2024 outlook: Study unveils rising stars, contraction concerns for Thai SMEs
A recent study has pinpointed the six rising-star small- and medium-sized businesses that are poised for substantial growth next year and three that are at risk of potential contraction.
The study was conducted by the Office of Small and Medium Enterprise Promotion (OSMEP).
OSMEP director Weerapong Malai revealed on Tuesday that the office has been analysing expansion trends among SMEs over the past few years by drawing data from operators and relevant agencies.
Researchers came up with a prediction on the economic outlook of each business in 2024 based on projected market value, consumer demands, employment rate and changes in investment capital.
The anticipated high-growth SMEs in 2024 include:
• Self-service laundromats: A staggering 1,925% year-on-year growth is projected, attributed to the rising number of condominiums and apartments in major cities and the evolving lifestyle of the new generation.
• Carbonated drink manufacturing: Expecting a 1,109% year-on-year growth due to the rising popularity of locally produced soft drinks, that offer consumers alternatives and variety.
• Mending and altering services: Predicted to grow by 667% year-on-year as the study highlights the growing need for professional alternations with more consumers buying clothes online.
• Recreational shops: Retailers of musical instruments, video games, and other entertainment activities are expected to grow 349% year-on-year.
• Funeral services: As Thailand is becoming an ageing society, businesses like mortuary transport, funeral centrepieces and flowers, as well as religious services are expected to grow 285%.
• Beauty salons: A 193% year-on-year growth can be expected based on an expanding economy and the influence of social media, which helps smaller operators gain recognition without significant advertising budgets.
On the flip side, OSMEP has identified three SME businesses likely to face contraction in 2024. They are:
• 2nd hand electronic retailers: Expected to contract by 82% as manufacturers reduce prices of new products, diminishing the need for consumers to explore second-hand shops for cheaper options.
• Handicraft and souvenir shops: Expected to contract by 75% as more consumers are buying these items online.
• Guest houses: Expected to contract by 65% as modern tourists prefer hotels with full facilities and guest houses’ inability to accommodate large groups, like corporate travellers.
