This chapter presents the institutional framework conditions and business environment factors influencing SME and entrepreneurship development in Thailand. It starts with an overview of the influence of macroeconomic trends and fiscal, monetary and structural policies. It then examines the range of opportunities for improving the climate in which Thailand’s businesses operate, including human development, tax and social security, product market conditions, sources of financing, labour market conditions and the rule of law and transparency. The chapter concludes with a discussion of barriers to growth as perceived by SMEs and entrepreneurs and an assessment of the innovative capacity of Thai SMEs and entrepreneurs.