Center urges entrepreneurs to build key skills

The Competitiveness Center at the University of the Thai Chamber of Commerce (UTCC) is urging Thai business owners to develop essential skil...

The Competitiveness Center at the University of the Thai Chamber of Commerce (UTCC) is urging Thai business owners to develop essential skills in order to support long-term growth and keep pace with the fast-changing platform economy.

This is also necessary to address the difficulties caused by the rise in commission charges imposed by online platforms.

The suggestion comes after the center's detailed examination in a white paper entitled "Thailand's Platform Economy in the Era of Creative Destruction: Routes to Supportive Entrepreneurship and a Strong Digital Environment".

The study links Thai digital developments with two theoretical models that were honored with the 2025 Nobel Prize in Economic Sciences, which highlight elements contributing to long-term growth via technological progress. One is the "creative destruction" theory by Philippe Aghion of Collège de France and Peter Howitt of Brown University, who created mathematical models that explain the process of creative destruction. The model highlights how new technologies and business structures replace older ones, making it difficult for companies that stick to outdated methods to remain competitive. Innovation, therefore, simultaneously opens up new opportunities while dismantling existing systems.

Theerakorn Udomratanamanee, vice-dean of administrative affairs at the Creative Entrepreneurship School of UTCC, stated that the trend of increasing fees by digital platforms indicates a natural shift referred to as creative destruction. Platforms are shifting from the stage of market development, which involves significant investment to draw in users, to a phase centered on creating value and generating revenue for long-term business viability.

As online transactions are expected to surpass 1.2 trillion baht in 2024, representing 6.5% of GDP, digital platforms have emerged as essential economic infrastructure that business owners need to leverage effectively.

Supasan Preedawiphat, dean of the UTCC's School of Creative Entrepreneurship, stated that the 2025 "E-Commerce at the Crossroads" report from Blackbox Research highlights that Southeast Asian nations are shifting from quantitative to qualitative development.

To succeed in this new setting, business owners need to develop four technical skills known as the "PACE" acronym.

The initial skill (P) relates to "platform literacy and digital operations." This ability involves a thorough grasp of platform systems, effective utilization of digital tools, and the capacity to make strategic decisions based on data. For example, a coffee shop could employ customer analytics to modify advertising strategies based on high-demand periods, thereby boosting sales and cutting expenses.

The second skill (A) relates to "innovation with added value and exceptional service." Entrepreneurs need the capability to distinguish their products through innovation that enhances both the product and the customer's overall experience.

The third skill (C) relates to "collaborative brand trust through intelligent data application," whereas (E) pertains to "readiness for expansion and regional integration," or the capacity to link with regional and cross-border markets.

Mr. Supasan also referenced another theoretical model that received the 2025 Nobel Prize in Economic Sciences, namely the research of Joel Mokyr from Northwestern University. His studies show, using historical data, that technology leads to genuinely sustainable growth only if society has three key elements: advanced knowledge and science; the technical skills of workers and businesses; and institutions and regulations that support the development and broad spread of innovation.

Mr. Supasan mentioned that the government therefore plays a vital role in establishing a new economic framework. The state needs to evolve from being a "regulator" to a "co-designer of ecosystems."

To create a lasting positive effect for all parties involved in the platform ecosystem, the government's regulatory function should include four key aspects represented by the "LEAD" acronym, according to Mr Supasan.

L stands for Linkage Creation, which involves investing in infrastructure and promoting connections among different sectors. Thailand has initial steps like the Personal Data Protection Act and can develop further by mandating platforms to inform sellers ahead of time when modifying policies that impact their stores, thereby enhancing transparency and fairness within the platform ecosystem.

E signifies empowerment via capability or ongoing development of entrepreneurial skills through combined training, resources, and tax benefits, whereas A denotes adaptive governance, establishing flexible regulations that enhance product standards, connect trade agreements, and establish the "Thailand Trusted Source" reputation.

D signifies distributed trust by fostering confidence via open systems. Kittipong Sakornsathien, the center's director, mentioned that effective execution of these measures might change the downward trend in Thailand's competitiveness ranking.

Provided by SyndiGate Media Inc. (Syndigate.info).