Department to help SME growth via 'Crowdfunding'

Pongpun Gearaviriyapun, director-general of the department, said the agency was planning to support entrepreneurs who have innovative ideas to go into business via “crowdfunding” to promote their ideas and raise funds.
Crowdfunding is the practice of financing a project or a venture by raising monetary contributions from a large number of people, typically via the Internet. One early-stage equity expert described it as “the practice of raising funds from two or more people over the Internet towards a common service, project, product, investment, cause and experience”.
The department will work with the Securities and Exchange Commission as well as the Stock Exchange of Thailand to educate innovators and SMEs on crowdfunding methods.
Pongpun explained that crowdfunding has been successful in the United States, where entrepreneurs have been using websites like Kickstarter, Indiegogos and Crowdhoster to raise capital.
The department will initially support 1,580 SMEs, and will cover a variety of businesses ranging from retail and wholesale outlets to franchises, logistics providers, tourism, healthcare and accounting services.
Pongpun said many Thai enterprises have the potential to do business and expand domestically as well as in the region thanks to the upcoming Asean Economic Community. Also, crowdfunding could be one of the most efficient tools to promote business growth.