Success and Failure of Community-Based Enterprises: A Case Study on Weaving Groups, Sridonchai Subdistrict, Chiangkhong District, Chiangrai Province

Abstract

This research has two objectives. Objective No.1: To analyze the situation of community-based enterprises (CEs) of textile weaving in Sridonchai Subdistrict, Chiangkhong District, Chiangrai Province. Objective No.2: To analyze the factors affecting the success and failure of CEs. Research was conducted by using qualitative research method. Research was designed by using case studies of 3 CEs in Village Nos. 12, 14 & 15 in Sridonchai Subdistrict, Chiangkhong District, Chiangrai Province. Empirical data was collected by using in-depth interview with 28 key informants i.e. group leaders, members, and stakeholders (government organizations, group networks and customers). The research findings from Objective No.1 was that some of Tai Lue’s descendants migrated from Sipsongpanna in the southern part of China to settle down in Sridonchai Sudistrict more than 100 years ago due to political conflicts in China. From the period of settlement until present, the situation of Tai Lue’s CEs has been quite
dynamic having changed from weaving for family supply to weaving products for sale. Some CEs were indigenous which were formed by local individuals while others were set up supported by the government under the One Tumbon One Product scheme. The research findings for Objective No. 2
revealed many factors affecting the success or failure as follows:The research findings for Objective No.2 reveals the factors affecting the success or failure of the groups as follows: savings system, differences in age and ethnicity of the group participants affect the transmission of knowledge, leadership capabilities, members’ skills, members’ view whether textile weaving is routine or supplementary work;
presence of an organizational culture based on Buddhist values which leads to sufficiency and creation of bond in the group. These differences are factors that affect the long-term success or survival of the group or failure to abolish the business.