of customers outside country
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
34
Figure 42: Proportion of firms with International and Domestic Customers in ASEAN 6 + East Asian
Countries, 2012
Source: GEM 2012 Thailand and Global Adult Population Survey.
Interestingly, Thailand is stronger internationally oriented than China. (Table 6). Thailand has a total of 1.7%
of businesses with more than 25% of customers outside the country versus China with 0.8%. However, except
Indonesia, other Asian countries have a higher number of entrepreneurs in the categories with higher
international orientation, topped by Singapore with 36% of enterprises >25% of international customers and
followed by Taiwan with 20%.
Table 6: Proportion of Firms with International Customers in ASEAN 6 + East Asian Countries, 2013
Country No customers
outside country
1-25% of customers outside country
25-75% of customers outside
country
75-100% of customers outside
country
ASE
AN
6
Indonesia 98.8 0.8 0.4 0.0
Malaysia 73.4 24.1 1.4 1.1
Philippines 65.9 22.1 5.3 6.7
Singapore 15.2 48.8 21.7 14.3
Thailand 93.0 5.3 1.2 0.5
Vietnam 73.4 24.1 1.8 0.7
East
Asi
an
Co
un
trie
s China 81.8 17.4 0.5 0.3
Japan 52.5 40.2 5.5 1.8
Korea 57.9 33.0 5.8 3.3
Taiwan 45.8 34.2 9.7 10.3
Source: GEM 2013 Thailand and Global Adult Population Survey.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%In
do
ne
sia
Mal
aysi
a
Ph
ilip
pin
es
Sin
gap
ore
Thai
lan
d
Vie
tnam
Ch
ina
Jap
an
Ko
rea
Taiw
an
ASEAN 6 East Asian Countries
No customers outside country 1-25% of customers outside country
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
35
Market Expansion Plans
With the upcoming ASEAN Economic Community (AEC) international orientation and market expansion plans
will be an important task for many business owners besides being prepared for more competitive markets.
Clearly, there is a correlation between size of business and international orientation. One reason for the high
number of Thai entrepreneurs who do not have international customers could be their smallness. The majority
of the business owners do not employ someone. Two third of early-stage (62.7%) and established businesses
(64.8%) in Thailand operate without employees; one third (TEA: 31.4% / EST: 30.3%) employ up to five people.
More than six employees up to 19 employees are prevalent in only 4.5% of the early-stage and 3.4% of the
established businesses, and only 1.4% of TEA and of EST employ 20 or more people.
Figures 43 and 44 show that an international orientation clearly grows when businesses employ more people,
both for TEA and EST. Especially early-stage businesses with more than 20 employees are extremely
internationally oriented, with 66.6% of them reporting a strong international orientation (more than 25% of
customers outside the country). The size of a business, measured by numbers of employees, is an indicator for
international orientation. Larger enterprises or enterprises with more employees tend to have more customers
outside Thailand. As a result, growth of an existing business might give entrepreneurs a more international
orientation.
Figure 43: International Orientation by Number of Employees, TEA 2013
Figure 44: International Orientation by Number of Employees, EST, 2013
No customers outside country 1 to 25% of customers outside country 25 to 75% of customers outside country 75 to 100% of customers outside country
Source: GEM 2013 Thailand Adult Population Survey.
59.3% of early-stage and 76.3% of established businesses do not plan to expand their markets. Around a quarter
of all enterprises (25.3% of TEA / 22.5% or EST) intend to undergo some market expansion, yet without making
use of new technologies. Only 1.3% of the established businesses will expand their markets to some extent
including the use of new technologies. However, none of the established business owners has plans for a
profound market expansion. On the opposite, 14.1% of TEA enterprises plan a market expansion with the use of
new technologies, and at least 1.3% intend to do so profoundly.
91.5 75.0
33.3
5.7
10.0
0.0
1.9 10.0
33.3
0.9 5.0
33.3
businesses with1 to 5 employees
businesses with>5 employees
businesses with>20 employees
90.7 74.2
44.4
8.4
22.6
44.4
0.9 3.2 11.1
businesses with1 to 5 employees
businesses with>5 employees
businesses with>20 employees
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
36
There are differences across the regions in Thailand in terms of firms with market expansion plans (Figure 45).
Both Greater Bangkok (68.2%) and the South (70.2%) show the highest percentage of enterprises that do not
have any market expansion plans. These two regions plus Central are also the regions without any business plan
for a profound expansion. Outstanding in terms of either profound or technology-oriented market expansions
are both the North and the Northeast. In the North, more than half of all businesses (54.5%) intend to expand
their markets, although 36.4% will do so without using new technologies. A total of 18.2% of the businesses in
the North and 19.1% in the Northeast expect to expand their markets profoundly and technology-oriented.
Growing opportunities might be the neighbouring countries in the North and the Northeast, like Laos,
Myanmar and Cambodia, whereas Greater Bangkok and Central have a more in-country geographical position.
Interestingly, the South, despite neighbouring Malaysia - although with a lot smaller border than the borders in
the North and the Northeast, is by far the least expansion-oriented region in Thailand with a total of 29.8% of
businesses who intend to expand their markets, thereof 8.5% using new technologies (Greater Bangkok: 31.8%,
North:54.5%, Northeast 37.6%, Central: 40%).
Figure 45: Market Expansion Plans of TEA and EST, by Region in Thailand 2013
Source: GEM 2013 Thailand Adult Population Survey.
68.2
45.5 62.4 60.0
70.2
25.0
36.4 18.4 26.2
21.3
6.8 16.2 17.0 13.8 8.5 2.0 2.1
Greater Bangkok(Bangkok, Nonthaburi,
Samutprakarn,Patumthani)
North Northeast Central South
No market expansion Some market expansion (no new technologies)
Some market expansion (new technologies) Profound market expansion
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
37
4.2. Innovation and Technology
Entrepreneurs and Innovation
“Innovative ideas spark new markets and strong economic growth, while the repetitive reliance on well-known
ideas ultimately stalls and crashes.” (Hal Gregerson, INSEAD Business School)
Job growth expectations, market expansion plans and their realization certainly are important drivers for
entrepreneurship in the medium-term. The often less visible innovation-orientation of entrepreneurs is
necessary as an underlying structure to be successful in the long-term. Innovation is needed to foster new
business models by defining new or improved services, products or processes and is crucial to social
advancement. Entrepreneurship on the other hand is about value creation, and an entrepreneur can create
value with more or less innovation and can therefore either be distinguished as an “innovator” or as a
“reproducer” (Aldrich & Kenworthy, 1999). Innovators enter the market with significantly different routines
and competencies from reproducers who add little or no new innovative knowledge to existing markets. Thai
entrepreneurs in general pursue to reproduce products and services, also known as a “me too” approach in
their entrepreneurial activities (Figure 46). Only 7.3% of early-stage and 5.6% of established entrepreneurs
state that no other business offers the same products, meaning that their products are new or unique. Some
new or unique product is only offered by 9.8% of TEA or 8.1% of EST. Bhide (2000) found that 88% of the
world’s entrepreneurs succeeded through the “exceptional execution of an ordinary idea”, meaning that they
will transfer something existing and execute it exceptionally well. However, the other 12% succeeded by
executing on “an unusual or extraordinary idea”, which usually is their own. In this latter case, entire new
industries might be created. Those often disruptive new ideas create change and fuel economic growth (Yu &
Si, 2012).
Figure 46: Innovativeness of Products for Customers in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
Figure 47 shows that Thai TEA entrepreneurs have the highest perception of product novelty in the ASEAN
countries, followed by the Philippines (55.1%) and Vietnam (50.9%). In general, the level of innovation,
measured in percentage of having a new product or service for all or some of the customers and being new in
the market with few or no other competitors, increases with the level of economic development. The largest
proportion of both indicators is seen in North America and the European Union. Thailand is situated in Asia
Pacific & South Asia within economies that are normally characterized for their high degree of innovative
products like Japan, Korea or China. The results of the survey show, that Thailand is more innovative than
the average region with a high number of TEA businesses (58.8%) that state that their products and services
are new to all or some customers, putting it in third place behind Taiwan (71.7%) and China (62.7%).
