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This research examined the external and internal factors inﬂuencing the competitiveness of SMEs in Thailand operating in the ASEAN context. A quantitative approach was applied using a survey method with a questionnaire as a tool to collect data from a sample of 527 Thai SMEs from June 2016 to March 2017. The ﬁndings indicated a relatively medium-to- high level of competitive capacities on the part of Thai SMEs in general. SMEs in the service and manufacturing sectors, as well as ﬁrms with international experience, were rated at a high level compared to others. In addition, the analysis of the variables using a structural equation model demonstrated that ﬁrm performance had a positive relationship to the level of business competitiveness (r = .43). The research results also indicated the potential competitive capacity development of Thai SMEs, with evidence from relevant variables regarding ﬁrm performance, which directly affected the company's competitiveness. Organizational strategy, ﬁrm readiness for internationalization, and organizational char- acteristics were the signiﬁcant factors that were seen to enhance the competitive capacity of SMEs in Thailand. Hence, entrepreneurs should improve these indices in order to better carry out their business in the region.