2013 GEM Thailand Report

GLOBAL ENTREPRENEURSHIP MONITOR
Thailand Report | 2013
1

Foreword
The 2013 edition of the annual Global Entrepreneurship Monitor (GEM) Thailand
Report finds its completion with perfect timing. The business community, academics
and policy makers agree that entrepreneurs of all kinds and the new ventures they
establish increasingly play a critical role in the development and well-being of their
societies. Most importantly, as we move toward the imminent implementation of the
ASEAN Economic Community in 2015, we have witnessed the emergence of a
landscape that will offer numerous opportunities for those who are able to effectively
utilize their entrepreneurial skills and knowhow.
As such, for the first time since the GEM project started 15 years ago, this year’s GEM
Thailand Report delivers a broad comparison of Thailand to the ASEAN countries
Indonesia, Malaysia, Philippines, Singapore and Vietnam as to the East Asian
Countries China, Japan, S. Korea and Taiwan. Bangkok University is honored to be
Thailand’s official representative and repeated contributor to GEM initiated worldwide
collaborative study on entrepreneurial activity, particularly during this challenging and
unpredictable period in history.
With the scope, reach and influence of the global GEM project continuing to grow over
the last 15 years, the project in Thailand has also embodied and demonstrated many of
the same entrepreneurial characteristics and qualities that it measures, tracks and
reports on across a broad range of people and societies. The GEM report contains
valuable data that is intended for the better-informed decision making of government
officials, policymakers, and business-people. Entrepreneurial business owner-
managers are recognized as the critical factor in the path to our successful future. Their
ability to think and to act, in addition complemented with an entrepreneurial spirit,
drives opportunities and fuels growth.
The GEM Thailand Report 2013 delivers insight to factors influencing
entrepreneurship, to links between entrepreneurship and national or regional
economic performance, and the effects on economic growth at different stages of
economic development. The GEM Thailand Report 2013 proudly stands as our
country’s contribution to the international research consortium and is distributed as
free information for social knowledge and benefit worldwide.
Somkid Jatusripitak, Ph.D.
Chairman, Board of Trustees
Bangkok University

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Foreword
“Entrepreneurs are like artists
who dream, create and inspire.
And they begin with a blank canvas.
Their art is our future.”
This statement of the GEM Team South Africa captures the spirit of our
entrepreneurship education at Bangkok University, where we combine the
importance of education with creativity and entrepreneurial thinking without which
neither opportunities nor growths can be permanently maintained.
Bangkok University and Global Entrepreneurship Monitor (GEM) Thailand have
worked together to bring mutual benefits to academia, businesses and policy makers.
A new finding enters into this year’s GEM Report: Entrepreneurs in Thailand and
around the globe experience a higher degree of subjective well-being than
individuals who are not involved in entrepreneurial activities.
In the third year at Bangkok University, the GEM Thailand Report for 2013 brings out a
special edition showing entrepreneurial trends in Thailand over the last three years and
comparing the entrepreneurial landscapes of several ASEAN and East Asian countries,
brought together with creativity and entrepreneurial spirit by our faculty and many
others involved in this project. Interesting topics to trigger your imagination and
creativity are, among other things, entrepreneurial activities and aspirations, education
and entrepreneurship, innovation and technology, opportunity versus necessity driven
entrepreneurial activities, and –as the special topic of the year 2013 - entrepreneurship
and well-being.
Although the GEM Thailand Report 2013 is primarily about Thailand, it covers a
regional Asian perspective and gives the opportunity to use the GEM data beyond
Thailand across the globe. The insights gained from this project can surely fill our blank
canvas and spark our dreams, creativity, and inspirations.
Mathana Santiwat, Ph.D.
President
Bangkok University

Acknowledgements
The 2013 GEM Thailand Report again would not have been possible
without the kind support and contribution of several individuals and
authorities. The GEM Thailand team would therefore like to thank those
whose participation has made this report possible.
The GEM national team of Thailand is especially grateful to Dr. Pichit Akrathit, Director
of GEM, Thailand, for his relentless productive support throughout the GEM project in
which he has been involved since its beginning in 2011. His guidance, supervision and
dedication in several aspects are priceless. Furthermore, the GEM team is much
obliged to the kind cooperation of Dr. Wutnipong Warakraisawad, Director of
Administration at School of Entrepreneurship and Management (SEM), Bangkok
University. He helped the GEM team with all administrative work and supported the
collaboration with other units in Bangkok University. We really admire his generosity
and calmness. Special thanks go to several supporters from the School of
Entrepreneurship and Management: to Sahattaya Choochatpong, who helped during the
interview process in the National Expert Survey 2013, and to Dr. Suchart Tripopsakul for
his help in analyzing the data. The team would also like to express their gratitude to
Bangkok University for the financial support and all staff for their kind assistance,
especially the International Affairs Office.
Our survey would be incomplete without the contribution of the national experts.
Sincere thanks are given to all of them for the time they dedicated to share their
viewpoints, experiences and practical stories. The Global Entrepreneurship Monitor
Thailand team also would like to thank the individuals in Thailand who took the time to
answer the APS survey questions. Special thanks go also to the Global
Entrepreneurship Research Association (GERA) for their professional cooperation and
to the GEM data team for their support throughout the processes.
The GEM national team of Thailand hopes that this report will be a helpful source of
information for both entrepreneurs and Thai authorities. We are glad if we can deliver
informative insights for policy makers and if our data supports them in formulating
policies related to entrepreneurial activities.
The Global Entrepreneurship Monitor Thailand Team
Bangkok University School of Entrepreneurship and Management

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Contents
Summary......................................................................................................................................................... 1
1. Introduction and Background............................................................................................................... 2
2. Entrepreneurial Activities ...................................................................................................................... 4
2.1. A Profile of Entrepreneurial Activities in Thailand.......................................................................... 4
2.2. Business Discontinuance................................................................................................................... 7
2.3. Necessity- and Opportunity-Driven Entrepreneurship................................................................... 9
2.4. Sector Participation........................................................................................................................... 12
2.5. Age Distribution................................................................................................................................. 14
2.6. Gender Differences........................................................................................................................... 16
2.7. Educational Profile............................................................................................................................ 20
3.EntrepreneurialPerceptionsandSocietalAttitudes ..................................................................................... 25
3.1. National Societal Attitudes............................................................................................................... 25
3.2. Perceived Opportunities and Capabilities ..................................................................................... 27
3.3. Fear of Failure ................................................................................................................................... 31
4. International Orientation, InnovationandWell-being................................................................................ 33
4.1. International Orientation and Market Expansion.......................................................................... 33
4.2. Innovation and Technology ............................................................................................................. 37
4.3. Entrepreneurship and Well-being................................................................................................... 41
5. Insights from National Experts: Assessment of Entrepreneurship Conditions in Thailand
......................................................................................................................................................................... 45
5.1. Entrepreneurial Framework in Thailand ........................................................................................ 45
5.2. Thailand’s Constraining Factors ..................................................................................................... 50
5.3. Recommendations for Thailand...................................................................................................... 51
6. Conclusions and Implications............................................................................................................ 53
References.................................................................................................................................................... 55
Appendix....................................................................................................................................................... 56
Appendix 1: Tables and Figures of GEM Data..................................................................................... 56
Appendix 2: Definitions of Main Measures ........................................................................................... 60

List of Tables
Table 1: Stratification of the 2013 Thailand APS Sample .........................................................................................3
Table 2: Total Entrepreneurial Activity (TEA) and Established Business Ownership (EST) in Thailand, by
Region, 2013 ....................................................................................................................................................5
Table 3: Gender Distribution of TEA and Opportunity vs. Necessity in Thailand by Region, 2013 ....................9
Table 4: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA and EST, and of the Male
and the Female TEA and EST, 2013..........................................................................................................20
Table 5: Societal Attitudes and Perceptions in ASEAN 6 + East Asian Countries, 2013...................................25
Table 6: Proportion of Firms with International Customers in ASEAN 6 + East Asian Countries, 2013 ..........34
Table 7: The GEM Entrepreneurial Framework Conditions (EFCs) ......................................................................45
Table 8: Entrepreneurship Framework Conditions Main Indicators in ASEAN 6 + East Asian Countries, 2013
..........................................................................................................................................................................46
List of Figures
Figure 1: Prevalence Rates of Activity at Different Stages of the Entrepreneurial Process in Percent, 2011-
2013 .................................................................................................................................................................4
Figure 2: TEA and EST Rates in ASEAN 6 + 4 Asian countries, 2013 ..................................................................5
Figure 3: Entrepreneurial Activity in Thailand, 2011 - 2013 .....................................................................................6
Figure 4: Business Discontinuance in ASEAN 6 + 4 Asian Countries (Exited a Business in Past Year,
Business did not Continue), in Percent, 2013............................................................................................7
Figure 5: Reasons for Business Discontinuance in ASEAN 6 + 4 Asian countries, 2013 ...................................8
Figure 6: Main Reasons for Business Discontinuance in Thailand by Gender, 2013...........................................8
Figure 7: Opportunity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013 ................................10
Figure 8: Necessity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013....................................10
Figure 9: Gender Distribution of TEA in Thailand, in Percent, 2011 - 2013.........................................................11
Figure 10: Gender Distribution of Opportunity-driven TEA versus Necessity-driven TEA in Thailand, in
Percent, 2011 - 2013 ...................................................................................................................................11
Figure 11: Percentage of Sector Structure of Total Early-Stage Entrepreneurial Activity (TEA) and
Established Business Activity (EST) in Thailand, 2013..........................................................................12
Figure 12: Sector Participation, Percentage of Respondents within TEA in ASEAN 6 + East Asian Countries,
2013 ...............................................................................................................................................................13
Figure 13: Sector Participation, Percentage of Respondents within EST in ASEAN 6 + East Asian Countries,
2013 ...............................................................................................................................................................13
Figure 14: Age Distribution for TEA and EST by Age Groups in Thailand, 2013................................................14
Figure 15: Age Distribution for TEA in ASEAN 6 + East Asian Countries, 2013.................................................15
Figure 16: Age Distribution for EST in ASEAN 6 + East Asian Countries, 2013.................................................15
Figure 17: Gender Distribution of Early-stage Entrepreneurs (TEA) by Geographic Regions (unweighted
average), 2013 .............................................................................................................................................16
Figure 18: Gender Distribution of Early-stage Entrepreneurs (TEA) in ASEAN 6 + East Asian Countries,
2013 ...............................................................................................................................................................17
Figure 19: Gender Distribution of Early-stage Entrepreneurs (TEA) in Thailand, 2011 - 2013.........................17
Figure 20: Gender Distribution of Established Business Owners (EST) in Thailand, 2011 - 2013 ..................18
Figure 21: Gender Distribution of Early-Stage Entrepreneurs (TEA) in Thailand, by regions, 2013................18
Figure 22: Gender Distribution of Established Businesses (EST) in Thailand, by regions, 2013.....................18
Figure 23: Percentage of male population involved in TEA, by Region, 2011 - 2013........................................19
Figure 24: Percentage of female population involved in TEA, by Region, 2011 - 2013.....................................19
Figure 25: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA, 2011 - 2013......................21
Figure 26: Educational Profile of the Entrepreneurs in Thailand, Involved in EST, 2011 - 2013......................22

