Gen Z leads way in Thai entrepreneurship, says Sripatum University

 

A growing wave of Generation Z (people born between the mid-1990s and early 2010s) entrepreneurs is transforming Thailand's business landscape, with Sripatum University (SPU) in Bangkok highlighting the crucial roles of flexible work, artificial intelligence (AI), and public-private partnerships in driving this trend. 

 

SPU also emphasised the vital contribution of Thai small and medium-sized enterprises (SMEs), which generated more than 14 million jobs last year and account for 40% of the nation's gross domestic product.

 

 

Dr Kriangkrai Sajjaharuethai, dean of SPU's School of Business Ownership, pointed to the 2023 Deloitte Global Gen Z and Millennial Survey, which reveals significant shifts in young people's approach to work and income.  

 

The survey found that Thai Gen Z and millennials (born between 1981 and 1996) prioritise flexibility, the gig economy, diverse work arrangements, and sustainable income through personal businesses and freelancing, moving away from traditional employment models.

 

 

The report shows that 66% of Gen Z and 71% of millennials are keen to earn extra income through freelance work, such as app-based transport services, online content creation, and niche small businesses. 

 

This reflects a desire for financial security, achieved through investing in personal skills and adaptable businesses.
 

 

SMEs and startups are essential for economic growth, providing crucial support to the Thai economy. Their potential for expansion can significantly boost the nation's economic system. Ministry of Commerce data indicate that SMEs comprise 99% of all businesses in Thailand, creating more than 14 million jobs and contributing more than 300 billion baht to the GDP in 2024.  

 

Thailand's startup scene is also thriving, particularly in tech and innovation sectors such as fintech, healthtech and agritech, which benefit from both public- and private-sector support. This growth not only stimulates the economy but generates valuable opportunities for young people in the digital age.

 

Global trends mirror this entrepreneurial spirit. A US survey by Guidant Financial found that millennials start more than 13% of new businesses, with 55% confident in their management skills. A Mintel report also suggests that 25% of millennials worldwide plan to launch a business within the next five years, highlighting growing confidence and ambition.
 

 

Several factors are driving this entrepreneurial surge:

• Flexibility: The traditional 9-to-5 model is losing appeal among young people seeking better work-life balance.
• Technology and Digital Platforms: Technological advancements have reduced startup costs and simplified the process. Social media and e-commerce platforms also expand market reach.
• Public and Private Sector Support: Government initiatives, such as streamlined business registration and SME support funds, create a more favourable environment for startups.

 

 

However, challenges remain, including access to funding, lack of business knowledge, and adapting to change.

• Access to Funding: Support programmes like the TED Youth Startup, offering 100,000 baht for "Ideation" and 1,500,000 baht for the "Proof of Concept" stage, are improving access to funding for young people.
• Skills Gap: Training in financial planning, modern accounting, digital marketing, and supply-chain management is crucial.
• Adapting to Change: Continuous upskilling, including data analysis and AI, will enable young entrepreneurs to navigate change effectively.

 

 

"The growth of Thai SMEs and startups not only fuels economic growth but also reduces inequality and creates opportunities in local communities," Kriangkrai concluded. 

 

“Environmentally and socially responsible businesses, such as those in the green-business and social-enterprise sectors, are vital for a sustainable future. Continued support from all sectors is essential for young entrepreneurs to succeed.”