The Feasibility of Establishing a Shared Factory for Community-based Business Model: Case Study of Chilli-Sauce Producers Bangphae District, Rachaburi Province
Abstract:
The main objective of this research is to investigate the possibility of developing a shared factory for community-base business,
using the chilli-sauce GMP factory as a case study. The selected community is located in Bangphae district, Rachaburi province,
comprising of four groups. Two different business models including 1) Establishment of a cooperative enterprise for business
investment and operation drawing resources from the within community, and 2) Investment and operate by outsiders. The investor
in the later alternative can charge service fees for using the invested facility.
A structured interview was conducted to obtain necessary information about the investment of the facility. A Cost-Benefit analysis
was then performed to identify the preferred alternative. The results of this study indicates that the first alternative, a community-based
cooperative enterprise is preferable, considering both the economics and social aspects. Economically, the project was justified in
the sense that it provides a competitive margin to the products within the same standard. Results from the interview also suggests
that the first business model will strengthen the community social aspect. It will enhance the sense of ownership of those invest and
benefit from the shared facility.