COMPLETION REPORT
Success of OTOP business in Lower Northern: An entrepreneurial approach
Dr. Ratchanee Mukhjang
Assistant Professor
Faculty of Business, Economics and Communications
Naresuan University
There are two main objectives in this research. The first is to contribute to knowledge and debate on

describing the structure of the OTOP products. The second is to identify the determinants of OTOP businesssuccess as perceived and experienced by rural entrepreneurs on internal and external factors.
A sample of small rural entrepreneurs under OTOP in lower northern Thailand was surveyed using a structured
questionnaire. The questionnaires were given to the heads of OTOP projects. Because the data and information on
the socio-economic performances of OTOP was quite complicated, this study used a data set collected from thefield survey but also relevant secondary data. With regard to the secondary data, the author employed the data
provided the by the Department of Community and Development. Most part of this study is cross–sectional
survey research.
The sample respondents in this study were rural entrepreneurs from the list of the Community
Development Department (http://www.otoptoday.com/wisdom/index.php?p=27) called Thai OTOP Wisdom. A
multi-stage random sampling was constructed to reduce common heterogeneity among OTOP groups. Thesample frame in this study employed 141 observations, ten percent from the entire population of 471. Finally,
through random sampling, we got 102 observations (incomplete data) less than 141 statistically required
observations but still enough for a reliable estimation.
The research instrument was a questionnaire which consisted of four sections: profile of the businessowner, the business background, internal success factors, and external success factors with 36 questions in total.
In this research, the determinants of OTOP success are separated theoretically into 7 categories, including
entrepreneurial characteristics, government supports, market accessibility networking, external atmosphere, humanresource and pricing, delivery, and service. There were direct observations and in depth interviews and a focus
group with the OTOP leaders as the respondents to represent the sampled OTOP firms. As for the first partdescriptive statistics were used, such as ranking, means, percentage; we summarize the profile of the ruralentrepreneurs and their businesses. As for the inferential statistics part, factor analysis and regression analysis wereapplied to identify the determinants of business success as perceived by the small rural entrepreneurs. The collected
data were statistically analyzed to illustrate the profile of the owners and their business incentives, as well as
their assessment of OTOP policy, for example their type of business, the scale and ownership motive of thestart-up, and their perception of their achievement.

The first part is the descriptive statistics to summarize the profiles of the rural entrepreneurs, their business
response rate, demographic variables, main occupation, and other OTOP related information. Most of them werearound 50-59 years old. With regard to educational background, 45 respondents(44.12%) finished primaryeducation and 67.65 % of them were married.
The second part, the mathematical technique indexes the region’s revenue of OTOP to a larger reference(national) scale. Furthermore, this research intends to provide a case specific study and some useful feedback to therural poor enterprises and also to the policy makers. The study points out that the location quotient of food andtextile production of the OTOP scheme in lower northern Thailand was greater than one. In contrast, the LQs ofcrafts, beverages and herbs were 0.77, 0.35 and 0.44, respectively. The results revealed that the first two products
are concentrated in the lower northern region compared to a larger geographic area. Therefore, the economic andworkforce development planners should provide the right support to make the regional economy unique.
In the third part with 102 number of observations and the use of factor analysis and regression analysis, thedeterminants of these factors were identified. This research project has empirically presented that internal andexternal factors are important for the achievement of OTOP enterprises as perceived by OTOP entrepreneurs.
Accordingly, this study has gathered the arguments of other researchers in the literature that both internal andexternal factors which contribute to be the successful determinants of small business also generate benefits for theOTOP business. On the other hand, the consequences of the study reveal that the external factors are more
important than that of the internal ones in granting success to OTOP business in the rural areas. It indicates thatinternal factors are necessary, but not sufficient for the business success of the OTOP entrepreneurs.

Publication of the Results of Research Project:
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
Endogenous Regional Development: The Case of One Tambol One Product in the Lower North of Thailand ,Location Quotient Analysis
The 32nd International Academic Conference, Geneva organized by the International Institute of Social andEconomic Sciences in 27 June 2017 to 30 June 2017 in Geneva, Switzerland.

Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)

Book (Publisher and Date of the Book, Title and Author of the Book, etc.)