Volume 2(2013)

PAGE 1/10

Potential Development of Market for Entrepreneurs:
A Case Study of Scented-Candle Product Entrepreneurship
in Chiang Mai Province, Thailand

Pajongsak Moudsong

Deputy Dean of Faculty of Social Sciences, Srinakharinwirot University, Bangkok, Thailand

Abstract

This study focuses on five primary objectives: 1) studying individual data, characteristics of enterprises, and factors attracting entrepreneurs for scented-candle products in Chiang Mai Province; 2) studying the data concerning the present market of SMEs for the product; 3) studying the individual data and viewpoints of consumers towards the product; 4) studying consumers’ behavior and trends of behavior for the product; and 5) determining the trends of potential development of the market for scented-candle products by SMEs in Chiang Mai Province. The results relating to entrepreneurs revealed that the products enjoyed continuous development by offering shopkeepers a variety of products, and had great demand from overseas markets. Most of the entrepreneurs were SMEs with a family history of entrepreneurship. The most direct way to boost their sales was conducted by regularly launching sales promotion events around the country. The results concerning consumers revealed that gender, age, income and purpose of purchase had the most influence on their purchasing behavior.

Keywords: Chiang Mai; entrepreneur; SMEs; market development; scented-candle consumer behavior

Introduction

Small and Medium Size Enterprises (SMEs) comprise an important component of the Thai economy, accounting for 99% of overall business in 2006. They fulfilled an important role as the basic structure for sustainable development, a principle mechanism for economic recovery, increasing GDP and solving problems of poverty. The data portrays the vital role of SMEs in the Thai economy such as providing employment for over 77% of the national work force. SMEs also contributed approximately 39% of value added Gross Domestic Product (GDP). The direct export value of goods produced by SMEs accounted for over 29% of national production. Most of the enterprises were clustered in the city centers of each region of Thailand, with 397,129 SMEs in the northern region, accounting for approximately 17.5% of all SMEs in the country. Chiang Mai boasted the highest number of SMEs with 71,813 enterprises distributed across 24 districts of the province (Office of Small and Medium Enterprises Promotion, 2006).