A Critical Review of the Digitalization in Thai Entrepreneurship: Roles, Challenges, and Solutions
This study employs a systematic literature review to analyze the dual roles of digitalization in Thai entrepreneurship, identify four key challenges hindering its adoption, and propose strategic solutions to enhance digital integration within the country's entrepreneurial landscape.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
In the bustling markets and quiet villages of Thailand, a quiet revolution is reshaping how people start and run businesses. For decades, the country's economy has relied on small shops, family-run farms, and local tourism services. Today, these traditional ventures are being asked to adapt to a world where computers, smartphones, and the internet are not just tools, but the very foundation of commerce. This shift, known as digitalization, is not merely about putting a sign on a website; it is about fundamentally changing how a business operates, from how it finds customers to how it manages its money. While the promise of this change is a more efficient and competitive economy, the path is not smooth. Many small business owners find themselves caught between the old ways of doing things and the new demands of a connected world, often lacking the necessary skills, equipment, or support to make the leap. Understanding how this transition plays out in a developing nation like Thailand offers a clear window into the broader challenges of the modern global economy.
A team of researchers set out to map this complex landscape, asking a simple but vital question: how is digital technology changing entrepreneurship in Thailand, and what stands in the way? To find the answer, they did not conduct new surveys or interview business owners themselves. Instead, they acted as careful archivists, gathering and analyzing ten existing studies published between 2016 and 2024. These studies, drawn from reputable international journals, covered a wide range of Thai businesses, from the logistics companies that move goods across the country to the small tourism operators in rural villages. By weaving these separate pieces of research together, the authors constructed a comprehensive picture of the current situation, separating the story into two distinct paths.
The first path involves traditional businesses that are slowly adopting digital tools. Imagine a family-owned logistics company that has been moving packages for years. They are still a traditional business, but they are now using digital platforms to track shipments or a smartphone app to communicate with drivers. The second path is entirely different: these are businesses born in the digital age, such as a startup that exists only online to sell financial services or a new tourism platform that connects travelers directly with local hosts. The researchers found that while both groups are moving toward a digital future, they face very different hurdles. The traditional businesses are trying to retrofit old systems with new technology, while the digital-native startups are building their entire existence on the internet from day one.
Despite the different starting points, the researchers identified four major obstacles that threaten to stall progress for everyone. The first is a lack of reliable infrastructure. While Bangkok and other major cities enjoy high-speed internet and modern digital systems, the situation changes drastically in suburban and rural areas. Many small business owners in these regions simply cannot access the fast, stable connections needed to run a modern digital operation. This gap creates a divide where businesses in the capital can grow rapidly, while those in the countryside are left behind. The second challenge is the lack of clear rules and regulations. The government has introduced ambitious plans to modernize the economy, but the specific laws needed to protect new digital businesses and their workers are often missing or unclear. This uncertainty makes many entrepreneurs hesitant to invest in new technologies, fearing they might run afoul of the law or face unfair competition from larger, better-resourced companies.
The third hurdle is cultural and organizational. Many small business owners, particularly in the tourism and logistics sectors, are deeply rooted in traditional ways of working. They may be skeptical of new technology or unsure how to integrate it into their daily routines. This hesitation is often compounded by a lack of digital literacy, meaning the owners and their staff do not possess the specific skills needed to use these tools effectively. The researchers noted that this is especially true for women entrepreneurs in rural areas, who often face additional barriers in accessing training and resources. The final challenge is the sheer difficulty of finding and keeping skilled workers. Even if a business owner wants to adopt advanced tools like artificial intelligence or big data analytics, they often cannot find local employees who know how to use them. This shortage of talent forces many small companies to rely on outdated methods, leaving them unable to compete with larger firms that have the resources to hire experts.
To overcome these barriers, the researchers propose a set of practical solutions that require cooperation between the government, the private sector, and educational institutions. They suggest that the government must do more than just announce new strategies; it must build the physical and digital infrastructure needed to support businesses outside the major cities. This includes ensuring high-speed internet reaches rural villages and creating clear, supportive regulations that protect small digital businesses. Financial support is also crucial. The researchers point to the potential of crowdfunding and other alternative funding sources, which could provide the capital that small startups need to grow without relying on traditional banks that may be too risk-averse.
Education and training form the backbone of the proposed solution. The researchers argue that digital literacy must be taught not just in universities, but in workshops and community centers where small business owners actually live and work. These programs should focus on practical skills, such as how to use digital marketing tools, how to manage online transactions securely, and how to interpret data to make better business decisions. Furthermore, they emphasize the need for a shift in mindset. Business leaders must be encouraged to view technology not as a threat to their traditional ways, but as a partner that can help them reach new customers and operate more efficiently. By fostering a culture of learning and innovation, the business community can adapt to the rapid changes of the digital age.
The study concludes that the journey toward a fully digital economy in Thailand is far from complete. While the potential for growth is immense, the path is blocked by significant structural and cultural challenges. The researchers caution that without targeted efforts to bridge the gap between the capital and the countryside, and without a concerted push to improve digital skills among small business owners, the benefits of this transformation may remain out of reach for many. They suggest that future research should focus on testing these proposed solutions in the real world to see which strategies work best. For now, the picture is clear: digitalization is not just a technological upgrade for Thai entrepreneurs; it is a fundamental reimagining of how business is done, one that requires patience, investment, and a shared commitment to building a more inclusive digital future.
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