FRIDAY, March 29, 2024
nationthailand

Cultivating a Thai support system |for local start-ups

Cultivating a Thai support system |for local start-ups

FIVE YEARS AGO, the word "start-up" was relatively new to most Thais. At the time, AIS realised the need to create "New Economic Warriors" or "NEW" as part of the national agenda to prepare human capital for Thailand 4.0, which focuses on using technology as the catalyst for many industries to grow exponentially. In 2011, AIS introduced AIS The StartUp - the first start-up community in Thailand. 

AIS The StartUp gradually evolved and grew into the country's start-up ecosystem, gaining support from the media, the education sector, government agencies, and the private sector including telecom operators and banks. Property developers are the latest addition from the private sector to offer support to start-ups by announcing their policy to promote real-estate and urban-living technology.
Despite the evolution, the start-up ecosystem remains clustered in Bangkok, which makes up less than one per cent of Thailand's geographical area. It means we have enormous potential to expand and improve our start-up ecosystem across the country. 
Building a successful local ecosystem nationwide depends on creating digital solutions to answer the needs or solve social problems of each local area. Crucial to this effort is understanding the differences in each location, including consumer behaviour and culture. Local start-ups have an advantage over Bangkok entrepreneurs in offering innovations that satisfy "hidden" local needs. The question is whether local start-ups possess the competence to convert local problems into a business opportunity. 
It is obvious that vast opportunities are there in the provincial market, but whoever jumps into the local playground must realise that the local start-up ecosystem is by no means mature. A few local companies have tried to jump-start but failed because they have not grasped the requirements of fundamental support. The current situation of the local start-up ecosystem in provincial areas is similar to what happened in Bangkok 5-6 years ago. It is important to provide a proper mechanism to promote local innovation, which should be operated by local experts who have experience in organising incubation projects. Otherwise, the task will be left to a professional from outside the district. 
Nevertheless, there are good signs. Starting last year, the Thai government began to raise awareness of start-ups in provincial areas across the country. Forums for Digital Thailand and Startup Thailand Regional Rise have been organised in Chiang Mai, Khon Kaen, and Phuket. This year, the Digital Economy Promotion Agency, a division of the Ministry of Digital Economy and Society, has initiated a Digital Start-up programme bringing coaches and agency committees to educate and recruit more than 500 start-ups right in their hometowns across Thailand. Meanwhile the National Innovation Agency is organising "Start-ups in Residence" (SiR) to provide education for provincial start-ups.
Another factor contributing to the success of building the local ecosystem is the availability of working space for start-ups. Co-working spaces are popping up in major cities - like Jump Space in Khon Kaen, Tuber in Hat Yai, Hatch in Phuket, and Pun Space in Chiang Mai. Universities located in major cities are also playing an important role in spreading start-up knowledge among university students. In addition, the Tech Start-up Club programme, initiated by Digital Economy Promotion Agency, is also helping to stimulate, raise awareness and educate university students in entrepreneurship well before they graduate. 
AIS has always been a strong advocate of promoting the local ecosystem to set national standards in knowledge management. AIS The Startup is regularly receiving invitations to provide guest speakers for start-up workshops including SiR, and judges for the recruitment of Digital Start-up. 
AIS remains committed to supporting the government's digital policy. As such, local start-ups are still welcome to submit their business proposal to AIS at http://www.ais.co.th/thestartup/connect. 

Srihathai Prammanee is head of AIS The StartUp.

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