Enterprise start-up

In the present study, micro-enterprises initiated by the government, through rural

development policies, are only CBEs. These government agencies contact potential female villagers directly (or via village leaders55) in order to start-up CBEs (MAP-3 and MAP-4). The research findings suggest that the villagers and the leader know that by cooperating with the officers, they will subsequently gain benefits, such as obtaining grants for the maintenance of village roads and water reservoirs, in addition to funds for micro-enterprise

55_{All the village leaders have the respect of the locals in common. This respect originates from the leaders’}

social and/or age-wise status. This status is a traditional part of Thai culture. Therefore, contacting the leaders assists the officers to convey information to the villagers and, in turn, they can gain collective actions from them (MAP-3 and MAP-4).

development (CBE-16). The enterprises, accordingly, have been established by the

villagers to mutually satisfy (and respond to) requests made by government officers (CBE- 16).

The group was formed through the request of the municipal officer. Our group is required by the officer to make a traditional food product (i.e. shrimp paste) to join the provincial exhibition of a community enterprise fair held in the town hall (CBE-16)

The relationships noted above can be considered as an unavoidable factor that can push the villagers to set up these enterprises although they do not actually need to do so. In such cases, the government officers act as the initiators of the establishment process. The members of CBEs, accordingly, may have insufficient motivation to operate the enterprise activities (MAP-8). Certain enterprises set up by the government have accepted financial grants but, prior to use in micro-enterprise activities, these were shared amongst the members. They did, however, utilise a small amount of the grants on the enterprise’s activities (CBE-16). Some enterprises disintegrated after just one fiscal year (or after the period of policy implementation had finished) which was a result of enterprises having very low performance and not having sufficient funds to continue (MAP-5 and MAP-8)56.

Since they were established through government initiatives, these micro-enterprises do not have any networks with other providers, either MFIs or moneylenders. The government agencies (MAP-5 and MAP-8) acknowledge that they advised the CBE leaders to apply for either BAAC or GSB loans in order to upgrade their production and to maintain enterprise viability, given the limited extent of government support and available time. However, the advice provided appears to be fruitless because only one CBE (CBE-3) applied for a BAAC loan. Other leaders would like to apply for loans and place more debt onto her group members, but all the group members disagree with her about this borrowing as they do not want to get further into debt. As noted in Chapter 5, the villagers of the government initiated CBEs felt very absurd and shameful to become financial indebted when joining a CBE.

56_{Attempts to interview these CBEs were not successful. Former leaders or members of these ventures}

declined to give information. They were mainly concerned that their poor performance would be published in local newspapers and bring shame to their villages.

Chapter 6: Relationships between Female-headed RMEs and micro-enterprise assistance providers 137

Other officers and I stated clearly at the beginning of the rural micro-enterprise project that this (policy implement) was an initiative for the villagers to start-up their own enterprises. When the project finished, all group members have to keep the enterprise going on their own. I suggested that they apply for loans provided by BAAC because their enterprise is eligible and because of the OTOP stars. However, the leaders would rather seek government grants elsewhere including the provincial governor’s fund or other government departments’ funds, rather than applying for loans (MAP-5)

The enterprises need only government financial grants. The leaders and group members will not apply for the loans. They will keep applying for the grants. If they could not get the grants, the micro-enterprise activities would become halted or terminated. However, the group members can jointly re-establish the enterprise when they have grants. In some enterprises, the financial grants were firstly shared among the members and the rest was used for operating enterprise activities (MAP-8)

The high dependence of CBEs on government support can, in turn, minimise the intentions of members to operate enterprises themselves. A key piece of evidence is the marketing of

promotional events arranged by government departments57(MAP-4). Some CBEs become

highly dependent on markets provided by these departments. In turn, such dependence may pose high uncertainties in relation to their performance when the policies of departments change. An example is the government exhibition of 5-OTOP star product and services. This marketing event is held once a year in Bangkok. The products to be sold in this event are advertised both nationally and internationally. However, there is a possibility that the policy related to this exhibition may not be implemented every year. Some enterprises have

57_{Although the markets provide opportunities for entrepreneurs to widen their products to alternative or}

niche markets, these, however, may not be for all CBEs. The departments allow only CBEs that have quality endorsements, for example, products having three or more OTOP stars. The markets are specific to particular groups of customers who, for example are likely to pay for high price/quality products and those who are industrial representatives. Many CBEs have set a goal to enter such marketing channels. These goals have to come from motivated CEB members in order to improve their products’ quality and , therefore, gain essential quality endorsements. When CBEs can achieve this quality endorsement, the relevant departments can utilise such achievements as the triumphant and fruitful outcomes of their implemented programmes. The

departments can, in turn, draw attention to their achievements and, therefore, ask for an increased budget from the government for the next fiscal year (MAP-4).

lost their investments because having no marketing channels can affect returns gained by the members (MAP-4 and MAP-5).

Certain CBEs are purposely established to show that the villages have community

enterprises (as in the cases of CBE-15 and CBE-16). Because this establishment is partly in response to requests from government departments, the enterprises’ performance are not considered important to the members or the agencies. For example, villagers formed a community enterprise mainly in response to a request from the chief executive of the sub- district administration organisation (SAO) so that they could present the village as having community enterprise activities. This image is considered to be consistent with the current policies of the Thai government, and, therefore, could then attract the attention of the central government through the local officers and, in turn, the SAO is likely to receive future budgets to invest in micro-enterprise developments and other needs (CBE-15).

The chief executive officer has requested me (a group leader) to jointly set up the enterprise with other female villagers. He will allocate a budget for the group. Providing support for the enterprise will present a good image of the Or Bor Tor, which can be utilised as key evidence to attract more

funds or projects from the government (CBE-15)

Or Bor Torreceives a budget from the government (Ministry of Interior) to support community enterprises. After villagers have formed an enterprise, they can apply for available grants (MAP-8)