9.8
49.5
7.3 8.1
32.0
5.6
product new to all customers product new to some customers no other business offers the sameproduct
TEA ESTin %
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
38
Figure 47: Innovative Orientation (New Products) of TEA in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Innovation in the APS is regarded from two perspectives: being innovative in products and being innovative
in entering new markets. In the global comparison (GEM 2013 Global Report), the Asia-Pacific & South Asia
Region on the one hand has the highest innovation in TEA for new products, but also the lowest innovation
in TEA for new markets, where entrepreneurs offer their products in markets where there are no or only few
competitors offering the same product. The highest level of innovation in new markets is experienced in
North America and the Non- European Union countries. Figure 48 shows that in the ASEAN countries the
percentage of TEA entrepreneurs who enter new markets with no or little competition is comparatively
higher than in the East Asian countries. Thailand is in a medium range within ASEAN with 38.6%, with the
Philippines (48.4%) leading the region, and Vietnam (24.4%) lagging behind.
Figure 48: Innovative Orientation (New Markets) of TEA in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
23.3
32.5
55.1
34.2
58.8
50.9
62.7
54.5 49.6
71.7
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
%TEA: product new to all or some customers
34.0
47.0 48.4
41.1 38.6
24.4
30.4 27.9 27.7
30.9
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
%TEA new market: few/no businesses offer the same product
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
39
Innovation and Technology
The well-known statement “innovation is more than technology” is obsolete as soon as we look at economies,
who generally measure innovation by R&D investment, intellectual property generation, and STEM (science,
technology, engineering, and mathematics) education. In Thailand, most enterprises, both TEA and EST,
operate their businesses in sectors that use no or only low technologies (Figure 49). Below 2% define their
businesses as hi-tech or medium-tech enterprises. Early-stage businesses are more technology-oriented with
15.4% using latest technology (younger than one year) and 34.6% using technologies that were newly
introduced less than five years ago.
Figure 49: Technology-orientation of TEA and EST in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
In a comparison to the other ASEAN countries and with the exception of Singapore, Thailand has the highest
percentage of businesses that operate in the medium or high technology sector, both in TEA and EST (Figure
50). Although these levels are relatively low (TEA 1.6%; EST: 1.5%) compared to the developed countries
Singapore, Japan, Korea and Taiwan, they slightly outnumber China’s TEA (1.4%) and are a basis to be built
upon for the future.
Figure 50: Businesses in Medium or High Technology Sectors in ASEAN 6 + East Asian Countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
15.4
34.6
98.2
1.8 1.3
17.0
98.4
1.6
very latest technology(newer than 1 year)
new technology( 1 to 5 years)
business in no/low technologysector
business in medium/hightechnology sector
new technology hi-tech/low-tech
% of TEA % of EST
1.3
0.0 0.3
9.1
1.6 1.0 1.4
12.3
9.4
6.2
0.8 0.0 0.4
12.6
1.5 0.9
1.5
6.9
10.1
6.0
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
ASEAN 6 East Asian Countries
% of TEA % of EST
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
40
Trends for Innovativeness in Thailand 2011 - 2013
A development in the last three years that needs attention is the drop in innovativeness regarding customers
and competitors for early-stage entrepreneurs. 14.7% of TEA entrepreneurs stated in 2011, that their
products were new to all customers. This means that their products and services had a unique selling point
(USP). One year later, only 10.4% and in 2013 only 9.8% of TEA entrepreneurs did so, which reflects a total
decline of 33.3% in USP – for at least some customers the products are already familiar. In the same time,
the tendency to enter competitive markets in early-stage entrepreneurial activities increased. 9.9% of TEA
stated that they had no competitors in 2011, down to 8.6% in 2012 and 7.3% in 2013. This means that a
growing number of businesses in TEA (+26.3%) are operating in markets where at least some competitors
offer the same products. If both trends , less novelty products and more competitors for products, continue
and do so especially for start-ups and young businesses, profitability and sustainability of these businesses
might suffer and finally lead to a higher proportion of entrepreneurs not being able to enter into the next
business phase: becoming established business owners.
Figure 51: Innovativeness in Products and Services for TEA in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
14.7
10.4 9.8 9.9
8.6 7.3
6
8
10
12
14
16
2011 2012 2013
product new to all customers no other business offers the same product
%
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
41
4.3. Entrepreneurship and Well-being
Taking happiness seriously, Bhutan had introduced the goal of “Gross National Happiness” (GNH) rather
than Gross National Product (GDP): A story of exploration and progress since the King of Bhutan in 1972
declared the goal of happiness over the goal of wealth. Happiness in Bhutan became more than a feeling, it
became a policy-making principle. Other nations, like China, are also in favour of a harmonious society.
However, many people probably believe that happiness is rather something to be pursued individually than a
matter of national policies, since happiness seems to be very subjective. Subjective well-being is related to
how people experience the quality of their lives, and it comprises both emotional reactions and cognitive
judgements (Diener, 2000). The survey questions, using five-point likert scales, from 1 “Strongly Disagree” to
5 “Strongly Agree”, were:
1. In most ways, my life is close to my ideal.
2. The conditions of my life are excellent.
3. I am satisfied with my life.
4. So far I have obtained the important things I want in life.
5. If I could live my life again, I would not change anything.
The average from the five-point likert scale (1 to 5) is 3.0, which is set as a baseline in the following figures to
see the deviation from the average. Any values below average or <3.0 therefore are negative, values above
average or >3.0 positive. Many people agree that societies should foster happiness of their citizens. The
primary overall conclusion that entrepreneurship is a good career choice is drawn by 76.1% of the Thai
entrepreneurs and 73.8% of the non-entrepreneurs. Although we cannot infer that entrepreneurship itself
makes someone happy, there is little doubt that starting and owning a business is associated with a stronger
sense of well-being and happiness. In fact, as Figure 52 shows, established business owners rate their well-
being nearly three times higher as TEA entrepreneurs, whereas the non-entrepreneurs are below the line of
feeling subjective well-being (-0.02).
Figure 52: Subjective Well-Being SWB, by Phase of Entrepreneurship in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
Well-being is very much affected both by societal values and practices as by institutional context. This leads
to an expectation of considerable differences in reported well-being across nations and cultures. As Figure 53
shows, subjective well-being (SWB) differs already in the six ASEAN countries with Thailand and (to a higher
degree) Singapore being the only two countries where all entrepreneurs, both TEA as EST, reported higher
well-being rates. Indonesia’s and (to a high extent of 0.31) Malaysia’s established business owners report a
-0.01
0.06
0.17
-0.02
18-64 population
Early-stage entrepreneurial activity (TEA)
Established business ownership
Non Entrepreneurs
Baseline is the average (3.0)
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
42
higher SWB. All East-Asian countries, with the exception of established business owners in China, showed
strong negative values in well-being, especially for TEA business owners. Korea reports the lowest average
scores of subjective well-being with -0.42 for TEA and -0.47 for established business owners.
Figure 53: Subjective Well-Being SWB, by Phase of Entrepreneurship in ASEAN 6 + East Asian Countries,
2013
East
Asia
n C
ou
ntr
ies A
SE
AN
6
Source: GEM 2013 Thailand and Global Adult Population Survey.
A key relationship for SWB comes through working conditions and work life balance. Work not only provides
a livelihood but also a source of meaning – feeling needed and being able to contribute. One of the aspects of
the labor market in terms of well-being is whether individuals are able to find a job at the time when they are
looking for one. However, when at work, the quality of life at work is also crucial. Job quality today is
considered more than the combination of pay and the hours of work and incorporates, amongst others, also
work autonomy. In this respect, self-employed value their independence and flexibility, because they
themselves can influence their quality of work, although they often do worse on many other job dimensions,
including income, hours of work and job security. Nevertheless, they often report higher levels of overall job
satisfaction than the employed do. This was found to be true in OECD countries, in American and European
data (Blanchflower & Oswald, 2004), and in data from the United Kingdom, Germany and Switzerland (Benz
& Frey, 2008).