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Figure 27: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in TEA, 2011 -
2013..............................................................................................................................................................22
Figure 28: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in EST, 2011 -
2013..............................................................................................................................................................23
Figure 29: Educational Profile of the Entrepreneurs TEA and EST in ASEAN 6 + East Asian Countries, 2013
......................................................................................................................................................................24
Figure 30: Societal Attitudes and Perceptions in Thailand, 2011 - 2013..............................................................26
Figure 31: Perceived Opportunities and Perceived Capabilities / Skills to Start a Business, ASEAN 6 + East
Asian Countries, 2013 ...............................................................................................................................27
Figure 32: Perceived Opportunities to Start a Business, by Gender and Region in Thailand, 2012................28
Figure 33: Perceived Capabilities / Skills to Start a Business, by Gender and Region in Thailand, 2012 ......28
Figure 34: Perceived Opportunities and Capabilities to Start a Business, by Gender, 2011 - 2013................29
Figure 35: Entrepreneurial Intentions in ASEAN 6 + East Asian Countries, 2013..............................................29
Figure 36: Entrepreneurial Intentions in ASEAN 3 + East Asian Countries 2011 – 2013..................................30
Figure 37: Attitudes Towards Failure Worldwide, by Economic Development, 2013.........................................31
Figure 38: Attitude Towards Failure in Percent, in ASEAN 6 + East Asian Countries, 2013 ............................31
Figure 39: Attitude Towards Failure in Percent, by Gender and Region in Thailand, 2013 ..............................32
Figure 40: Attitude Towards Failure, by Gender in Thailand, 2011 - 2013 ..........................................................32
Figure 41: Comparison of International Orientation of Start-ups, TEA and EST in Thailand, 2013 .................33
Figure 42: Proportion of firms with International and Domestic Customers in ASEAN 6 + East Asian
Countries, 2012 ..........................................................................................................................................34
Figure 43: International Orientation by Number of Employees, TEA 2013 ..........................................................35
Figure 44: International Orientation by Number of Employees, EST, 2013 .........................................................35
Figure 45: Market Expansion Plans of TEA and EST, by Region in Thailand 2013...........................................36
Figure 46: Innovativeness of Products for Customers in Thailand, 2013.............................................................37
Figure 47: Innovative Orientation (New Products) of TEA in ASEAN 6 + East Asian Countries, 2013 ...........38
Figure 48: Innovative Orientation (New Markets) of TEA in ASEAN 6 + East Asian Countries, 2013.............38
Figure 49: Technology-orientation of TEA and EST in Thailand, 2013 ................................................................39
Figure 50: Businesses in Medium or High Technology Sectors in ASEAN 6 + East Asian Countries, 2013..39
Figure 51: Innovativeness in Products and Services for TEA in Thailand, 2011 - 2013....................................40
Figure 52: Subjective Well-Being SWB, by Phase of Entrepreneurship in Thailand, 2013...............................41
Figure 53: Subjective Well-Being SWB, by Phase of Entrepreneurship in ASEAN 6 + East Asian Countries,
2013..............................................................................................................................................................42
Figure 54: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013 ...43
Figure 55: Subjective Well-Being SWB by Entrepreneurship Motivation in ASEAN 6 + East Asian Countries,
2013..............................................................................................................................................................43
Figure 56: Subjective Well-Being SWB by Gender in ASEAN 6 + East Asian Countries, 2013.......................44
Figure 57: Subjective Well-Being SWB and Entrepreneurship Motivations and Gender in Thailand, 2013 ...44
Figure 58: Entrepreneurship Public Institutional Profile in ASEAN, 2013 (1/2) ...................................................47
Figure 59: Entrepreneurship Market – Social Institutional Profile in ASEAN, 2013 (2/2)...................................47
Figure 60: Most Positive National Sub-Conditions (Scores above 4) Influencing Entrepreneurial Activity in
Thailand, 2013 ............................................................................................................................................48
Figure 61: Most Negative National Conditions (Scores below 2) Influencing Entrepreneurial Activity in
Thailand, 2013 ............................................................................................................................................49
Figure 62: Trend 2011 - 2013: Increase of Financial Constraints, from NES Data in Thailand, 2013.............50
Figure 63: Factors Constraining Entrepreneurship, from NES Data in Thailand, 2013 .....................................50
Figure 63: Factors Recommended for Entrepreneurship, from NES Data in Thailand, 2013 ...........................51

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Summary
The GEM Thailand Report | 2013 provides detailed information on the entrepreneurial
spirit and the latest trends in entrepreneurial activities in Thailand.
In anticipation of the ASEAN Economic Community (AEC) and the increasing importance of
the greater Asian economy for Thailand, Thailand’s entrepreneurs are placed into the
context of the five ASEAN countries Indonesia, Malaysia, Philippines, Singapore, and
Vietnam, in contrast with the four East Asian countries China, Japan, S. Korea and
Taiwan. We believe that this report will be informative for policy makers as well as for
the business and academic communities.
The 2013 GEM Thailand Report describes the Thai entrepreneurial profile and discusses various aspects of
entrepreneurial activities. Entrepreneurship plays a significant role in driving the overall economic health of a
country, independent of the stage of economic development. Monitoring levels of entrepreneurial activity is
therefore critical for countries striving for sustainable growth and prosperity. In many aspects GEM research
illustrates that entrepreneurship in Thailand continues the trends noted in 2011 and 2012, some more
positive than others. This report outlines changes in frequency and nature of Thailand’s entrepreneurship,
and highlights some trends through the years 2011 to 2013.
Key Highlights 2013:
 Thailand has overall high entrepreneurship rates. A total of 46.3% of the population were engaged in
entrepreneurial activities: 18.3% of the adult population (age 18-64) in early-stage entrepreneurship
(TEA)1 , and 28% were established business owners (p.4).
 Female participation in entrepreneurial activities is declining for the third year in a row.
Nevertheless, gender equality in entrepreneurship rates is still prevalent in Thailand with 9.2 women
starting and running businesses versus 10 men. Similar rates can only be found in 6 countries around
the globe (p. 16).
 TEA entrepreneurs are increasingly better educated than established business owners with one third of
them holding a bachelor degree as their highest educational degree (p. 20).
 Over the last three years, opportunity-perception among the Thai population increased (p 27).
 Established business owners in Thailand show the highest percentage of businesses in the extractive
sector with 23.5%, compared to the other Asian countries, (p. 12).
 Three special topics are covered in chapter 4 of the 2013 GEM Thailand Report:
International Orientation and Market Expansion, Innovation and Technology, and Entrepreneurship
and Well-being (p. 33).
 The customer base of Thailand’s businesses is mainly within the country (p. 34); especially early-stage
entrepreneurs show a low orientation for international and for new markets (p. 35).
 Thailand’s established business owners experience higher well-being than the rest of the population
(p. 41).
 Increasingly constraining is the lack of “financial support” for entrepreneurs as are supportive
government policies and the appropriate educational system to enhance capacity for entrepreneurship
in Thailand (p. 50).
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Total early-stage entrepreneurial activity

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1. Introduction and Background
Thailand consistently exhibits one of the highest entrepreneurship activity rates in the
world. Its established business ownership rate is the second highest in global comparison.
In 2013, 46.3% of the adult population in Thailand were involved in entrepreneurial
activities, 18.3% were starting or running new businesses, and 28% were established
business owners. In addition, one third of the adult population in Thailand is thinking
about starting a new business within the next three years.
Entrepreneurship provides job options for those who see opportunities and those who need a source of income.
Entrepreneurs have impact on the economy as current and future employers, and as suppliers, customers, and
service providers for other businesses, creating value and employment beyond their own enterprises. The
Global Entrepreneurship Monitor (GEM) measures these entrepreneurial activities in a global context; defining
entrepreneurship as “any attempt at new business or new venture creation, such as self-employment, a new
business organization, or the expansion of an existing business, by an individual, a team of individuals, or an
established business” (Bosma, Wennekers, & Amorós, 2012).
In 2013, the Global Entrepreneurship Monitor (GEM) conducted its 15th annual survey of entrepreneurship
around the world. GEM is the largest international research project that analyzes the propensity of the adult
population of a country to participate in entrepreneurial activities and the conditions that enhance these
entrepreneurship initiatives (Amorós & Bosma, 2014). The project aims to (1) measure differences in the level
of entrepreneurial activity between countries, (2) determine how entrepreneurial activities influence economic
growth, (3) uncover factors supporting and/or hindering entrepreneurial activity, and (4) suggest policies that
may enhance entrepreneurship in general.
The Global Entrepreneurship Monitor (GEM) research program was collaboratively founded in 1997 at
Babson College in the United States and London Business School in the United Kingdom. The first study in
1999 covered 10 countries; in its 15th year in 2013, approximately 197,000 individuals across 70 economies
participated in the GEM study, representing all regions of the world and a broad range of economic
developmental levels. The samples in the GEM 2013 study represent an estimated 75% of the world’s
population and 90% of the world’s GDP.
The data is based on two main data sources, namely, the Adult
Population Survey (APS) and the National Expert Survey (NES).
The 2013 representative sample for Thailand totalled 2,372
adults for the APS and 36 samples for the NES. The GEM
research methodology is standardized and, prior to each
year’s survey, approved by the Global Entrepreneurship
Research Association (GERA). Therefore, the research results can
be compared across the participating countries. With the
information from the APS and NES, policy recommendations
with regard to promoting entrepreneurship and its growth
strategies are formulated for each individual country (Chapter
5 and Chapter 6).

