Perceived Problems and SMEs Performance : A comparative perspective of SMEs in Thailand and China

Abstract

This study focuses on the comparative study of perceived problems facing SMEs in Thailand and in China. It also attempts to find out the relationships between perceived problems of small and medium-sized enterprises (SMEs) and firm performance in Thailand and in China. It is based on the findings of a sample survey-based research into 30 SMEs in different sectors, carried out during April and June, 2009. In order to collect empirical data, this study employs questionnaire survey and semi-structured face-to-face interview. The findings indicate that there are a number of similarities as well as differences between perceived problems of SMEs in Thailand and in China. In case of Thailand, external environments such as slowdown of national economy and marketing opportunities have been reported by Thai SMEs. For Chinese SMEs, they found that they still encountered serious financial problems and poor government policies. The results also show the negative significant relationship between perceived problems and firm performance. As expected, the overall profits and the overall sales have negative significant with financial and marketing problems in both Thailand and China’s cases.