The motivation that drives people to start their businesses also influences their subjective well-being. Figure
53 accounts for these motives by distinguishing between entrepreneurs who were pushed into their activity
out of necessity and those who chose to start a business to pursue an opportunity. Opportunity-driven
entrepreneurs in Thailand rate their well-being positively high (0.07) versus necessity-driven entrepreneurs
with a slightly negative SWB of 0.03. In addition, female TEA business owners (0.09) rate their SWB 4.5
times higher than their male counterparts (0.02).
A comparison of Thailand versus the other ASEAN and East Asian countries shows that necessity-driven
entrepreneurs in general experience negative SWB with the exception of Singapore. In Singapore, both
opportunity- and necessity-driven entrepreneurs likewise show a positive SWB (Figure 55). Again, in the East
Asian countries the perception of subjective well-being is highly negative even for those entrepreneurs who
-0.08
-0.42
-0.31
-0.28
-0.27
0.06
0.25
-0.03
-0.01
-0.02
-0.05
-0.47
-0.08
-0.09
0.07
0.17
0.23
0.00
0.31
0.02
1
2
3
4
5
6
7
8
9
10
Established business ownership Early-stage entrepreneurial activity (TEA)
Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam ---------------------------------------------------------
China
Japan
S. Korea
Taiwan
Baseline is the average (3.0)
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
43
started because they saw an opportunity. One exception is Taiwan, where opportunity-driven TEA
entrepreneurs were slightly positive in their SWB.
Figure 54: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013
Source: GEM 2013 Thailand Adult Population Survey.
Figure 55: Subjective Well-Being SWB by Entrepreneurship Motivation in ASEAN 6 + East Asian Countries,
2013
East
Asia
n C
ou
ntr
ies A
SE
AN
6
Source: GEM 2013 Thailand and Global Adult Population Survey.
0.07
-0.03
0.02
0.09
TEA Opportunity
TEA Necessity
TEA male
TEA female
0.01
-0.27
-0.26
-0.25
-0.23
0.07
0.25
0.01
0.15
-0.01
-0.31
-0.69
-0.43
-0.34
-0.41
-0.03
0.26
-0.11
-0.70
-0.07
1
2
3
4
5
6
7
8
9
10
TEA Necessity TEA Opportunity
Indonesia
Malaysia
Philippines Singapore
Thailand
Vietnam ---------------------------------------------------------
China Japan S. Korea Taiwan
Baseline is the average (3.0)
Baseline is the average (3.0)
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
44
Since well-being is influenced by societal values and practices as by institutional context, it seems apparent
that gender differences are also prevalent when it comes to subjective well-being in a country comparison.
With the exception of China, all Asian countries show higher scores in subjective well-being for female TEA
entrepreneurs than for male TEA, though not all of them perceive their well-being as positive (Figure 56).
Female TEA in the five countries Malaysia, Singapore, Philippines, Thailand, and Japan show positive female
SWB rates with the highest positive perception in Singapore (0.39). Japan shows the highest discrepancy in
SWB between female and male TEA with females being positive (0.14) and males showing the highest
negative score of all countries with -0.55. Interestingly, China is the only country in the comparison with
lower female TEA scores (-0.32) than their male counterparts (-0.25).
Figure 56: Subjective Well-Being SWB by Gender in ASEAN 6 + East Asian Countries, 2013
East
Asia
n C
ou
ries A
SE
AN
6
Source: GEM 2013 Thailand and Global Adult Population Survey.
To strengthen the opinions provided by the APS, the NES included four questions to inquire information
about how national conditions in Thailand support work-life balance of individuals and of entrepreneurs
(Figure 57). The perception of the national experts corroborates the findings from the APS with a high
positive perception of the appearance of subjective well-being of entrepreneurs.
Figure 57: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013
Source: GEM 2013 Thailand National Expert Survey.
-0.11
-0.49
-0.55
-0.25
-0.32
0.02
0.17
-0.24
-0.11
-0.04
-0.03
-0.24
0.14
-0.32
-0.22
0.09
0.39
0.18
0.15
-0.01
1
2
3
4
5
6
7
8
9
10
TEA female TEA male
Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
-------------------------------------------------
China
Japan
S. Korea Taiwan
1.07
0.82
0.08
0.47
Entrepreneurs usually appear as more satisfied with their personal lifethan non-entrepreneurs
Entrepreneurs usually appear as more satisfied with their working lifethan non-entrepreneurs
Existing labor regulations allow people to perfectly harmonize personaland working life
The general conditions (economic, social, political, cultural…) allow people to perfectly harmonize personal and working life
Baseline is the average (3.0)
Baseline is the average (3.0)
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
45
5. Insights from National Experts:
Assessment of Entrepreneurship Conditions in Thailand
5.1. Entrepreneurial Framework in Thailand
Entrepreneurial activity is shaped and influenced by a distinct set of factors, referred to as Entrepreneurial
Framework Conditions (EFCs) in the National Expert Survey (NES). These factors include infrastructure and
education, institutions and their programs, as well as underlying and stimulating factors like innovation,
labor market efficiencies, higher education and training, and technological readiness. The features expected to
have an important impact on entrepreneurial activities are described in the nine Entrepreneurial Framework
Conditions (EFCs) in Table 7.
The National Experts Survey delivers important qualitative information about the state of conditions in each
country, based upon the informed judgment of national experts on a broad set of items summarized in the
EFCs. The NES provides insight into ways how these entrepreneurial framework conditions either foster or
constrain the entrepreneurial climate, entrepreneurial activity and development in the particular country. In
addition, experts give valuations on other topics related to additional entrepreneurship conditions, such as
women entrepreneurship, and the special topic of the year 2013 “Entrepreneurship and Well-being”.
Table 7: The GEM Entrepreneurial Framework Conditions (EFCs)
1 Entrepreneurial Finance
The availability of financial resources, equity, and debt, for new and growing firms, including grants and subsidies.
2 Government Policy
The extent to which government policies, such as taxes or regulations) are either size- neutral or encourage new and growing firms.
3 Government Entrepreneurship Programs
The extent to which taxes or regulations are either size-neutral or encourage new and growing firms.
4
Entrepreneurial Education
The extent to which training in creating/ managing new, small or growing business entities is incorporated within the education and training system at all levels. There are two sub-divisions – primary and secondary school entrepreneurship education and training; and post-school entrepreneurship education and training.
5 R&D Transfer
The extent to which national research and development will lead to new commercial opportunities, and whether or not these are available for new, small and growing firms.
6 Commercial and Legal Infrastructure
The presence of commercial, accounting and other legal services and institutions that allow or promote the emergence of small, new and growing business entities.
7 Entry Regulations
There are two sub-divisions – market dynamics, i.e. the extent to which markets change dramatically from year to year; and market openness, i.e. the extent to which new firms are free to enter existing markets.
8 Physical Infrastructure
Ease of access to available physical resources – communication, utilities, transportation, land or space – at a price that does not discriminate against new, small or growing firms.
9
Cultural and Social Norms
The extent to which existing social and cultural norms encourage, or do not discourage, individual actions that might lead to new ways of conducting business or economic activities which might, in turn, lead to greater dispersion in personal wealth and income.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
46
Each of the nine entrepreneurial framework conditions consists of several statements. The experts assessed the
national conditions by responding to these statements on a Likert scale from “completely false (1)” to
“completely true (5)”. From the scale 1 to 5, the most positive sub-conditions are considered those which
scored between 4 and 5, the most negative those between 1 and 2. The results in Table 8 are combined
conditions out of several individual questions and provide a more detailed overview on the framework
conditions for the ASEAN 6 + East Asian Countries plus the average of the whole region. On a scale from 1 to
5 with an average of 3.0; lower numbers represent more negative and higher numbers more positive
conditions. The most negative condition of each country is marked in red and the most positive condition in
green. It is apparent that education at the primary and secondary level is the weakest point in most countries
of ASEAN and Asia, including Thailand (2.3). It is true for the majority of the economies around the world,
that education of entrepreneurship at the most basic levels (primary and secondary education) is regarded as
unfavourable. In contrast, physical infrastructure is one of the strongest conditions for most countries,
including Thailand (4.1). Indonesia and Philippines score below average in national policies and regulations.