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APS (Adult Population Survey)
The Thai APS is conducted by interviewing representative sample adults of 18-64 years of age. The APS
results represent the attitudes of non-entrepreneurs and individual entrepreneurs and their activities
nationwide. The APS samples were randomly selected across all regions in the country: Greater Bangkok
(including Bangkok itself, Nonthaburi, Samutprakarn and Patumthani), North, Northeast, East, Central and
South. The stratification of the 2013 Thailand APS sample, both rural and urban areas, is illustrated in Table
1. The national team conducted the APS survey by telephone (fixed line) interviews in urban and by face-to-
face interviews in rural areas. The regional sampling frame is proportional to the actual population in both
urban and rural areas. The survey results from the APS are covered in the Chapters 2 to 4.
NES (National Expert Survey)
The Thai NES samples comprised 36 experts from different age groups and from different entrepreneurial
framework condition categories (EFCs). Out of these 36 experts, a minimum of 25 % were entrepreneurs or
business owners. The NES is carried out via in-depth interviews with experts on nine EFCs. This qualitative
information is based upon the experts’ informed judgment on the following conditions: entrepreneurial finance,
government policies, government programs, entrepreneurship education, R&D transfer, commercial
infrastructure, market entry regulations, physical infrastructure, and cultural and social norms, which can
influence the overall climate for entrepreneurship in an economy. Its results help to identify fostering and
constraining factors in relation to the development of entrepreneurship in the respective countries. The
survey results from the NES are covered in Chapter 5.
Beyond activities and aspirations of entrepreneurs and reasons for getting started, the 2013 results illustrate the
colorful diverse nature of entrepreneurship in Thailand. Since the upcoming ASEAN Economic Community
(AEC) will increase both interregional opportunities and competition, this report exposes Thailand in
comparison to other countries in ASEAN: Indonesia, Malaysia, the Philippines, Singapore and Vietnam and to
four more Asian countries: China, Japan, South Korea and Taiwan, all located in East Asia. In addition, it
displays certain trends in Thai entrepreneurship over the last three years 2011 to 2013.
In 2013, the GERA selected Entrepreneurship and Well-Being as a special topic of
the year for the GEM study (Chapter 4).
Table 1: Stratification of the 2013 Thailand APS Sample
Area Urban Rural Total Respondents
Greater Bangkok
(Bangkok, Nonthaburi, Samutprakarn, Patumthani) 504 - 504
North 266 127 393
Northeast 495 232 727
Central* 317 151 468
South 190 90 280
Total 1,772 600 2,372
*Note: Central covers the areas in the west, the east and the central part of Thailand excluding Greater Bangkok.
Source: GEM 2013 Thailand Adult Population Survey

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2. Entrepreneurial Activities
2.1. A Profile of Entrepreneurial Activities in Thailand
The entrepreneurship phases in GEM are viewed as a process starting with (1) potential entrepreneurs
mainly led by their beliefs, attitudes and intentions to start a business, over (2) nascent entrepreneurs who
are just starting up, (3) young entrepreneurs running new (less than 3.5 year old) firms and (4) business
owners of established enterprises (older than 3.5 years). The GEM study assesses this process at the different
points in the enterprise’s life cycle. The main measure of GEM is the Total Entrepreneurial Activity (TEA)
rate. It consists of individuals aged 18-64 years who are nascent or young entrepreneurs –just started up or
run a business not older than 42 months.
Figure 1: Prevalence Rates of Activity at Different Stages of the Entrepreneurial Process in Percent, 2011-
2013
Source: GEM 2013 Thailand Adult Population Survey.
The data in Figure 1 shows the prevalence rates of entrepreneurial activities at the different entrepreneurial
stages for the years 2011 – 2013 in percent. The GEM 2013 Thailand APS report shows a gradual decrease of early-
stage entrepreneurial activity from 19.5% (2011) over 18.9% (2012) to 18.3% in 2013. Compared to the previous year,
young businesses less than 3.5 years old decreased by 8% to 10.4% in 2013. The rate of nascent entrepreneurs even
showed a steeper decline to 7.9%, a drop of 9.2%.
The impact of the global financial crisis on entrepreneurship rates can be seen for those entrepreneurs with
businesses older than three months but less than three and a half years (young entrepreneurs) who dropped
significantly from 18.5% before the crisis in 2007 to 12.2% in 2011 and further to 10.4% in 2013. In contrast, the
prevalence rate of established business owners, which had increased considerably in the last 8 years from 14.1% in
2005 to 30.1% in 2011, proves to be rather stable on a high level with 28.0% in 2013. Figure 2 outlines Thailand’s
TEA and established business ownerships rates in comparison with the ASEAN 6 (Indonesia, Malaysia, Philippines,
Singapore, Thailand and Vietnam) and the four East Asian countries China, Japan, South Korea and Taiwan. To
simplify matters, South Korea will be named Korea in the process of this report. For details on specific countries, see
Appendix 1, Table 2.

5
Figure 2: TEA and EST Rates in ASEAN 6 + 4 Asian countries, 2013
Source: GEM 2013 Thailand and Global Adult Population Survey.
Indonesia shows the highest TEA rate and a slightly lower, although nevertheless very high established
business ownership rate. For the Philippines a high discrepancy can be seen between TEA entrepreneurs and
established business owners, which suggests that many businesses do not enter the phase of becoming
established businesses. This is also mirrored in the very high business discontinuance rate of more than 9%
in the Philippines (see Chapter 2.2). Thailand’s established business rate of 28% is the second highest in a
global comparison. Only Uganda has more established business owners (36.1%).
As Table 2 shows, Thailand’s North ranks first in terms of TEA rate and the Northeast ranks first in terms of
established business ownership (EST). Three major shifts can be seen compared to the previous year:
(1) In Greater Bangkok, the TEA rate dropped by 30.1% from 12.7 % in 2012 to 8.8% in 2013; (2) in the North, the
formerly highest established business ownership rate of the five regions (38.2%) dropped by 22.7% to 29.5%,
which is still above the average of the country; and (3) in the South, the established business ownership rate
dropped 21.6% from 35.6% in 2012 to 27.9% in 2013. Overall and as in previous years, the Greater Bangkok area is
limping behind in entrepreneurship rates, regardless of the entrepreneurial stage.
Table 2: Total Entrepreneurial Activity (TEA) and Established Business Ownership (EST) in Thailand, by
Region, 2013
Area
TEA Rate*
2013 (2012)
EST Rate*
2013 (2012)
Greater Bangkok
(Bangkok, Nonthaburi, Samutprakarn, Patumthani)
8.8 (12.7) 16.7 (16.5)
North 25.4 (18.5) 29.5 (38.2)
Northeast 19.5 (24.7) 29.9 (31.7)
Central 13.9 (14.4) 28.9 (24.8)
South 16.8 (16.4) 27.9 (35.6)
Total Average 18.3 (18.9) 28.0 (29.7)
Note: * Weighting factor is applied in calculation.
25.5
6.6
18.5
10.7
15.4
18.3
14.0
3.7
6.9
8.2
21.2
6.0 6.6
4.2
16.4
28.0
11.0
5.7
9.0 8.3
Indonesia Malaysia Philippines Singapore Vietnam Thailand China Japan Korea Taiwan
ASEAN 6 East Asian Countries
Early-stage entrepreneurial activity (TEA) Established business ownership rate (EST)
In %

6
Trends in Thailand 2011 – 2013:
Both early-stage entrepreneurial activities as the established business ownership rates slightly dropped from
the year 2011 to 2013. Main contributors to this trend were women entrepreneurs. Female TEA dropped from
20% in 2011 t0 16.3% in 2013, whereas male TEA slightly increased. The decline of female established
business owners is 9.5% from 29.3% (2011) t0 26.5% (2013), whereas male established entrepreneurs just
decline slightly from 30.9% in 2011 to 29.6% on 2013. This trend is also mirrored in the business
discontinuance rate which increased in 2013 (Chapter 2.2). For more details on the gender differences in the
different business phases see Chapter 2.6.
Figure 3: Entrepreneurial Activity in Thailand, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013 Thailand
Adult Population Survey.
19.5
30.1
18.9
29.7
18.3
28.0
Early-stage entrepreneurial activity (TEA) Established business ownership rate (EST)
2011 2012 2013in %

7
2.2. Business Discontinuance
With businesses being newly started, naturally others close. Some individuals who sell or close their business
might also re-enter into entrepreneurial activities. Discontinuance of businesses may be considered part of the
entrepreneurial dynamics alongside total early-stage entrepreneurial activities and established businesses.
Generally, the rate of business discontinuance declines as economic development increases. Factor-driven
economies experience the highest rates of business discontinuance with an average of 12.6%. Efficiency-driven
(average 4.2%) and further innovation-driven economies (average 2.8%) show lower rates of discontinuance.
Thailand’s business discontinuance rate in the past year was 3.7%, up from 2.7% in 2012. Of those, 73% exited
their business, and the business itself did not continue. The highest number of business exits took place in
Greater Bangkok (4.2%), and the least exited businesses were in the South (0.7%). GEM distinguishes
businesses that were sold or exited and ceased to exist versus those that were sold or exited but continued by
someone else. Compared to the other ASEAN and East Asian countries, the discontinuance rate where the
business ceased to exist is comparatively high: in the past 12 months 2.3% of the Thai adult population have
sold, shut down, discontinued or quit a business they owned and managed and the business was not continued
by someone else (Figure 4).
Figure 4: Business Discontinuance in ASEAN 6 + 4 Asian Countries (Exited a Business in Past Year,
Business did not Continue), in Percent, 2013
Figure 5 shows the reasons, why entrepreneurs discontinued their businesses in ASEAN and East Asia. The
2013 GEM Global Report lists “problems of obtaining finance” and a “not profitable business” as the main
reasons for a business to exit across most countries. This is also true for Thai businesses: 21.9% (2012: 19.7%)
state a not profitable business and 20.4% (2012: 19.7%) affirm problems receiving finance, together
accounting for 42.3% of the reasons. As in the previous years, a high number of entrepreneurs (34.7%) claimed
having personal reasons for exiting, not only in Thailand, but also in Vietnam (35.3%) and Taiwan (39.1%). Personal
or voluntary reasons for discontinuance might be prevalent especially in female entrepreneurs, often depending
upon their education (Minniti & Naudé, 2010). In Thailand, the 2013 GEM survey results show, that 74%
more female than male entrepreneurs exited their businesses. Often less educated women entrepreneurs
tend to start businesses in times of restricted labor markets and weak economies, returning to the corporate
sector when they perceive improved macroeconomic conditions. An “opportunity to sell their business” which
is a reason for up to 13.8% of the discontinuing businesses in Malaysia, was not an option for Thai business
owners (0 %).
1.9
1.2
9.4
1.9
2.5 2.3 2.0
1.2
1.8 1.9

