Negative factors sap start-ups in September

The number of new businesses grew by only 2 per cent in September compared with the same period last year, to 4,959 companies. New businesses increased only 1 per cent compared with the August figure.
Deputy Commerce Minister Siriwat Kachornprasart said yesterday that although fewer new businesses started up last month, more new firms are highly likely to set up in the country in the remaining months of the year after clearer government policy on promoting the domestic economy.
“Enterprises have more confidence to operate businesses in the Kingdom as they foresee that the government’s policy to stimulate the domestic economy will encourage growth of their businesses,” he said.
The combined initial investment capital amounted to Bt24.84 billion last month, down by 54 per cent year on year. New businesses that were registered last month were mostly involved in construction, entertainment services, property development and wholesaling of machinery and equipment.
In the first nine months of the year, the number of new companies grew by 20 per cent to 46,389 firms, with combined initial investment capital of Bt266.06 billion, up by 7 per cent year on year.
In addition, the department reported that the number of companies that closed down increased for the fourth consecutive month in September.
A total of 1,234 firms closed last month, 29 per cent more than in September 2010, mainly because of higher operating costs and some impact of flooding.
In the first nine months, 5,896 companies closed, up by 29 per cent over the same period last year. The value of the businesses that closed down increased by 75 per cent year on year, to Bt36 billion.
At present, Thailand has 506,349 registered companies and 915 registered public enterprises.