The Philippines and Korea have their strongest conditions in the internal market dynamics. Taiwan is the
only country in the region with a stronghold in finance (3.7).
Table 8: Entrepreneurship Framework Conditions Main Indicators in ASEAN 6 + East Asian Countries, 2013
Country 1 2a 2b 3 4a 4b 5 6 7a 7b 8 9
AS
EA
N 6
Indonesia 3.1 2.7 2.2 2.5 2.5 3.3 2.3 3.2 3.9 2.8 3.5 3.3
Malaysia 3.4 3.1 2.5 3.0 2.3 3.0 2.9 3.2 3.4 2.7 4.1 3.1
Philippines 3.2 3.0 2.3 3.1 3.1 3.4 2.5 3.4 3.8 2.9 3.7 3.5
Singapore 3.5 3.7 4.1 3.7 2.8 3.2 3.2 3.5 3.5 3.4 4.5 3.2
Thailand 3.0 2.5 2.4 2.4 2.3 3.1 2.5 3.4 3.7 2.8 4.1 3.0
Vietnam 2.4 2.9 2.8 2.5 2.0 2.6 2.5 2.9 3.5 2.7 3.6 3.1
East
Asia
n
Countr
ies China 2.5 2.7 2.6 2.6 1.6 2.7 2.5 2.6 3.9 2.6 4.0 3.0
Japan * * * * * * * * * * * *
Korea 2.3 3.4 2.7 3.0 2.1 2.5 2.5 2.3 4.1 2.3 4.0 3.1
Taiwan 3.7 2.7 2.8 2.3 2.0 2.7 2.5 3.4 3.0 2.8 3.0 3.6
Average 3.0 3.0 2.7 2.8 2.3 2.9 2.6 3.1 3.6 2.8 3.8 3.2
* Japan did not participate in the 2013 NES
1 Finance 4a Education – Prim. & Second. 7a Entry Regulation – Market Dynamics
2a Nat. Policy – General Policy 4b Education – Post-School 7b Entry Regulation – Market Openness
2b Nat. Policy – Regulation 5 R&D Transfer 8 Physical Infrastructure
3 Government Programs 6 Commercial and Legal Infrastructure 9 Cultural and Social Norms
Source: GEM 2013 Thailand and Global National Expert Survey.
For the Entrepreneurship Institution Profile of Thailand, the other five participating ASEAN countries Indonesia,
Malaysia, Philippines, Singapore, and Vietnam are illustrated in Figures 57 and 58. The results are split into two figures
to facilitate visualization: EFCs related to public institutional issues, and those related to market-social institutional
issues (Figures 58 and 59).
Thailand scores low in nearly all EFC’s that relate to public institutional topics. After Vietnam (1.97 out of 5), Thailand
ranks lowest in primary and secondary school entrepreneurship education (2.28 out of 5), and comparatively low to the
other countries in finance (3.0 out of 5), national policies (2.38 out of 5) and governmental programs (2.43 out of 5). In
market and social institutional subjects, Thailand ranks higher with physical and services infrastructure (4.08 out of 5)
and internal market dynamics (3.71 out of 5).
Likert scale 1 to 5 with an average of 3.0
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
47
Figure 58: Entrepreneurship Public Institutional Profile in ASEAN, 2013 (1/2)
Source: GEM 2013 Thailand and Global National Expert Survey.
Figure 59: Entrepreneurship Market – Social Institutional Profile in ASEAN, 2013 (2/2)
Source: GEM 2013 Thailand and Global National Expert Survey.
Note: Values of group-level indicators of economic development are based on averaging the Z-scores (standardized values)
1.5
2
2.5
3
3.5
4
4.5
Finance andEntrepreneurship
National Policies - General
National Policies -Regulation
Governmental Programs
Entrepreneurship Education:Primary / Secondary
Entrepreneurship Education:Post School
Thailand
Indonesia
Malaysia
Philippines
Singapore
Vietnam
1.5
2
2.5
3
3.5
4
4.5
5
R&D Transfer
Commercial & ProfessionalInfrastructure
Internal Market - Dynamics
Internal Market - Openness
Physical and ServicesInfrastructure
Cultural and Social Norms
Thailand
Indonesia
Malaysia
Philippines
Singapore
Vietnam
Entry Regulations - Market Dynamics
Entry Regulations - Market Openness
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
48
To receive a more detailed picture which
conditions have positive or negative impact, the
framework conditions were broken down to the
individual sub-conditions.
Figure 60 shows the most positive conditions for
Thailand, three of them ranked No.1 with a score
of 4.25 out of 5: (1) Consumers like to try out
new products and services, (2) men and women
have the same level of knowledge and skills to
start a new business, and (3) successful
entrepreneurs have a high level of status and
respect.
Further positive conditions mentioned are: the
perception that the entrepreneur is a competent
and resourceful individual; the prevalence of
affordable and fast to implement utilities;
support from family and friends for start-ups,
and an overall good opportunity perception.
Figure 60: Most Positive National Sub-Conditions (Scores above 4) Influencing Entrepreneurial Activity in
Thailand, 2013
Scale of scores from 1 to 5, where 1 = completely false and 5 = completely true
Source: GEM 2012 Thailand National Expert Survey.
4.06
4.09
4.11
4.11
4.16
4.17
4.20
4.22
4.25
4.25
4.25
new or growing firms can get good access to utilities (gas, water,electricity, sewer) in about a month
there are plenty of good opportunities for the creation of new firms
most of young adults that become entrepreneurs have been helpedto start up by their families, close relatives or friends
the creation of new ventures is considered an appropriate way tobecome rich
a new or growing firm can get good access to communications(telephone, internet, etc ) in about a week
it is not too expensive for a new or growing firm to get good access tocommunications (phone, Internet, etc )
new and growing firms can afford the cost of basic utilities (gas,water, electricity, sewer)
most people think of entrepreneurs as competent, resourcefulindividuals
successful entrepreneurs have a high level of status and respect
men and women have the same level of knowledge and skills to starta new business
consumers like to try out new products and services
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
49
Despite having many very positive results regarding entrepreneurship conditions in Thailand, there are
things to grouse about as well. Most pressing and an issue of increasing concern was corruption. This topic
was considered as most negative (Figure 61) with “the sales of goods protected through intellectual property
rights”, scoring a low 1.29. This condition grew worse from 1.64 in 2012 to 1.29 in 2013. Concerning IPR
Intellectual Property Rights, two conditions follow: “new and growing firms can trust that their patents,
copyrights and trademarks will be respected” with a score of 1.74, and the perception that the “IPR legislation
is not efficiently enforced” (1.84). The last condition that is rated extremely negative refers to the “lack of
knowledge how to start and manage high-growth businesses” (1.86).
Figure 61: Most Negative National Conditions (Scores below 2) Influencing Entrepreneurial Activity in Thailand, 2013
Scale of scores from 1 to 5, where 1 = completely false and 5 = completely true
Source: GEM 2013 Thailand National Expert Survey.
1.86
1.84
1.74
1.29
many people know how to start and manage a high-growth business
the Intellectual Property Rights (IPR) legislation is efficiently enforced
new and growing firms can trust that their patents, copyrights, andtrademarks will be respected
the illegal sales of 'pirated' software, videos, CDs, and othercopyrighted or trademarked products is not extensive
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
50
5.2. Thailand’s Constraining Factors
On first sight, Thailand seems to do well in terms of entrepreneurial activities and aspirations, overall
entrepreneurship rates, female entrepreneurship, and new venture creation. Nevertheless there are two sides
of a coin and despite those positive results, there are factors deterring new entrepreneurs from entering the
market and hindering small businesses to grow. All these factors are quoted as “constraining factors” in
Figure 63.