8
Figure 5: Reasons for Business Discontinuance in ASEAN 6 + 4 Asian countries, 2013
The main reasons stated by men and women in Thailand on “why they discontinued their businesses” were the same
two years ago (2011): besides “personal reasons” the two main reasons to an equal proportion were “problems getting
finance” and “the business was not profitable”; this started to shift in 2012 and the gap intensified in 2013. Figure 6
shows the main reasons for business discontinuance in Thailand in 2013 by gender: Twice as many women or 26.8%
of the female entrepreneurs ended their businesses due to unprofitability (versus 13.3% of the men), and 3.5 times
more or 33.3% of the male entrepreneurs exited due to not getting finance (versus 8.9% of the women).
Figure 6: Main Reasons for Business Discontinuance in Thailand by Gender, 2013
Main reasons for male entrepreneurs Main reasons for female entrepreneurs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Indonesia
Malaysia
Philippines
Singapore
Vietnam
Thailand
China
Japan
Korea
Taiwan
Opportunity to sell Business not profitable Problems getting finance
Another job or business opportunity Exit planned in advance Retirement
Personal Reasons
Personal
reasons,
23.3
An
incident,
13.3
The
business
was not
profitable,
13.3
Problems
getting
finance,
33.3
various
other
reasons,
16.7
Personal
reasons,
41.1
An incident,
7.1
The
business
was not
profitable,
26.8
Problems
getting
finance, 8.9
various
other
reasons,
16.1

9
2.3. Necessity- and Opportunity-Driven Entrepreneurship
Different people may have different motivations to enter into entrepreneurial activity. For example, in some
cases, the motivation to start a business may be based on necessity, if there are no better alternatives for
work or other income sources. Others may be motivated to start a business by seizing an opportunity; motifs
can be to reach higher income, to work with greater flexibility and independence. GEM identifies early-stage
entrepreneurs according to their original motivation to start as opportunity-driven or necessity-driven. Most
early-stage entrepreneurs can be classified into either of these two groups. The motivation why individuals
start entrepreneurial activities has impact on the quality of the pursued business. GEM research consistently
showed, that opportunity-driven businesses contribute more to an economy than those started out of
necessity. Opportunity-based entrepreneurship reflects a voluntary career choice and is seen as a dynamic
entrepreneurial activity. On average, opportunity-driven entrepreneurs are also better educated and hire
more employees during the first years of their firm’s life than necessity-driven entrepreneurs (Reynolds,
Camp, Bygrave, Autio, & Hay, 2002).
The 2013 APS Thailand survey reveals that for the Thai total
entrepreneurial early-stage activity (18.3% of the adult population),
more men and women started their businesses opportunity-driven
than necessity-driven. 83% of male TEA (2012: 88%) and 74% of
female TEA (2012: 78%) were opportunity-driven, whereas 14% of
the men (2012: 12%) and 24% of the women (2012: 22%) started
necessity-driven.
A view at the regions in Thailand (Table 3) shows that opportunity
perception is highest in the North for men (92.8%), but for women, the
surprisingly highest is in Greater Bangkok (88.9%), followed by the
North (87.4%). On the other hand, necessity-driven start-ups differ
greatly throughout the regions: for male TEA between 5.8% in the North
and more than four times higher in the Central region (26.9%). Female
necessity-driven TEA shows an even greater spread ranging from 5.5% in
GreaterBangkokupto33.3%intheNortheast.AlsotheresultsfortheSouth
display a large amount of necessity-driven female TEA with 30.5%. This
might be explained by the prevalence of a variety in working opportunities
inGreaterBangkok.
Table 3: Gender Distribution of TEA and Opportunity vs. Necessity in Thailand by Region, 2013
Area
Opportunity-
driven early
stage
entrepreneurial
activity
(% of adult
population)
Necessity-
driven early
stage
entrepreneurial
activity
(% of adult
population)
Male TEA
Opportunity
(%of TEA males)
Female TEA
Opportunity
(%of TEA females
Male TEA
Necessity
(%of TEA males)
Female TEA
Necessity
(%of TEA females)
Greater Bangkok
(Bangkok, Nonthaburi,
Samutprakarn,
Patumthani)
7.6 0.8 84.8 88.9 12.4 5.5
North 22.8 2.3 92.8 87.4 5.8 13.0
Northeast 14.0 4.8 78.9 65.2 15.0 33.3
Central 10.5 3.0 72.4 78.4 26.9 15.7
South 12.9 3.2 87.7 65.2 8.2 30.5
Thailand
(average)
13.3 3.0 83.0 74.0 14.0 24.0

10
The country comparison of ASEAN 6 and East Asian countries shows that opportunity perception in ASEAN
countries is on average higher than in the East Asian countries with the exception of the Philippines who have the
lowest opportunity-driven TEA rates in the Asian region, both for male and female TEA (Figure 7). In terms of
female opportunity perception, the ASEAN region is on par with the developed economies, where in general three
out of four or more women entrepreneurs account for opportunity-driven TEA (Kelley, Brush, Greene, & Litovsky,
2013).
Figure 7: Opportunity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013
In most countries, necessity-driven TEA is higher for women than for their male counterparts. The highest rate in the
Asian region exists in the Philippines, where nearly half of the female business owners start out of necessity (Figure
8). In comparison, Thailand experiences one of the lowest rates of necessity-driven TEA, both for men and women.
Singapore has the least necessity-driven TEA for men (9%) and for women (8%), followed by Malaysia. The East
Asian countries experience considerably higher rates of necessity-driven TEA than Thailand.
Figure 8: Necessity-driven TEA in ASEAN 6 + East Asian Countries, by Gender 2013
76 78
60
89
83
75
70
73
60
7273
87
52
91
74 75
58
63 63
71
Indonesia Malaysia Philippines Singapore Thailand Vietnam China Japan Korea Taiwan
male TEA opportunity (% of TEA males ) female TEA opportunity (% of TEA females )
24
22
40
9
14
25
28
20
37
2827
13
48
8
24 25
41
34 34
29
male TEA necessity (% of TEA males ) female TEA necessity (% of TEA females )

11
Figure 9 displays that male TEA proves to be stable from 2011 to 2013, whereas female TEA rates dropped from a
previously high rate of 20% of the adult population in 2011, which was even higher than the male TEA rate of 17.2%
in 2011, to 16.3% in 2013 (-18.5%).
Figure 9: Gender Distribution of TEA in Thailand, in Percent, 2011 - 2013
The general decline in female TEA rates can partly be explained by a drop in opportunity perception in the last years.
Figure 10 shows, that in 2011, 14.5% of women were starting because they perceived opportunities, whereas in 2013,
only 12.2% of the female population was opportunity-driven (-15.8%). On the other hand, necessity-driven TEA also
declined, both for men and women. As in most countries across the globe, opportunity motivation is generally more
predominant in all regions (Amorós & Bosma, 2014).
Figure 10: Gender Distribution of Opportunity-driven TEA versus Necessity-driven TEA in Thailand, in
Percent, 2011 - 2013
17.2
20
16.5
19.7
17.3 16.3
TEA male TEA female
2011 2012 2013
13.2 14.5
3.1 4.5
14.5 15
1.9
4.3
14.4
12.2
2.3 3.7
TEA male TEA female TEA male TEA female
opportunity-driven necessity-driven
2011 2012 2013

12
2.4. Sector Participation
Thailand’s industry sector participation of TEA and EST is displayed in Figure 11. It clearly indicates that
consumer-oriented businesses such as retail trade, hotels and restaurants are the majority sectors for both TEA
(61%) and EST (52%). It is noticeable that Agriculture, Forestry and Fishing accounts for 8% of the young
businesses and is nearly a quarter (22%) of all established businesses, for both entrepreneurship phases the
second largest sector. Manufacturing is the third largest business sector for start-ups (7%), whereas Wholesale
Trade is No. 3 for established business owners with 7%. It can also be seen that more businesses are being started
in the three sectors Information and Communication (4%), Financial Intermediation and Real Estate Activities
(3%) and Personal / Consumer Service Activities (2%) than in established business owners (1% each). This might
be because those business fields can easily be entered, and they might also be growing markets. However, their
failure rates might also be higher, accounting for the difference between TEA and EST. Since Thailand is on the
road from an efficiency-driven country to an innovation-driven country, where knowledge and innovation –
often in services, finance, and technology sectors – are increasingly important, these sectors might be a sign
of increased innovation-driven features in Thailand’s businesses. Future GEM research will show if this trend
persists and if the TEA entrepreneurs will enter the established business phase.
Figure 11: Percentage of Sector Structure of Total Early-Stage Entrepreneurial Activity (TEA) and
Established Business Activity (EST) in Thailand, 2013
Agriculture, Forestry, Fishing Mining, Construction Manufacturing
Utilization, Transport, Storage Wholesale Trade Retail Trade, Hotels & Restaurants
Information and Communication Financial Intermediation, Real Estate Activities Professional Services
Government, Health, Education, Social Services Personal/Consumer Service Activities
In general, most Thai entrepreneurs continue to be engaged in operating small scale and small scope new
businesses. Examples are retailing, food services, laundry services, and accommodation renting.
GEM summarizes the sectors into four main sectors: extractive sector (agriculture, forestry, fishing, and all
mining), transformative sector (construction, manufacturing, transportation, communication, utilities, and
wholesale), business services (finance, insurance, real estate, all business services), and consumer services
(retail, motor vehicles, lodging, restaurants, personal services, health, education and social services,
recreational services). This report uses the four main sectors for the geographic comparison of Thailand
within ASEAN and East Asian countries.
8%
1%
7%
3%
5%
61%
4%
3%
1%
5%
2%TEA
22%
3%
5%
2%
7%52%
1%
1%1%
5%
1%EST

