The Small and Medium Enterprise Development Bank (SME Bank) has launched a 1-billion-baht venture fund to help startups, says Somchai Harnhiran, the bank's board chairman and permanent industry secretary.
The fund aims to partner with small operators and startups that need investment capital of around 5 million baht but not more than 30 million baht.
"We now have three kinds of businesses that we are about to invest in as partners," he said, adding that the businesses cover food, food processing and beverages.
Mr Somchai said several SMEs are interested in the venture fund, seeking about 400 million baht in funding.
He said the government would also help startups in other ways such as providing training programmes and research and development to help increase productivity and add value to their products.
The moves are part of a plan targeting to help up to 10,000 businesses, mostly startups.
Of the 1 billion baht in the venture fund, around 20 million baht has been earmarked to support SMEs and startups under the Industry Transformation Center project.
The government also set aside another 30 million baht from the fiscal 2017 budget to be used to assist SMEs that have just started their business.
The projects aim to provide business ideas in addition to setting up a centre to help small operators improve their productivity.
"The government wants to help SMEs to improve their business efficiency, productivity and quality so that their businesses can grow in a sustainable way," he said.
Mr Somchai said the government will lend further support to SMEs, with the goal of developing new innovations that would help strengthen the economy.
Thailand has around 2.7 million SMEs. However, only 600,000 have registered with the Commerce Ministry and only 400,000 firms are part of the tax system.
Mr Somchai said the government would give priority to those 400,000 companies that have paid tax.