The most outstanding topic is the lack of financial support, quoted by nearly 70% of all respondents. The
issue of “financial support” or the lack of it has gained more importance in the last three years, increasing
from 52% in 2011 to 64.7% in 2012, and now to 69.7% in 2013, a total increase over the years of 34% (Figure
62).
Figure 62: Trend 2011 - 2013: Increase of Financial Constraints, from NES Data in Thailand, 2013
Source: GEM 2013 Thailand National Expert Survey.
The subsequent four constraining factors cited by the Thai NES sample were (2) education & training
(31.0%), (3) government policies (30.72%), (4) lack of information (22.5%), and (5) market openness
(19.8%). In the last three years the Top 3 constraining factors did not change: “financial support” was always
ranked No. 1, whereas “education & training” and “government policies” were either ranked No. 2 or No. 3
with slightly varying percentages. Government policies seem to have improved over the three years or were
regarded less of a constraint from rank No. 2 in 2011 and 2012 with 40% and 38.2% respectively to rank No.
3 in 2013 with 30.7%. On the other hand, education & training, which in 2011 was ranked No.5
constraining factor with 28%, leapt to No.2 constraining factor in 2012 with 38.2% and remained rank No. 2
in 2013 with 31.0%.
Figure 63: Factors Constraining Entrepreneurship, in Percent, from NES Data in Thailand, 2013
Source: GEM 2013 Thailand National Expert Survey.
52.0
64.7 69.7
50.0
55.0
60.0
65.0
70.0
2011 2012 2013
69.7
31.0 30.7 22.5 19.8 16.7 14.2 14.0 11.3 11.3
Fin
anci
al s
up
po
rt
Edu
cati
on
an
dtr
ain
ing
Go
vern
men
tp
olic
ies
Lack
of
info
rmat
ion
Mar
ket
Op
enn
ess
Wo
rk f
orc
e fe
atu
res
Cap
acit
y fo
ren
trep
ren
eu
rsh
ip
Co
rru
pti
on
Go
vern
men
tp
rogr
ams
Acc
ess
to p
hys
ical
infr
astr
uct
ure
%
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
51
The constraining factor “financial support” might also be growing due to pressures from the political
situation in Thailand, as cited by many respondents. Besides having problems to access funding at all or to
access appropriate amounts of funding, (be it investment funds, general capital, or start-up equity and debt
financing) respondents also cited financial problems in the domestic economy and market, the political
stability influencing finance, the global economic downturn and here especially the downturn of the stock
exchange market as constraining factors.
Where “education and training” was quoted as a constraining factor, experts mentioned the lack of
entrepreneurial learning in the education system. The public educational sector is not set up to create
entrepreneurs, and the educational system stifles creativity and also does not support leadership. Rural
communities in Thailand in general lack access to education. Lack of government policies and red tape where
government policies were involved received the highest number of remarks. In addition interviewees
commented that more government policies are needed to support entrepreneurial activities, that the existing
government policies are inadequately related to entrepreneurship in Thailand and that the government
support should be valid and not just “on paper”.
5.3. Recommendations for Thailand
Following the most prevalent three constraining factors “financial support”, “education and training” and
“government policies”, it is natural that recommendations from the NES survey also revolved around
those issues. It could therefore be implied that the most prevalent constraining factor “financial support”
would receive the most recommendations from the NES experts. As portrayed in Figure 63, aspects such as
government policies and education and training were widely cited as recommendation factors. Apparently
there are either more ideas how to improve government policies or the educational system or there are fewer
solutions at hand on how to improve financial support for entrepreneurs.
The top three recommendation factors of the NES sample are: (1) government policies (64.4%), (2) education
and training (61.6%) and (3) financial support (40.9%). General improvement of available information
(29.1%) and government programs (26.1%) follow as (4) and (5) respectively. Compared to the previous year,
the increased emphasis on the first two factors shows, that despite lower perceived constraints in these two
topics (Chapter 5.2) specific recommendations can be presented for particular fields that need improvement
for entrepreneurship in Thailand.
Figure 64 : Factors Recommended for Entrepreneurship, in Percent, from NES Data in Thailand, 2013
Source: GEM 2013 Thailand National Expert Survey.
64.4 61.6
40.9
29.1 26.1 20.2
14.5 14.3 11.6 5.7
Go
vern
men
t p
olic
ies
Edu
cati
on
an
d t
rain
ing
Fin
anci
al s
up
po
rt
Info
rmat
ion
: all
resp
on
ses
rela
ted
to
th
isis
sue
Go
vern
men
t p
rogr
ams
Mar
ket
Op
enn
ess
Cap
acit
y fo
ren
trep
ren
eu
rsh
ip
R&
D t
ran
sfer
Cu
ltu
ral a
nd
so
cial
no
rms
Co
rru
pti
on
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
52
The recommendations for government policies from NES experts cover a wide range of topics, including:
to develop supportive policies, particularly specialized skills required by entrepreneurs,
to reduce the minimum wages in order to reduce operational costs, because this will attract and support
new venture creation,
to reduce government regulations in general,
to raise awareness for government policies in rural communities,
to emphasize a two-way communication between government and entrepreneurs,
to reduce the constraints stemming from the limitations of foreign ownership rates in businesses,
tax incentives, reduction of taxes,
to arrange useful exhibitions for start-ups,
to encourage and facilitate frequent seminars among entrepreneurs
to speed up responses to entrepreneurs from the government sector,
to simplify and standardize requirements and processes for business visas and work permits for
foreigners.
Other suggestions were to staff governmental agencies and government affiliated organizations who are
supposed to support entrepreneurship, with real entrepreneurs as entrepreneurs-in-residence or as coaches.
An often quoted recommendation to fundamentally improve the field of education and training was to
implement more entrepreneurial training at earlier school stages and to improve the existing education
system in a way that individuals are taught the ability to think critically and entrepreneurial, to do so as
leaders and not as followers and finally, to develop a risk-taking culture through school and university
education. A revised school curriculum should also nurture a hands-on attitude and activities, increasing
students’ creativity and improve the teaching styles and teachers’ skills. Furthermore, recommendations
related to seminars that train entrepreneurship skills, deliver easy to access knowledge in investment fields,
and initiate a fostering community of entrepreneurs as mentors to give guidance to new start-ups or new
entrepreneurs.
Regarding financial support, general funding problems need to be addressed to ensure the accessibility to finance
for entrepreneurs. Improvements are needed in start-up repayable funding, in venture capital funding and micro-
financing, in debt financing and more accessible public funding. Recommendations are also to implement lower
interest rates for longer periods of time and tax breaks by government banks. An improvement could also stem from
the launch of real Venture Capital firms that are managed by real venture professionals to fund early stage,
innovative start-ups. Here tax incentives and other promotional incentives should be offered on top of those that are
currently already provided by the National Innovation Agency, for more innovative businesses, not only for
technological innovation as provided by the NIA, but also for business model innovation.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
53
6. Conclusions and Implications
“There is always a better way.” (Thomas A. Edison)
The GEM Thailand Report 2013 highlights the nature of entrepreneurship and entrepreneurial dynamics in
Thailand, embedded in the geographic region of ASEAN and Asia. This report summarizes the role of
entrepreneurial attitudes as well as societal national attitudes as important indicators of potential
entrepreneurs and support for this activity.
Entrepreneurial Attitudes and Entrepreneurial Activity
The data from the 2013 Adult Population Survey revealed that Thailand’s total early-stage entrepreneurs rate
slightly decreased in the last three years to 18.3% as did the established business ownership rate to 28.0% of
the Thai sample. The TEA is comprised of nascent and new-business ownership (owner-manager firms).