13
Figure 12 and Figure 13 show the sector participation in the geographic region of ASEAN 6 and East Asian
countries for respondents within TEA and within EST, respectively. Thailand shows the second highest
percentage of participation in the extractive sector for TEA (8.7%) after Malaysia (13.5%) and the highest for
EST (23.5%). On the other hand, participation in the business oriented services is comparatively low in
Thailand with 7.7% for TEA and 3.3% for EST.
Figure 12: Sector Participation, Percentage of Respondents within TEA in ASEAN 6 + East Asian Countries,
2013
Figure 13: Sector Participation, Percentage of Respondents within EST in ASEAN 6 + East Asian Countries,
2013
3.8
13.5
4.1 0.9 4.3 8.7
1.7 1.2 2.3 1.3
11.5
15.7
10.3
11.1
15.0
15.2
11.2 16.5
31.2
17.8
3.6
8.1
5.3
25.3 7.2
7.7
10.2
23.5
19.5
16.3
81.1
62.7
80.3
62.7
73.5
68.4
76.9
58.8
47.0
64.6
Extractive sector Transforming sector Business oriented services Consumer oriented services
4.0
11.9 8.2
0.0 4.6
23.5
2.3 3.1 4.9 1.2
11.7
19.0
11.9
16.4
12.5
16.4
14.4
39.5 37.1
30.33.9
6.1
1.8
30.8
6.1
3.3
4.1
23.8
17.4
15.0
80.4
63.0
78.1
52.8
76.8
56.8
79.2
33.6
40.6
53.5
Extractive sector Transforming sector Business oriented services Consumer oriented services

14
2.5. Age Distribution
Figure 12 shows the relative proportions of entrepreneurial activities among different age groups in Thailand.
Young businesses, being in business for less than 42 months (TEA), have their highest ratio in the age group of 25-
34 and their next highest in the age group of 35-44 years. These findings do not differ from previous years in
Thailand and are prevalent in most economies in the GEM survey. Established business owners, running
businesses older than 42 months (EST), have the highest ratio in the age group of 35-44 years (35.4%). On
average they have become younger than in the previous years, where the majority were in the age range of
45-54 years (2011:32.1% / 2012: 32.4%). The high ratio of established business owners aged 35-44 might be
due to previously high TEA rates in the age group of 25-34 and in general low discontinuance rates. In the age
group of 18-24, already 3.3% account for established business owners. This is slightly lower than in the previous
year (4.3%). Entrepreneurship rates decline significantly after the age of 54, both for TEA as for
established business owners. The majority of entrepreneurial activities in the Thai adult population takes
place between 25 and 54 years of age with a peak of 63.7% (2012: 58.5%) being engaged in entrepreneurship
when they are between 35 and 44 years old.
Figure 14: Age Distribution for TEA and EST by Age Groups in Thailand, 2013
The comparison across ASEAN and East Asia shows that there is a similar age distribution for TEA for the
ASEAN countries as well as for China and Taiwan, with peaks of early-stage entrepreneurial activity in the age of
25 to 44 years (Figure 15). By contrast, both Japanese and Korean early-stage entrepreneurs are on average older,
showing the highest percentages of TEA in the age group of 35 to 44, followed by a high percentage in the age
group of 45 to 54. Korea’s early-stage entrepreneurs are on average the oldest in this comparison, with 66.5%
being between 35 and 54 years compared to the youngest in Vietnam with 56.3% being between 18 and 34 years.
Japan has the highest percentage (16.7%) of start-ups and young businesses where the owner is 55 years or older.
A larger age distribution is seen in the age groups prevalent for established business owners (Figure 16). The three
East Asian countries Japan, Korea and Taiwan show an extremely high proportion of established business owners
in the age between 45 and 64 with Korea having the oldest established business owners (77.7%), followed by
Japan (74.5%) and Taiwan (60.2%). Of the ASEAN countries, this age group is highest for Singapore (58.8%).
Both Singapore and Japan have no established business owners in the age group of 18 to 24 (0%), and Taiwan has
only 0.6% compared to Thailand, where 3.3% of the established business owners are between 18 and 24 years
young.
11.1
31.3
28.3
19.7
9.6
3.3
17.5
35.4
30.3
13.5
18-24 25-34 35-44 45-54 55-64
TEA EST
age
in %

15
Figure 15: Age Distribution for TEA in ASEAN 6 + East Asian Countries, 2013
Figure 16: Age Distribution for EST in ASEAN 6 + East Asian Countries, 2013
0
5
10
15
20
25
30
35
40
45
TEA age distribution
TEA 18-24 TEA 25-34 TEA 35-44 TEA 45-54 TEA 55-64
%
0
5
10
15
20
25
30
35
40
45
50
EST age distribution
EST 18-24 EST 25-34 EST 35-44 EST 45-54 EST 55-64
%

16
2.6. Gender Differences
One of Thailand’s outstanding features in regards to entrepreneurship is an equal proportion of female and male
entrepreneurs at all stages of business activity, from intending to start a business over starting up, sustaining it
and finally becoming an established business owner. Only six countries in the world show similar rates of male
and female entrepreneurship, three of them are in ASEAN: Indonesia, the Philippines, and Thailand. “In most
economies around the world, there are fewer women than men starting and running new businesses, but there are
even fewer running mature ones” (Kelley et al., 2013). Figure 17 shows the proportion of male to female early-
stage entrepreneurs by geographic regions with only the Sub-Saharan Africa region showing a similar ratio as
Thailand. In this region, the other three countries with entrepreneurial gender equality in TEA are Nigeria,
Zambia and Botswana.
Figure 17: Gender Distribution of Early-stage Entrepreneurs (TEA) by Geographic Regions (unweighted
average), 2013
The Asia-Pacific & South Asia region showed a
14% TEA rates for the male population and an
11% rate for females. Broken down into the
ASEAN 6 and the 4 East Asian countries, there
are a total of three countries with a similar
ratio of female to male TEA: Indonesia,
Philippines, and Thailand with Indonesia
showing the highest TEA rates, both for men
and women (Figure 18). Female TEA in
Thailand was 17.3% of the female adult
population, and 18.0% of the male adult
population was involved in TEA.
On the other hand, the high level of female entrepreneurship rates in Thailand is accompanied by the fact
that more than 70% of Thai women entrepreneurs operate as micro business owners. Positively seen, it
shows the level and the ability of Thai women for self-employment; and negatively, it does not add to job
creation for others in Thailand. In addition, Thailand and the Asian region also experience clear gender
differences in necessity- and opportunity-driven TEA (Chapter 2.3).
22
13
27
14
10 9
13
18.0
15
6
26
11
6 6
9
17.3
Latin America
& Caribbean
Middle East &
North Africa
Sub-Saharan
Africa
Asia Pacific &
South Asia
Europe -
EU28
Europe - Non
EU28
North
America
Thailand
% of male population involved in TEA % of female population involved in TEA

17
Figure 18: Gender Distribution of Early-stage Entrepreneurs (TEA) in ASEAN 6 + East Asian Countries,
2013
In 2012, Thailand showed the highest rate of female entrepreneurs in the global comparison in GEM, with 12
women starting and running businesses versus 10 men. While the ratio of female to male entrepreneurs
decreased to 0.92 in 2013, Thailand is still one of six countries with a nearly even proportion of man and
women entrepreneurs. The decrease of female entrepreneurs can both be seen in TEA as in established
business owners. In the three consecutive years 2011 – 2013, the TEA rates of male entrepreneurs remained
stable, whereas female TEA rates decreased considerably by 18.5% from 20% in 2011 to 16.3% in 2013, below
the male TEA rate. (Figure 19)
Figure 19: Gender Distribution of Early-stage Entrepreneurs (TEA) in Thailand, 2011 - 2013
Figure 20 shows, that the percentage of female established business owners decreased by 10% from 29.5% of
the female population in 2012 to 26.5% in 2013. In the same year, the discontinuance rate of female
entrepreneurs, where the businesses were not continued, nearly doubled from 1.8% in 2012 t0 3.4% in 2013.
In the same time period, the discontinuance rate of male entrepreneurs increased only slightly from 1.2%
(2012) to 1.6% (2013).
26.0
7.6
19.1
13.2
16.8
18.0
15.8
4.8
9.7
11.1
25.1
5.5
18.0
8.2
14.0
17.3
12.2
2.7
3.9
5.3
17.2
20
16.5
19.7
17.3 16.3
male TEA female TEA
2011
20112011
2012 2012
in %%11
2011 20132013

18
Figure 20: Gender Distribution of Established Business Owners (EST) in Thailand, 2011 - 2013
Regional Gender Differences in Thailand
Thailand’s regions differ in women participation in entrepreneurial activities, both in TEA and EST. The
Northeast of Thailand reports that more women than men in both stages are involved in entrepreneurship
(Figures 21 and 22). The Northeast also shows the highest level of female established business owners
(30.0%) in all five regions. The highest rate of early-stage entrepreneurship among all areas is prevalent in
the North with 23.1% of the female population and 27.7% of the male population. There is a different pattern
for established businesses: the highest percentages for men and women are found in the North (male: 32.5%;
female 26.6%), followed by the South for men (30.7%) and by the Central region for women (28.0%).
Figure 21: Gender Distribution of Early-Stage
Entrepreneurs (TEA) in Thailand, by regions, 2013
Figure 22: Gender Distribution of Established
Businesses (EST) in Thailand, by regions, 2013
30.9
29.3
29.9
29.529.6
26.5
% of male population involved in EST % of female population involved in EST
male EST female EST
2011 2012 20122011 20132013
in %
10.5
27.7
18.0
14.5
17.1
7.2
23.1
21.0
13.4
16.4
Greater
Bangkok
North Northeast Central South
% of male population involved in TEA
% of female population involved in TEA
17.7
32.5
29.8 29.8 30.7
15.8
26.6
30
28.0
25.0
Greater
Bangkok
North Northeast Central South
% of male population involved in EST
% of female population involved in EST

