Strategic guidelines for community enterprise development: a case in rural Thailand

Abstract

Purpose In spite of the government’s support for small-scale rice farmers in rural areas of Thailand, several problems still affect their production and marketing performance. This study aims to assess a rice production community enterprise (RPCE) through an in-depth investigation of its problems and capabilities; and formulate internal strategic guidelines for enterprise development. Design/methodology/approach This study used a qualitative approach through in-depth interviews with the community enterprise leader and committee members, and focus group discussion with eight farmer-members, purposively selected in Chachoengsao, Thailand. Data were transcribed, sorted and organised to determine themes and patterns. Strengths, weaknesses, opportunities and threats (SWOT) and threats, opportunities, weaknesses and strengths (TOWS) matrix situational analyses were done to develop strategic options. Strategic guidelines were formulated through a final deliberation with all members to ensure strategies aligned with the enterprise’s goals and objectives. Findings The results have identified three main problem categories encountered by the community enterprise in the areas of membership and labour; production and milling operations; and product design and marketing. The enterprise’s main strengths and opportunities include its product certifications and support from external organisations. Strategic points were developed, and policy support programmes are recommended for capacity building and product development as most problems identified relate to these aspects. Originality/value The utility of this study is its focus on an RPCE. The findings will help policymakers and concerned government agencies implement better programmes and policies to develop RPCEs. Furthermore, this study will be a source for future qualitative literature that will provide helpful information to other studies aiming to develop other types of community enterprises (CEs).

Problems and Challenges related to Chiang Da Herbal Tea Community Enterprise, Doi Saket District, Chiang Mai Province, Thailand

“…Another finding from the current study, concerned with marketing is the problems of the CCE. The results of this study are consistent with those of Cavite et al (2021) and Naipinit et al (2016). CCE is developed not only by enhancing operations but also by improving market access or marketing channel.…”

“…CCE is developed not only by enhancing operations but also by improving market access or marketing channel. Previous research has yielded the following recommendations for the management of marketing problems in community enterprises: 1) Improving market access necessitates the development of products that meet the needs of consumers, and the link between the enterprise and the consumer is required (Cavite et al, 2021). 2) Product certifications ensure long-term consumer service reliability, as well as a company's market commitment to providing their products (Wu, Zhou, & Chien, 2019).…”

“…5) Social media has been shown to influence consumer purchasing behavior, developing a social media channel such as Facebook, Twitter, E-commerce pathway, etc. can be a powerful tool for establishing their product (Cavite et al, 2021). Community enterprises face budget, finance, and accounting system challenges because the members lack the knowledge and skills to practice finance and accounting.…”

“…It is necessary to provide such businesses with finance and accounting knowledge and skills so that they are capable of using accounting systems correctly and effectively, allowing them to gradually manage their finance and accounting systems. Furthermore, according to Naipinit et al (2016) and Cavite et al (2021), CCE frequently keeps handwritten accounting records, this is inconvenient and raises the possibility of uncorrected entry errors., as well as making it difficult to find old data and accounting records after a while. Numerous community enterprises do not keep an accounting book or keep track of payments received daily.…”

“…In-depth information was also required when open-ended questions were appropriately constructed and in accordance with the study's objectives. The entire interview was scheduled to last 45-60 minutes ( Cavite, Kerdsriserm, & Suwanmaneepong, 2021;Gurkan & Kocak, 2020). FGD, a one-hour discussion with CCE members was held to gather comprehensive perspectives.…”