Thailand’s TEA rate is third highest in the regional context of the six ASEAN and the four East Asian
countries. Thailand’s established business ownership of 28% was among the highest of the participating
countries in the 2013 GEM survey, and was also No.1 within the geographic region. Venture creation in
Thailand resulted from the perception of opportunities rather than starting up out of necessity.
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity” (Drucker &
Drucker, 2007). With these words, Peter F. Drucker summarizes the entrepreneurial climate in Thailand,
where the motivation that drove people to start-up businesses is seen as an opportunity rather than running
a firm out of necessity. This motivation also positively influences their perception of subjective well-being.
Self-employed tend to value their independence and flexibility and the possibility to have influence on both
by improving their own job quality. In Thailand, especially established business owners experience a high
level of subjective well-being.
Framework Conditions for Entrepreneurship
Thailand’s national experts in the NES brought up subjects that need to be addressed and changed. We hope
that this GEM Thailand Report 2013 brings new insights to other experts in fields such as finance,
government and education to help them respond to needs highlighted by the experts and to exploit
opportunities in their fields of expertise. The mutual goal is to achieve an improvement in the framework
conditions for entrepreneurship in Thailand.
It is important to understand that the entrepreneurial climate can be significantly improved by small
changes. However, a critical element is that these small changes will only lead to sustainable results if the
three main constraining factors are addressed and rectified to an acceptable level. These key constraints are:
Financial support;
Government policies; and
Education and training.
Key elements for Thailand to move forward in the stage of development to become an innovation-driven
economy are to make better use of knowledge and innovation. Research & Development needs to be
streamlined with entrepreneurial activities to increase the potential to create novelties in products and
services. Education and training initiatives should focus on increasing entrepreneurial skills and an overall
entrepreneurial culture in Thailand.
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The analysis of framework conditions provides experts insights in relation to fostering conditions for
entrepreneurship in Thailand. On the other hand, these experts also cited constraining factors which
deterred Thai entrepreneurs in starting and operating businesses. They suggested recommendation factors
which could help to enhance entrepreneurial activity. Financial constraints were a major concern in starting,
operating and exiting businesses in Thailand. Education and training from primary to high-school level were
largely rated as poor and being in need of improvement.
Despite consecutive findings about positive internal market dynamics and physical infrastructure in Thailand,
there is also a growing negative perception of increasing corruption within the country. Transparency
International’s Corruption Perceptions Index scores countries on a scale from 0 (perceived to be highly
corrupt) to 100 (perceived to be very clean). In the last three years, corruption consistently increased in
Thailand, scoring it 35 in 2013, which is equivalent to a rank of 102 out of 177 countries, down from rank 80
in 2011 and rank 88 in 2012 (Transparency_International, 2013). "The Corruption Perceptions Index (CPI)
2013 demonstrates that all countries still face the threat of corruption at all levels of government, from the
issuing of local permits to the enforcement of laws and regulations," said Huguette Labelle, Chair of
Transparency International. The CPI 2013 offers a warning for Thailand that the abuse of power, secret
dealings and bribery continues to ravage its society. If corruption is coming top down, it is having a massive
impact on the economy. Unless brought under control, corruption will continue to negatively affect
entrepreneurship development in Thailand.
Government policies should be a two-way communication between government agencies and entrepreneurs,
responding to and be supportive for the specialized skill set that is needed for entrepreneurial activities.
Besides hard facts like standardizing and simplifying processes, these policies should also try to improve
entrepreneurial soft skills – the capacity for entrepreneurship - within the country.
All stakeholders involved should take Thomas A. Edison’s words that “there is always a better way” seriously.
Considering that financial constraints have increased, it is of particular importance not to maintain the existing
patterns of financial support, but to find a better way and provide small but sustainable improvements in all
constraints of entrepreneurship.
Conditions may not be ideal in all aspects, but in the geographic comparison that this report delivers,
Thailand’s starting point ahead of the ASEAN Economic Community AEC is also a good basis to trail further.
However, the challenges which entrepreneurs are facing need to be addressed and resolved because they
could otherwise weaken Thailand’s economy. To be an entrepreneurial society can give Thailand further
advantages and add value to many aspects. Having an entrepreneurial mindset is a wonderful tool to use
because it might help to solve what seem to be ongoing unsolvable problems.
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
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References
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Amorós, J., & Bosma, N. (2014). Global entrepreneurship monitor 2013 global report. Recovered on February, 28, 2014.
Benz, M., & Frey, B. S. (2008). Being Independent is a Great Thing: Subjective Evaluations of Self‐Employment and Hierarchy. Economica, 75(298), 362-383.
Bhide, A. (2000). The origin and evolution of new businesses: Oxford University Press. Blanchflower, D. G., & Oswald, A. J. (2004). Well-being over time in Britain and the USA. Journal of public
economics, 88(7), 1359-1386. Bosma, N., Wennekers, S., & Amorós, J. E. (2012). 2011 Extended Report: Entrepreneuris and
Entrepreneurial Employees Across the Globe. (GERA / GEM). Diener, E. (2000). Subjective well-being: The science of happiness and a proposal for a national index.
American psychologist, 55(1), 34. Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and principles: Routledge. Kelley, D., Brush, C., Greene, P., & Litovsky, Y. (2013). GEM 2012 Women's Report: (GERA / GEM). Koellinger, P. (2008). Why are some entrepreneurs more innovative than others? Small Business Economics,
31(1), 21-37. Minniti, M., & Naudé, W. (2010). What Do We Know About The Patterns and Determinants of Female
Entrepreneurship Across Countries&quest. European Journal of Development Research, 22(3), 277-293.
Reynolds, P. D., Camp, S., Bygrave, W., Autio, E., & Hay, M. (2002). Global Entrepreneurship Monitor GEM 2001 Summary Report. London Business School and Babson College.
Transparency_International. (2013). Corruption Perception Index 2013 http://www.transparency.org/cpi2013
Xavier, S., Kelley, D., Kew, J., Herrington, M., & Vorderwülbecke, A. (2013). Global Entrepreneurship Monitor (GEM) 2012 Global Report: (GERA / GEM).
Yu, X., & Si, S. (2012). Innovation, internationalization and entrepreneurship: A new venture research perspective. Innovation: Management, policy & practice, 14(4), 524-539.
