Thailand has long had a strong entrepreneurial culture, with many of the country’s, and the ASEAN region’s, largest companies founded only a generation or two ago. The dream of “owning your own business” is etched in many people’s minds, and for others, a necessity to work out of difficult socio-economic conditions leads many small-scale entrepreneurs to launch small businesses. In Thailand, therefore, the discussion about promoting startups is not simply about starting up, but it is about encouraging a more innovation-driven entrepreneur who seeks to build a scalable business.

The drive to build an ecosystem that supports scalable startups is led by large corporations and government initiatives. Thailand 4.0, for example, was introduced in 2016, to transform the nation into a high-income economy driven by innovation and technology. This has led to a number of activities, hackathons, and funding programs in key verticals such as robotics, biotechnology, digital services, and sustainable energy. Tax breaks and grants are available to both local and international businesses to encourage investment in research and innovation, and the Smart Visa program encourages highly skilled knowledge workers, investors, and entrepreneurs to work and invest in targeted “S-curve” industries, including:

Overall, Thailand’s startup ecosystem has experienced substantial growth in recent years. Bangkok is a thriving hub for startups, incubators, and accelerators, and offers plenty of co-working space, innovation events and programs, and access to capital from many of the country’s risk capital firms. Vibrant startup activity is not limited only to the capital city, however. Chiang Mai is a popular city for digital nomads and local startups, alike, with its more temperate climate, laid-back lifestyle, and innovation initiatives, such as Creative City Chiang Mai (www.creativechiangmai.com). The Thailand Startup Association (https://thaistartup.org/) is also building a startup network across Thailand, in regional cities, such as Khon Kaen, in Thailand’s northeast region.

Thailand remains a major opportunity for digital and e-commerce because of its high smartphone penetration rate and high usage levels of social media, such as LINE, Tik-Tok, and IG. E-commerce has flourished, with Lazada, Shopee, and JD Central dominating the online retail space. One area of improvement, however, is the necessity to build an expanded, capable human resource in coding and digital development to match the growth and demand.

Given Thailand’s geographical location and rich natural resources, along with a culture of warm hospitality, sustainable development and tourism remain prime targets for innovation and entrepreneurial opportunities. The government and corporate programs promote environmental consciousness and green initiatives, and policies and incentives encourage renewable energy adoption, energy efficiency, waste management, and sustainable tourism. Social enterprises focused on environmental conservation and cultural tourism are growing. Thailand remains a top destination for eco-tourism, medical and wellness, and a relaxed quality of life. At the same time, tourism of any kind also presents the risk of over-promotion and over-development, which some of Thailand’s most popular locations have been susceptible to.

Overall, Thailand’s entrepreneurial ecosystem continues to grow and vibrant startup activity can be found throughout the country. Thailand’s next step is to continue to put together pieces of the ecosystem puzzle in order to allow startups of a higher scale, a challenge which offers opportunities and challenges for investors, large companies, the government, and entrepreneurs of all kinds.

Author：Edward Rubesch　Director, Innovation Driven Entrepreneurship Center / UTCC
He received a Master of Management degree from a program offered jointly by the Kellogg School of Northwestern University, the Wharton School of the University of Pennsylvania, and Chulalongkorn University. He completed his Ph.D at Thammasat University in Bangkok, with a study of border entrepreneurs in the Greater Mekong Subregion. He partners with MIT to develop the technology entrepreneurship ecosystem with the government of Thailand. He is interested in technology development in the developing world, and informal distribution channels in developing countries, which are always led by entrepreneurs who by necessity create innovative and impact solutions in challenging environments.