19
A continuing trend is the decline in female entrepreneurship in Thailand, both for established as for early-
stage business owners. Where in 2012 still 12 women could be found to run a business compared to 10 men,
the survey of 2013 reveals that only 9.2 women versus 10 men start and run a business. Especially female
TEA has considerably decreased from 2011 to 2013 with the exception of the North of Thailand, where it
increased consistently every year from 17.5% in 2011 to 18.7% in 2012 and further to 23.1% in 2013, a total of
+32% (Figures 23 and 24). All other regions in Thailand show somewhat sharp declines in female TEA,
especially for Bangkok (-50%) and the North (-23.4%) in the previous year.
In two of the five regions, male TEA increased from 2011 to 2013 with the highest increase (+44.3%) in the
North to a three-year high of 27.7% in 2013. After an initial increase, the Northeast is back to 18.0% male
TEA rates in 2013, slightly above the rate of 2011. Bangkok and Central show a decrease of 5.4% and 10.5%
respectively. After a sharp decline in male TEA from 2011 to 2012 (-50.8%) in the South, the region seems to
recover and male TEA now accounts for 17.1% (+36.8% from 2012 to 2013), yet still lower than in 2011 when
the South had the highest male TEA rate of all regions with 25.4%.
Figure 23: Percentage of male population involved in TEA, by Region, 2011 - 2013
Figure 24: Percentage of female population involved in TEA, by Region, 2011 - 2013
11.1
19.2
17.4
16.2
25.4
10.7
18.3
21.8
14.7
12.5
10.5
27.7
18.0
14.5
17.1
Greater Bangkok North Northeast Central South
2011 2012 2013
12.3
17.5
24.6
20.8
23.8
14.4
18.7
27.4
14.1
20.1
7.2
23.1
21.0
13.4
16.4
2011 2012 2013

20
2.7. Educational Profile
The general educational profile of the Thai adult population, both entrepreneurs and non-entrepreneurs,
stemming from the 2013 GEM survey results, shows two peaks: 20.8% of the Thai population have finished
high school (21.5% of male and 20.2% of female adult population) and 29.3% hold a bachelor degree (31.0%
of male / 27.7% of female adult population). The third largest group with 16.2% of the adult population still
states elementary school as their highest level of education with more women (19.6%) than men (12.7%).
The effect of higher education on early-entrepreneurial activity is not certain. The possibilities of better
employment opportunities that might be available in the market for those with higher education could even
deter them from entrepreneurship; however, those with higher education might have additional
knowledge, better experience, and better networks which could support their way into entrepreneurship.
Looking at entrepreneurs only, the educational profile of entrepreneurs in Thailand (Table 4) shows a similar
pattern for men and women with a slightly higher percentage of men having vocational training and more
women having elementary school as their highest educational level. There is a difference for TEA and for
established business owners. TEA entrepreneurs, regardless of gender, possess a higher educational level
than established business owners. The percentage of bachelor degree holders is 35.5% for TEA versus 23.6%
for EST. One third of the female TEA entrepreneurs rely on the educational background from a bachelor
degree (33.5%), as do an even higher proportion of male TEA entrepreneurs with 37.5%. A high school degree
is the second choice both for male (21.5%) as for female TEA (21.1%).
There is a gender difference for established business owners with the majority of women relying on
elementary school as their highest degree (27.1%), whereas the majority of men rely on a bachelor degree
(28.1%).
Table 4: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA and EST, and of the Male
and the Female TEA and EST, 2013
% of TEA % of EST
entrepreneurs
(male and
female)
male
entrepreneurs
female
entrepreneurs
entrepreneurs
(male and
female)
male
entrepreneurs
female
entrepreneurs
Lower
elementary
school
1.8 1.0 2.6 1.6 1.5 1.7
Elementary
school
13.7 8.5 19.1 23.4 20.1 27.1
Secondary
school
9.1 7.5 10.8 12.6 11.1 14.2
High school 21.3 21.5 21.1 20.7 19.1 22.4
Vocational
school
(Por Wor Chor)
4.3 7.0 1.5 8.0 9.3 6.6
Higher
vocational
school
(Por Wor Sor /
Por Wor Tor)
11.5 13.5 9.3 7.8 8.6 6.9
Bachelor degree 35.5 37.5 33.5 23.6 28.1 18.8
Master degree 2.8 3.5 2.1 2.1 1.9 2.3
Doctoral degree 0.0 0.0 0.0 0.2 0.3 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: GEM 2013 Thailand Adult Population Survey

21
Figure 25 shows that the percentage of early-stage entrepreneurs who hold a bachelor degree has increased
considerably by 29.6% since 2011. In 2013 more than one third of the young business owners (35.5%) had a
bachelor degree, followed by high school degree (21.6%). On the other hand, an elementary school degree
was less prevalent, down 40% from 23.1% (2011) to 13.7% (2013).
Figure 25: Educational Profile of the Entrepreneurs in Thailand, Involved in TEA, 2011 - 2013
An entrepreneur sharing her experience with Master students in Entrepreneurship at BUSEM
0.0
23.1
9.7
16.1
5.6
12.1
27.4
5.6
0.30.4
20.4
15.9
18.7
7.2
10.4
25.2
1.7 0.21.8
13.7
9.1
21.3
4.3
11.4
35.5
2.8
0.0
Lower
elementary
school
Elementary
school
Secondary
school
High school Vocational
school (Por
Wor Chor)
Diploma,
Higher
vocational
school (Por
Wor Sor / Por
Wor Tor)
Bachelor
degree
Master degree Doctoral
degree
2011 2012 2013
% of Thai entrepreneurs

22
A similar shift can be seen for established business owners, where entrepreneurs with an elementary school
degree as their highest educational level decreased even further (-41.9%) from 40.3 in 2011 to 23.4% in 2013,
although still accounting for nearly a quarter of all businesses. Again there was a huge increase of 80.2% for
entrepreneurs with a bachelor degree from 13.1% (2011) to 23.6%, likewise accounting for a quarter of all
businesses (Figure 26).
Figure 26: Educational Profile of the Entrepreneurs in Thailand, Involved in EST, 2011 - 2013
Source: GEM 2011 Thailand Adult Population Survey, GEM 2012 Thailand Adult Population Survey, GEM 2013
Thailand Adult Population Survey.
Regarding the two main changes over the 3 years from a gender perspective (Figure 27), male early-stage
entrepreneurs with an elementary school degree more than halved to 8.5% in 2013, whereas female early-
stage entrepreneurs saw a reduction of 29.3% from 27% in 2011 to 19.1% in 2011, still accounting for a fifth of
all enterprises. 50% more male TEA entrepreneurs (37.5%) held a bachelor degree in 2013, and female TEA
entrepreneurs increased 13.9% to 33.5% in 2013.
Figure 27: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in TEA, 2011 -
2013
Male established business owners with elementary school degrees decreased by 40.7%, which was less
intense than the decrease for early-stage male entrepreneurs. However, established women entrepreneurs
with elementary school degrees decreased by 41.8%, a steeper decline than their early-stage counterparts
experienced. Nearly half of all female established business owners (46.6%) left school with an elementary
0.0
40.3
12.8
18.1
5.1
8.2
13.1
2.4
0.0
2.2
34.2
14.5 14.5
5.9 6.7
19.8
2.0
0.11.6
23.4
12.6
20.7
8.0 7.8
23.6
2.1
0.2
Lower
elementary
school
Elementary
school
Secondary
school
High school Vocational
school (Por
Wor Chor)
Diploma,
Higher
vocational
school (Por
Wor Sor / Por
Wor Tor)
Bachelor
degree
Master degree Doctoral
degree
2011 2012 2013
18.5
25.0 27.0 29.4
13.7
26.9 25.5 23.9
8.5
37.5
19.1
33.5
Elementary school Bachelor degree Elementary school Bachelor degree
TEA male TEA female
2011 2012 2013
in %
in %

23
school degree in 2011. This figure is down to a quarter (27.1%) in 2013. Male established business owners
with a bachelor degree more than doubled (+116.2%), whereas the number of female established business
owner with a bachelor degree grew slower (+41.4%) during the last three years (Figure 28).
Figure 28: Educational Profiles of Male versus Female Entrepreneurs in Thailand, Involved in EST, 2011 -
2013
Since educational achievements can be linked to different types of businesses, especially regarding innovative
types of entrepreneurial activity (Koellinger, 2008), the improvements in higher educational degrees from 2011 to
2013 nurture hope that innovativeness in general might increase. Innovation (Chapter 4) is regarded as one of the
weak points in Thai entrepreneurs. An overall better educational background of both start-ups and young as well
as established business owners can help to improve the overall quality of the businesses in Thailand. Also, results
from the National Expert Survey 2013 (Chapter 5) revealed a lack of entrepreneurial education and a lack of
Research & Development transfer to entrepreneurial activities.
33.9
13.0
46.6
13.3
27.6
22.1
40.4
17.7
20.1
28.1 27.1
18.8
Elementary school Bachelor degree Elementary school Bachelor degree
EST male EST female
2011 2012 2013
in %

24
In comparison to the ASEAN 6 and the East Asian countries (Figure 29), Thailand shows high prevalence rates in
nearly all educational categories. This is mainly due to the high overall entrepreneurship rates in Thailand. A similar
effect can also be seen for Indonesia and Vietnam; however the rate of higher educational degrees in these countries is
scarce. “Some secondary degrees” are degrees up to elementary school. Established business owners in Thailand
show the highest peak for “secondary degree” (28.1%), which includes high school and vocational school (Por
Wor Chor). “Post secondary degrees” include bachelor degrees and higher vocational school (Por Wor Sor/Por
Wor Tor), whereas “graduate degrees” include master and doctoral degrees. The comparison of the
educational levels between countries is difficult because it does not take in to account the quality of the education.
Also, as pointed out in the National Expert Survey, the educational degree also does not inform if the degree
itself provided the urgently needed skills and capabilities for perusing entrepreneurial activities.
Figure 29: Educational Profile of the Entrepreneurs TEA and EST in ASEAN 6 + East Asian Countries,
2013
0.0
5.0
10.0
15.0
20.0
25.0
30.0
TEA some secondary degree TEA secondary degree TEA post-secundary degree TEA graduate experience
EST some secondary degree EST secondary degree EST post-secundary degree EST graduate experience
%
% of population aged 18-64, involved in either TEA or EST, classified by education

