Government Supporting Policies for Small and Medium Enterprises in Automobile Industry

Abstract

This research had four objectives: 1) to analyze performance results, 2) to analyze factors affecting performance results, and 3) to analyze government policy, and 4) to propose a policy formulation and policy implementation model that support small and medium enterprises in automobile industry. This research was mixed methods research. Quantitative research had sample group consisted of automotive parts entrepreneurs 160 people. Quantitative data were collected by questionnaires. Statistics for data analysis included frequency, percentage, mean, and standard deviation and Structural Equation Modeling analysis. Qualitative research had 15 key informants including automotive parts entrepreneurs and government people who implement policies. Qualitative data were collected by in-depth interviews and analyzed data by content analysis method.

Research results 1) Performance results, it found that entrepreneurs in the group that received state supporting had a good performance, but those that did not receive state supporting had a fair performance.
2) Factor affecting performance result, it found that entrepreneurs should have readiness and competencies. 3) Government supporting policies, it found that government should drive soft loan policies, investment promotion policies and potential development policies. 4) Policy formulation and implementation model, it found that (a) the government should set policies to be consistent with factors affecting performance result and (b) the government should implement policies by integrate information for the highest benefit of entrepreneurs.