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Appendix Appendix 1: Tables and Figures of GEM Data
Appendix 1 Table 1: Entrepreneurial Attitudes and Perceptions in the GEM Economies in 2013, by Economic Development
Economies Pe
rce
ived
Op
po
rtu
nit
ies
Pe
rce
ived
C
apab
iliti
es
Fear
of
Failu
re*
Entr
epre
ne
uri
al
Inte
nti
on
s **
Entr
epre
ne
urs
hip
as a
Go
od
Car
eer
C
ho
ice
Hig
h s
tatu
s t
o
Succ
essf
ul
Entr
epre
ne
urs
Me
dia
Att
en
tio
n
for
Entr
epre
ne
urs
hip
Stage 1: factor driven (includes transition countries to phase 2)
Algeria 61.9 55.5 32.9 36.0 79.6 84.2 47.4
Angola 56.7 56.3 63.7 38.3 66.8 72.6 62.1
Botswana 65.9 67.4 18.6 59.2 80.7 83.7 85.6
Ghana 69.3 85.8 24.6 45.6 81.6 94.1 82.4
India 41.4 55.8 38.9 22.8 61.5 70.4 61.4
Iran 37.0 56.5 36.4 30.6 64.1 82.4 59.9
Libya 52.3 58.6 33.0 62.1 85.2 84.3 38.2
Malawi 78.9 89.5 15.1 66.7 + + +
Nigeria 84.7 87.0 16.3 46.8 81.2 61.9 76.5
Philippines 47.9 68.4 36.2 44.1 84.9 79.3 86.8
Uganda 81.1 83.8 15.0 60.7 88.3 95.3 87.5
Vietnam 36.8 48.7 56.7 24.1 63.4 81.5 80.5
Zambia 76.8 79.6 15.4 44.5 66.5 71.2 69.0
Average (unweighted)
60.8 68.7 31.0 44.7 75.3 80.1 69.8
Stage 2: efficiency driven (includes transition countries to phase 3)
Argentina 40.9 61.7 24.9 31.0 + + +
Bosnia 23.3 50.5 26.1 21.8 82.3 71.9 39.2
Brazil 50.9 52.6 38.7 27.2 84.6 82.2 84.1
Chile 68.4 59.6 28.0 46.5 69.1 67.2 66.3
China 33.1 36.3 34.3 14.4 69.6 73.5 71.3
Colombia 67.7 57.8 31.8 54.5 90.9 71.4 67.5
Croatia 17.6 47.2 35.2 19.6 61.5 43.1 42.9
Ecuador 57.3 74.3 34.9 39.9 66.5 67.7 79.1
Estonia 46.1 40.0 38.8 19.4 53.2 58.6 40.7
Guatemala 58.8 66.4 33.3 39.0 86.8 71.5 55.1
Hungary 18.9 37.5 44.8 13.7 45.7 74.1 28.4
Indonesia 46.7 62.0 35.2 35.1 70.8 79.8 75.3
Jamaica 51.2 79.1 27.0 39.5 79.4 80.9 81.7
Latvia 34.8 47.8 41.6 22.7 61.4 59.5 58.6
Lithuania 28.7 35.4 41.7 22.4 68.6 57.2 47.6
Macedonia 37.2 49.7 35.6 29.1 69.5 67.9 66.8
Malaysia 40.7 28.0 33.3 11.8 41.8 45.0 62.2
Mexico 53.6 58.5 31.6 16.9 57.8 62.3 50.8
Panama 58.7 66.4 28.9 27.0 64.4 59.2 70.4
Peru 61.0 62.2 25.7 33.9 70.4 71.2 71.5
Poland 26.1 51.8 46.7 17.3 66.8 59.9 58.5
Romania 28.9 45.9 37.3 23.7 73.6 72.6 61.3
Russia 18.2 28.2 29.0 2.6 65.7 68.0 49.0
Slovakia 16.1 51.0 33.2 16.4 49.2 58.5 51.7
South Africa 37.9 42.7 27.3 12.8 74.0 74.7 78.4
GLOBAL ENTREPRENEURSHIP MONITOR Thailand Report | 2013
57
Economies Pe
rce
ived
Op
po
rtu
nit
ies
Pe
rce
ived
C
apab
iliti
es
Fear
of
Failu
re*
Entr
epre
ne
uri
al
Inte
nti
on
s **
Entr
epre
ne
urs
hip
as a
Go
od
Car
eer
C
ho
ice
Hig
h s
tatu
s t
o
Succ
essf
ul
Entr
epre
ne
urs
Me
dia
Att
en
tio
n
for
Entr
epre
ne
urs
hip
Stage 2: efficiency driven (includes transition countries to phase 3)
Suriname 52.7 53.5 24.4 13.1 75.6 79.3 65.9
Thailand 45.3 44.4 49.3 18.5 74.5 74.8 77.2
Uruguay 47.9 61.1 26.9 25.3 58.1 56.0 57.5
Average (unweighted)
41.7 51.8 33.8 24.8 67.8 67.0 61.4
Stage 3: innovation driven
Belgium 31.5 33.8 46.6 7.8 54.8 52.2 43.9
Canada 57.4 48.5 35.2 13.5 60.6 70.1 69.6
Czech Republic 23.1 42.6 35.8 13.7 + 47.8 +
Finland 43.8 33.3 36.7 8.3 44.3 85.5 68.5
France 22.9 33.2 41.1 12.6 55.3 70.0 41.4
Germany 31.3 37.7 38.6 6.8 49.4 75.2 49.9
Greece 13.5 46.0 49.3 8.8 60.1 65.1 32.4
Ireland 28.3 43.1 40.4 12.6 49.6 81.2 59.9
Israel 46.5 36.2 51.8 24.0 60.6 80.3 49.1
Italy 17.3 29.1 48.6 9.8 65.6 72.4 48.1
Japan 7.7 12.9 49.4 4.1 31.3 52.8 57.6
Korea 12.7 28.1 42.3 12.1 51.3 67.8 67.6
Luxembourg 45.6 43.3 42.9 14.1 39.4 70.6 36.3
Netherlands 32.7 42.4 36.8 9.1 79.5 66.2 55.2
Norway 63.7 34.2 35.3 5.2 49.3 75.5 56.9
Portugal 20.2 48.7 40.1 13.2 + + +
Puerto Rico 28.3 53.0 24.6 13.1 17.9 50.1 68.8
Singapore 22.2 24.8 39.8 15.1 50.9 59.4 75.3
Slovenia 16.1 51.5 29.6 12.4 57.4 68.1 50.5
Spain 16.0 48.4 36.3 8.4 54.3 52.3 45.6
Sweden 64.4 38.8 36.6 9.5 52.0 71.5 58.5
Switzerland 41.5 44.7 28.2 9.8 40.5 65.0 47.8
Taiwan 42.0 27.2 40.7 27.8 73.0 64.5 87.1
Trinidad & Tobago
58.0 75.3 19.8 28.7 79.5 72.0 61.0
United Kingdom 35.5 43.8 36.4 7.2 54.1 79.3 49.6
USA 47.2 55.7 31.1 12.2 + + +
Average (unweighted)
33.4 40.6 38.2 12.3 53.5 67.3 55.7
* Fear of failure assessed for those seeing opportunities
** Intentions assessed among non-entrepreneur population
+ These questions were optional and therefore not included by all economies
Source: GEM 2013 Global Report
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Appendix 1 Table 2: Entrepreneurial Activity and Perceptions in the GEM Economies in 2013 by Economic Development
Economies Nas
cen
t
Entr
epre
ne
urs
hip
R
ate
Ne
w B
usi
nes
s O
wn
ers
hip
Rat
e
Earl
y-st
age
En
trep
ren
eu
rial
Act
ivit
y (
TEA
)
Esta
blis
hed
Bu
sin
ess
O
wn
ers
hip
Rat
e
Dis
con
tin
uat
ion
o
f B
usi
ne
sse
s
Ne
cess
ity-
dri
ven
(%
of
TEA
)
Imp
rove
me
nt-
dri
ven
O
pp
ort
un
ity
(%
of
TEA
)
Stage 1: factor driven (includes transition countries to phase 2)
Algeria 2.2 2.6 4.9 5.4 3.3 21.3 62.3
Angola 8.0 14.7 22.2 8.5 24.1 26.1 40.3
Botswana 11.0 10.2 20.9 3.4 17.7 26.3 52.0
Ghana 8.5 17.7 25.8 25.9 8.3 33.3 44.1
India 5.1 4.9 9.9 10.7 1.5 38.8 35.9
Iran 6.4 6.1 12.3 10.6 5.7 38.0 35.8
Libya 6.6 4.7 11.2 3.4 8.1 8.1 60.3
Malawi 10.1 18.8 28.1 12.0 30.2 43.7 29.4
Nigeria 20.0 20.7 39.9 17.5 7.9 25.4 52.3
Philippines 12.0 6.7 18.5 6.6 12.3 43.6 38.0
Uganda 5.6 20.0 25.2 36.1 20.1 25.1 47.5
Vietnam 4.0 11.5 15.4 16.4 4.2 25.1 62.2
Zambia 22.6 18.0 39.9 16.6 19.8 38.8 37.2
Total 9.4 12.0 21.1 13.3 12.6 30.3 46.0
Stage 2: efficiency driven (includes transition countries to phase 3)
Argentina 10.5 5.6 15.9 9.6 5.5 29.8 47.4
Bosnia 5.8 4.6 10.3 4.5 6.2 58.9 22.0
Brazil 5.1 12.6 17.3 15.4 4.7 28.6 57.4
Chile 15.4 9.6 24.3 8.5 7.6 20.1 57.7
China 5.2 8.9 14.0 11.0 2.7 33.9 35.9
Colombia 13.6 10.3 23.7 5.9 5.4 18.1 26.7
Croatia 6.3 2.0 8.3 3.3 4.5 37.4 29.8
Ecuador 25.3 13.6 36.0 18.0 8.3 33.6 32.1
Estonia 8.8 4.5 13.1 5.0 2.1 14.8 50.1
Guatemala 7.6 4.9 12.3 5.1 3.0 31.4 44.2
Hungary 6.0 3.7 9.7 7.2 2.9 28.0 38.7
Indonesia 5.7 20.4 25.5 21.2 2.4 25.4 43.7
