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Mediation for Small and Medium Business Entrepreneurs
Small and Medium Business Entrepreneurs (SMEs) play an important role in Thailand’s economy. This can be seen in term of employment since they have a direct impact on the Gross Domestic Product (GDP) and households’ income. Moreover, SMEs add value to products, improving the variety available and the related services [1]. SMEs have also generated continues income from production to exportation in different sectors such as manufacturing, wholesale, retails. Lastly, the promotion of entrepreneurship helps small new entrepreneurs to grow and expand their businesses [2].
Even though SMEs have a positive impact on the national economy, they bring also an increasing number of conflicts and disputes. National courts are overwhelmed by the proceedings that have high cost and are heavily time-consuming to conclude. Moreover, litigation in court does not preserve the relationship between commercial parties. In addition to litigation, the alternative dispute resolution (ADR) methods, such as mediation, are efficient to resolve disputes.
Mediation proceedings are not complicated and suitable for a vast array of disputes. Parties are free to agree on the name of the mediator and his/her qualities. Usually, a mediator is an expert in a specific field, in this way, he/she can provide more appropriate and suitable assistance to parties’ needs. Moreover, mediation is confidential and could help parties to preserve their reputation by allowing related parties, their legal representatives and the mediator to participate in the proceeding. Another advantage of mediation compared to court litigation is related to cost. Mediation is relatively cheaper than litigation. For instance, the mediation involves both the initial fee and mediator’s fee. The initial fee amount to 1,000 baht per party, and the mediator’s fee changes based on the amount in dispute, as shown in the table below [3]. Lastly, the mediation ends with a new agreement between parties, this kind of conclusion shows that parties are still able to continue their business relationship [4].
- [1] “The role of SMEs in the Thai economy” by the Office of Small and Medium Enterprises Promotion
- [2] “The view of Thai business loans from contractual information, part 1”, online magazine aBRIDGEd, issue 12/2018, released on 11 July 2018
- [3] Rules of the Thai Arbitration Institute for Dispute Resolution (Version 2) 2018
- [4] Professor Saowanee Asawarot, Explanation of the Law on Business Dispute Resolution by Arbitration, 3rd Edition (Bangkok: Thammasat University Press, 2011), Nor. 11-13
