ABSTRACT
As shown in the Introductory Chapter, there is plenty of argument regarding the importance of Registered small and medium-sized enterprises (SMEs) in economic and social development. But, this interest has not necessarily led to the conclusion that the government should mobilize public resources to promote SMEs. SMEs may be regarded as a traction engine which needs to be fuelled for the benefit of the entire economy, whereas the cottage and smaller businesses or so-called informal sector should be left to social and welfare considerations. In a country such as Thailand deprived of any significant SME policy until the 1990s, policy-makers would like to know in advance how effective the possible forms of SME promotion are in order to select the most cost-effective ones in the face of severe budget constraints under International Monetary Fund adjustment commitments. In the pre-industrial context and until the 1960s, most small-scale factories remained in the hands of the so-called foreign and essentially Chinese capitalists.