Jamaica 8.0 6.0 13.8 6.3 7.4 40.6 34.2
Latvia 8.1 5.3 13.3 8.8 3.5 21.2 52.7
Lithuania 6.1 6.4 12.4 8.3 3.5 23.3 55.2
Macedonia 3.4 3.5 6.6 7.3 3.3 61.0 22.9
Malaysia 1.5 5.2 6.6 6.0 1.5 18.4 64.9
Mexico 11.9 3.3 14.8 4.2 6.6 6.7 26.3
Panama 15.4 5.2 20.6 3.5 3.4 18.6 39.8
Peru 17.8 5.9 23.4 5.4 4.2 22.5 54.2
Poland 5.1 4.3 9.3 6.5 4.0 47.4 32.7
Romania 6.2 4.2 10.1 5.3 4.3 31.6 31.6
Russia 3.0 2.8 5.8 3.4 1.6 35.4 42.0
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Economies Nas
cen
t
Entr
epre
ne
urs
hip
R
ate
Ne
w B
usi
nes
s O
wn
ers
hip
Rat
e
Earl
y-st
age
En
trep
ren
eu
rial
Act
ivit
y (
TEA
)
Esta
blis
hed
Bu
sin
ess
O
wn
ers
hip
Rat
e
Dis
con
tin
uat
ion
o
f B
usi
ne
sse
s
Ne
cess
ity-
dri
ven
(%
of
TEA
)
Imp
rove
me
nt-
dri
ven
O
pp
ort
un
ity
(%
of
TEA
)
Stage 2: efficiency driven (includes transition countries to phase 3)
Slovakia 6.1 3.6 9.5 5.4 5.5 40.2 40.2
South Africa 6.6 4.0 10.6 2.9 4.9 30.3 31.5
Suriname 3.9 1.3 5.1 1.7 0.8 17.8 57.6
Thailand 7.9 10.4 17.7 28.0 3.5 18.7 67.8
Uruguay 8.5 5.7 14.1 4.9 3.4 12.0 36.8
Total 8.4 6.4 14.4 8.0 4.2 28.8 42.0
Stage 3: innovation driven
Belgium 3.1 1.9 4.9 5.9 1.9 29.0 43.9
Canada 7.8 4.7 12.2 8.4 4.4 15.1 66.9
Czech Republic
4.9 2.7 7.3 5.3 3.4 22.7 60.3
Finland 2.7 2.7 5.3 6.6 2.0 17.9 66.0
France 2.7 1.8 4.6 4.1 1.9 15.7 60.9
Germany 3.1 2.0 5.0 5.1 1.5 18.7 55.7
Greece 3.3 2.3 5.5 12.6 5.0 23.5 35.8
Ireland 5.5 3.8 9.2 7.5 2.5 18.0 43.8
Israel 5.3 4.8 10.0 5.9 4.8 17.4 49.2
Italy 2.4 1.1 3.4 3.7 1.9 18.7 18.4
Japan 2.2 1.5 3.7 5.7 1.5 25.0 59.6
Korea 2.7 4.2 6.9 9.0 2.5 36.5 51.1
Luxembourg 6.0 2.8 8.7 2.4 2.8 5.6 56.6
Netherlands 4.7 4.8 9.3 8.7 2.1 8.0 67.1
Norway 2.9 3.4 6.3 6.2 1.6 4.0 60.8
Portugal 4.2 4.2 8.2 7.7 2.8 21.4 50.7
Puerto Rico 6.6 1.8 8.3 2.0 1.8 21.5 42.9
Singapore 6.4 4.4 10.7 4.2 3.3 8.4 68.8
Slovenia 3.6 2.9 6.5 5.7 2.6 24.1 53.4
Spain 3.1 2.2 5.2 8.4 1.9 29.2 33.2
Sweden 5.9 2.5 8.2 6.0 2.4 9.7 58.4
Switzerland 4.5 3.7 8.2 10.0 2.3 7.5 67.2
Taiwan 3.3 5.0 8.2 8.3 5.0 28.7 45.8
Trinidad & Tobago
11.4 8.5 19.5 11.4 4.1 11.2 76.0
United Kingdom
3.6 3.6 7.1 6.6 1.9 16.1 45.2
USA 9.2 3.7 12.7 7.5 3.8 21.2 57.4
Total 4.7 3.3 7.9 6.7 2.8 18.3 53.7
Source: GEM 2013 Global Report
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Appendix 2: Definitions of Main Measures
Entrepreneurial Attitudes and Perceptions
Perceived Opportunities Percentage of 18–64 age group who see good opportunities to start a firm in the area where they live
Perceived Capabilities Percentage of 18–64 age group who believe to have the required skills and knowledge to start a business
Entrepreneurial Intention
Percentage of 18–64 age group (individuals involved in any stage of
entrepreneurial activity excluded) who intend to start a business within
three years
Fear of Failure Rate Percentage of 18–64 age group with positive perceived opportunities who indicate that fear of failure would prevent them from setting up a business
Belief:
Entrepreneurship as Desirable Career Choice
Percentage of 18–64 age group who agree with the statement that in their country, most people consider starting a business as a desirable career choice
Belief: High Status Successful Entrepreneurship
Percentage of 18–64 age group who agree with the statement that in their country, successful entrepreneurs receive high status
Belief: Media Attention for Entrepreneurship
Percentage of 18–64 age group who agree with the statement that in their country, they will often see stories in the public media about successful new businesses
Entrepreneurial Activity
Nascent Entrepreneurship Rate Percentage of 18–64 age group who are currently nascent entrepreneurs, i.e., actively involved in setting up a business they will own or co-own; this business has not paid salaries, wages or any other payments to the owners for more than three months
New Business Ownership Rate
Percentage of 18–64 age group who are currently an owner-manager of a new business, i.e., owning and managing a running business that has paid salaries, wages or any other payments to the owners for more than three months, but not more than 42 months
Total Early-Stage Entrepreneurial Activity (TEA)
Percentage of 18–64 age group who are either nascent entrepreneurs or owner-managers of a new business (as defined above)
Established Business Ownership Rate
(EST)
Percentage of 18-64 population who are currently owner-managers of an established business, i.e. owning and managing a running business that has paid salaries, wages, or any other payments to the owners for more than 42 months
Necessity-Driven
Entrepreneurial Activity: Relative Prevalence
Percentage of those involved in TEA (as defined above) who are involved in entrepreneurship because they had no other option for work
Improvement-Driven
Opportunity Entrepreneurial Activity: Relative Prevalence
Percentage of those involved in total early-stage entrepreneurial activity (as defined above) who (i) claim to be driven by opportunity, as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent or increasing their income, rather than just maintaining their income
Entrepreneurial Aspirations
Growth Expectation Early-stage Entrepreneurial Activity: Relative Prevalence
Percentage of 18–64 age groups who are either nascent entrepreneurs or owner-managers of a new business (as defined above) AND expect to employ at least five employees five years from now.
New Product / Innovation Oriented Early-stage Entrepreneurial Activity: Relative Prevalence
Percentage of total early-stage entrepreneurs (as defined above) who indicate that their product or service is new to at least some customers.
International Orientation Early-stage
Entrepreneurial Activity
Percentage of total early-stage entrepreneurs (as defined above) who indicate that at least 25% of the customers come from other countries.
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Notes
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