Proceedings of the 32nd International Academic Conference, Geneva

THE MORAL CONSEQUENCES OF ECONOMIC GROWTH ON THE LOCAL BUSINESS DEVELOPMENT: A CASE OF PHITSANULOK INVESTIGATION

BHAGAPORN WATTANADUMRONG, NATTACHET POONCHAREON, WARAWUDE RURKWARARUK

Abstract:

This paper analyses regional investment in Phitsanulok Province located in the lower north of Thailand. Using data for 3,623 local business registered from 1906 to 2015. This study examines their performance of the city growth and socio-economic problems to promote entrepreneurship based on locally-owned (LOEs) enterprises and nonlocally-owned (NLOEs) enterprises. The key determinants are identified using a unique assembled data recorded by local authority recording and comprising all local business sectors over time. The descriptive analytical approach will be applied to full sample (all sectors) and other relevant issues (capital based, size of business into SMEs; Small Medium Enterprises). Most enterprises are small business; while, there are few medium and large sizes in the community areas. The aim of the research is to explore the evolution of local business development in the province and the major determinants to increase the investment into local. The quantitative approach has been investigated together with face to face interview from the purposive samples by sectors. The results show that local entrepreneurs experience the high competitiveness from outsides especially from the large and medium nonlocally-owned enterprises. The development of entrepreneurship in the areas based of Phitsanulok has gradually changed. The huge capital investment from outside has injected into the areas. The phenomenon how the small – medium enterprises will be survived from the large enterprises dominated into the areas has to be discussed in terms of policy priority actions and the economic and social instruments at the level of economic entities of local business development in the areas. This study briefly examines the city growth of businesses’ existence and its changes over time. This approach can be applied to analyze the city growth at provincial-level of the country.

Keywords: regional investment, SMEs, Phitsanulok, local business development

DOI: 10.20472/IAC.2017.032.040

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