25
3. Entrepreneurial Perceptions and Societal Attitudes
Beliefs about the attractiveness of being an entrepreneur differ for individuals and across countries. Is starting a
business seen as an attractive career choice or is it not? Does the society favour entrepreneurship when it comes to
status and respect, and is there positive media coverage for entrepreneurs and their activities? The assessment of
those national attitudes and perceptions delivers insight into individuals’ intention to enter entrepreneurship.
Positive or negative perceptions about entrepreneurship as well as benefits from entrepreneurship
strongly influence entrepreneurship rates.
Besides questions regarding societal attitudes, the GEM Adult Population Survey also investigates individual
self-perceptions. Are they aware of good opportunities for starting a business? Do they believe in their own
skills and do they perceive to have the experience for starting-up? Do they fear to fail and would this deter
them from exploiting perceived entrepreneurial opportunities?
3.1. National Societal Attitudes
It is not only economic and geographic factors that influence societal attitudes, but also individuals’ cultural and social
backgrounds. Table 5 displays great differences in the societal attitudes across ASEAN and East Asia. In Thailand, most
people (79.5%) prefer an equal standard of living, which includes factors such as income, quality and availability
of employment, quality and affordability of housing, amongst others. This is in sharp contrast to other countries such as
Malaysia, where only 35.4% have this preference. Three quarters of the Thai population believe that entrepreneurship is
a good career choice. Across the countries this attitude is highest in the Philippines (84.9%) and lowest in Japan, where
the majority of the population does not believe that entrepreneurship is a good career choice (31.4%). Most cultures
(except Malaysia) agree that entrepreneurs enjoy a high status and respect in their respective country. Media attention
for entrepreneurship, which indicates high visibility and attractiveness of entrepreneurship, is considered positive in
Thailand (77.2%), ranging from 62.2% in Malaysia to 87.1% in Taiwan across ASEAN and East Asia.
Table 5: Societal Attitudes and Perceptions in ASEAN 6 + East Asian Countries, 2013
Country
People prefer an
equal standard of
living
Entrepreneurship
as a good career
choice
High status to
successful
entrepreneurs
Media attention for
entrepreneurship
ASEAN6
Indonesia 63.5 70.8 79.8 75.3
Malaysia 35.4 41.8 45.0 62.2
Philippines 64.0 84.9 79.3 86.8
Singapore 60.1 50.9 59.4 75.3
Thailand 79.5 74.5 74.8 77.2
Vietnam 50.1 63.4 81.5 80.5
EastAsian
Countries
China 39.2 69.6 73.5 71.3
Japan 43.3 31.3 52.8 57.6
Korea 71.4 51.3 67.8 67.6
Taiwan * 73.0 64.5 87.1
* Note: This question was optional and therefore not included by Taiwan

26
Figure 29 shows that overall the societal attitudes and perceptions of the adult population (aged 18 to 64) in
Thailand towards entrepreneurship were declining from 2011 to 2013. With the exception of “entrepreneurship as
a good career choice” the decline is accelerating in the last year: 11.6% less people prefer an equal standard of
living in 2013 compared to 2011, when nearly 90% of the adult population in Thailand preferred to have the same
standard of living. Media attention for entrepreneurship was 8.1% less likely to be noticed compared to 2011.
However, the high status that is perceived for successful entrepreneurs, only declined by 5.3% and
entrepreneurship as a good career choice is rather stable over the three years (-3.2%). Compared on a global scale,
Thailand’s national societal attitudes and perceptions are relatively high. The average perception in efficiency-
driven countries is 67.8% for “entrepreneurship as a good career choice”, 67% for “high status to successful
entrepreneurs”, and 61.4% for media attention for entrepreneurship”. A detailed comparison to specific countries
can be found in Appendix 1, Table 1 (Entrepreneurial Attitudes and Perceptions in the GEM Economies in 2013,
by Economic Development)
Figure 30: Societal Attitudes and Perceptions in Thailand, 2011 - 2013
89.9
85.1
79.5
77
75.7 74.5
79
79.1
74.8
84
84.1
77.2
70
75
80
85
90
95
100
2011 2012 2013
People prefer an equal standard of living Entrepreneurship as a good career choice
High status to successful entrepreneurs Media attention for entrepreneurship
% % of adult population in Thailand

27
3.2. Perceived Opportunities and Capabilities
Opportunity-perception is an important trigger in venture
creation and relates positively to the uptake of
entrepreneurial activity. It reflects the percentage of
individuals who believe that there are opportunities to start
a business in the area where they live. In addition,
perceived capabilities reflect the individuals who believe
that they have the necessary skills, knowledge and
experience to start a new venture. 45.3% among the Thai
APS sample perceive opportunities to start-up and a similar
amount of Thais (44.4%) also perceive to have the
capability to do so (Figure 31). Opportunity perception is
relatively high in Thailand compared to ASEAN and East
Asian countries; with the Philippines leading the ranking
(47.9%), followed by Indonesia (46.7%) and Thailand
(45.3%). Similarly, Thailand showed the fourth highest
number in regards to perceived capabilities to start-up
(44.4%), just after are perceived by the Philippines with
68.4%, Indonesia with 62.0% and Vietnam with 48.7%.
Japan has the lowest rate of opportunity perception with
only 7.7%. This is by far the lowest number, not only in
comparison to other ASEAN and East Asian countries, but
also on a global scale. Same accounts for the perception of
their capabilities, ranking last on a global scale with 12.9%.
Contradicting previous findings, that the perceived capability to have the necessary skills to start a business is
generally higher in developing countries than in highly developed countries (Xavier, Kelley, Kew, Herrington, &
Vorderwülbecke, 2013), this is not true in a regional comparison across ASEAN and East Asia. Singapore,
Japan, and Korea, who are all innovation-driven countries, have a comparatively lower perception of their own
capabilities.
Figure 31: Perceived Opportunities and Perceived Capabilities / Skills to Start a Business, ASEAN 6 + East
Asian Countries, 2013
46.7
40.7
47.9
22.2
45.3
36.8
33.1
7.7
12.7
42.0
62.0
28.0
68.4
24.8
44.4
48.7
36.3
12.9
28.1 27.2
perceived opportunities perceived capabilities
in %

28
The perception of seeing opportunities is similar for male and female respondents and differs only slightly
across the five regions. A majority of 54% of men and 47.9% of women in Central see more opportunities,
whereas Greater Bangkok and the North see less (Figure 32). Women in the North have the lowest
opportunity perception with 33.5%.
Figure 32: Perceived Opportunities to Start a Business, by Gender and Region in Thailand, 2012
On average, women have lower perceptions of their entrepreneurial capabilities than men (Kelley et al., 2013) with
Thailand being no exception (Figure 33). It is only in the South where slightly more women believe to have the
capabilities to start up, although the level itself is the lowest of all regions with 30.7% of men and 31.7% of women
believing in their own capabilities.
Figure 33: Perceived Capabilities / Skills to Start a Business, by Gender and Region in Thailand, 2012
40.3
44.9
49.3
54
45.3
40.5
33.5
44.7
47.9 47.8
0
10
20
30
40
50
60
perceived opportunities (male) perceived opportunities (female)
51.5 49.7 51.2 52.6
30.7
39.8
47.7
42.8
39.3
31.7
0
10
20
30
40
50
60
perceived capabilities (male) perceived capabilities (female)
%
%

29
The last three years increasingly seem to stimulate individual attitudes towards entrepreneurship. Opportunity
perception increased 18% for men to 48.8% and 15.3% for women to 42.9% (Figure 34). The perception of their
capabilities increased for women from 35.9% to 41.0% (+14.2%) versus a smaller increase of 3.4% for men. These
figures might reflect the change in education as described in Chapter 2.7 where a larger amount especially of female
entrepreneurs have a higher level of education than they had three years ago. Better educated and talented
individuals will not be afraid to put their skills to work and start new ventures, create new ideas, products and
services. Interestingly, perceived opportunities and capabilities by females increased strongly from the year 2011 to
2012 and dropped slightly to a lower level in 2013. This tendency might be one stepping stone that has led to lower
female start-up rates in 2013 than in previous years.
Figure 34: Perceived Opportunities and Capabilities to Start a Business, by Gender, 2011 - 2013
The intention to start a business in the non-entrepreneurial Thai population has grown to 23.5% after hitting a
low in the previous year (19.0%). Nearly a quarter of the Thai population consider starting a business within
the next three years. In ASEAN 6, the population in the Philippines, Indonesia and Vietnam shows the
highest intentions to start-up (Figure 35). However, these numbers need to be leveraged with the high
discontinuance rate of nearly 10% in the Philippines (Chapter 2.2), and the overall lower TEA and EST rates,
especially in Vietnam and the Philippines (Chapter 2.1). The link between an intention to start a business in
the next three years and an actual start-up effort to do so remains questionable.
Figure 35: Entrepreneurial Intentions in ASEAN 6 + East Asian Countries, 2013
40.0
44.4
47.247.2
48.1
48.8
37.2
43.7
42.9
35.9
42.4 41.0
2011 2012 2013
male perceived opportunities male perceived capabilities
female perceived opportunities female perceived capabilities
in %
39.7
13.3
45
20.3
23.5
28.8
16.6
7.1
13.6
29.1
In %

