SMEs face increasing challenges. The rise of the minimum wage to 300 baht per day is a domestic factor that will directly affect operating costs, especially for SMEs in the services sector and in labor-intensive industries. Another challenge is rising shortages of labor, as more and more workers turn to self-employed jobs, and as high turnover rates result from skilled workers moving into larger production industries. Thailand's integration into the ASEAN Economic Community (AEC) will also have both positive and negative impacts on SMEs. There will be more opportunities for trade and investment, but at the same time, pressures will increase.