Research Reports
A Case Study on Evaluation of Rural Community Business
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AuthorLee, Hansung
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Publication Date2012.12.30
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Original
It is generally accepted that community business can be a new growth engine to solve the difficulties of rural area in Korea. A variety of community business have already been formed and run in some rural areas before community business is widely discussed with policy interest. Since the concept of rural community business was built based on a practical viewpoint, a case study should be more useful for seeking practical ways to solve the rural problems than a theoretical study. This study aims to derive the implications for the policy of rural community business through analyzing several cases. It examines business characteristics through analyzing success factors and obstacles of the cases.
Six cases were selected among the villages or businesses in Kyungsang Province supported by the policy programs of the Ministry for Food, Agriculture, Forestry and Fishery, that is, Comprehensive Rural Community Development Program, Rural Community Industrialization Support Program, and Rural Community Enterprise Support Program. Current situation and characteristics were examined for these six rural community businesses, and SETCB Model, which is Sustainable Experience Tourism Community Business Model was used for structural analysis. On the basis of the survey results, six cases were classified into three pairs in terms of their business structure. Implications were derived and future directions were proposed regarding rural community business policy, through analyzing similarities and differences between the pair.
Conclusions of the study are summarized as follows. First of all, systemized organization for a community business is necessary to vitalize the depressed rural community, and it is suitable means considering the homogeneity and equality which are characteristics of rural community in Korea. Second, unique regional resources need to be fully utilized for community business to be successful. It is a strategy of differentiation compared to other regions. Creative efforts and ideas are also needed. Third, rural community business can be a motive for the groundbreaking change to a region. Fourth, there exists an able and passionate leader in the story of successful rural community business. Fifth, although most of rural community business are not so profitable yet, its regional development effects are meaningful in other parts.
Policy implications are derived from the results of the study. First, the residents involved in rural community business tend to neglect agriculture which is the root of rural community business, paying too much attention to manufacturing business or service business. Policy measures are needed to boost rural residents’ recognition that agriculture and rural area have inestimable value. Second, one of the most important competitiveness of a region is regionality itself, to be more specific it is the region’s resources. Central and local government need to help the rural residents dig out the region’s competitive resources and develop them into rural community business items. Third, a measure need to be reviewed in case when participants detach themselves from the community business due to death or other reasons. This is important issue because rural community is highly aging society. Fourth, the stable link system is necessary that local farms supply raw agricultural products to community business so that local farms participate widely in the business. Local governments are expected to play a role as a middle supporting organization in this issue. Fifth, measures need to be reviewed to cope with the deterioration of facilities and raise the common fund for maintenance and administration fee.
Researchers: Han-Sung Lee, Sang-Hak Lee, and Seung-Won Yoon
Research Period: 2012. 6. ~ 2012. 10.
E-mail Address: star@pusan.ac.kr
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