Development base of the strength and sustainable financial foundation of the members in community (village) funds, Makham District, Chanthaburi Province, which affected the development of their own community funds.

Abstract

The purposes of this research were ; 1) to study factors that affecteda strength and sustainable financial foundation of the members in community (village) funds, Makham District, Chanthaburi Province;  2) to study factors that affected the development of their own community funds;  3) to study the measurement index of a strength and sustainable financial foundation factors;  4) to study the measurement index of the development of their own community funds factors; 5) and to create a strength and sustainable financial foundation factors that may enable the development of their own community funds.

            The sampling of 2 groups consist of 294 administrative committees and 294 community members from 59 community funds in Makham District, Chanthaburi Province are employed. The questionnaire is employed for data collection and then the data analysis is conducted by calculation of percentage, arithmetic average, standard deviation, Stepwise Multiple Regression Analysis and Pearson correlation. The findings for study are concluded as the following.

            This research revealed that financial strength of the community fund members, sufficiency economy implication of community fund members, the management of welfare and financial benefits from community funds, the transfer of knowledge and understanding of community fund policies to all members, the participation and provide the assistance to all problem between community members, the exchange learns and relaying the knowledge and the folk wisdom between community members, the ability in the administration of community leader and threat from narcotic, the crime, and other danger menaces, can be used as measurement index and predictive factors (R²= .973)  for a strength and sustainable financial foundation of the members in community funds. The predictive mathematical model for a strength and sustainable financial foundation of the members in community funds is illustrated as the following

Y’ =  0.238 a + 0.213 b+ 0.355 c+ 0.337 d + 0.251 e + 0.303 f +0.302 g + 0.230 h

while

Y’= a strength and sustainable financial foundation of the members in community funds.

a = the financial strength of the community fund members

b =  the sufficiency economy implication of community fund members

c =   the management of welfare and financial benefits from community funds

d =  the transfer of knowledge and understanding of community fund policies to all        member

e = the participation and providing the assistance to all problem between community members

f =   the exchange learns and relaying the knowledge and the folk wisdom between community members

g =   the ability in the administration of the community leader

h = the threat from narcotic, crime, and other danger menaces

                Furthermore, economic fluctuations which affecting savings / income / expenditure, participation of community fund members and financial management abilities of community funds committees are the key factors affecting the development of their own community funds. The predictive mathematical model (R²= .888) for the strength development of the community funds is illustrated as following

Z’= 0.385 x + 0.542 y + 0.578 z

while

Z’= the potential and strength development of the community funds

x  =the participation of community fund members

y  =the financial management abilities of community funds committees

z  =the economic fluctuations which affected savings / income / expenditure

            In conclusion, the strength and sustainable financial foundation of the members in community funds will enable the community fund to have the latency and financial strength in term of the circulating fund that have liquidity increases, the increasing working capital, the increasing of investment for assets, the increasing loaning fund, the increasing of membership benefits and welfare, the increasing of income and profits for the community fund and increasing of more reserves for the hedge fund. (at the 0.01 level of significance).

            Finally, results of the study disclosed that the potential and strength of  the community funds will affect to the financial foundation of the members in community in term of increasing circulating fund for expenditure in the household living, reducing liabilities, adding and accumulating savings account, household occupation supporting, increasing of investment in assets, increasing in revenue, reduce expenditures, creating welfare and the availability of emergency funds for household living (at the 0.01 level of significance).

            Results from this qualitative research disclosed that the financial strength foundation of the community fund members was a source of working capital, reduced the high interest from the usury debt and increased their saving account. The strength of the community funds also, that was the result of member’s cooperative and responsibility for repayment. And their savings results an increasing savings and insurance funds every year.