Startups urged to act together

Startups are being advised to unite as a consortium to raise their bargaining power in bidding for procurement contracts from state enterprises and large companies.

They should also help small and medium-sized enterprises (SMEs) and local businesses to upgrade technology, said Suvit Maesincee, higher education, science, research and innovation minister.

Mr Suvit recently met 13 groups of startups with more than 3,000 members. As a consortium, he said startups will have more power to access bidding for procurement contracts from large companies such as Siam Cement Group.

According to the latest report by the Thailand Tech Startup Association (TTSA), up to 80% of startups are struggling financially during the pandemic and need government help.

Startups help generate income for the country and employ an estimated 3,000 skilled workers. These skilled workers receive an average of 50,000 baht in monthly salary, which is a high fixed cost for startups.

The TTSA recently sent an open letter to policymakers, corporations and other relevant parties to seek their assistance, including a proposal for government units and large firms to purchase products or services provided by startups.

Mr Suvit said the National Innovation Agency has been instructed to organise business matching between startups and SMEs to upgrade the technology of the latter.

He said the government may possibly establish a fund to assist startups accessing soft loans in the long term, while in the short term they can seek assistance from the state’s soft loan relief package.