The state-initiated SMEs Venture Capital Fund, managed by One Asset Management Co, is concerned about growing competition from banks as a source of funds for small- and medium-sized enterprises (SMEs). Many of the fund's potential clients have instead sought financing from banks due to current record-low lending rates.
To stay competitive and differentiate itself, the fund would provide some extra services that are not available from the banks, said Wiwan Tharahiranchote, president of One Asset Management. One additional service mentioned was for the one-billion-baht fund to assist SMEs in management and marketing.
Ms Wiwan said the fund had failed to generate much interest from SMEs in its first two years. One reason was that many small business operators preferred to run their businesses on their own and not through partnerships, she added. The SARS outbreak and terrorism scares had also dented SMEs' interest in making new investments.