30
Trends in Asia 2011 – 2013:
Entrepreneurial intentions reflect the entrepreneurial tendencies in a country, the acceptance of entrepreneurship as
a potential career and the population’s overall entrepreneurial spirit. A three year comparison can only be conducted
for the 3 ASEAN countries Malaysia, Singapore and Thailand, because the Philippines, Vietnam and Indonesia did
not participate in previous GEM surveys. All countries with the exception of China show an increase in
entrepreneurial intentions from 2011 to 2013. Similar to Thailand, most countries experienced an increase from 2012
to in 2013 (Figure 36). China is the only country in the region which experiences a tremendously large drop of
-61.2% in entrepreneurial intentions from the comparatively high level of 42.8% in 2011 to a rather normal
level of 16.6% in 2013. The two countries with the highest increase are Singapore (+73.5%) and Japan
(+86.8%), although the increase in Japan occurred on the lowest level of all Asian countries. For a detailed
overview on all countries regarding perceived opportunities, perceived capabilities and entrepreneurial
intentions see Appendix 1, Table 1.
Figure 36: Entrepreneurial Intentions in ASEAN 3 + East Asian Countries 2011 – 2013
8.7
11.7
26.5
42.8
3.8
15.7
28.2
13.3
16.1
19
20.4
2.5
13
25.5
13.3
20.3
23.5
16.6
7.1
13.6
29.1
Malaysia Singapore Thailand China Japan Korea Taiwan
2011 2012 2013
in %

31
3.3. Fear of Failure
In many economies high fear of failure rates exist concurrent with low opportunity perception. Therefore, fear
of failure is seen as a constraining factor for venture creation. In the last years, Thailand showed extremely high
fear of failure rates compared to other countries.
In 2013, Thailand’s fear to failure rate is the fifth highest on a global scale. 49.3% of those Thai adults who see
opportunities also fear to fail. Although decreasing over the years, this percentage draws Thailand on one level
with Greece. Figure 37 shows that a higher fear of failure rate is only prevalent in Angola (63.7%), Vietnam
(56.7%), Israel (51.8%) and in Japan (49.4%). For the details on all countries see Appendix 1, Table 1.
Figure 37: Attitudes Towards Failure Worldwide, by Economic Development, 2013
Source: GEM 2013 Global Adult Population Survey.
Kelley et al (2013) found that women generally have higher fear of failure rates than men. As Figure 38 shows,
this is also true for all ASEAN countries and Taiwan, whereas China, Japan and Korea show slightly lower rates
for women than for men.
Figure 38: Attitude Towards Failure in Percent, in ASEAN 6 + East Asian Countries, 2013
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Algeria
Angola
Botswana
Ghana
India
Iran
Libya
Malawi
Nigeria
Philippines
Uganda
Vietnam
Zambia
Argentina
Bosnia
Brazil
Chile
China
Colombia
Croatia
Ecuador
Estonia
Guatemala
Hungary
Indonesia
Jamaica
Latvia
Lithuania
Macedonia
Malaysia
Mexico
Panama
Peru
Poland
Romania
Russia
Slovakia
SouthAfrica
Suriname
Thailand
Uruguay
Belgium
Canada
CzechRepublic
Finland
France
Germany
Greece
Ireland
Israel
Italy
Japan
Korea
Luxembourg
Netherlands
Norway
Portugal
PuertoRico
Singapore
Slovenia
Spain
Sweden
Switzerland
Taiwan
Trinidad&Tobago
UnitedKingdom
USA
factor-driven economies efficiency-driven economies innovation-driven economies
Fear of failure rate, assessed for those seeing opportunities
%
39.0
30.2
40.0 36.7
51.1 54.3
36.9
47.5 44.0
37.5
43.6
34.4
38.5
42.9
58.4
66.5
34.9
47.3
34.1
45.0
male female

32
With the exception of the North, women in Thailand experienced higher fear of failure than men across the
country. The highest fear rates for women were found in the Northeast (68.3%) and in Bangkok (61.9%),
whereas men showed the highest rates in the North (56.5%) and the Northeast (55.7%). Especially in Southern
Thailand and in Bangkok, women experienced a considerably higher fear of failure rate than their male
counterparts, although the rates in the South were lower than in the other regions (Figure 39).
Figure 39: Attitude Towards Failure in Percent, by Gender and Region in Thailand, 2013
Regardless of opportunity perception, 60.9% of the Thai population reported a fear of failure, the second
highest rate recorded across the globe in 2011. In total, this rate dropped 10% by 2013 to 54.8%. The attitude
towards failure differs greatly by gender. Women experienced considerably higher fear of failure rates than
men. For men the fear to fail dropped 12.3% and for women only 7.6% in the three years. 9.1% more women
than men stated the fear to fail in 2011 with the gender gap widening over the three years to 15.6%. However,
the tendency for a decreasing fear of failure rate for both genders, although with a different speed, is a positive
sign regarding the potential to increase the numbers of new venture creation.
Figure 40: Attitude Towards Failure, by Gender in Thailand, 2011 - 2013
47.3
56.5 55.7 54.4
30
61.9
47.7
68.3
58.6
43.6
fear of failure (male) fear of failure (female)
60.9
55.8
54.8
58.2
50.8
50.8
63.5 60.4
58.7
50.0
55.0
60.0
65.0
2011 2012 2013
fear of failure average fear of failure male fear of failure female
%

33
4. International Orientation, Innovation and Well-being
4.1. International Orientation and Market Expansion
International Orientation
The majority of Thai entrepreneurs are doing business within the local Thai market. 93% say that their
customers do not stem from outside the country. Only a small percentage of entrepreneurs (5.3%) state to
have up to 25% of international customers with early-stage businesses being more international than
established businesses. From the early-stage entrepreneurs, 7.2% have a weak international orientation with
1% to 24% of their customers coming from outside Thailand. Only 1.8% of TEA entrepreneurs have a strong
international orientation with more than 25% of their customers come from abroad. Established business
owners in general tend to be even less international: Only 3.7% have more than 10% of their customers from
outside Thailand and 1.2% more than 25%.
Figure 41 displays that start-ups in Thailand show slightly more internationalisation than the average TEA
entrepreneur, whereas the degree of being international is lower for established business owners.
Figure 41: Comparison of International Orientation of Start-ups, TEA and EST in Thailand, 2013
Comparing the ASEAN 6 countries, only Indonesia is less internationally oriented with nearly all businesses
operating within the country (Figure 42). In countries like Malaysia, Philippines or Vietnam, a quarter of all
entrepreneurs have a weak international orientation versus 5.3% in Thailand. The East Asian countries show
higher internationalization than the ASEAN countries with the exceptions of China (17.4% strong
international orientation) and Singapore, which certainly is the huge exception within the ASEAN countries
in terms of international orientation.
91.9
92.9
93.6
6
5.3
5.1
2.1 1.5 0.8
0.4 0.5
86%
88%
90%
92%
94%
96%
98%
100%
Start-ups TEA EST
no customers outside country 1-25% of customers outside country
25-75% of customers outside country 75-100% of customers outside country

34
Figure 42: Proportion of firms with International and Domestic Customers in ASEAN 6 + East Asian
Countries, 2012
Interestingly, Thailand is stronger internationally oriented than China. (Table 6). Thailand has a total of 1.7%
of businesses with more than 25% of customers outside the country versus China with 0.8%. However, except
Indonesia, other Asian countries have a higher number of entrepreneurs in the categories with higher
international orientation, topped by Singapore with 36% of enterprises >25% of international customers and
followed by Taiwan with 20%.
Table 6: Proportion of Firms with International Customers in ASEAN 6 + East Asian Countries, 2013
Country
No customers
outside country
1-25% of customers
outside country
25-75% of
customers outside
country
75-100% of
customers outside
country
ASEAN6
Indonesia 98.8 0.8 0.4 0.0
Malaysia 73.4 24.1 1.4 1.1
Philippines 65.9 22.1 5.3 6.7
Singapore 15.2 48.8 21.7 14.3
Thailand 93.0 5.3 1.2 0.5
Vietnam 73.4 24.1 1.8 0.7
EastAsian
Countries
China 81.8 17.4 0.5 0.3
Japan 52.5 40.2 5.5 1.8
Korea 57.9 33.0 5.8 3.3
Taiwan 45.8 34.2 9.7 10.3
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0% Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
China
Japan
Korea
Taiwan
No customers outside country 1-25% of customers outside country

35
Market Expansion Plans
With the upcoming ASEAN Economic Community (AEC) international orientation and market expansion plans
will be an important task for many business owners besides being prepared for more competitive markets.
Clearly, there is a correlation between size of business and international orientation. One reason for the high
number of Thai entrepreneurs who do not have international customers could be their smallness. The majority
of the business owners do not employ someone. Two third of early-stage (62.7%) and established businesses
(64.8%) in Thailand operate without employees; one third (TEA: 31.4% / EST: 30.3%) employ up to five people.
More than six employees up to 19 employees are prevalent in only 4.5% of the early-stage and 3.4% of the
established businesses, and only 1.4% of TEA and of EST employ 20 or more people.
Figures 43 and 44 show that an international orientation clearly grows when businesses employ more people,
both for TEA and EST. Especially early-stage businesses with more than 20 employees are extremely
internationally oriented, with 66.6% of them reporting a strong international orientation (more than 25% of
customers outside the country). The size of a business, measured by numbers of employees, is an indicator for
international orientation. Larger enterprises or enterprises with more employees tend to have more customers
outside Thailand. As a result, growth of an existing business might give entrepreneurs a more international
orientation.
Figure 43: International Orientation by Number of
Employees, TEA 2013
Figure 44: International Orientation by Number of
Employees, EST, 2013
No customers outside country 1 to 25% of customers outside country
25 to 75% of customers outside country 75 to 100% of customers outside country
59.3% of early-stage and 76.3% of established businesses do not plan to expand their markets. Around a quarter
of all enterprises (25.3% of TEA / 22.5% or EST) intend to undergo some market expansion, yet without making
use of new technologies. Only 1.3% of the established businesses will expand their markets to some extent
including the use of new technologies. However, none of the established business owners has plans for a
profound market expansion. On the opposite, 14.1% of TEA enterprises plan a market expansion with the use of
new technologies, and at least 1.3% intend to do so profoundly.
91.5
75.0
33.3
5.7
10.0
0.0
1.9
10.0
33.3
0.9
5.0
33.3
businesses with
1 to 5 employees
businesses with
>5 employees
businesses with
>20 employees
90.7
74.2
44.4
8.4
22.6
44.4
0.9 3.2
11.1
businesses with
1 to 5 employees
businesses with
>5 employees
businesses with
>20 employees

2013 GEM Thailand Report

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